GOODS & SERVICES
EVERI TO ACQUIRE VIDEO KING
Everi Holdings Inc . announced that it has entered into a purchase agreement to acquire certain assets of VKGS LLC — known as Video King , a privately owned leading provider of integrated electronic bingo gaming tablets , video gaming content , instant win games and systems , for cash consideration of approximately $ 59 million to be paid at closing , subject to customary net working capital adjustments .
Everi expects to complete the transaction within 60 days , subject to customary closing conditions . The acquisition , which will include the majority of Video King ’ s assets , will be funded from existing cash on hand and is expected upon closing to be immediately additive to the company ’ s adjusted EBITDA and free cash flow .
The acquisition is expected to provide Everi with complementary assets and an established customer base to enable additional growth in its games segment . Currently licensed in approximately 60 jurisdictions , Video King is expected to expand the addressable market for Everi ’ s player-popular digital gaming content .
Subject to regulatory requirements , an estimated 20 percent of Video King ’ s installed base of portable e-gaming tablets may be enabled to provide players with traditional bingo games and Class II video poker , slots and instant win games , as well as with a digital wallet and loyalty products .
Video King generated revenue of more than $ 25 million in 2022 , primarily from recurring revenues generated by an installed base of more than 50,000 portable electronic bingo tablets in tribal casinos , commercial casinos , charitable bingo halls , military bases and cruise lines , as well as from the sale of traditional bingo equipment and consumable products .
“ Over the past several years , we have had great success with executing on acquisitions that grow our product capabilities and the markets we serve ,” said Randy Taylor , chief executive officer of Everi . “ During this time , we have established a track record of successfully scaling up acquisitions that have delivered an attractive return on investment and helped drive strong cash flow .
“ We are highly confident that by helping to elevate our current games , fintech and digital solutions
with and adjacent to our established customer base , the acquisition of Video King will meet those same criteria and offer Everi another lever for growth .”
“ Video King provides Everi with an expansive new channel to deploy our growing catalog of digital iGames , as well as enhance the player experience by incorporating our digital wallet and loyalty products , while adding a new source to generate recurring revenue ,” said Tim Richards , Everi executive vice president , chief strategy and digital officer .
“ With an expanding demographic audience looking to engage in increased social and leisure activities , we see a significant opportunity to collaborate with the Video King team to develop new gaming content and play enhancements to optimize player engagement and drive increased customer traffic .”
“ We are confident that as part of Everi , Video King will be in a very strong position to expand our product offerings to provide our longtime loyal customer base new , enhanced games for our tribal , charitable and military markets ,” said Tim Stuart , chief executive officer and co-founder of Video King .
“ The combination of Everi ’ s games and other digital offerings with our strong electronic bingo base creates a unique opportunity to accelerate future growth .”
LIGHT & WONDER SIGNS CANADIAN DISTRIBUTION AGREEMENT
G
aming supplier Light & Wonder , Inc . has agreed to a new deal with ReelPlay to deliver its games to the British Columbia Lottery Corporation ( BCLC ) for the first time .
ReelPlay ’ s global smash Hypernova Megaways is the first game launched , and will be followed by more content as the agreement expands into new regulated markets .
ReelPlay debuted Hypernova Megaways in Europe in 2018 and added to the franchise with successful follow-ups Atlantis Megaways and Big Bucks Bandit Megaways . With slot games widely licensed across regulated operators globally , ReelPlay has since launched its Infinity Reels series of games and most recently 10K Ways , which debuted with the hit 10,000 Wonders 10K Ways .
The deployment extension into BCLC demonstrates Light & Wonder ’ s support of independent studios such as ReelPlay .
“ Having worked closely with ReelPlay for many years , we fully expect their extended distribution into BCLC to be a success for all parties and look forward to future ReelPlay releases across our net- work ,” said Steve Mayes , digital partnerships director at Light & Wonder .
David Johnson , CEO of ReelPlay , added , “ Hypernova Megaways is one of the top-performing slot games across the regulated North American markets . Proudly first to market with innovative and inspirational concepts , ReelPlay is very excited to see the game arrive in another regulated market via our partners at Light & Wonder and expect the tri-party relationship to really flourish after this debut release .”
IGT , GIFT & GO ANNOUNCE AGREEMENT
Through an agreement with U . K . -based Gift & Go , casino operators using International Game Technology ’ s Advantage casino management system can offer players promotional gifts redeemable through Amazon Business .
IGT recently announced an agreement with the U . K . -based business-to-business gifting technology platform Gift & Go , allowing casino operators using IGT ’ s Advantage casino management system to add Gift & Go ’ s on-demand gifting platform to slot machines , service windows or secondary displays .
In a statement , IGT Senior Vice President Global Video Poker , VLT , Systems and Payments Ryan Reddy said , “ IGT ’ s agreement with Gift & Go can provide incremental value to our IGT Advantage system customers by enabling players to get items from Amazon Business through casino loyalty club gifting programs .
“ We view this as a great way to enhance our systems solutions offering while helping our customers reduce product storage demands , labor requirements and capital allocations through a convenient and modern experience for their guests .”
Gift & Go Co-Chief Executive Officer Jon Reuben added , “ Through our agreement with IGT , Gift & Go can integrate with the widely deployed IGT Advantage casino management system and help a diverse spectrum of casino operators significantly enhance their loyalty and continuity club gifting programs , which can help increase revenue and reduce player walk rate . The proven Gift & Go platform helps casino operators maximize player retention and replace legacy processes with automation , personalization and convenience that players genuinely appreciate .”
50 Global Gaming Business MAY 2023