Las Vegas-based Everi Holdings said Tuesday the company extended its contract with the New York Lottery for 10 additional years, pushing its agreement to provide a video lottery central system through September 2029.
Everi’s central system currently monitors and administers more than 17,000 Video Lottery Terminals installed at nine racetrack facilities across New York State. As for financial terms, Everi said it will continue to earn a fixed percentage of the net revenue generated by the installed VLTs.
Macquarie Securities gaming analyst Chad Beynon said extending the New York lottery contract, “removes a slight overhang, as this was the only major contract up for renewal.”
Beynon said Everi’s activity over the past few weeks, including its “tuck-in acquisition” of self-service casino loyalty and marketing products provider Micro Gaming Technologies (MGT), and a $107 million equity raise to pay down debt, were both positive events.
Along with the New York contract extension, Beynon told investors “all of these factors should support Everi’s multiple going forward.”
Shares of Everi closed Tuesday on the New York Stock Exchange at $12.72, down 3 cents or 0.24%.
New York State Gaming Commission Executive Director Robert Williams said video lottery gaming has provided “a consistent source of funding for education in New York” and distributed more than $250 billion in prizes.
“Through the management of their central system, Everi has been a contributor to that success as a valued technological partner,” Williams said. “We are looking forward to continuing our collaboration with the company for the next 10 years.”
Everi CEO Mike Rumbolz said Everi has overseen more than 150 billion individual player transactions since launching operation of the central system.
#newsroom – Everi and New York Lottery extend central server system contract through 2029. –@howardstutz, CDC Gaming Reports. https://t.co/2Q46zMEkS9 @everi_inc @newyorklottery #CDCgaming
— CDC Gaming Reports (@CDCNewswire) January 15, 2020
“We are honored to be selected by New York State to continue to support the success of their video lottery gaming enterprise,” Rumbolz said.
Everi Senior Vice President Keith Riggs said the company won the contract extension through a competitive bid process.
“We are proud to have been awarded the contract and to have the opportunity to continue to put forth a trusted and reliable platform that serves as an important source of revenue for New York State,” Riggs said.
Howard Stutz is the executive editor of CDC Gaming Reports. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
