Everi (EVRI) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 01, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	Everi Holdings Inc.
Entity Central Index Key	1,318,568
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		68,962,596
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	EVRI

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Revenues
Revenues		$ 111,001	$ 237,537
Costs and expenses
Total cost of revenues		86,510
Operating expenses		32,187	28,993
Research and development		4,311	4,543
Depreciation		12,825	10,830
Amortization		16,303	17,325
Total costs and expenses		86,510	214,934
Operating income		24,491	22,603
Other expenses
Interest expense, net of interest income		20,307	25,057
Total other expenses		20,307	25,057
Income (loss) before income tax		4,184	(2,454)
Income tax (benefit) provision		(425)	1,054
Net income (loss)		4,609	(3,508)
Foreign currency translation		323	272
Comprehensive income (loss)		$ 4,932	$ (3,236)
Earnings (loss) per share
Basic		$ 0.07	$ (0.05)
Diluted		$ 0.06	$ (0.05)
Weighted average common shares outstanding
Basic		68,686	66,090
Diluted		73,285	66,090
Games
Revenues
Revenues		$ 60,217	$ 55,276
Costs and expenses
Total cost of revenues	[1]	14,923	12,444
Operating expenses		12,007	10,608
Research and development		4,311	4,543
Depreciation		11,139	9,031
Amortization		13,484	13,858
Total costs and expenses		55,864	50,484
Operating income		4,353	4,792
Games | Gaming operations
Revenues
Revenues		40,056	36,531
Costs and expenses
Total cost of revenues		4,182	3,209
Games | Gaming equipment and systems
Revenues
Revenues		20,154	18,725
Costs and expenses
Total cost of revenues		10,741	9,235
Games | Gaming other
Revenues
Revenues		7	20
Payments
Revenues
Revenues		50,784	182,261
Costs and expenses
Total cost of revenues	[1]	5,961	140,799
Operating expenses		20,180	18,385
Depreciation		1,686	1,799
Amortization		2,819	3,467
Total costs and expenses		30,646	164,450
Operating income		20,138	17,811
Payments | Cash access services
Revenues
Revenues		38,218	171,735
Costs and expenses
Total cost of revenues		2,231	138,661
Payments | Equipment
Revenues
Revenues		4,419	2,299
Costs and expenses
Total cost of revenues		2,514	1,419
Payments | Information services and other
Revenues
Revenues		8,147	8,227
Costs and expenses
Total cost of revenues		$ 1,216	$ 719
[1]	Exclusive of depreciation and amortization.

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 132,645	$ 128,586
Settlement receivables	153,443	227,403
Trade and other receivables, net of allowances for doubtful accounts of $4,715 and $4,706 at March 31, 2018 and December 31, 2017, respectively	56,115	47,782
Inventory	24,709	23,967
Prepaid expenses and other assets	20,504	20,670
Total current assets	387,416	448,408
Non-current assets
Property, equipment and leased assets, net	118,031	113,519
Goodwill	640,571	640,589
Other intangible assets, net	315,419	324,311
Other receivables	6,564	2,638
Other assets	6,748	7,609
Total non-current assets	1,087,333	1,088,666
Total assets	1,474,749	1,537,074
Current liabilities
Settlement liabilities	242,901	317,744
Accounts payable and accrued expenses	138,187	134,504
Current portion of long-term debt	8,200	8,200
Total current liabilities	389,288	460,448
Non-current liabilities
Deferred tax liability	37,645	38,207
Long-term debt, less current portion	1,158,450	1,159,643
Other accrued expenses and liabilities	14,049	19,409
Total non-current liabilities	1,210,144	1,217,259
Total liabilities	1,599,432	1,677,707
Commitments and contingencies (Note 13)
Stockholders’ deficit
Common stock, $0.001 par value, 500,000 shares authorized and 93,832 and 93,120 shares issued at March 31, 2018 and December 31, 2017, respectively	94	93
Convertible preferred stock, $0.001 par value, 50,000 shares authorized and no shares outstanding at March 31, 2018 and December 31, 2017, respectively
Additional paid-in capital	288,718	282,070
Accumulated deficit	(237,186)	(246,202)
Accumulated other comprehensive income (loss)	71	(253)
Treasury stock, at cost, 24,888 and 24,883 shares at March 31, 2018 and December 31, 2017, respectively	(176,380)	(176,341)
Total stockholders’ deficit	(124,683)	(140,633)
Total liabilities and stockholders’ deficit	$ 1,474,749	$ 1,537,074

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowances for doubtful accounts	$ 4,715	$ 4,706
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	93,832,405	93,119,988
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	50,000,000	50,000,000
Convertible preferred stock, shares outstanding	0	0
Treasury stock, shares	24,888,000	24,883,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net income (loss)	$ 4,609	$ (3,508)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	29,129	28,155
Amortization of financing costs and discounts	905	1,672
(Gain) loss on sale or disposal of assets	(13)	436
Accretion of contract rights	2,057	2,002
Provision for bad debts	2,182	2,817
Deferred income taxes	(561)	626
Reserve for obsolescence	305	408
Stock-based compensation	2,350	1,412
Changes in operating assets and liabilities:
Settlement receivables	73,571	86,400
Trade and other receivables	(9,715)	4,423
Inventory	(1,157)	(3,739)
Prepaid and other assets	1,251	(3,358)
Settlement liabilities	(74,617)	(111,498)
Accounts payable and accrued expenses	2,456	25,161
Net cash provided by operating activities	32,752	31,409
Cash flows from investing activities
Capital expenditures	(26,339)	(17,184)
Proceeds from sale of fixed assets	72
Placement fee agreements	(4,643)	(3,044)
Net cash used in investing activities	(30,910)	(20,228)
Cash flows from financing activities
Repayments of credit facilities	(2,050)	(2,500)
Proceeds from exercise of stock options	4,088	5
Purchase of treasury stock	(38)	(7)
Net cash provided by (used in) financing activities	2,000	(2,502)
Effect of exchange rates on cash	147	307
Cash, cash equivalents and restricted cash
Net increase for the period	3,989	8,986
Balance, beginning of the period	129,604	119,438
Balance, end of the period	133,593	128,424
Supplemental cash disclosures
Cash paid for interest	15,206	8,243
Cash paid for income tax	67	575
Cash refunded for income tax	1	200
Supplemental non-cash disclosures
Accrued and unpaid capital expenditures	4,145	2,789
Accrued and unpaid placement fees	363
Transfer of leased gaming equipment to inventory	$ 1,897	$ 2,301

BUSINESS

BUSINESS	3 Months Ended
	Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
BUSINESS	1. BUSINESS Everi Holdings Inc. (“Everi Holdings,” “Holdings” or “Everi”) is a holding company, the assets of which are the issued and outstanding shares of capital stock of each of Everi Games Holding Inc. (“Everi Games Holding”), which owns all of the issued and outstanding shares of capital stock of Everi Games Inc. (“Everi Games” or “Games”) and Everi Payments Inc. (“Everi Payments” or “Payments”). Unless otherwise indicated, the terms the “Company,” “we,” “us” and “our” refer to Holdings together with its consolidated subsidiaries. Everi is a leading supplier of technology solutions for the casino gaming industry. We provide casino operators with a diverse portfolio of products including innovative gaming machines that power the casino floor, and casino operational and management systems that include comprehensive end-to-end payments solutions, critical intelligence offerings, and gaming operations efficiency technology. Everi Games provides a number of products and services for casinos, including (a) gaming machines comprised primarily of Class II and Class III slot machines placed under participation or fixed fee lease arrangements or sold to casino customers, including the award-winning TournEvent®; and (b) system software, licenses, ancillary equipment and maintenance to its casino customers. Everi Games also develops and manages the central determinant system for the video lottery terminals installed in the State of New York. Everi Payments provides its casino customers cash access and related products and services including: (a) access to cash at gaming facilities via Automated Teller Machine (“ATM”) cash withdrawals, credit card cash access transactions, point of sale (“POS”) debit card transactions and check verification and warranty services; (b) equipment that provides cash access and efficiency related services; (c) products and services that improve credit decision making, automate cashier operations and enhance patron marketing activities for gaming establishments; (d) compliance, audit and data solutions; and (e) online payment processing solutions for gaming operators in states that offer intrastate, internet-based gaming and lottery activities.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. Basis of Presentation Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three months ended March 31, 2018 are not necessarily indicative of results to be expected for the full fiscal year. The Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Other than the adoption of ASU 2014-09 and all subsequent amendments (collectively, ASC 606) and Accounting Standards Update (“ASU”) No. 2016-18, there have been no changes to our basis of presentation and significant accounting policies since the most recent filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Overall – Revenue Recognition We evaluate the recognition of revenue based on the criteria set forth in ASC 606 and ASC 840, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services in accordance with ASC 606. We enter into contracts with customers that may include various combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary, in accordance with ASC 606. We evaluate the composition of our revenues to ensure compliance with SEC Regulation S-X Section 210.5-03, which requires us to separately present certain categories of revenues that exceed the quantitative threshold on our Statements of Income (Loss). Significant Judgments ASC 606 requires that we apply judgments or estimates to determine the performance obligations and the Stand-Alone Selling Price (“SSP”) of each identified performance obligation. The establishment of SSP requires judgment as to whether there is a sufficient quantity of items sold or renewed on a stand-alone basis and those prices demonstrate an appropriate level of concentration to conclude that a SSP exists. The SSP of our goods and services are generally determined based on observable prices, an adjusted market assessment approach or an expected cost plus margin approach. We only utilize a residual approach when the SSP for performance obligations with observable prices have been established and the remaining performance obligation in the contract with a customer does not have an observable price as it is uncertain or highly variable and, therefore, is not discernable. Collectability To assess collectability, we determine whether it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services transferred to the customer in accordance with the terms and conditions of the contract. In connection with these procedures, we evaluate the customer using internal and external information available, including, but not limited to, research and analysis of the credit history with the customer. Based on the nature of our transactions and historical trends, we determine whether our customers have the ability and intention to pay the amounts of consideration when they become due to identify potentially significant credit risk exposure. Contract Combinations - Multiple Promised Goods and Services Our contracts may include promises to transfer multiple goods and services to a customer. Our Games and Payments businesses may enter into multiple agreements with the same customer that meet the criteria to be combined for accounting purposes under ASC 606. When this occurs, a SSP will be determined for each performance obligation in the combined arrangement and the consideration allocated between the respective performance obligations. We use our judgment to analyze the nature of the promises made and determine whether each is distinct or should be combined with other promises in the contract based on the level of integration and interdependency between the individual deliverables. Disaggregation of Revenues We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 18 — Outbound Freight Costs Upon transferring control of a good to a customer, the shipping and handling costs in connection with the transaction are accounted for as fulfillment costs and included in cost of revenues. Costs to Acquire a Contract with a Customer We typically incur incremental costs to acquire customer contracts in the form of sales commission expenses. We evaluate those acquisition costs for groups of contracts with similar characteristics, based on the nature of the transactions. The incremental costs to acquire customer contracts identified would be amortized within one year and, as a result, we elected to utilize the practical expedient set forth in ASC 340-40, Contract Costs – Incremental Costs of Obtaining a Contract Asset Balances In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit. Games Revenues Gaming Operations Games revenues are primarily generated by our gaming operations under development, placement and participation arrangements in which we provide our customers with player terminals, player terminal-content licenses, central determinant systems for devices placed in service in licensed jurisdictions and back-office equipment, collectively referred to herein as leased gaming equipment. We evaluate the recognition of lease revenues based on criteria set forth in ASC 840. Generally, under these arrangements, we retain ownership of the leased gaming equipment installed at customer facilities and we receive revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee based on the number of player terminals installed at the facility. Revenues from lease participation or daily fee arrangements are considered both realizable and earned at the end of each gaming day. Gaming operations revenues generated by leased gaming equipment deployed at sites under development or placement fee agreements give rise to contract rights, which are amounts recorded to intangible assets for dedicated floor space resulting from such agreements. The gaming operations revenues generated by these arrangements are reduced by the accretion of contract rights, which represents the related amortization of the contract rights recorded in connection with those agreements. Gaming operations revenues include revenues generated by Wide Area Progressive (“WAP”) systems, which consist of linked slot machines located in multiple casino properties that are connected to a central system. WAP-based gaming machines have a progressive jackpot we administer that increases with every wager until a player wins the top award combination. Casino operators pay us a percentage of the coin-in (the total amount wagered) for services related to the design, assembly, installation, operation, maintenance, administration and marketing of the WAP systems. The gaming operations revenues with respect to WAP-based gaming machines are presented in the Statement of Income (Loss) net of the jackpot expense, which is comprised of incremental amount funded by a portion of the coin-in from players. At such time a jackpot is won by a player, an additional jackpot expense is recorded with respect to the base seed amount required to fund the minimum level required by the respective WAP arrangement with the casino operator. Gaming Equipment and Systems Gaming equipment and systems revenues are derived from the sale of gaming equipment to our customers under contracts on standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract. Gaming Other Gaming other revenues primarily consist of our TournEvent of Champions® national tournament and are recognized over a period of time as the customer simultaneously receives and consumes the benefits. Payments Revenues Cash Access Services Cash access services revenues are comprised of cash advance, ATM and check services revenue streams. We do not control the cash advance and ATM services provided to a customer and, therefore, we are acting as an agent whose performance obligation is to arrange for the provision of these services. Cash advance revenues are comprised of transaction fees assessed to gaming patrons in connection with credit card cash access and POS debit card cash access transactions. Such fees are based on a combination of a fixed amount plus a percentage of the face amount of the credit card cash access or POS debit card cash access transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners. ATM revenues are comprised of transaction fees in the form of cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals at the time the transactions are authorized and reverse interchange fees paid to us by the patrons’ issuing banks. The cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals are currently a fixed dollar amount and not a percentage of the transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners. Check services revenues are principally comprised of check warranty revenues and are generally based upon a percentage of the face amount of checks warranted. These fees are paid to us by gaming establishments. For cash access services arrangements, we recognize revenues over a period of time using an output method depicting the transfer of control to the customer based on variable consideration, such as volume of transactions processed with variability generally resolved in the reporting period. Equipment Equipment revenues are derived from the sale of equipment under contracts with standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract. Information Services and Other Information services and other revenues include amounts derived from the sale of: (i) software licenses, software subscriptions, professional services and certain other ancillary fees; (ii) service related fees associated with the sale, installation and maintenance of equipment directly to our customers under contracts on standard credit terms, which are generally short-term in nature, secured by the related equipment, (iii) credit worthiness related software subscription services that are based upon either a flat monthly unlimited usage fee or a variable fee structure driven by the volume of patron credit histories generated; and (iv) ancillary marketing, database and internet-based gaming related activities. Our software represents a functional right-to-use license and the revenues are recognized at a point in time. Subscription services represent a stand-ready performance obligation and the revenues are recognized over a period time using an input method based on time elapsed. Professional and other services revenues are recognized over a period time using an input method based on time elapsed as they are provided depicting the transfer of control to the customer. Restricted Cash Our restricted cash, which is included in prepaid expenses and other assets, primarily consists of: (i) deposits held in connection with a sponsorship agreement; (ii) WAP-related restricted funds; and (iii) Internet related cash access activities. The current portion of restricted cash was approximately $0.8 million and $0.9 million as of March 31, 2018 and December 31, 2017, respectively. The non-current portion of restricted cash was approximately $0.1 million as of March 31, 2018 and December 31, 2017. The current portion of restricted cash was approximately $0.5 million and $0.3 million as of March 31, 2017 and December 31, 2016, respectively. The non-current portion of restricted cash was approximately $0.1 million as of March 31, 2017 and December 31, 2016. Fair Values of Financial Instruments The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument. The carrying amount of cash and cash equivalents, settlement receivables, trade receivables, other receivables, settlement liabilities, accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (in thousands). Level of Hierarchy Fair Value Outstanding Balance March 31, 2018 Term loan 2 $ 820,686 $ 813,850 Senior unsecured notes 1 $ 381,859 $ 375,000 December 31, 2017 Term loan 2 $ 826,099 $ 815,900 Senior unsecured notes 1 $ 372,656 $ 375,000 The term loan facility was reported at fair value using a Level 2 input as there were quoted prices in markets that were not considered active as of March 31, 2018 and December 31, 2017. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of March 31, 2018 and December 31, 2017. Reclassification of Prior Year Balances Reclassifications were made to the prior-period Financial Statements to conform to the current period presentation, except for the adoption impact of the application of ASC 606 utilizing the modified retrospective transition method. Recent Accounting Guidance Recently Adopted Accounting Guidance In March 2018, the FASB issued ASU No. 2018-05, which provides guidance on accounting for the tax effects of the 2017 Tax Act (pursuant to SEC Staff Accounting Bulletin No. 118). The new standard is effective March 13, 2018. We have adopted this guidance in the current period. In accordance with this guidance, some of the income tax effects recorded in 2017 are provisional and they may be adjusted during 2018. In May 2014, the FASB issued ASU No. 2014-09, which creates ASC 606 and supersedes ASC Topic 605, “Revenue Recognition.” The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. The guidance in ASU 2014-09 was further updated by ASU 2016-08 in March 2016, which provided clarification on the implementation of the principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, which provides clarification on the implementation of performance obligations and licensing in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which amended guidance provided in two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting over various topics relating to ASU 606. In May 2016, the FASB issued ASU 2016-12, which clarified various topics in ASC 606. In December 2016, the FASB issued ASU 2016-20, which clarified additional topics in ASC 606. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We adopted this guidance effective January 1, 2018 and have provided additional information with respect to the new revenue recognition topic elsewhere in this Note 2 disclosure and also in “Note 3 — In May 2017, the FASB issued ASU No. 2017-09 to clarify which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. An entity is required to account for the effects of a modification unless all of the following conditions are met: (i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. We adopted this guidance in the current period. This ASU did not have a material impact on our Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a prospective approach as of the beginning of the first period of adoption. We adopted this guidance in the current period. This ASU did not have a material impact on our Financial Statements. In October 2016, the FASB issued ASU No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. We adopted this guidance in the current period using a retrospective approach to each period presented. This ASU did not have a material impact on our Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, which provides updated guidance on the recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, and this eliminates the exception for an intra-entity transfer of such assets. This guidance will be applied using a modified retrospective approach through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this guidance in the current period. This ASU did not have a material impact on our Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, which provides updated guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. This guidance will be applied using a retrospective approach. If it is impracticable to apply the amendments retrospectively for some of the issues within this ASU, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this guidance in the current period. As of March 31, 2018, the adoption of the ASU No. 2016-15 did not have a material impact on our Financial Statements. We anticipate a material impact on our future Financial Statements in connection with the presentation of debt prepayments and extinguishment costs incurred in the prior year periods. Recent Accounting Guidance Not Yet Adopted In February 2018, the FASB issued ASU No. 2018-02, which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our Financial Statements. We are currently evaluating the impact of adopting this guidance on our Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, which provides updated guidance on credit losses for financial assets measured at amortized cost basis and available-for sale debt securities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach for the cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective and using a prospective approach for debt securities for which any other-than-temporary impairment had been recognized before the effective date. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting this guidance on our Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, which provides guidance on the accounting treatment of leases. The ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are currently assessing the impact of this ASU on our Financial Statements, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our Balance Sheets, which will result in the recording of right of use assets and lease obligations.

ADOPTION OF ASC 606, REVENUE FR

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS	3 Months Ended
	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS	3. ADOPTION OF Change in accounting policies On January 1, 2018, we adopted ASC 606 using the modified retrospective method, which requires us to evaluate whether any cumulative adjustment is required to be recorded to retained earnings (or accumulated deficit) as a result of applying the provisions set forth under ASC 606 for any existing arrangements not yet completed as of the adoption date of January 1, 2018. We determined that there was an immaterial cumulative adjustment in the amount of approximately $4.4 million, which we recorded to accumulated deficit as of the adoption date as a result of applying the modified retrospective transition method. In addition, under the modified retrospective method, our prior period results were not recast to reflect the new revenue recognition standard. Except for the changes discussed with respect to revenue recognition, the impact of which is summarized in the tables below, we have consistently applied our accounting policies to all periods presented in our Financial Statements. Games revenues We previously reported certain costs incurred in connection with our WAP platform, consisting primarily of the WAP jackpot expenses, as cost of revenues. Under ASC 606, such costs are reflected as reductions to gaming operations revenues on a net basis. Payments revenues We previously reported costs and expenses related to our cash access services, which include commission expenses payable to casino operators, interchange fees payable to the network associations and processing and related costs payable to other third party partners, as a cost of revenues. Under ASC 606, such costs are reflected as reductions to cash access services revenues on a net basis. The following table presents the impact of the application of ASC 606 utilizing the modified retrospective transition method to certain line items on our Unaudited Condensed Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2018 (in thousands): Three Months Ended March 31, 2018 Without Adoption As reported Adjustments of ASC 606 Revenues Games revenues Gaming operations $ 40,056 $ 462 $ 40,518 Games total revenues 60,217 462 60,679 Payments revenues Cash access services 38,218 155,448 193,666 Equipment 4,419 (211 ) 4,208 Payments total revenues 50,784 155,237 206,021 Total revenues 111,001 155,699 266,700 Costs and expenses Games cost of revenues (1) Gaming operations 4,182 462 4,644 Games total cost of revenues 14,923 462 15,385 Payments cost of revenues (1) Cash access services 2,231 154,899 157,130 Equipment 2,514 (85 ) 2,429 Payments total cost of revenues 5,961 154,814 160,775 Total costs and expenses 86,510 155,276 241,786 Operating income 24,491 423 24,914 Income before income tax 4,184 423 4,607 Income tax benefit (425 ) — (425 ) Net income 4,609 423 5,032 Comprehensive income 4,932 423 5,355 (1) Exclusive of depreciation and amortization. The adoption of ASC 606 utilizing the modified retrospective transition method did not have a material impact to our Balance Sheets and Cash Flows as of and for the three months ended March 31, 2018.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
BUSINESS COMBINATIONS	4 . BUSINESS COMBINATIONS We account for business combinations in accordance with ASC 805, which requires that the identifiable assets acquired and liabilities assumed be recorded at their estimated fair values on the acquisition date separately from goodwill, which is the excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities. We include the results of operations of an acquired business as of the acquisition date. We had no material acquisitions for the three months ended March 31, 2018 and 2017.

FUNDING AGREEMENTS

FUNDING AGREEMENTS	3 Months Ended
	Mar. 31, 2018
A T M Funding Agreement Disclosure [Abstract]
FUNDING AGREEMENTS	5 . FUNDING AGREEMENTS Commercial Cash Arrangements We have commercial arrangements with third party vendors to provide cash for certain of our ATMs. For the use of these funds, we pay a cash usage fee on either the average daily balance of funds utilized multiplied by a contractually defined cash usage rate or the amounts supplied multiplied by a contractually defined cash usage rate. These cash usage fees, reflected as interest expense within the Statements of Income (Loss), were $1.7 million and $1.1 million for the three months ended March 31, 2018 and 2017, respectively. We are exposed to interest rate risk to the extent that the applicable rates increase. Under these agreements, the currency supplied by third party vendors remain their sole property until the funds are dispensed. As these funds are not our assets, supplied cash is not reflected in our Balance Sheets. The outstanding balances of ATM cash utilized by us from the third parties were $263.4 million and $289.8 million as of March 31, 2018 and December 31, 2017, respectively. The primary commercial arrangement, the Contract Cash Solutions Agreement, as amended, with Wells Fargo, N.A. Wells Fargo, provides us with cash in the maximum amount of $300.0 million with the ability to increase the amount by $75 million over a 5-day period for holidays, such as the period around New Year’s Day. The agreement currently expires on June 30, 2020. We are responsible for any losses of cash in the ATMs under this agreement, and we self‑insure for this risk. We incurred no material losses related to this self‑insurance for the three months ended March 31, 2018 and 2017. Site-Funded ATMs We operate ATMs at certain customer gaming establishments where the gaming establishment provides the cash required for the ATM operational needs. We are required to reimburse the customer for the amount of cash dispensed from these site-funded ATMs. The site-funded ATM liability included within settlement liabilities in the accompanying Balance Sheets was $166.2 million and $210.8 million as of March 31, 2018 and December 31, 2017, respectively. Everi-Funded ATMs We enter into agreements with customers for certain of our Canadian ATMs whereby we provide the cash required to operate the ATMs. We supplied approximately $5.0 million of our cash for these ATMs at March 31, 2018. Prefunded Cash Access Agreements Due to certain regulatory requirements, some international gaming establishments require prefunding of cash to cover all outstanding settlement amounts in order for us to provide cash access services to their properties. We enter into agreements with these operators for which we supply our cash access services for their properties. Under these agreements, we maintain sole discretion to either continue or cease operations as well as discretion over the amounts prefunded to the properties and may request amounts to be refunded to us, with appropriate notice to the operator, at any time. The initial prefunded amounts and subsequent amounts from the settlement of transactions are deposited into a bank account that is to be used exclusively for cash access services, and we maintain the right to monitor all transaction activity in that account. The total amount of prefunded cash outstanding was approximately $6.6 million and $8.4 million at March 31, 2018 and December 31, 2017, respectively, and is included in prepaid expenses and other assets on our Balance Sheets.

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
TRADE AND OTHER RECEIVABLES	6 . TRADE AND OTHER RECEIVABLES Trade and loans receivables represent short-term credit granted to customers as well as long-term loans receivable on our games, equipment and compliance products. Trade and loans receivables generally do not require collateral. The balance of trade and loans receivables consists of outstanding balances owed to us by gaming establishments. Other receivables include income taxes receivables and other miscellaneous receivables. The balance of trade and other receivables consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Trade and other receivables, net Games trade and loans receivables $ 43,603 $ 38,070 Payments trade and loans receivables (1) 17,411 10,780 Other receivables 1,665 1,570 Total trade and other receivables, net 62,679 50,420 Less: non-current portion of receivables Games trade and loans receivables (1,094 ) (1,267 ) Payments trade and loans receivables (1) (5,470 ) (1,371 ) Total non-current portion of receivables (6,564 ) (2,638 ) Total trade and other receivables, current portion $ 56,115 $ 47,782 (1) In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit. At least quarterly, we evaluate the collectability of the outstanding balances and establish a reserve for the face amount of the expected losses on our receivables. The allowance for doubtful accounts for trade receivables was $4.7 million as of March 31, 2018 and December 31, 2017 and includes reserves for both Games and Payments receivables. The provision for doubtful accounts is generally included within operating expenses in the Statements of Income (Loss). We also have a provision for doubtful accounts specifically associated with our outstanding check warranty receivables, which is included within Payments cost of revenues in the Statements of Income (Loss). The outstanding balances of the check warranty and general reserves were $2.6 million and $2.1 million, respectively, as of March 31, 2018 and $2.7 million and $2.0 million, respectively, as of December 31, 2017.

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
INVENTORY	7. INVENTORY Our inventory primarily consists of component parts as well as work-in-progress and finished goods. The cost of inventory includes cost of materials, labor, overhead and freight. The inventory is stated at the lower of cost or net realizable value and accounted for using the FIFO method. Inventory consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Inventory Raw materials and component parts, net of reserves of $1,406 and $1,327 at March 31, 2018 and December 31, 2017, respectively $ 16,420 $ 18,782 Work-in-progress 2,855 985 Finished goods 5,434 4,200 Total inventory $ 24,709 $ 23,967

PREPAID AND OTHER ASSETS

PREPAID AND OTHER ASSETS	3 Months Ended
	Mar. 31, 2018
Prepaid Expense And Other Assets [Abstract]
PREPAID AND OTHER ASSETS	8 . PREPAID AND OTHER ASSETS Prepaid and other assets include the balance of prepaid expenses, deposits, debt issuance costs on our Revolving Credit Facility (defined herein), restricted cash and other assets. The current portion of these assets is included in prepaid and other assets and the non-current portion is included in other assets, both of which are contained within the Balance Sheets. The balance of the current portion of prepaid and other assets consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Prepaid expenses and other assets Deposits $ 7,656 $ 9,003 Prepaid expenses 9,326 6,426 Other 3,522 5,241 Total prepaid expenses and other assets $ 20,504 $ 20,670 The balance of the non-current portion of other assets consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Other assets Prepaid expenses and deposits $ 5,032 $ 4,103 Debt issuance costs of revolving credit facility 801 849 Other 915 2,657 Total other assets $ 6,748 $ 7,609

PROPERTY, EQUIPMENT AND LEASED

PROPERTY, EQUIPMENT AND LEASED ASSETS	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
PROPERTY, EQUIPMENT AND LEASED ASSETS	9 . PROPERTY, EQUIPMENT AND LEASED ASSETS Property, equipment and leased assets consist of the following (in thousands): At March 31, 2018 At December 31, 2017 Useful Life Accumulated Net Book Accumulated Net Book (Years) Cost Depreciation Value Cost Depreciation Value Property, equipment and leased assets Rental pool - deployed 2-4 $ 171,097 $ 86,922 $ 84,175 $ 162,319 $ 80,895 $ 81,424 Rental pool - undeployed 2-4 20,987 12,527 8,460 17,366 9,374 7,992 Cash access equipment 3 - 5 26,292 19,816 6,476 25,907 18,654 7,253 Leasehold and building improvements Lease Term 11,220 5,694 5,526 10,981 5,211 5,770 Machinery, office and other equipment 2-5 39,074 25,680 13,394 35,167 24,087 11,080 Total $ 268,670 $ 150,639 $ 118,031 $ 251,740 $ 138,221 $ 113,519 Depreciation expense related to property, equipment and leased assets totaled approximately $12.8 million and $10.8 million for the three months ended March 31, 2018 and 2017, respectively. There was no material impairment of our property, equipment and leased assets for the three months ended March 31, 2018 and 2017.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	10 . GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. The balance of goodwill was In accordance with ASC 350, we test goodwill at the reporting unit level, which are identified as operating segments or one level below, for impairment on an annual basis and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We test for impairment annually on a reporting unit basis, at the beginning of our fourth fiscal quarter, or more often under certain circumstances. The annual impairment test is completed using either: a qualitative Step 0 assessment based on reviewing relevant events and circumstances; or a quantitative Step 1 assessment, which determines the fair value of the reporting unit, using an income approach that discounts future cash flows based on the estimated future results of our reporting units and a market approach that compares market multiples of comparable companies to determine whether or not any impairment exists. If the fair value of a reporting unit is less than its carrying amount, we will use the Step 1 assessment to determine the impairment. No impairment was identified for our goodwill for the three months ended March 31, 2018 and 2017. Other Intangible Assets Other intangible assets consist of the following (in thousands): At March 31, 2018 At December 31, 2017 Weighted Average Remaining Life Accumulated Net Book Accumulated Net Book (years) Cost Amortization Value Cost Amortization Value Other intangible assets Contract rights under placement fee agreements 4 $ 57,231 $ 5,968 $ 51,263 $ 57,231 $ 3,910 $ 53,321 Customer contracts 6 51,175 44,269 6,906 51,175 43,638 7,537 Customer relationships 8 231,100 68,895 162,205 231,100 63,653 167,447 Developed technology and software 2 256,960 167,320 89,640 249,064 158,919 90,145 Patents, trademarks and other 4 29,046 23,641 5,405 29,046 23,185 5,861 Total $ 625,512 $ 310,093 $ 315,419 $ 617,616 $ 293,305 $ 324,311 Amortization expense related to other intangible assets was approximately $16.3 million and $17.3 million for the three months ended March 31, 2018 and 2017, respectively. We capitalized $8.6 million and $6.2 million of internal software development costs for the three months ended March 31, 2018 and 2017, respectively. We evaluate our other intangible assets for potential impairment in connection with our quarterly review process. There was no material impairment identified for any of our other intangible assets for the three months ended March 31, 2018 and 2017. We enter into placement fee agreements to secure a long-term revenue share percentage and a fixed number of player terminal placements in a gaming facility, for which the funding under placement fee agreements is not reimbursed. In return for the fees under these agreements, each facility dedicates a percentage of its floor space, or an agreed upon unit count, for the placement of our electronic gaming machines (“EGMs”) over the term of the agreement, generally 12 to 83 months, and we receive a fixed percentage or flat fee of those machines’ hold per day. Certain of the agreements contain EGM performance standards that could allow the respective facility to reduce a portion of our guaranteed floor space. Placement fees and amounts advanced in excess of those to be reimbursed by the customer for real property and land improvements are allocated to intangible assets and are generally amortized over the term of the contract, which is recorded as a reduction of revenue generated from the facility. In the past we have, and in the future, we may, by mutual agreement, amend these agreements to reduce our floor space at the facilities. Any proceeds received for the reduction of floor space are first applied against the intangible asset for that particular placement fee agreement, if any, and the remaining net book value of the intangible asset is prospectively amortized on a straight-line method over the remaining estimated useful life. We paid approximately $5.6 million in placement fees, including $1.0 million of imputed interest, to a customer for the three months ended March 31, 2018 and approximately $3.0 million in placement fees for the three months ended March 31, 2017.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	3 Months Ended
	Mar. 31, 2018
Payables And Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	1 1 . ACCOUNTS PAYABLE AND ACCRUED EXPENSES The following table presents our accounts payable and accrued expenses (in thousands): At March 31, At December 31, 2018 2017 Accounts payable and accrued expenses Trade accounts payable $ 72,545 $ 59,435 Placement fees (1) 22,691 22,328 Accrued interest 9,509 5,766 Deferred and unearned revenues 7,810 10,450 Cash access processing and related expenses 6,960 8,932 Payroll and related expenses 6,802 14,178 Accrued taxes 2,021 2,112 Other 9,849 11,303 Total accounts payable and accrued expenses $ 138,187 $ 134,504 (1) The total outstanding balance of the placement fee liability as of March 31, 2018 and December 31, 2017 was $33.9 million and $39.1 million, respectively. The remaining $11.2 million and $16.8 million of non-current placement fees as of March 31, 2018 and December 31, 2017, respectively, was included in other accrued expenses and liabilities in our Balance Sheets.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
LONG-TERM DEBT	1 2 . LONG-TERM DEBT The following table summarizes our outstanding indebtedness (in thousands): At March 31, At December 31, 2018 2017 Long-term debt Senior secured term loan $ 813,850 $ 815,900 Senior unsecured notes 375,000 375,000 Total debt 1,188,850 1,190,900 Less: debt issuance costs and discount (22,200 ) (23,057 ) Total debt after debt issuance costs and discount 1,166,650 1,167,843 Less: current portion of long-term debt (8,200 ) (8,200 ) Long-term debt, less current portion $ 1,158,450 $ 1,159,643 Refinancing On May 9, 2017 (the “Closing Date”), Everi Payments, as borrower, and Holdings entered into a credit agreement with the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent, swing line lender, letter of credit issuer, sole lead arranger and sole book manager (amended as described below, the “New Credit Agreement”). The New Credit Agreement provides for: (i) a $35.0 million, five-year senior secured revolving credit facility (the “New Revolving Credit Facility”); and (ii) an $820.0 million, seven-year senior secured term loan facility (the “New Term Loan Facility,” and together with the New Revolving Credit Facility, the “New Credit Facilities”). The fees associated with the New Credit Facilities included discounts of approximately $4.1 million and debt issuance costs of approximately $15.5 million. All borrowings under the New Revolving Credit Facility are subject to the satisfaction of customary conditions, including the absence of defaults and the accuracy of representations and warranties. The proceeds from the New Term Loan Facility incurred on the Closing Date were used to: (i) refinance: (a) Everi Payments’ existing credit facility with an outstanding balance of approximately $462.3 million with Bank of America, N.A., as administrative agent, collateral agent, swing line lender and letter of credit issuer, Deutsche Bank Securities Inc., as syndication agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc., as joint lead arrangers and joint book managers (the “Prior Credit Facility”); and (b) Everi Payments’ 7.25% Senior Secured Notes due 2021 in the aggregate original principal amount of $335.0 million (the “Refinanced Secured Notes”); and (ii) pay related transaction fees and expenses. In connection with the refinancing, we recorded a non-cash charge of approximately $14.6 million during the second quarter of 2017 related to the unamortized deferred financing fees and discounts related to the extinguished term loan under the Prior Credit Facility and the redeemed Refinanced Secured Notes. No prepayment penalties were incurred. On November 13, 2017 (the “Repricing Closing Date”), we entered into an amendment to the New Credit Agreement (the “First Amendment”) which, among other things, reduced the interest rate on the approximately $818.0 million then outstanding balance of the New Term Loan Facility, but did not change the maturity dates for the New Term Loan Facility or the New Revolving Credit Facility or the financial covenants or other debt repayments terms set forth in the New Credit Agreement. We incurred approximately $3.0 million of debt issuance costs and fees associated with the repricing of the New Term Loan Facility. New Credit Facilities The New Term Loan Facility matures seven years after the Closing Date and the New Revolving Credit Facility matures five years after the Closing Date. The New Revolving Credit Facility is available for general corporate purposes, including permitted acquisitions, working capital and the issuance of letters of credit. The interest rate per annum applicable to loans under the New Revolving Credit Facility is, at Everi Payments’ option, the base rate or the Eurodollar Rate (defined to be the London Interbank Offered Rate or a comparable or successor rate) (the “Eurodollar Rate”) plus, in each case, an applicable margin. The interest rate per annum applicable to the New Term Loan Facility also is, at Everi Payments’ option, the base rate or the Eurodollar Rate plus, in each case, an applicable margin. The Eurodollar Rate is reset at the beginning of each selected interest period based on the Eurodollar Rate then in effect; provided that, if the Eurodollar Rate is below zero, then such rate will be equal to zero plus the applicable margin. The base rate is a fluctuating interest rate equal to the highest of: (i) the prime lending rate announced by the administrative agent; (ii) the federal funds effective rate from time to time plus 0.50%; and (iii) the Eurodollar Rate (after taking account of any applicable floor) applicable for an interest period of one month plus 1.00%. Prior to the effectiveness of the First Amendment on the Repricing Closing Date, the applicable margins for both the New Revolving Credit Facility and the New Term Loan Facility were: (i) 4.50% in respect of Eurodollar Rate loans and (ii) 3.50% in respect of base rate loans. The applicable margins for the New Term Loan Facility from and after the effectiveness of the First Amendment on the Repricing Closing Date are: (i) 3.50% in respect of Eurodollar Rate loans and (ii) 2.50% in respect of base rate loans. Voluntary prepayments of the term loan and the revolving loans and voluntary reductions in the unused commitments are permitted in whole or in part, in minimum amounts as set forth in the New Credit Agreement governing the New Credit Facilities, with prior notice but without premium or penalty, except that certain refinancings of the term loans within six months after the Repricing Closing Date will be subject to a prepayment premium of 1.00% of the principal amount repaid. Subject to certain exceptions, the obligations under the New Credit Facilities are secured by substantially all of the present and subsequently acquired assets of each of Everi Payments, Holdings and the subsidiary guarantors party thereto including: (i) a perfected first priority pledge of all the capital stock of Everi Payments and each domestic direct, wholly owned material restricted subsidiary held by Holdings, Everi Payments or any such subsidiary guarantor; and (ii) a perfected first priority security interest in substantially all other tangible and intangible assets of Holdings, Everi Payments, and such subsidiary guarantors (including, but not limited to, accounts receivable, inventory, equipment, general intangibles, investment property, real property, intellectual property and the proceeds of the foregoing). Subject to certain exceptions, the New Credit Facilities are unconditionally guaranteed by Holdings and such subsidiary guarantors. The New Credit Agreement governing the New Credit Facilities contains certain covenants that, among other things, limit Holdings’ ability, and the ability of certain of its subsidiaries, to incur additional indebtedness, sell assets or consolidate or merge with or into other companies, pay dividends or repurchase or redeem capital stock, make certain investments, issue capital stock of subsidiaries, incur liens, prepay, redeem or repurchase subordinated debt, and enter into certain types of transactions with its affiliates. The New Credit Agreement governing the New Credit Facilities also requires Holdings, together with its subsidiaries, to comply with a consolidated secured leverage ratio. At March 31, 2018, our consolidated secured leverage ratio was 3.52 to 1.00, with a maximum allowable ratio of 5.00 to 1.00 (which maximum allowable ratio is reduced to 4.75 to 1.00 as of December 31, 2018, 4.50 to 1.00 as of December 31, 2019, 4.25 to 1.00 as of December 31, 2020, and 4.00 to 1.00 as of December 31, 2021 and each December 31 thereafter). We were in compliance with the covenants and terms of the New Credit Facilities as of March 31, 2018. Events of default under the New Credit Agreement governing the New Credit Facilities include customary events such as a cross-default provision with respect to other material debt. In addition, an event of default will occur if Holdings undergoes a change of control. This is defined to include the case where Holdings ceases to own 100% of the equity interests of Everi Payments, or where any person or group acquires a percentage of the economic or voting interests of Holdings’ capital stock of 35% or more (determined on a fully diluted basis). We are required to repay the New Term Loan Facility in an amount equal to 0.25% per quarter of the initial aggregate principal, with the final principal repayment installment on the maturity date. Interest is due in arrears on each interest payment date applicable thereto and at such other times as may be specified in the New Credit Agreement. As to any loan other than a base rate loan, the interest payment dates shall be the last day of each interest period applicable to such loan and the maturity date (provided, however, that if any interest period for a Eurodollar Rate loan exceeds three months, the respective dates that fall every three months after the beginning of such interest period shall also be interest payment dates). As to any base rate loan, the interest payment dates shall be last business day of each March, June, September and December and the maturity date. For the three months ended March 31, 2018, the New Term Loan Facility had an applicable weighted average interest rate of 5.05%. At March 31, 2018, we had $813.9 million of borrowings outstanding under the New Term Loan Facility and no borrowings outstanding under the New Revolving Credit Facility. We had $35.0 million of additional borrowing availability under the New Revolving Credit Facility as of March 31, 2018. Refinanced Senior Secured Notes In connection with entering into the New Credit Agreement, on May 9, 2017, Everi Payments redeemed in full all outstanding Refinanced Secured Notes in the aggregate principal amount of $335.0 million face value (plus accrued interest) of the Refinanced Secured Notes. As a result of the redemption, we recorded non-cash charges in the amount of approximately $1.7 million, which consisted of unamortized deferred financing fees of $0.2 million and discounts of $1.5 million. These fees were included in the total $14.6 million non-cash charge referred to above. Senior Unsecured Notes In December 2014, we issued $350.0 million in aggregate principal amount of 10.0% Senior Unsecured Notes due 2022 (the “2014 Unsecured Notes”) under an indenture (as supplemented, the “2014 Notes Indenture”), dated December 19, 2014, between Everi Payments (as successor issuer), and Deutsche Bank Trust Company Americas, as trustee. The fees associated with the 2014 Unsecured Notes included original issue discounts of approximately $3.8 million and debt issuance costs of approximately $14.0 million. In December 2015, we completed an exchange offer in which all of the unregistered 2014 Unsecured Notes were exchanged for a like amount of 2014 Unsecured Notes that had been registered under the Securities Act. In December 2017, we issued $375.0 million in aggregate principal amount of 7.50% Senior Unsecured Notes due 2025 (the “2017 Unsecured Notes”) under an indenture (the “2017 Notes Indenture”), dated December 5, 2017, among Everi Payments (as issuer), Holdings and certain of its direct and indirect domestic subsidiaries as guarantors, and Deutsche Bank Trust Company Americas, as trustee. Interest on the 2017 Unsecured Notes accrues at a rate of 7.50% per annum and is payable semi-annually in arrears on each June 15 and December 15, commencing on June 15, 2018. The 2017 Unsecured Notes will mature on December 15, 2025. We incurred approximately $6.1 million of debt issuance costs and fees associated with the issuance of the 2017 Unsecured Notes. On December 5, 2017, together with the issuance of the 2017 Unsecured Notes, Everi Payments satisfied and discharged the 2014 Notes Indenture relating to the 2014 Unsecured Notes. To effect the satisfaction and discharge, Everi Payments issued an unconditional notice of redemption to Deutsche Bank Trust Company Americas, as trustee, of the redemption in full on January 15, 2018 (the “Redemption Date”) of all outstanding 2014 Unsecured Notes under the terms of the 2014 Notes Indenture. In addition, using the proceeds from the sale of the 2017 Unsecured Notes and cash on hand, Everi Payments irrevocably deposited with the trustee funds sufficient to pay the redemption price of the 2014 Unsecured Notes of 107.5% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the Redemption Date (the “Redemption Price”), and irrevocably instructed the trustee to apply the deposited money toward payment of the Redemption Price for the 2014 Unsecured Notes on the Redemption Date. Upon the trustee’s receipt of such funds and instructions, along with an officer’s certificate of Everi Payments and an opinion of counsel certifying and opining that all conditions under the 2014 Notes Indenture to the satisfaction and discharge of the 2014 Notes Indenture had been satisfied, the 2014 Notes Indenture was satisfied and discharged, and In connection with the issuance of the 2017 Unsecured Notes and the redemption of the 2014 Unsecured Notes, in December 2017 we incurred a $37.2 million loss on extinguishment of debt consisting of a $26.3 million make-whole premium related to the satisfaction and redemption of the 2014 Unsecured Notes and approximately $10.9 million for the write-off of related unamortized debt issuance costs and fees. We were in compliance with the terms of the 2017 Unsecured Notes as of March 31, 2018.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	1 3 . COMMITMENTS AND CONTINGENCIES There were no material changes in our commitments under contractual obligations as compared to those disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. We are involved in various investigations, claims and lawsuits in the ordinary course of our business. In addition, various legal actions, claims and governmental inquiries and proceedings are pending or may be instituted or asserted in the future against us and our subsidiaries. Although the outcome of our legal proceedings cannot be predicted with certainty and no assurances can be provided, based upon current information, we do not believe the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, will have a material adverse impact on our financial position, liquidity or results of operations.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2018
Stockholders Equity Note [Abstract]
SHAREHOLDERS' EQUITY	1 4 . SHAREHOLDERS’ EQUITY Preferred Stock. Our amended and restated certificate of incorporation, as amended, allows our Board of Directors, without further action by stockholders, to issue up to 50,000,000 shares of preferred stock in one or more series and to fix the designations, powers, preferences, privileges and relative participating, optional, or special rights as well as the qualifications, limitations or restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences. As of March 31, 2018 and December 31, 2017, we had no shares of preferred stock outstanding. Common Stock. Subject to the preferences that may apply to shares of preferred stock that may be outstanding at the time, the holders of outstanding shares of common stock are entitled to receive dividends out of assets legally available at the times and in the amounts as our Board of Directors may from time to time determine. All dividends are non-cumulative. In the event of the liquidation, dissolution or winding up of Everi, the holders of common stock are entitled to share ratably in all assets remaining after the payment of liabilities, subject to the prior distribution rights of preferred stock, if any, then outstanding. Each stockholder is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Cumulative voting for the election of directors is not provided for. The common stock is not entitled to preemptive rights and is not subject to conversion or redemption. There are no sinking fund provisions applicable to the common stock. Each outstanding share of common stock is fully paid and non-assessable. As of March 31, 2018 and December 31, 2017, we had 93,832,405 and 93,119,988 shares of common stock issued, respectively. Treasury Stock. Employees may direct us to withhold vested shares of restricted stock to satisfy the minimum statutory withholding requirements applicable to their restricted stock vesting. We withheld from restricted stock awards 5,001 and 2,574 shares of common stock for the three months ended March 31, 2018 and 2017, respectively, at an aggregate purchase price of $38,400 and $7,475, respectively to satisfy the minimum applicable tax withholding obligations related to the vesting of such restricted stock awards.

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
WEIGHTED AVERAGE COMMON SHARES	1 5 . WEIGHTED AVERAGE COMMON SHARES The weighted average number of shares of common stock outstanding used in the computation of basic and diluted loss per share is as follows (in thousands): Three Months Ended March 31, 2018 2017 Weighted average shares Weighted average number of common shares outstanding - basic 68,686 66,090 Potential dilution from equity awards (1) 4,599 — Weighted average number of common shares outstanding - diluted (1) 73,285 66,090 (1) The potential dilution excludes the weighted average effect of equity awards to purchase 7.0 million shares of common stock at March 31, 2018 because the application of the treasury stock method, as required, makes them anti-dilutive. Company was in a net loss position for the three months ended March 31, 2017; therefore, potentially dilutive common shares were excluded as their effects would be anti-dilutive under the application of the treasury stock method. Equity awards to purchase approximately 15.7 million shares of common stock for the three months ended March 31, 2017 were excluded from the diluted net loss per share results.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
SHARE-BASED COMPENSATION	1 6 . SHARE-BASED COMPENSATION Equity Incentive Awards Our 2014 Equity Incentive Plan (as amended and restated effective May 23, 2017, the “Amended and Restated 2014 Plan”) and our 2012 Equity Incentive Plan (as amended, the “2012 Plan”) are used to attract and retain the best available personnel, to provide additional incentives to employees, directors and consultants and to promote the success of our business. The 2012 Plan was assumed in connection with our 2014 acquisition of Everi Games Holding and conformed to include similar provisions to those as set forth in the Amended and Restated 2014 Plan. Our equity incentive plans are administered by the Compensation Committee of our Board of Directors, which has the authority to select individuals who are to receive equity incentive awards and to specify the terms and conditions of grants of such awards, including, but not limited to, the vesting provisions and exercise prices. Generally, we grant the following award types with varying vesting provisions and expiration periods: (a) time-based options, (b) market-based options and (c) restricted stock. During the three months ended March 31, 2018, we granted restricted stock units (“RSUs”) to the independent members of our Board of Directors. Each RSU represents a contingent right to receive one share of common stock. The RSUs vest in equal installments on each of the first three anniversary dates of the grant and settle on the earliest of the following events: (i) March 7, 2028; (ii) the board member’s death; (iii) the occurrence of a Change in Control (as defined in the Amended and Restated 2014 Plan), subject to qualifying conditions; and (iv) the date that is six months following the board member’s separation from service, subject to qualifying conditions. A summary of award activity is as follows (in thousands): Stock Options Restricted Stock Restricted Stock Granted Awards Granted Units Granted Outstanding, December 31, 2017 19,131 74 — Granted — — 116 Exercised options or vested shares (712 ) (17 ) — Cancelled or forfeited (901 ) — — Outstanding, March 31, 2018 17,518 57 116 The maximum number of shares available for future equity awards, both under the Amended and Restated 2014 Plan and the 2012 Plan, is approximately 4.9 million shares of our common stock. There are no shares available for future equity awards under the 2005 Plan. Stock Options Our time-based stock options granted under our equity plans generally vest at a rate of 25% per year on each of the first four anniversaries of the option grant dates. These options expire after a ten-year period. We estimate forfeiture amounts based on historical patterns. Our market-based options granted in 2017 vest at a rate of 25% per year on each of the first four anniversaries of the grant date, provided that as of the vesting date for each vesting tranche, the closing price of our shares on the New York Stock Exchange is at least a specified price hurdle, defined as a 25% premium to the closing stock price on the grant date. If the price hurdle is not met as of the vesting date for a vesting tranche, then the vested tranche shall vest and become vested shares on the last day of a period of 30 consecutive trading days during which the closing price is at least the price hurdle. These options expire after a ten-year period. There were no time-based or market-based option awards granted during The fair values of our standard time-based options were determined as of the date of grant using the Black-Scholes option pricing model with the following assumptions: Three Months Ended March 31, 2017 Risk-free interest rate 2 % Expected life of options (in years) 6 Expected volatility 54 % Expected dividend yield — % The fair values of our market-based options were determined as of the date of grant using a lattice-based option valuation model with the following assumptions: Three Months Ended March 31, 2017 Risk-free interest rate 3 % Measurement period (in years) 10 Expected volatility 70 % Expected dividend yield — % The following table presents the options activity: Weighted Number of Weighted Average Average Life Aggregate Options Exercise Price Remaining Intrinsic Value (in thousands) (per share) (years) (in thousands) Outstanding, December 31, 2017 19,131 $ 5.34 6.4 $ 45,887 Granted — — Exercised (712 ) 6.02 $ 1,272 Canceled or forfeited (901 ) 5.52 Outstanding, March 31, 2018 17,518 $ 5.31 6.7 $ 32,443 Vested and expected to vest, March 31, 2018 15,987 $ 5.35 6.7 $ 29,075 Exercisable, March 31, 2018 9,147 $ 6.14 5.8 $ 11,285 There were no options and 4.0 There was $6.4 million in unrecognized compensation expense related to options expected to vest as of March 31, 2018. This cost is expected to be recognized on a straight-line basis over a weighted average period of 3.1 years. We recorded $2.1 million in non-cash compensation expense related to options granted that were expected to vest as of March 31, 2018, including $0.5 million related to options accelerated for a former executive. We received $4.2 million in cash from the exercise of options for the three months ended March 31, 2018. There was $15.3 million in unrecognized compensation expense related to options expected to vest as of March 31, 2017. This cost was expected to be recognized on a straight-line basis over a weighted average period of 2.5 years. We recorded $1.3 million in non-cash compensation expense related to options granted that were expected to vest as of March 31, 2017. We received $8,554 in cash from the exercise of options for the three months ended March 31, 2017. Restricted Stock Awards The following is a summary of non-vested share awards for our time-based restricted stock: Weighted Shares Average Grant Outstanding Date Fair Value (in thousands) (per share) Outstanding, December 31, 2017 74 $ 7.00 Granted — — Vested (17 ) 6.98 Forfeited — — Outstanding, March 31, 2018 57 $ 7.01 There were no shares of restricted stock granted for the three months ended March 31, 2018 and 2017. The total fair value of restricted stock vested was $118,747 and $45,050 for the three months ended March 31, 2018 and 2017, respectively. There was $0.3 million in unrecognized compensation expense related to shares of time based restricted stock expected to vest as of March 31, 2018. This cost is expected to be recognized on a straight-line basis over a weighted average period of 0.8 years. There were 17,001 shares of restricted stock that vested and we recorded $0.2 million in non-cash compensation expense related to the restricted stock granted that was expected to vest during the three months ended March 31, 2018. There was $0.8 million in unrecognized compensation expense related to shares of time-based restricted shares expected to vest as of March 31, 2017. This cost was expected to be recognized on a straight-line basis over a weighted average period of 1.6 years. There were 9,405 shares of time-based restricted shares vested, and we recorded $0.1 million in non-cash compensation expense related to the restricted stock granted that was expected to vest during the three months ended March 31, 2017. Restricted Stock Units The following is a summary of non-vested RSU awards: Weighted Shares Average Grant Outstanding Date Fair Value (in thousands) (per share) Outstanding, December 31, 2017 — $ — Granted 116 7.80 Vested — — Forfeited — — Outstanding, March 31, 2018 116 $ 7.80 There were 116,326 shares of RSU awards granted for the three months ended March 31, 2018. There were no shares granted for the three months ended March 31, 2017. No RSU awards vested during the three months ended March 31, 2018 and 2017. There was $0.7 million in unrecognized compensation expense related to shares of time-based RSU awards expected to vest as of March 31, 2018. This cost is expected to be recognized on a straight-line basis over a weighted average period of 2.9 years. We recorded $17,359 of non-cash compensation expense related to RSU awards for the three months ended March 31, 2018.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	17. The income tax benefit reflected an effective income tax rate of negative 10.2% for the three months ended March 31, 2018, which was less than the statutory federal rate of 21.0%, primarily due to a decrease in our valuation allowance for deferred tax assets and the benefit from a research credit. The decrease in our valuation allowance of approximately $1.3 million is primarily due to the current quarter income and the interest deduction limitation (deferred tax asset) which can be offset against our indefinite lived deferred tax liabilities. The income tax provision reflected an effective income tax rate of negative 43.0% for the three months ended March 31, 2017, which was less than the statutory federal rate of 35.0%, primarily due to an increase in our valuation allowance for deferred tax assets, partially offset by the lower foreign tax rate applicable to our foreign source income, state taxes and the benefit from a research credit. We have analyzed filing positions in all of the federal, state and foreign jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. As of March 31, 2018, we recorded $0.9 million of unrecognized tax benefits, all of which would impact our effective tax rate, if recognized. We do not anticipate that our unrecognized tax benefits will materially change within the next 12 months. We have not accrued any penalties and interest for our unrecognized tax benefits. Other than the unrecognized tax benefit recorded, we believe that our income tax filing positions and deductions will be sustained upon audit, and we do not anticipate any other adjustments that will result in a material change to our financial position. We may, from time to time, be assessed interest or penalties by tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. Our policy for recording interest and penalties associated with audits and unrecognized tax benefits is to record such items as a component of income tax in our Statements of Income (Loss) and Comprehensive Income (Loss). On December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Cut and Jobs Act of 2017 (the “2017 Tax Act”). SAB 118 was added to the FASB codification in March 2018 with the issuance of ASU 2018-05. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting under Accounting Standards Codification Topic 740 Income Taxes In accordance with the SAB 118 guidance, some of the income tax effects recorded in 2017 are provisional, including the one-time transition tax, the effect on our valuation allowance including the stricter limits on interest deductions, and the remeasurement of our deferred tax assets and liabilities. In addition, we are still evaluating the Global Intangible Low-Taxed Income provisions of the 2017 Tax Act and its impact, if any, on our Financial Statements. The accounting for these income tax effects may be adjusted during 2018 as a result of continuing analysis of the 2017 Tax Act; additional implementation guidance from the IRS, state tax authorities, the SEC, the FASB, or the Joint Committee on Taxation; and new information from domestic or foreign equity affiliates. As of March 31, 2018, we have not finalized our analysis of these provisional amounts.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
SEGMENT INFORMATION	1 8 . SEGMENT INFORMATION Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-making group in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group consists of the Chief Executive Officer and the Chief Financial Officer. This group manages the business, allocates resources and measures profitability based on our operating segments. Our operating segments are managed and reviewed separately, as each represents products that can be sold separately to our customers. Our chief operating decision-making group has determined the following to be the operating segments for which we conduct business: (a) Games and (b) Payments. We have reported our financial performance based on our segments in both the current and prior periods. Each of these segments is monitored by our management for performance against our internal forecast and is consistent with our internal management reporting. • The Games segment provides solutions directly to gaming establishments to offer their patrons gaming entertainment-related experiences including: leased gaming equipment; sales and maintenance related services of gaming equipment; gaming systems; and ancillary products and services. • The Payments segment provides solutions directly to gaming establishments to offer their patrons cash access-related services and products, including: access to cash at gaming facilities via ATM cash withdrawals, credit card cash access transactions and POS debit card cash access transactions; check-related services; equipment and maintenance services; compliance, audit and data software; casino credit data and reporting services and other ancillary offerings. Corporate overhead expenses have been allocated to the segments either through specific identification or based on a reasonable methodology. In addition, we record depreciation and amortization expenses to the business segments. Our business is predominantly domestic with no specific regional concentrations and no significant assets in foreign locations. The accounting policies of the operating segments are generally the same as those described in the summary of significant accounting policies. Since we adopted ASC 606 utilizing the modified retrospective method, the prior year comparative amounts shown in the tables below have not been restated. The following tables present segment information (in thousands): For the Three Months Ended March 31, 2018 2017 Games Revenues Gaming operations $ 40,056 $ 36,531 Gaming equipment and systems 20,154 18,725 Gaming other 7 20 Total revenues 60,217 55,276 Costs and expenses Cost of revenues (1) Gaming operations 4,182 3,209 Gaming equipment and systems 10,741 9,235 Gaming other — — Games total cost of revenues 14,923 12,444 Operating expenses 12,007 10,608 Research and development 4,311 4,543 Depreciation 11,139 9,031 Amortization 13,484 13,858 Total costs and expenses 55,864 50,484 Operating income $ 4,353 $ 4,792 (1) Exclusive of depreciation and amortization. For the Three Months Ended March 31, 2018 2017 Payments Revenues Cash access services $ 38,218 $ 171,735 Equipment 4,419 2,299 Information services and other 8,147 8,227 Total revenues 50,784 182,261 Costs and expenses Cost of revenues (1) Cash access services 2,231 138,661 Equipment 2,514 1,419 Information services and other 1,216 719 Cost of revenues 5,961 140,799 Operating expenses 20,180 18,385 Depreciation 1,686 1,799 Amortization 2,819 3,467 Total costs and expenses 30,646 164,450 Operating income $ 20,138 $ 17,811 (1) Exclusive of depreciation and amortization. For the Three Months Ended March 31, 2018 2017 Total Games and Payments Revenues $ 111,001 $ 237,537 Costs and expenses Cost of revenues (1) 20,884 153,243 Operating expenses 32,187 28,993 Research and development 4,311 4,543 Depreciation 12,825 10,830 Amortization 16,303 17,325 Total costs and expenses 86,510 214,934 Operating income $ 24,491 $ 22,603 (1) Exclusive of depreciation and amortization. At March 31, At December 31, 2018 2017 Total assets Games $ 928,676 $ 925,186 Payments 546,073 611,888 Total assets $ 1,474,749 $ 1,537,074 Major Customers. For the three months ended March 31, 2018 and 2017, no single customer accounted for more than 10% of our revenues. Our five largest customers accounted for approximately 21% and 27% for the three months ended March 31, 2018 and 2017, respectively.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	19. SUBSEQUENT EVENTS As of the filing date, we had not identified, and were not aware of, any subsequent event for the period.

BASIS OF PRESENTATION AND SUM25

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our unaudited condensed consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Some of the information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair statement of results for the interim periods have been made. The results for the three months ended March 31, 2018 are not necessarily indicative of results to be expected for the full fiscal year. The Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. Other than the adoption of ASU 2014-09 and all subsequent amendments (collectively, ASC 606) and Accounting Standards Update (“ASU”) No. 2016-18, there have been no changes to our basis of presentation and significant accounting policies since the most recent filing of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017.
Overall – Revenue Recognition under ASC 606	Overall – Revenue Recognition We evaluate the recognition of revenue based on the criteria set forth in ASC 606 and ASC 840, as appropriate. We recognize revenue upon transferring control of goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services in accordance with ASC 606. We enter into contracts with customers that may include various combinations of goods and services. Timing of the transfer of control varies based on the nature of the contract. We recognize revenue net of any sales and other taxes collected from customers, which are subsequently remitted to governmental authorities and are not included in revenues or operating expenses. We measure revenue based on the consideration specified in a contract with a customer and adjusted, as necessary, in accordance with ASC 606. We evaluate the composition of our revenues to ensure compliance with SEC Regulation S-X Section 210.5-03, which requires us to separately present certain categories of revenues that exceed the quantitative threshold on our Statements of Income (Loss). Significant Judgments ASC 606 requires that we apply judgments or estimates to determine the performance obligations and the Stand-Alone Selling Price (“SSP”) of each identified performance obligation. The establishment of SSP requires judgment as to whether there is a sufficient quantity of items sold or renewed on a stand-alone basis and those prices demonstrate an appropriate level of concentration to conclude that a SSP exists. The SSP of our goods and services are generally determined based on observable prices, an adjusted market assessment approach or an expected cost plus margin approach. We only utilize a residual approach when the SSP for performance obligations with observable prices have been established and the remaining performance obligation in the contract with a customer does not have an observable price as it is uncertain or highly variable and, therefore, is not discernable. Collectability To assess collectability, we determine whether it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services transferred to the customer in accordance with the terms and conditions of the contract. In connection with these procedures, we evaluate the customer using internal and external information available, including, but not limited to, research and analysis of the credit history with the customer. Based on the nature of our transactions and historical trends, we determine whether our customers have the ability and intention to pay the amounts of consideration when they become due to identify potentially significant credit risk exposure. Contract Combinations - Multiple Promised Goods and Services Our contracts may include promises to transfer multiple goods and services to a customer. Our Games and Payments businesses may enter into multiple agreements with the same customer that meet the criteria to be combined for accounting purposes under ASC 606. When this occurs, a SSP will be determined for each performance obligation in the combined arrangement and the consideration allocated between the respective performance obligations. We use our judgment to analyze the nature of the promises made and determine whether each is distinct or should be combined with other promises in the contract based on the level of integration and interdependency between the individual deliverables. Disaggregation of Revenues We disaggregate revenues based on the nature and timing of the cash flows generated by such revenues as presented in “Note 18 — Outbound Freight Costs Upon transferring control of a good to a customer, the shipping and handling costs in connection with the transaction are accounted for as fulfillment costs and included in cost of revenues. Costs to Acquire a Contract with a Customer We typically incur incremental costs to acquire customer contracts in the form of sales commission expenses. We evaluate those acquisition costs for groups of contracts with similar characteristics, based on the nature of the transactions. The incremental costs to acquire customer contracts identified would be amortized within one year and, as a result, we elected to utilize the practical expedient set forth in ASC 340-40, Contract Costs – Incremental Costs of Obtaining a Contract Asset Balances In connection with the adoption of ASC 606 utilizing the modified retrospective transition method, we recorded an immaterial cumulative adjustment with respect to certain amounts that had been previously deferred under the then existing revenue recognition guidance as of December 31, 2017 that required recognition under ASC 606 as of the effective date of adoption in accumulated deficit. Games Revenues Gaming Operations Games revenues are primarily generated by our gaming operations under development, placement and participation arrangements in which we provide our customers with player terminals, player terminal-content licenses, central determinant systems for devices placed in service in licensed jurisdictions and back-office equipment, collectively referred to herein as leased gaming equipment. We evaluate the recognition of lease revenues based on criteria set forth in ASC 840. Generally, under these arrangements, we retain ownership of the leased gaming equipment installed at customer facilities and we receive revenues based on a percentage of the net win per day generated by the leased gaming equipment or a fixed daily fee based on the number of player terminals installed at the facility. Revenues from lease participation or daily fee arrangements are considered both realizable and earned at the end of each gaming day. Gaming operations revenues generated by leased gaming equipment deployed at sites under development or placement fee agreements give rise to contract rights, which are amounts recorded to intangible assets for dedicated floor space resulting from such agreements. The gaming operations revenues generated by these arrangements are reduced by the accretion of contract rights, which represents the related amortization of the contract rights recorded in connection with those agreements. Gaming operations revenues include revenues generated by Wide Area Progressive (“WAP”) systems, which consist of linked slot machines located in multiple casino properties that are connected to a central system. WAP-based gaming machines have a progressive jackpot we administer that increases with every wager until a player wins the top award combination. Casino operators pay us a percentage of the coin-in (the total amount wagered) for services related to the design, assembly, installation, operation, maintenance, administration and marketing of the WAP systems. The gaming operations revenues with respect to WAP-based gaming machines are presented in the Statement of Income (Loss) net of the jackpot expense, which is comprised of incremental amount funded by a portion of the coin-in from players. At such time a jackpot is won by a player, an additional jackpot expense is recorded with respect to the base seed amount required to fund the minimum level required by the respective WAP arrangement with the casino operator. Gaming Equipment and Systems Gaming equipment and systems revenues are derived from the sale of gaming equipment to our customers under contracts on standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract. Gaming Other Gaming other revenues primarily consist of our TournEvent of Champions® national tournament and are recognized over a period of time as the customer simultaneously receives and consumes the benefits. Payments Revenues Cash Access Services Cash access services revenues are comprised of cash advance, ATM and check services revenue streams. We do not control the cash advance and ATM services provided to a customer and, therefore, we are acting as an agent whose performance obligation is to arrange for the provision of these services. Cash advance revenues are comprised of transaction fees assessed to gaming patrons in connection with credit card cash access and POS debit card cash access transactions. Such fees are based on a combination of a fixed amount plus a percentage of the face amount of the credit card cash access or POS debit card cash access transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners. ATM revenues are comprised of transaction fees in the form of cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals at the time the transactions are authorized and reverse interchange fees paid to us by the patrons’ issuing banks. The cardholder surcharges assessed to gaming patrons in connection with ATM cash withdrawals are currently a fixed dollar amount and not a percentage of the transaction amount. In connection with these types of transactions, we report certain direct costs incurred as reductions to revenues on a net basis, which generally include: (i) commission expenses payable to casino operators; (ii) interchange fees payable to the network associations; and (iii) processing and related costs payable to other third party partners. Check services revenues are principally comprised of check warranty revenues and are generally based upon a percentage of the face amount of checks warranted. These fees are paid to us by gaming establishments. For cash access services arrangements, we recognize revenues over a period of time using an output method depicting the transfer of control to the customer based on variable consideration, such as volume of transactions processed with variability generally resolved in the reporting period. Equipment Equipment revenues are derived from the sale of equipment under contracts with standard credit terms, which are generally short-term in nature, and are recognized at a point in time when control of the promised goods and services transfers to the customer generally upon shipment or delivery pursuant to the terms of the contract. Information Services and Other Information services and other revenues include amounts derived from the sale of: (i) software licenses, software subscriptions, professional services and certain other ancillary fees; (ii) service related fees associated with the sale, installation and maintenance of equipment directly to our customers under contracts on standard credit terms, which are generally short-term in nature, secured by the related equipment, (iii) credit worthiness related software subscription services that are based upon either a flat monthly unlimited usage fee or a variable fee structure driven by the volume of patron credit histories generated; and (iv) ancillary marketing, database and internet-based gaming related activities. Our software represents a functional right-to-use license and the revenues are recognized at a point in time. Subscription services represent a stand-ready performance obligation and the revenues are recognized over a period time using an input method based on time elapsed. Professional and other services revenues are recognized over a period time using an input method based on time elapsed as they are provided depicting the transfer of control to the customer.
Restricted Cash	Restricted Cash Our restricted cash, which is included in prepaid expenses and other assets, primarily consists of: (i) deposits held in connection with a sponsorship agreement; (ii) WAP-related restricted funds; and (iii) Internet related cash access activities. The current portion of restricted cash was approximately $0.8 million and $0.9 million as of March 31, 2018 and December 31, 2017, respectively. The non-current portion of restricted cash was approximately $0.1 million as of March 31, 2018 and December 31, 2017. The current portion of restricted cash was approximately $0.5 million and $0.3 million as of March 31, 2017 and December 31, 2016, respectively. The non-current portion of restricted cash was approximately $0.1 million as of March 31, 2017 and December 31, 2016.
Fair Values of Financial Instruments	Fair Values of Financial Instruments The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value estimates are made at a specific point in time, based upon relevant market information about the financial instrument. The carrying amount of cash and cash equivalents, settlement receivables, trade receivables, other receivables, settlement liabilities, accounts payable and accrued expenses approximates fair value due to the short-term maturities of these instruments. The fair value of our borrowings is estimated based on various inputs to determine a market price, such as: market demand and supply, size of tranche, maturity and similar instruments trading in more active markets. The estimated fair value and outstanding balances of our borrowings are as follows (in thousands). Level of Hierarchy Fair Value Outstanding Balance March 31, 2018 Term loan 2 $ 820,686 $ 813,850 Senior unsecured notes 1 $ 381,859 $ 375,000 December 31, 2017 Term loan 2 $ 826,099 $ 815,900 Senior unsecured notes 1 $ 372,656 $ 375,000 The term loan facility was reported at fair value using a Level 2 input as there were quoted prices in markets that were not considered active as of March 31, 2018 and December 31, 2017. The senior unsecured notes were reported at fair value using a Level 1 input as there were quoted prices in markets that were considered active as of March 31, 2018 and December 31, 2017.
Reclassification of Prior Year Balances	Reclassification of Prior Year Balances Reclassifications were made to the prior-period Financial Statements to conform to the current period presentation, except for the adoption impact of the application of ASC 606 utilizing the modified retrospective transition method.
Recent Accounting Guidance	Recent Accounting Guidance Recently Adopted Accounting Guidance In March 2018, the FASB issued ASU No. 2018-05, which provides guidance on accounting for the tax effects of the 2017 Tax Act (pursuant to SEC Staff Accounting Bulletin No. 118). The new standard is effective March 13, 2018. We have adopted this guidance in the current period. In accordance with this guidance, some of the income tax effects recorded in 2017 are provisional and they may be adjusted during 2018. In May 2014, the FASB issued ASU No. 2014-09, which creates ASC 606 and supersedes ASC Topic 605, “Revenue Recognition.” The guidance replaces industry-specific guidance and establishes a single five-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers. The guidance in ASU 2014-09 was further updated by ASU 2016-08 in March 2016, which provided clarification on the implementation of the principal versus agent considerations in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, which provides clarification on the implementation of performance obligations and licensing in ASU 2014-09. In May 2016, the FASB issued ASU 2016-11, which amended guidance provided in two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting over various topics relating to ASU 606. In May 2016, the FASB issued ASU 2016-12, which clarified various topics in ASC 606. In December 2016, the FASB issued ASU 2016-20, which clarified additional topics in ASC 606. This guidance may be adopted retrospectively or under a modified retrospective method where the cumulative effect is recognized at the date of initial application. We adopted this guidance effective January 1, 2018 and have provided additional information with respect to the new revenue recognition topic elsewhere in this Note 2 disclosure and also in “Note 3 — In May 2017, the FASB issued ASU No. 2017-09 to clarify which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. An entity is required to account for the effects of a modification unless all of the following conditions are met: (i) the fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value (or value using an alternative measurement method) of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. We adopted this guidance in the current period. This ASU did not have a material impact on our Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, which clarifies the definition of a business. The amendments affect all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The new standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance will be applied using a prospective approach as of the beginning of the first period of adoption. We adopted this guidance in the current period. This ASU did not have a material impact on our Financial Statements. In October 2016, the FASB issued ASU No. 2016-18, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As a result, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. We adopted this guidance in the current period using a retrospective approach to each period presented. This ASU did not have a material impact on our Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, which provides updated guidance on the recognition of the income tax consequences of intra-entity transfers of assets other than inventory when the transfer occurs, and this eliminates the exception for an intra-entity transfer of such assets. This guidance will be applied using a modified retrospective approach through a cumulative-effective adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this guidance in the current period. This ASU did not have a material impact on our Financial Statements. In August 2016, the FASB issued ASU No. 2016-15, which provides updated guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. This guidance will be applied using a retrospective approach. If it is impracticable to apply the amendments retrospectively for some of the issues within this ASU, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this guidance in the current period. As of March 31, 2018, the adoption of the ASU No. 2016-15 did not have a material impact on our Financial Statements. We anticipate a material impact on our future Financial Statements in connection with the presentation of debt prepayments and extinguishment costs incurred in the prior year periods. Recent Accounting Guidance Not Yet Adopted In February 2018, the FASB issued ASU No. 2018-02, which provides financial statement preparers with an option to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (or portion thereof) is recorded. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of this ASU to have a material impact on our Financial Statements. We are currently evaluating the impact of adopting this guidance on our Financial Statements. In June 2016, the FASB issued ASU No. 2016-13, which provides updated guidance on credit losses for financial assets measured at amortized cost basis and available-for sale debt securities. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will be applied using a modified retrospective approach for the cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective and using a prospective approach for debt securities for which any other-than-temporary impairment had been recognized before the effective date. Early adoption is permitted for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of adopting this guidance on our Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, which provides guidance on the accounting treatment of leases. The ASU establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. While we are currently assessing the impact of this ASU on our Financial Statements, we expect the primary impact to our consolidated financial position upon adoption will be the recognition, on a discounted basis, of our minimum commitments under noncancelable operating leases on our Balance Sheets, which will result in the recording of right of use assets and lease obligations.

BASIS OF PRESENTATION AND SUM26

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Schedule of Estimated Fair Value and Outstanding Balances of Borrowings	The estimated fair value and outstanding balances of our borrowings are as follows (in thousands). Level of Hierarchy Fair Value Outstanding Balance March 31, 2018 Term loan 2 $ 820,686 $ 813,850 Senior unsecured notes 1 $ 381,859 $ 375,000 December 31, 2017 Term loan 2 $ 826,099 $ 815,900 Senior unsecured notes 1 $ 372,656 $ 375,000

ADOPTION OF ASC 606, REVENUE 27

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)	3 Months Ended
	Mar. 31, 2018
Adoption of ASC Topic 606
Impact of Adopting ASC 606 on Financial Statements	The following table presents the impact of the application of ASC 606 utilizing the modified retrospective transition method to certain line items on our Unaudited Condensed Consolidated Statement of Income and Comprehensive Income for the three months ended March 31, 2018 (in thousands): Three Months Ended March 31, 2018 Without Adoption As reported Adjustments of ASC 606 Revenues Games revenues Gaming operations $ 40,056 $ 462 $ 40,518 Games total revenues 60,217 462 60,679 Payments revenues Cash access services 38,218 155,448 193,666 Equipment 4,419 (211 ) 4,208 Payments total revenues 50,784 155,237 206,021 Total revenues 111,001 155,699 266,700 Costs and expenses Games cost of revenues (1) Gaming operations 4,182 462 4,644 Games total cost of revenues 14,923 462 15,385 Payments cost of revenues (1) Cash access services 2,231 154,899 157,130 Equipment 2,514 (85 ) 2,429 Payments total cost of revenues 5,961 154,814 160,775 Total costs and expenses 86,510 155,276 241,786 Operating income 24,491 423 24,914 Income before income tax 4,184 423 4,607 Income tax benefit (425 ) — (425 ) Net income 4,609 423 5,032 Comprehensive income 4,932 423 5,355 (1) Exclusive of depreciation and amortization.

TRADE AND OTHER RECEIVABLES (Ta

TRADE AND OTHER RECEIVABLES (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Schedule of components of trade and other receivables	The balance of trade and other receivables consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Trade and other receivables, net Games trade and loans receivables $ 43,603 $ 38,070 Payments trade and loans receivables (1) 17,411 10,780 Other receivables 1,665 1,570 Total trade and other receivables, net 62,679 50,420 Less: non-current portion of receivables Games trade and loans receivables (1,094 ) (1,267 ) Payments trade and loans receivables (1) (5,470 ) (1,371 ) Total non-current portion of receivables (6,564 ) (2,638 ) Total trade and other receivables, current portion $ 56,115 $ 47,782

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of components of inventory	Inventory consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Inventory Raw materials and component parts, net of reserves of $1,406 and $1,327 at March 31, 2018 and December 31, 2017, respectively $ 16,420 $ 18,782 Work-in-progress 2,855 985 Finished goods 5,434 4,200 Total inventory $ 24,709 $ 23,967

PREPAID AND OTHER ASSETS (Table

PREPAID AND OTHER ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
Prepaid Expense And Other Assets [Abstract]
Schedule of components of current portion of prepaid and other assets	The balance of the current portion of prepaid and other assets consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Prepaid expenses and other assets Deposits $ 7,656 $ 9,003 Prepaid expenses 9,326 6,426 Other 3,522 5,241 Total prepaid expenses and other assets $ 20,504 $ 20,670
Schedule of components of non-current portion of prepaid and other assets	The balance of the non-current portion of other assets consisted of the following (in thousands): At March 31, At December 31, 2018 2017 Other assets Prepaid expenses and deposits $ 5,032 $ 4,103 Debt issuance costs of revolving credit facility 801 849 Other 915 2,657 Total other assets $ 6,748 $ 7,609

PROPERTY, EQUIPMENT AND LEASE31

PROPERTY, EQUIPMENT AND LEASED ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Schedule of components of property, equipment and leased assets	Property, equipment and leased assets consist of the following (in thousands): At March 31, 2018 At December 31, 2017 Useful Life Accumulated Net Book Accumulated Net Book (Years) Cost Depreciation Value Cost Depreciation Value Property, equipment and leased assets Rental pool - deployed 2-4 $ 171,097 $ 86,922 $ 84,175 $ 162,319 $ 80,895 $ 81,424 Rental pool - undeployed 2-4 20,987 12,527 8,460 17,366 9,374 7,992 Cash access equipment 3 - 5 26,292 19,816 6,476 25,907 18,654 7,253 Leasehold and building improvements Lease Term 11,220 5,694 5,526 10,981 5,211 5,770 Machinery, office and other equipment 2-5 39,074 25,680 13,394 35,167 24,087 11,080 Total $ 268,670 $ 150,639 $ 118,031 $ 251,740 $ 138,221 $ 113,519

GOODWILL AND OTHER INTANGIBLE32

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of other intangible assets	Other intangible assets consist of the following (in thousands): At March 31, 2018 At December 31, 2017 Weighted Average Remaining Life Accumulated Net Book Accumulated Net Book (years) Cost Amortization Value Cost Amortization Value Other intangible assets Contract rights under placement fee agreements 4 $ 57,231 $ 5,968 $ 51,263 $ 57,231 $ 3,910 $ 53,321 Customer contracts 6 51,175 44,269 6,906 51,175 43,638 7,537 Customer relationships 8 231,100 68,895 162,205 231,100 63,653 167,447 Developed technology and software 2 256,960 167,320 89,640 249,064 158,919 90,145 Patents, trademarks and other 4 29,046 23,641 5,405 29,046 23,185 5,861 Total $ 625,512 $ 310,093 $ 315,419 $ 617,616 $ 293,305 $ 324,311

ACCOUNTS PAYABLE AND ACCRUED 33

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	3 Months Ended
	Mar. 31, 2018
Payables And Accruals [Abstract]
Schedule of accounts payable and accrued expenses	The following table presents our accounts payable and accrued expenses (in thousands): At March 31, At December 31, 2018 2017 Accounts payable and accrued expenses Trade accounts payable $ 72,545 $ 59,435 Placement fees (1) 22,691 22,328 Accrued interest 9,509 5,766 Deferred and unearned revenues 7,810 10,450 Cash access processing and related expenses 6,960 8,932 Payroll and related expenses 6,802 14,178 Accrued taxes 2,021 2,112 Other 9,849 11,303 Total accounts payable and accrued expenses $ 138,187 $ 134,504 (1) The total outstanding balance of the placement fee liability as of March 31, 2018 and December 31, 2017 was $33.9 million and $39.1 million, respectively. The remaining $11.2 million and $16.8 million of non-current placement fees as of March 31, 2018 and December 31, 2017, respectively, was included in other accrued expenses and liabilities in our Balance Sheets.

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of outstanding indebtedness	The following table summarizes our outstanding indebtedness (in thousands): At March 31, At December 31, 2018 2017 Long-term debt Senior secured term loan $ 813,850 $ 815,900 Senior unsecured notes 375,000 375,000 Total debt 1,188,850 1,190,900 Less: debt issuance costs and discount (22,200 ) (23,057 ) Total debt after debt issuance costs and discount 1,166,650 1,167,843 Less: current portion of long-term debt (8,200 ) (8,200 ) Long-term debt, less current portion $ 1,158,450 $ 1,159,643

WEIGHTED AVERAGE COMMON SHARES

WEIGHTED AVERAGE COMMON SHARES (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Schedule of weighted average number of common shares outstanding used in computation of basic and diluted earnings per share	Three Months Ended March 31, 2018 2017 Weighted average shares Weighted average number of common shares outstanding - basic 68,686 66,090 Potential dilution from equity awards (1) 4,599 — Weighted average number of common shares outstanding - diluted (1) 73,285 66,090 (1) The potential dilution excludes the weighted average effect of equity awards to purchase 7.0 million shares of common stock at March 31, 2018 because the application of the treasury stock method, as required, makes them anti-dilutive. Company was in a net loss position for the three months ended March 31, 2017; therefore, potentially dilutive common shares were excluded as their effects would be anti-dilutive under the application of the treasury stock method. Equity awards to purchase approximately 15.7 million shares of common stock for the three months ended March 31, 2017 were excluded from the diluted net loss per share results.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of award activity	A summary of award activity is as follows (in thousands): Stock Options Restricted Stock Restricted Stock Granted Awards Granted Units Granted Outstanding, December 31, 2017 19,131 74 — Granted — — 116 Exercised options or vested shares (712 ) (17 ) — Cancelled or forfeited (901 ) — — Outstanding, March 31, 2018 17,518 57 116
Summary of options activity	The following table presents the options activity: Weighted Number of Weighted Average Average Life Aggregate Options Exercise Price Remaining Intrinsic Value (in thousands) (per share) (years) (in thousands) Outstanding, December 31, 2017 19,131 $ 5.34 6.4 $ 45,887 Granted — — Exercised (712 ) 6.02 $ 1,272 Canceled or forfeited (901 ) 5.52 Outstanding, March 31, 2018 17,518 $ 5.31 6.7 $ 32,443 Vested and expected to vest, March 31, 2018 15,987 $ 5.35 6.7 $ 29,075 Exercisable, March 31, 2018 9,147 $ 6.14 5.8 $ 11,285
Summary of non-vested share awards for time-based restricted stock	The following is a summary of non-vested share awards for our time-based restricted stock: Weighted Shares Average Grant Outstanding Date Fair Value (in thousands) (per share) Outstanding, December 31, 2017 74 $ 7.00 Granted — — Vested (17 ) 6.98 Forfeited — — Outstanding, March 31, 2018 57 $ 7.01
Time Based Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Schedule assumptions used to determine fair value	There were no time-based or market-based option awards granted during The fair values of our standard time-based options were determined as of the date of grant using the Black-Scholes option pricing model with the following assumptions: Three Months Ended March 31, 2017 Risk-free interest rate 2 % Expected life of options (in years) 6 Expected volatility 54 % Expected dividend yield — %
Market Performance Based Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Schedule assumptions used to determine fair value	The fair values of our market-based options were determined as of the date of grant using a lattice-based option valuation model with the following assumptions: Three Months Ended March 31, 2017 Risk-free interest rate 3 % Measurement period (in years) 10 Expected volatility 70 % Expected dividend yield — %
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Summary of non-vested share awards for time-based restricted stock	The following is a summary of non-vested RSU awards: Weighted Shares Average Grant Outstanding Date Fair Value (in thousands) (per share) Outstanding, December 31, 2017 — $ — Granted 116 7.80 Vested — — Forfeited — — Outstanding, March 31, 2018 116 $ 7.80

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Schedule of segment information	The following tables present segment information (in thousands): For the Three Months Ended March 31, 2018 2017 Games Revenues Gaming operations $ 40,056 $ 36,531 Gaming equipment and systems 20,154 18,725 Gaming other 7 20 Total revenues 60,217 55,276 Costs and expenses Cost of revenues (1) Gaming operations 4,182 3,209 Gaming equipment and systems 10,741 9,235 Gaming other — — Games total cost of revenues 14,923 12,444 Operating expenses 12,007 10,608 Research and development 4,311 4,543 Depreciation 11,139 9,031 Amortization 13,484 13,858 Total costs and expenses 55,864 50,484 Operating income $ 4,353 $ 4,792 (1) Exclusive of depreciation and amortization. For the Three Months Ended March 31, 2018 2017 Payments Revenues Cash access services $ 38,218 $ 171,735 Equipment 4,419 2,299 Information services and other 8,147 8,227 Total revenues 50,784 182,261 Costs and expenses Cost of revenues (1) Cash access services 2,231 138,661 Equipment 2,514 1,419 Information services and other 1,216 719 Cost of revenues 5,961 140,799 Operating expenses 20,180 18,385 Depreciation 1,686 1,799 Amortization 2,819 3,467 Total costs and expenses 30,646 164,450 Operating income $ 20,138 $ 17,811 (1) Exclusive of depreciation and amortization. For the Three Months Ended March 31, 2018 2017 Total Games and Payments Revenues $ 111,001 $ 237,537 Costs and expenses Cost of revenues (1) 20,884 153,243 Operating expenses 32,187 28,993 Research and development 4,311 4,543 Depreciation 12,825 10,830 Amortization 16,303 17,325 Total costs and expenses 86,510 214,934 Operating income $ 24,491 $ 22,603 (1) Exclusive of depreciation and amortization. At March 31, At December 31, 2018 2017 Total assets Games $ 928,676 $ 925,186 Payments 546,073 611,888 Total assets $ 1,474,749 $ 1,537,074

BASIS OF PRESENTATION AND SUM38

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Current restricted cash	$ 0.8	$ 0.9	$ 0.5	$ 0.3
Non-current restricted cash	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Maximum
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Amortization period of costs to acquire a contract with a customer	1 year

BASIS OF PRESENTATION AND SUM39

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated Fair Value and Outstanding Balances of Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value | Level 2 | Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 820,686	$ 826,099
Fair Value | Level 1 | Senior unsecured notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	381,859	372,656
Outstanding Balance | Level 2 | Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	813,850	815,900
Outstanding Balance | Level 1 | Senior unsecured notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt	$ 375,000	$ 375,000

ADOPTION OF ASC 606, REVENUE 40

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Revenue From Contract With Customer [Line Items]
Cumulative adjustment to accumulated deficit upon adoption of ASC 606	$ 237,186		$ 246,202
Adoption of ASC Topic 606 | Adjustments
Revenue From Contract With Customer [Line Items]
Cumulative adjustment to accumulated deficit upon adoption of ASC 606		$ 4,400

ADOPTION OF ASC 606, REVENUE 41

ADOPTION OF ASC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS - Impact of Adopting ASC 606 on Statement of Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Revenue From Contract With Customer [Line Items]
Revenues		$ 111,001	$ 237,537
Costs and expenses
Total cost of revenues		86,510
Operating income		24,491	22,603
Income before income tax		4,184	(2,454)
Income tax benefit		(425)	1,054
Net income (loss)		4,609	(3,508)
Comprehensive income		4,932	(3,236)
Games
Revenue From Contract With Customer [Line Items]
Revenues		60,217	55,276
Costs and expenses
Total cost of revenues	[1]	14,923	12,444
Operating income		4,353	4,792
Games | Gaming operations
Revenue From Contract With Customer [Line Items]
Revenues		40,056	36,531
Costs and expenses
Total cost of revenues		4,182	3,209
Payments
Revenue From Contract With Customer [Line Items]
Revenues		50,784	182,261
Costs and expenses
Total cost of revenues	[1]	5,961	140,799
Operating income		20,138	17,811
Payments | Cash access services
Revenue From Contract With Customer [Line Items]
Revenues		38,218	171,735
Costs and expenses
Total cost of revenues		2,231	138,661
Payments | Equipment
Revenue From Contract With Customer [Line Items]
Revenues		4,419	2,299
Costs and expenses
Total cost of revenues		2,514	$ 1,419
Adoption of ASC Topic 606 | Adjustments
Revenue From Contract With Customer [Line Items]
Revenues		155,699
Costs and expenses
Total cost of revenues		155,276
Operating income		423
Income before income tax		423
Net income (loss)		423
Comprehensive income		423
Adoption of ASC Topic 606 | Without Adoption of ASC 606
Revenue From Contract With Customer [Line Items]
Revenues		266,700
Costs and expenses
Total cost of revenues		241,786
Operating income		24,914
Income before income tax		4,607
Income tax benefit		(425)
Net income (loss)		5,032
Comprehensive income		5,355
Adoption of ASC Topic 606 | Games | Adjustments
Revenue From Contract With Customer [Line Items]
Revenues		462
Costs and expenses
Total cost of revenues		462
Adoption of ASC Topic 606 | Games | Adjustments | Gaming operations
Revenue From Contract With Customer [Line Items]
Revenues		462
Costs and expenses
Total cost of revenues		462
Adoption of ASC Topic 606 | Games | Without Adoption of ASC 606
Revenue From Contract With Customer [Line Items]
Revenues		60,679
Costs and expenses
Total cost of revenues		15,385
Adoption of ASC Topic 606 | Games | Without Adoption of ASC 606 | Gaming operations
Revenue From Contract With Customer [Line Items]
Revenues		40,518
Costs and expenses
Total cost of revenues		4,644
Adoption of ASC Topic 606 | Payments | Adjustments
Revenue From Contract With Customer [Line Items]
Revenues		155,237
Costs and expenses
Total cost of revenues		154,814
Adoption of ASC Topic 606 | Payments | Adjustments | Cash access services
Revenue From Contract With Customer [Line Items]
Revenues		155,448
Costs and expenses
Total cost of revenues		154,899
Adoption of ASC Topic 606 | Payments | Adjustments | Equipment
Revenue From Contract With Customer [Line Items]
Revenues		(211)
Costs and expenses
Total cost of revenues		(85)
Adoption of ASC Topic 606 | Payments | Without Adoption of ASC 606
Revenue From Contract With Customer [Line Items]
Revenues		206,021
Costs and expenses
Total cost of revenues		160,775
Adoption of ASC Topic 606 | Payments | Without Adoption of ASC 606 | Cash access services
Revenue From Contract With Customer [Line Items]
Revenues		193,666
Costs and expenses
Total cost of revenues		157,130
Adoption of ASC Topic 606 | Payments | Without Adoption of ASC 606 | Equipment
Revenue From Contract With Customer [Line Items]
Revenues		4,208
Costs and expenses
Total cost of revenues		$ 2,429
[1]	Exclusive of depreciation and amortization.

FUNDING AGREEMENTS (Details)

FUNDING AGREEMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Funding Agreements
Site-funded ATM liability	$ 166,200,000		$ 210,800,000
Cash supplied for Canadian ATMs	5,000,000
Contract Cash Solutions Agreement | Indemnification Guarantee
Funding Agreements
Outstanding balance	263,400,000		289,800,000
Contract Cash Solutions Agreement | Indemnification Guarantee | Interest expense
Funding Agreements
Cash usage fees incurred	1,700,000	$ 1,100,000
Contract Cash Solutions Agreement, as amended | Indemnification Guarantee
Funding Agreements
Maximum amount	300,000,000
Ability to increase maximum amount	$ 75,000,000
Expiration date	Jun. 30, 2020
Prefunded Cash Access Agreements | Prepaid expenses and other assets
Funding Agreements
Prefunded cash	$ 6,600,000		$ 8,400,000

TRADE AND OTHER RECEIVABLES (De

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Trade and other receivables, net
Other receivables	$ 1,665	$ 1,570
Total trade and other receivables, net	62,679	50,420
non-current portion of receivables	(6,564)	(2,638)
Total trade and other receivables, current portion	56,115	47,782
Allowances for doubtful accounts	4,715	4,706
Check Warranty Reserves
Trade and other receivables, net
Allowances for doubtful accounts	2,600	2,700
General Reserves
Trade and other receivables, net
Allowances for doubtful accounts	2,100	2,000
Gaming operations
Trade and other receivables, net
Trade receivables, net	43,603	38,070
non-current portion of receivables	(1,094)	(1,267)
Payments
Trade and other receivables, net
Trade receivables, net	17,411	10,780
non-current portion of receivables	$ (5,470)	$ (1,371)

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials and component parts, net of reserves of $1,406 and $1,327 at March 31, 2018 and December 31, 2017, respectively	$ 16,420	$ 18,782
Work-in-progress	2,855	985
Finished goods	5,434	4,200
Total inventory	24,709	23,967
Raw materials and component parts, reserves	$ 1,406	$ 1,327

PREPAID AND OTHER ASSETS (Detai

PREPAID AND OTHER ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
Deposits	$ 7,656	$ 9,003
Prepaid expenses	9,326	6,426
Other	3,522	5,241
Total prepaid expenses and other assets	20,504	20,670
Prepaid expenses and deposits	5,032	4,103
Debt issuance costs of revolving credit facility	801	849
Other	915	2,657
Total other assets	$ 6,748	$ 7,609

PROPERTY, EQUIPMENT AND LEASE46

PROPERTY, EQUIPMENT AND LEASED ASSETS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Cost	$ 268,670,000		$ 251,740,000
Accumulated Depreciation	150,639,000		138,221,000
Net Book Value	118,031,000		113,519,000
Depreciation	12,825,000	$ 10,830,000
Impairment of property, equipment and leased assets	0	$ 0
Rental pool - deployed
Property Plant And Equipment [Line Items]
Cost	171,097,000		162,319,000
Accumulated Depreciation	86,922,000		80,895,000
Net Book Value	$ 84,175,000		81,424,000
Rental pool - deployed | Minimum [Member]
Property Plant And Equipment [Line Items]
Useful Life (years)	2 years
Rental pool - deployed | Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)	4 years
Rental pool - undeployed
Property Plant And Equipment [Line Items]
Cost	$ 20,987,000		17,366,000
Accumulated Depreciation	12,527,000		9,374,000
Net Book Value	$ 8,460,000		7,992,000
Rental pool - undeployed | Minimum [Member]
Property Plant And Equipment [Line Items]
Useful Life (years)	2 years
Rental pool - undeployed | Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)	4 years
Cash access equipment
Property Plant And Equipment [Line Items]
Cost	$ 26,292,000		25,907,000
Accumulated Depreciation	19,816,000		18,654,000
Net Book Value	$ 6,476,000		7,253,000
Cash access equipment | Minimum [Member]
Property Plant And Equipment [Line Items]
Useful Life (years)	3 years
Cash access equipment | Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)	5 years
Leasehold and building improvements
Property Plant And Equipment [Line Items]
Cost	$ 11,220,000		10,981,000
Accumulated Depreciation	5,694,000		5,211,000
Net Book Value	5,526,000		5,770,000
Machinery, office and other equipment
Property Plant And Equipment [Line Items]
Cost	39,074,000		35,167,000
Accumulated Depreciation	25,680,000		24,087,000
Net Book Value	$ 13,394,000		$ 11,080,000
Machinery, office and other equipment | Minimum [Member]
Property Plant And Equipment [Line Items]
Useful Life (years)	2 years
Machinery, office and other equipment | Maximum
Property Plant And Equipment [Line Items]
Useful Life (years)	5 years

GOODWILL AND OTHER INTANGIBLE47

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 640,571,000		$ 640,589,000
Impairment of goodwill	$ 0	$ 0

GOODWILL AND OTHER INTANGIBLE48

GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
Cost	$ 625,512		$ 617,616
Accumulated Amortization	310,093		293,305
Net Book Value	315,419		324,311
Amortization of Intangible Assets	$ 16,300	$ 17,300
Contract rights under placement fee agreements
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)	4 years
Cost	$ 57,231		57,231
Accumulated Amortization	5,968		3,910
Net Book Value	$ 51,263		53,321
Customer contracts
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)	6 years
Cost	$ 51,175		51,175
Accumulated Amortization	44,269		43,638
Net Book Value	$ 6,906		7,537
Customer relationships
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)	8 years
Cost	$ 231,100		231,100
Accumulated Amortization	68,895		63,653
Net Book Value	$ 162,205		167,447
Developed technology and software
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)	2 years
Cost	$ 256,960		249,064
Accumulated Amortization	167,320		158,919
Net Book Value	89,640		90,145
Development costs capitalized	$ 8,600	$ 6,200
Patents, trademarks and other
Finite Lived Intangible Assets [Line Items]
Weighted Average Remaining Life (years)	4 years
Cost	$ 29,046		29,046
Accumulated Amortization	23,641		23,185
Net Book Value	$ 5,405		$ 5,861

GOODWILL AND OTHER INTANGIBLE49

GOODWILL AND OTHER INTANGIBLE ASSETS - Placement Fee Agreements (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Funding Agreements
Cash payment made	$ 5.6	$ 3
Imputed interest in placement fees	$ 1
Contract rights under development and placement fee agreements | Minimum
Funding Agreements
General term of the agreement	12 months
Contract rights under development and placement fee agreements | Maximum
Funding Agreements
General term of the agreement	83 months

ACCOUNTS PAYABLE AND ACCRUED 50

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Trade accounts payable	$ 72,545	$ 59,435
Placement fees	22,691	22,328
Accrued interest	9,509	5,766
Deferred and unearned revenues	7,810	10,450
Cash access processing and related expenses	6,960	8,932
Payroll and related expenses	6,802	14,178
Accrued taxes	2,021	2,112
Other	9,849	11,303
Total accounts payable and accrued expenses	$ 138,187	$ 134,504

ACCOUNTS PAYABLE AND ACCRUED 51

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Payables And Accruals [Abstract]
Total outstanding balance of placement fee liability	$ 33.9	$ 39.1
Non-current placement fees	$ 11.2	$ 16.8

LONG-TERM DEBT - Summary of Ind

LONG-TERM DEBT - Summary of Indebtedness (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Long-term debt
Total debt	$ 1,188,850	$ 1,190,900
Less: debt issuance costs and discount	(22,200)	(23,057)
Total debt after debt issuance costs and discount	1,166,650	1,167,843
Less: current portion of long-term debt	(8,200)	(8,200)
Long-term debt, less current portion	1,158,450	1,159,643
Senior secured term loan
Long-term debt
Total debt	813,850	815,900
Senior unsecured notes
Long-term debt
Total debt	$ 375,000	$ 375,000

LONG-TERM DEBT - Refinancing an

LONG-TERM DEBT - Refinancing and New Credit Facilities (Details) - USD ($)	May 09, 2017	Mar. 31, 2018	Mar. 31, 2017
Credit Facilities
Write-off of unamortized deferred financing fees and discounts related to the extinguished debt	$ 14,600,000
Prepayment penalties incurred	0
New Credit Agreement, dated May 9, 2017
Credit Facilities
Debt issuance discount	4,100,000
Debt issuance costs	15,500,000
Actual consolidated leverage ratio (as a percent)		352.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2017 and March 31,2018		500.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2018 (as a percent)		475.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2019 (as a percent)		450.00%
Maximum allowable consolidated secured leverage ratio as of December 31, 2020 (as a percent)		4.25%
Maximum allowable consolidated secured leverage ratio as of December 31, 2021 (as a percent)		4.00%
Maximum allowable consolidated secured leverage ratio as of December 31, thereafter (as a percent)		4.00%
Threshold for change of control of parent company (as a percent)		35.00%
New Credit Agreement, dated May 9, 2017 | Everi Payments Inc.
Credit Facilities
Ownership of equity interests (as a percent)		100.00%
New Credit Agreement, dated May 9, 2017 | Eurodollar
Credit Facilities
Variable reference rate threshold (as a percent)		0.00%
Variable reference rate (as a percent)		0.00%
7.25% Notes due 2021 (Refinanced Secured Notes) | Senior secured notes
Credit Facilities
Interest rate (as a percent)			7.25%
Outstanding amount redeemed	335,000,000
Revolving credit facility | New Credit Agreement, dated May 9, 2017
Credit Facilities
Maximum borrowing capacity	$ 35,000,000
Term of facility	5 years	5 years
Borrowings outstanding		$ 0
Additional borrowing availability		$ 35,000,000
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017
Credit Facilities
Term of facility	7 years	7 years
Principal amount of debt	$ 820,000,000
Prepayment premium applied to principal amount (as a percent)		1.00%
Required quarterly principal payment, as a percentage of original principal		0.25%
Weighted average interest rate during period (as a percent)		5.05%
Outstanding borrowings		$ 813,900,000
Senior secured term loan facility | New Credit Agreement, dated May 9, 2017 | Maximum
Credit Facilities
Period after Closing Date prepayment is subject to a prepayment premium		6 months
Senior secured term loan facility | Prior Credit Agreement, December 2014
Credit Facilities
Prepayment of outstanding balances	$ 462,300,000
Base rate borrowings | New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest rate margin (as a percent)		3.50%
Base rate borrowings | New Credit Agreement, dated May 9, 2017 | Eurodollar
Credit Facilities
Interest rate margin (as a percent)		1.00%
Variable reference rate period		1 month
Base rate borrowings | New Credit Agreement, dated May 9, 2017 | Federal funds effective rate
Credit Facilities
Interest rate margin (as a percent)		0.50%
Base rate borrowings | New Credit Agreement, dated November 13, 2017
Credit Facilities
Interest rate margin (as a percent)		2.50%
Eurodollar Borrowings | New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest rate margin (as a percent)		4.50%
Eurodollar Borrowings | New Credit Agreement, dated November 13, 2017
Credit Facilities
Interest rate margin (as a percent)		3.50%
Eurodollar Borrowings, Interest Period Greater than Three Months | New Credit Agreement, dated May 9, 2017
Credit Facilities
Interest period term		3 months
Eurodollar Borrowings, Interest Period Greater than Three Months | New Credit Agreement, dated May 9, 2017 | Minimum
Credit Facilities
Interest remittance period		3 months

LONG-TERM DEBT - Senior Secured

LONG-TERM DEBT - Senior Secured Notes (Details) - USD ($)	May 09, 2017	Mar. 31, 2018
Long-term debt
Loss on extinguishment of debt		$ 14,600,000
Senior secured notes | 7.25% Notes due 2021 (Refinanced Secured Notes)
Long-term debt
Outstanding amount redeemed	$ 335,000,000
Loss on extinguishment of debt	1,700,000
Debt issuance costs and fees expensed on extinguishment of debt	200,000
Debt discounts expensed on extinguishment of debt	$ 1,500,000

LONG-TERM DEBT - Senior Unsecur

LONG-TERM DEBT - Senior Unsecured Notes (Details) - USD ($)	Dec. 05, 2017	Mar. 31, 2018	Dec. 31, 2014
Long-term debt
Loss on extinguishment of debt		$ 14,600,000
Senior unsecured notes
Long-term debt
Principal amount of debt		$ 375,000,000	$ 350,000,000
Interest rate (as a percent)		7.50%	10.00%
Debt issuance discount			$ 3,800,000
Debt issuance costs		$ 6,100,000	$ 14,000,000
Maturity date		Dec. 15, 2025
Redemption date	Dec. 5, 2017
Loss on extinguishment of debt	$ 37,200,000
Make whole premium	26,300,000
Debt issuance costs and fees expensed on extinguishment of debt	$ 10,900,000
Senior unsecured notes | Prior Credit Agreement, December 2014
Long-term debt
Redemption price percentage	107.50%

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details)	3 Months Ended
	Mar. 31, 2018USD ($)_SeriesVotefundshares	Mar. 31, 2017USD ($)shares	Dec. 31, 2017shares
Class Of Stock [Line Items]
Convertible preferred stock, shares authorized	50,000,000		50,000,000
Convertible preferred stock, shares outstanding	0		0
Number of votes for a share of common stock | Vote	1
Number of sinking fund provisions applicable to common stock | fund	0
Common stock, shares issued	93,832,405		93,119,988
Treasury Stock
Total Number of Shares Purchased or Withheld
Shares withheld from restricted stock awards	5,001	2,574
Aggregate purchase price of shares repurchased or withheld from restricted stock awards | $	$ 38,400	$ 7,475
Maximum
Class Of Stock [Line Items]
Convertible preferred stock, shares authorized	50,000,000
Minimum
Class Of Stock [Line Items]
Number of series of preferred stock that may be issued | _Series	1

WEIGHTED AVERAGE COMMON SHARE57

WEIGHTED AVERAGE COMMON SHARES (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Weighted average common shares outstanding
Weighted average number of common shares outstanding - basic	68,686	66,090
Potential dilution from equity awards	4,599
Weighted average number of common shares outstanding - diluted	73,285	66,090
Anti-dilutive equity awards excluded from computation of earnings per share (in shares)	7,000	15,700

SHARE-BASED COMPENSATION - Awar

SHARE-BASED COMPENSATION - Award Activity (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
2014 Equity Incentive Plan
Restricted Stock Granted
Number of shares available for grant	4,900,000
2012 Equity Incentive Plan
Restricted Stock Granted
Number of shares available for grant	4,900,000
2005 Stock Incentive Plan
Restricted Stock Granted
Number of shares available for grant	0
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares of common stock to receive under contingent right	1
Restricted Stock Granted
Granted (in shares)	116,326	0
Vested (in shares)	0	0
Outstanding (in shares)	116,000
Stock Options
Stock Options Granted
Outstanding (in shares)	19,131,000
Granted (in shares)	0	4,000,000
Exercised options (in shares)	(712,000)
Canceled or forfeited (in shares)	(901,000)
Outstanding (in shares)	17,518,000
Restricted Stock Awards
Restricted Stock Granted
Outstanding (in shares)	74,000
Granted (in shares)	0	0
Vested (in shares)	(17,001)	(9,405)
Outstanding (in shares)	57,000

SHARE-BASED COMPENSATION - Stoc

SHARE-BASED COMPENSATION - Stock Options, Activity (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Stock options
Proceeds from exercise of stock options	$ 4,088,000	$ 5,000
Time Based Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	4 years
Expiration period	10 years
Stock options
Granted (in shares)	0
Stock Options Granted
Granted (in shares)	0
Time Based Options | Tranche Two
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rate per year (as a percent)	25.00%
Market Performance Based Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			4 years
Expiration period			10 years
Vesting price hurdle, percent of premium to closing stock price on grant date			25.00%
Number of consecutive trading days the Company's average stock price meets certain target prices, which satisfy vesting requirements			30 days
Stock options
Granted (in shares)	0
Stock Options Granted
Granted (in shares)	0
Market Performance Based Options | Tranche One
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rate per year (as a percent)			25.00%
Stock Options
Stock options
Granted (in shares)	0	4,000,000
Weighted average grant date fair value (in dollars per share)		$ 1.81
Exercised	$ 1,272,000	$ 6,132
Unrecognized compensation expense	$ 6,400,000	$ 15,300,000
Weighted-average period for recognition of unrecognized compensation expense	3 years 1 month 6 days	2 years 6 months
Non-cash compensation expense	$ 2,100,000	$ 1,300,000
Proceeds from exercise of stock options	$ 4,200,000	$ 8,554
Stock Options Granted
Outstanding (in shares)	19,131,000
Granted (in shares)	0	4,000,000
Exercised options (in shares)	(712,000)
Canceled or forfeited (in shares)	(901,000)
Outstanding (in shares)	17,518,000		19,131,000
Vested and expected to vest (in shares)	15,987,000
Exercisable (in shares)	9,147,000
Weighted Average Exercise Price
Outstanding (in dollars per share)	$ 5.34
Exercised options (in dollars per share)	6.02
Canceled or forfeited (in dollars per share)	5.52
Outstanding (in dollars per share)	5.31		$ 5.34
Vested and expected to vest (in dollars per share)	5.35
Exercisable (in dollars per share)	$ 6.14
Weighted Average Life Remaining
Outstanding	6 years 8 months 12 days		6 years 4 months 25 days
Vested and expected to vest	6 years 8 months 12 days
Exercisable	5 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding (in dollars)	$ 32,443,000		$ 45,887,000
Exercised	1,272,000	$ 6,132
Vested and expected to vest (in dollars)	29,075,000
Exercisable (in dollars)	11,285,000
Stock Options | Former Executive
Stock options
Share-based compensation options accelerated compensation cost	$ 500,000

SHARE-BASED COMPENSATION - St60

SHARE-BASED COMPENSATION - Stock Options, Fair Value Assumptions (Details)	3 Months Ended
	Mar. 31, 2017
Time Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate	2.00%
Expected life of options (in years)	6 years
Expected volatility	54.00%
Market Performance Based Options
Weighted-average assumptions used in estimating fair value
Risk-free interest rate	3.00%
Expected life of options (in years)	10 years
Expected volatility	70.00%

SHARE-BASED COMPENSATION - Rest

SHARE-BASED COMPENSATION - Restricted Stock (Details) - Restricted Stock Awards - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restricted Stock Granted
Outstanding (in shares)	74,000
Granted (in shares)	0	0
Vested (in shares)	(17,001)	(9,405)
Outstanding (in shares)	57,000
Weighted Average Grant Date Fair Value
Outstanding (in dollars per share)	$ 7
Vested (in dollars per share)	6.98
Outstanding (in dollars per share)	$ 7.01
Restricted stock
Granted (in shares)	0	0
Total fair value of shares vested	$ 118,747	$ 45,050
Unrecognized compensation expense	$ 300,000	$ 800,000
Weighted-average period for recognition of unrecognized compensation expense	9 months 18 days	1 year 7 months 6 days
Vested (in shares)	17,001	9,405
Non-cash compensation expense	$ 200,000	$ 100,000

SHARE-BASED COMPENSATION - Re62

SHARE-BASED COMPENSATION - Restricted Stock Units (Details) - Restricted Stock Units - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restricted Stock Granted
Granted (in shares)	116,326	0
Vested (in shares)	0	0
Outstanding (in shares)	116,000
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 7.80
Outstanding (in dollars per share)	$ 7.80
Restricted stock
Granted (in shares)	116,326	0
Vested (in shares)	0	0
Unrecognized compensation expense	$ 700,000
Weighted-average period for recognition of unrecognized compensation expense	2 years 10 months 24 days
Non-cash compensation expense	$ 17,359

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percent)	(10.20%)	(43.00%)
Statutory federal rate (as a percent)	21.00%	35.00%
Decrease in valuation allowance	$ 1.3
Unrecognized tax benefits	$ 0.9

SEGMENT INFORMATION - Revenues,

SEGMENT INFORMATION - Revenues, Operating Income, and Assets (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenues
Total revenues		$ 111,001	$ 237,537
Costs and expenses
Cost of revenues		86,510
Operating expenses		32,187	28,993
Research and development		4,311	4,543
Depreciation		12,825	10,830
Amortization		16,303	17,325
Total costs and expenses		86,510	214,934
Operating income		24,491	22,603
Total assets		1,474,749		$ 1,537,074
Games
Revenues
Total revenues		60,217	55,276
Costs and expenses
Cost of revenues	[1]	14,923	12,444
Operating expenses		12,007	10,608
Research and development		4,311	4,543
Depreciation		11,139	9,031
Amortization		13,484	13,858
Total costs and expenses		55,864	50,484
Operating income		4,353	4,792
Total assets		928,676		925,186
Payments
Revenues
Total revenues		50,784	182,261
Costs and expenses
Cost of revenues	[1]	5,961	140,799
Operating expenses		20,180	18,385
Depreciation		1,686	1,799
Amortization		2,819	3,467
Total costs and expenses		30,646	164,450
Operating income		20,138	17,811
Total assets		546,073		$ 611,888
Total Games and Payments
Revenues
Total revenues		111,001	237,537
Costs and expenses
Cost of revenues		20,884	153,243
Operating expenses		32,187	28,993
Research and development		4,311	4,543
Depreciation		12,825	10,830
Amortization		16,303	17,325
Total costs and expenses		86,510	214,934
Operating income		24,491	22,603
Gaming operations | Games
Revenues
Total revenues		40,056	36,531
Costs and expenses
Cost of revenues		4,182	3,209
Gaming equipment and systems | Games
Revenues
Total revenues		20,154	18,725
Costs and expenses
Cost of revenues		10,741	9,235
Gaming other | Games
Revenues
Total revenues		7	20
Cash access services | Payments
Revenues
Total revenues		38,218	171,735
Costs and expenses
Cost of revenues		2,231	138,661
Equipment | Payments
Revenues
Total revenues		4,419	2,299
Costs and expenses
Cost of revenues		2,514	1,419
Information services and other | Payments
Revenues
Total revenues		8,147	8,227
Costs and expenses
Cost of revenues		$ 1,216	$ 719
[1]	Exclusive of depreciation and amortization.

SEGMENT INFORMATION - Major Cus

SEGMENT INFORMATION - Major Customers (Details) - Five largest customers - Customer risk - Revenues - Customer	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Entity Wide Revenue Major Customer [Line Items]
Number of major customers	5	5
Concentration risk (as a percent)	21.00%	27.00%