A $59 million acquisition of a privately owned provider of electronic bingo gaming tablets and content might seem like a small investment for Las Vegas-based gaming equipment provider Everi Holdings.
The investment community didn’t see it that way.
Truist Securities gaming analyst Barry Jonas told investors last week the purchase of Nebraska-based Video King gives Everi a foothold in a gaming market that is “relatively underserved.”
Everi sells and leases gaming machines and systems to casino operators, along with payment technology and player loyalty programs. The company isn’t in the bingo space.
Video King is licensed in some 60 jurisdictions and provides more than 50,000 devices to bingo halls and casinos, including 40 of the largest tribal casinos in Texas, California and Florida. Video King’s tablets are also used on cruise ships.
Jonas said Everi would deploy cashless gaming and online gaming content on Video King’s tablets.
B. Riley gaming analyst David Bain termed the acquisition, “unique and competition-light,” given that Everi’s main rivals don’t have business with the casino industry’s bingo sector.
Bain noted the deal could be more lucrative to Everi “than at first blush, particularly over the longer term.” He suggested the cash flow from wagering activity on the tablets could almost double once Everi’s casino games are added, which would offer players “new, faster-playing games than e-bingo.”
Everi is paying cash for Video King and the sale could close in June.
