IGT Gaming and Everi
PE-OWNED
Acquired by Apollo Global
What PE Will Likely Do
Slot machine and gaming cabinet hardware quality degradation through cheaper components, reduced testing cycles, and shorter warranty periods
Reduced R&D investment leading to fewer innovative game features, delayed platform updates, and slower adoption of new technologies like cashless gaming or skill-based games
Customer support degradation for casino operators including longer response times for technical issues, reduced on-site service staff, and delayed replacement parts availability
Consolidation of IGT and Everi product lines with elimination of overlapping game titles, platform systems, and development teams
Increased software licensing fees and maintenance contract costs for casino customers to extract recurring revenue
Expected Timeline
“0 to 6 months months”
Apollo announces 'synergy realization' and 'platform integration' between IGT and Everi; initial executive departures and hiring freezes; casino operators receive reassurances about product roadmaps
“6 to 12 months months”
First wave of layoffs in overlapping functions (finance, HR, legal, regional sales); consolidation of game development studios announced; early signs of delayed product releases or feature cuts
“12 to 24 months months”
Casino operators begin experiencing longer technical support response times; reduced frequency of new game content releases; noticeable hardware quality issues in newly deployed machines; potential price increases on service contracts
“24 to 48 months months”
Market share erosion as competitors with fresher content gain ground; casino customer complaints about aging platforms become public; potential strategic review of underperforming segments; rumors of asset sales or secondary buyout
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Casino operators should negotiate multi-year service and content agreements before Apollo completes operational changes to lock in current service levels
Casino procurement teams should diversify slot machine suppliers to reduce dependence on combined IGT-Everi entity
Players at casinos using IGT or Everi equipment should expect fewer new game releases and potentially more frequent machine downtime; provide feedback to casino management about game experience degradation
Casino employees and technicians should document institutional knowledge about IGT/Everi systems as Apollo cost-cutting typically reduces specialized training and support staff
Investors in casino REITs or operators should model higher capital expenditure requirements if equipment quality declines force earlier replacement cycles
Alternatives
Look for family-owned or employee-owned businesses