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Fair Value Measurements (Tables) | 3 Months Ended
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Mar. 31, 2024
Fair Value Disclosures [Abstract] |
Schedule of the Group's financial assets, financial liabilities and redeemable non-controlling interests | The following tables set forth the fair value of the Group’s financial assets , financial liabilities and redeemable non-controlling interests measured at fair value based on the three-tier fair value hierarchy:
|  | As of March 31, 2024 |
($ in millions) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial assets measured at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale – Player deposits – investments |  | $ | 143 |  |  | $ | 30 |  |  | $ | — |  |  | $ | 173 |
Equity securities |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | 7 |
Derivative financial assets |  |  | — |  |  |  | 19 |  |  |  | — |  |  |  | 19 |
Total |  |  | 143 |  |  |  | 49 |  |  |  | 7 |  |  |  | 199 |
Financial liabilities measured at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial liabilities |  |  | — |  |  |  | 155 |  |  |  | — |  |  |  | 155 |
Fox Option Liability |  |  | — |  |  |  | — |  |  |  | 580 |  |  |  | 580 |
Contingent consideration |  |  | — |  |  |  | — |  |  |  | 19 |  |  |  | 19 |
Total |  |  | — |  |  |  | 155 |  |  |  | 599 |  |  |  | 754 |
Redeemable non-controlling interests at fair value |  | $ | — |  |  | $ | — |  |  | $ | (1,304 | ) |  | $ | (1,304 | )
|  | As of December 31, 2023 |
($ in millions) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Financial assets measured at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale – Player deposits – investments |  | $ | 33 |  |  | $ | 139 |  |  | $ | — |  |  | $ | 172 |
Equity securities |  |  | — |  |  |  | — |  |  |  | 9 |  |  |  | 9 |
Total |  |  | 33 |  |  |  | 139 |  |  |  | 9 |  |  |  | 181 |
Financial liabilities measured at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative financial liabilities |  |  | — |  |  |  | 178 |  |  |  | — |  |  |  | 178 |
Fox Option Liability |  |  | — |  |  |  | — |  |  |  | 400 |  |  |  | 400 |
Contingent consideration |  |  | — |  |  |  | — |  |  |  | 20 |  |  |  | 20 |
Total |  |  | — |  |  |  | 178 |  |  |  | 420 |  |  |  | 598 |
Redeemable non-controlling interests at fair value |  | $ | — |  |  | $ | — |  |  | $ | 1,100 |  |  | $ | 1,100 |
Pokerstars trademark held and used 1 |  | $ | — |  |  | $ | — |  |  | $ | 368 |  |  | $ | 368 |
Total nonrecurring fair value measurement |  | $ | — |  |  | $ | — |  |  | $ | 368 |  |  | $ | 368 |
1 | In accordance with subtopic 360-10, Pokerstars trademark held and used with a carrying amount of $1,093 million was written down to its fair value of $368 million, in the fourth quarter of 2023 resulting in an impairment of $725 million, which was included in sales and marketing expenses. The Group utilized the relief from royalty method under the income approach to estimate the fair value. Assumptions inherent in estimating the fair value included revenue forecast, royalty rate of 5.0%, income tax rate of 12.5%, and discount rate of 12.5%. The Group selected the assumptions used in the financial forecasts of cash flows specific to the remaining useful life of the trademark using historical data, supplemented by current and anticipated market conditions and estimated growth rates. Financial forecasts beyond the period covered by the plans were estimated by extrapolating the forecasts based on the plans using a steady growth in line with the long-term average growth for the countries in which the trademark is used. As the fair value measurements were based on significant inputs not observable in the market, they represented Level 3 measurements within the fair value hierarchy.
Schedule of financial assets and liabilities carried at fair value | The movements in respect of the financial assets and liabilities carried at fair value are as follows:
($ in millions) |  | Contingent consideration |  |  | Equity securities |  |  | Fox Option liability |  |  | Total |  |  | Redeemable non- controlling interest at fair value |
Balance at December 31, 2023 |  | $ | (20 | ) |  | $ | 9 |  |  | $ | (400 | ) |  | $ | (411 | ) |  | $ | (1,100 | )
Total gains or losses for the period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings |  |  | — |  |  |  | (2 | ) |  |  | (184 | ) |  |  | (186 | ) |  |  | — |
Included in other comprehensive income |  |  | 1 |  |  |  | — |  |  |  | 4 |  |  |  | 5 |  |  |  | — |
Attribution of net loss and other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss attributable to redeemable non-controlling interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Other comprehensive income attributable to redeemable non-controlling interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 11 |
Adjustment of redeemable non-controlling interest to redemption at fair value |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (216 | )
Balance at March 31, 2024 |  |  | (19 | ) |  |  | 7 |  |  |  | (580 | ) |  |  | (592 | ) |  |  | (1,304 | )
Change in unrealized gains or losses for the period included in earnings |  |  | — |  |  |  | (2 | ) |  |  | (184 | ) |  |  | (186 | ) |  |  | — |
Change in unrealized gains or losses for the period included in other comprehensive income |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | 4 |  |  | $ | — |
($ in millions) |  | Contingent consideration |  |  | Equity securities |  |  | Fox Option liability |  |  | Total |  |  | Redeemable non- controlling interest at fair value |
Balance at December 31, 2022 |  | $ | (22 | ) |  | $ | 11 |  |  | $ | (220 | ) |  | $ | (231 | ) |  | $ | (781 | )
Total gains or losses for the period: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings |  |  | — |  |  |  | — |  |  |  | (64 | ) |  |  | (64 | ) |  |  | — |
Included in other comprehensive income |  |  | 2 |  |  |  | — |  |  |  | (6 | ) |  |  | (4 | ) |  |  | — |
Attribution of net loss and other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss attributable to redeemable non-controlling interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |
Other comprehensive income attributable to redeemable non-controlling interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (17 | )
Adjustment of redeemable non-controlling interest to redemption at fair value |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (125 | )
Balance at March 31, 2023 |  |  | (20 | ) |  |  | 11 |  |  |  | (290 | ) |  |  | (299 | ) |  |  | (919 | )
Change in unrealized gains or losses for the period included in earnings |  |  | — |  |  |  | — |  |  |  | (64 | ) |  |  | (64 | ) |  |  | — |
Change in unrealized gains or losses for the period included in other comprehensive income |  | $ | — |  |  | $ | — |  |  | $ | (6 | ) |  | $ | (6 | ) |  | $ | — |

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