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LEASES | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
LEASES | LEASES Operating Leases The Company is committed under various operating lease agreements for real estate and property used in operations. Certain leases include various renewal options which are included in the lease term when the Company has determined it is reasonably certain of exercising the options. Certain of these leases include percentage rent payments based on property revenues and/or rent escalation provisions determined by increases in the consumer price index (“CPI”). These percentage rent and escalation provisions are treated as variable lease payments and recognized as lease expense in the period in which the obligation for those payments are incurred. Discount rates used to determine the present value of the lease payments are based on the Company’s incremental borrowing rate commensurate with the term of the lease. The Company had total operating lease liabilities of $1.89 billion and $1.62 billion as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, and right of use assets of $1.70 billion and $1.54 billion as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, which were included in the condensed consolidated balance sheets. GLPI Leases As of September 30, 2025 (Successor), the Company leases certain properties from GLPI under two separate master lease agreements, the “Master Lease,” and the “Master Lease No. 2.” The Company’s Bally’s Evansville, Bally’s Dover, Bally’s Quad Cities, Bally’s Black Hawk, Bally’s Tiverton and Hard Rock Biloxi properties are leased under the terms of the “Master Lease” which requires combined initial minimum annual payments of $101.5 million. The Company’s Bally’s Kansas City and Bally’s Shreveport properties are leased under the terms of the “Master Lease No. 2” which requires combined initial minimum annual payments of $32.2 million. All components of the Master Lease and Master Lease No. 2 are accounted for as operating leases within the provisions of ASC 842, Leases (“ASC 842”), over the lease term or until a re-assessment event occurs. Both leases have an initial term of 15 years and include four, five-year options to renew and are subject to a minimum 1% annual escalation or greater escalation dependent on CPI. The renewal options are not reasonably certain of exercise as of September 30, 2025 (Successor). Following the Merger, as of June 20, 2025 (Successor), the Company also has a master lease agreement through Queen with GLPI, the “Queen Master Lease”, with The Queen Baton Rouge, The Belle of Baton Rouge, Casino Queen Marquette and DraftKings at Casino Queen properties being leased under the terms of the Queen Master Lease, which requires initial combined minimum annual payments of $31.7 million. All components of the Queen Master Lease are accounted for as operating leases within the provisions of ASC 842, over the lease term or until a re-assessment event occurs. The Queen Master Lease has an initial term of 15 years and includes four, five-year options to renew and is subject to annual escalation. The renewal options are not reasonably certain of exercise as of September 30, 2025 (Successor). Effective July 1, 2025, the DraftKings at Casino Queen and The Queen Baton Rouge properties were transferred to Master Lease No. 2 and the associated annual payments of $28.9 million was reallocated from the Casino Queen Master Lease to Master Lease No. 2. This was treated as a lease modification event where lease payments were reallocated across components of the Master Lease No. 2 on a relative fair value basis and the right of use assets and lease liabilities were remeasured. In addition to the properties under the master leases explained above, the Company leases land associated with Tropicana Las Vegas under a ground lease established with GLPI in 2022. This lease has an initial term of 50 years, with the possibility of extending up to 99 years through renewal options, and requires initial minimum annual payments of $10.5 million, subject to minimum 1% annual escalation or greater escalation dependent on CPI. As of September 30, 2025 (Successor), the renewal options are not considered reasonably certain to be exercised. During the third quarter of 2024, the Company modified the lease and GLPI paid $48.6 million to the Company to fund the demolition of the building at the Tropicana Las Vegas site in exchange for an increase in annual rent of $4.1 million, also subject to a minimum 1% annual increase or greater based on CPI. This lease modification did not change the lease classification. On July 17, 2025, the Company entered into a new master lease agreement with GLP (the “Chicago MLA”), that amended the existing ground lease for the property on which the Company plans to develop its Permanent Facility and a development agreement with GLP (the “Chicago Development Agreement”) pursuant to which GLP has committed to advance up to $940 million (the “GLP Development Advances”) for the payment of hard costs used to construct the Permanent Facility in exchange for increasing the amount of rent payable to GLP under the Chicago MLA. The Chicago MLA has an initial term of 15 years and includes four, five-year options to renew and is subject to annual escalation. Annual rent under the Chicago MLA is $20 million, with additional rent equal to 8.5% of the GLP Development Advances that are granted to the Company. The amended and restated ground lease was considered a lease termination in the third quarter due to the Company ceasing to control the use of the land effective upon signing of the Chicago MLA. As a result of the termination, the right of use asset and lease liability were derecognized, and a $0.5 million gain on lease termination was recorded. Under the Development Agreement, as construction occurs, the Company will recognize a construction receivable on the consolidated balance sheets due from the GLP. To the extent costs exceed the amount to be reimbursed by GLP, such costs are considered prepaid rent, which will be added to the associated operating lease right of use asset once the lease commences. As of September 30, 2025, the construction receivable balance was $134.8 million, classified within Accounts receivable, net, and the prepaid rent balance was $161.8 million, classified within Other assets. In addition, the Company incurred a loss on sale of assets to GLP of $8.7 million during the third quarter of 2025 related to construction costs previously capitalized that were determined not to represent prepaid rent. This loss is classified within General and administrative on the Condensed Consolidated Statement of Operations. During the fourth quarter of 2025, the Company received the first reimbursement from GLP of $125.4 million. Components of lease expense, included within General and administrative in the condensed consolidated statements of operations, for operating leases were as follows:
| Successor |  |  | Predecessor
(in thousands) | Three Months Ended September 30, 2025 |  | Period from February 8, 2025 to September 30, 2025 |  |  | Period from January 1, 2025 to February 7, 2025 |  | Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
Operating leases: |  |  |  |  |  |  |  |  |  |
Operating lease cost | $ | 56,436 |  |  | $ | 149,910 |  |  |  | $ | 21,714 |  |  | $ | 38,847 |  |  | $ | 113,135 |
Variable lease cost | 2,839 |  |  | 6,967 |  |  |  | 1,238 |  |  | 3,216 |  |  | 8,825 |
Operating lease expense | 59,275 |  |  | 156,877 |  |  |  | 22,952 |  |  | 42,063 |  |  | 121,960 |
Short-term lease expense | 5,973 |  |  | 16,419 |  |  |  | 2,393 |  |  | 5,950 |  |  | 17,438 |
Total lease expense | $ | 65,248 |  |  | $ | 173,296 |  |  |  | $ | 25,345 |  |  | $ | 48,013 |  |  | $ | 139,398 |
Supplemental cash flow and other information related to operating leases are as follows:
| Successor |  |  | Predecessor
(in thousands) | Three Months Ended September 30, 2025 |  | Period from February 8, 2025 to September 30, 2025 |  |  | Period from January 1, 2025 to February 7, 2025 |  | Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
Cash paid for amounts included in the lease liability - operating cash flows from operating leases | $ | 55,694 |  |  | $ | 136,319 |  |  |  | $ | 30,843 |  |  | $ | 33,686 |  |  | $ | 98,191 |
Right of use assets obtained in exchange for operating lease liabilities | $ | 52,388 |  |  | $ | 75,365 |  |  |  | $ | — |  |  | $ | 192,085 |  |  | $ | 192,716 |
Derecognition of operating leases | $ | (259,607) |  |  | $ | (259,607) |  |  |  | — |  |  | — |  |  | — |
Derecognition of financing obligation | $ | — |  |  | $ | — |  |  |  | $ | — |  |  | $ | (200,000) |  |  | $ | (200,000) |
| Successor |  |  | Predecessor
| September 30, 2025 |  |  | December 31, 2024
Weighted average remaining lease term | 16.1 years |  |  | 26.2 years
Weighted average discount rate | 7.3 | % |  |  | 8.5 | %
As of September 30, 2025 (Successor), future minimum lease payments under noncancellable operating leases are as follows:
| Successor |  |
(in thousands) | September 30, 2025 |  |
Remaining 2025 | $ | 57,542 |  |  |
2026 | 221,678 |  |  |
2027 | 217,461 |  |  |
2028 | 220,535 |  |  |
2029 | 221,896 |  |  |
Thereafter | 2,434,592 |  |  |
Total lease payments | 3,373,704 |  |  |
Less: present value discount | (1,486,960) |  |  |
Lease obligations(1) | $ | 1,886,744 |  |  |
__________________________________ (1) Total lease obligations exclude $358.1 million of payments for leases signed but not yet commenced as of September 30, 2025 (Successor). Pending Lease Transactions The Company plans to sell and lease back its Bally’s Twin River property to GLP by the end of 2028 for $735.0 million, with initial annual rent of $58.8 million. GLP has the right to call this transaction starting October 2028. All such transactions are subject to required regulatory approvals. On October 28, 2025, the Company and GLP amended the related agreement to, among other things, extend GLP's start date of its right to call to October 1, 2028 from October 1, 2026. Lessor The Company leases its hotel rooms to patrons and records the corresponding lessor revenue in Non-gaming revenue within our condensed consolidated statements of operations. The Company had lessor revenues related to the rental of hotel rooms of $38.4 million and $41.7 million for the three months ended September 30, 2025 (Successor) and three months ended September 30, 2024 (Predecessor), respectively. The Company had lessor revenues related to the rental of hotel rooms of $90.8 million, $11.0 million and $118.0 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively. Hotel leasing arrangements vary in duration, but are short-term in nature.
LEASES | LEASES Operating Leases The Company is committed under various operating lease agreements for real estate and property used in operations. Certain leases include various renewal options which are included in the lease term when the Company has determined it is reasonably certain of exercising the options. Certain of these leases include percentage rent payments based on property revenues and/or rent escalation provisions determined by increases in the consumer price index (“CPI”). These percentage rent and escalation provisions are treated as variable lease payments and recognized as lease expense in the period in which the obligation for those payments are incurred. Discount rates used to determine the present value of the lease payments are based on the Company’s incremental borrowing rate commensurate with the term of the lease. The Company had total operating lease liabilities of $1.89 billion and $1.62 billion as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, and right of use assets of $1.70 billion and $1.54 billion as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, which were included in the condensed consolidated balance sheets. GLPI Leases As of September 30, 2025 (Successor), the Company leases certain properties from GLPI under two separate master lease agreements, the “Master Lease,” and the “Master Lease No. 2.” The Company’s Bally’s Evansville, Bally’s Dover, Bally’s Quad Cities, Bally’s Black Hawk, Bally’s Tiverton and Hard Rock Biloxi properties are leased under the terms of the “Master Lease” which requires combined initial minimum annual payments of $101.5 million. The Company’s Bally’s Kansas City and Bally’s Shreveport properties are leased under the terms of the “Master Lease No. 2” which requires combined initial minimum annual payments of $32.2 million. All components of the Master Lease and Master Lease No. 2 are accounted for as operating leases within the provisions of ASC 842, Leases (“ASC 842”), over the lease term or until a re-assessment event occurs. Both leases have an initial term of 15 years and include four, five-year options to renew and are subject to a minimum 1% annual escalation or greater escalation dependent on CPI. The renewal options are not reasonably certain of exercise as of September 30, 2025 (Successor). Following the Merger, as of June 20, 2025 (Successor), the Company also has a master lease agreement through Queen with GLPI, the “Queen Master Lease”, with The Queen Baton Rouge, The Belle of Baton Rouge, Casino Queen Marquette and DraftKings at Casino Queen properties being leased under the terms of the Queen Master Lease, which requires initial combined minimum annual payments of $31.7 million. All components of the Queen Master Lease are accounted for as operating leases within the provisions of ASC 842, over the lease term or until a re-assessment event occurs. The Queen Master Lease has an initial term of 15 years and includes four, five-year options to renew and is subject to annual escalation. The renewal options are not reasonably certain of exercise as of September 30, 2025 (Successor). Effective July 1, 2025, the DraftKings at Casino Queen and The Queen Baton Rouge properties were transferred to Master Lease No. 2 and the associated annual payments of $28.9 million was reallocated from the Casino Queen Master Lease to Master Lease No. 2. This was treated as a lease modification event where lease payments were reallocated across components of the Master Lease No. 2 on a relative fair value basis and the right of use assets and lease liabilities were remeasured. In addition to the properties under the master leases explained above, the Company leases land associated with Tropicana Las Vegas under a ground lease established with GLPI in 2022. This lease has an initial term of 50 years, with the possibility of extending up to 99 years through renewal options, and requires initial minimum annual payments of $10.5 million, subject to minimum 1% annual escalation or greater escalation dependent on CPI. As of September 30, 2025 (Successor), the renewal options are not considered reasonably certain to be exercised. During the third quarter of 2024, the Company modified the lease and GLPI paid $48.6 million to the Company to fund the demolition of the building at the Tropicana Las Vegas site in exchange for an increase in annual rent of $4.1 million, also subject to a minimum 1% annual increase or greater based on CPI. This lease modification did not change the lease classification. On July 17, 2025, the Company entered into a new master lease agreement with GLP (the “Chicago MLA”), that amended the existing ground lease for the property on which the Company plans to develop its Permanent Facility and a development agreement with GLP (the “Chicago Development Agreement”) pursuant to which GLP has committed to advance up to $940 million (the “GLP Development Advances”) for the payment of hard costs used to construct the Permanent Facility in exchange for increasing the amount of rent payable to GLP under the Chicago MLA. The Chicago MLA has an initial term of 15 years and includes four, five-year options to renew and is subject to annual escalation. Annual rent under the Chicago MLA is $20 million, with additional rent equal to 8.5% of the GLP Development Advances that are granted to the Company. The amended and restated ground lease was considered a lease termination in the third quarter due to the Company ceasing to control the use of the land effective upon signing of the Chicago MLA. As a result of the termination, the right of use asset and lease liability were derecognized, and a $0.5 million gain on lease termination was recorded. Under the Development Agreement, as construction occurs, the Company will recognize a construction receivable on the consolidated balance sheets due from the GLP. To the extent costs exceed the amount to be reimbursed by GLP, such costs are considered prepaid rent, which will be added to the associated operating lease right of use asset once the lease commences. As of September 30, 2025, the construction receivable balance was $134.8 million, classified within Accounts receivable, net, and the prepaid rent balance was $161.8 million, classified within Other assets. In addition, the Company incurred a loss on sale of assets to GLP of $8.7 million during the third quarter of 2025 related to construction costs previously capitalized that were determined not to represent prepaid rent. This loss is classified within General and administrative on the Condensed Consolidated Statement of Operations. During the fourth quarter of 2025, the Company received the first reimbursement from GLP of $125.4 million. Components of lease expense, included within General and administrative in the condensed consolidated statements of operations, for operating leases were as follows:
| Successor |  |  | Predecessor
(in thousands) | Three Months Ended September 30, 2025 |  | Period from February 8, 2025 to September 30, 2025 |  |  | Period from January 1, 2025 to February 7, 2025 |  | Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
Operating leases: |  |  |  |  |  |  |  |  |  |
Operating lease cost | $ | 56,436 |  |  | $ | 149,910 |  |  |  | $ | 21,714 |  |  | $ | 38,847 |  |  | $ | 113,135 |
Variable lease cost | 2,839 |  |  | 6,967 |  |  |  | 1,238 |  |  | 3,216 |  |  | 8,825 |
Operating lease expense | 59,275 |  |  | 156,877 |  |  |  | 22,952 |  |  | 42,063 |  |  | 121,960 |
Short-term lease expense | 5,973 |  |  | 16,419 |  |  |  | 2,393 |  |  | 5,950 |  |  | 17,438 |
Total lease expense | $ | 65,248 |  |  | $ | 173,296 |  |  |  | $ | 25,345 |  |  | $ | 48,013 |  |  | $ | 139,398 |
Supplemental cash flow and other information related to operating leases are as follows:
| Successor |  |  | Predecessor
(in thousands) | Three Months Ended September 30, 2025 |  | Period from February 8, 2025 to September 30, 2025 |  |  | Period from January 1, 2025 to February 7, 2025 |  | Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
Cash paid for amounts included in the lease liability - operating cash flows from operating leases | $ | 55,694 |  |  | $ | 136,319 |  |  |  | $ | 30,843 |  |  | $ | 33,686 |  |  | $ | 98,191 |
Right of use assets obtained in exchange for operating lease liabilities | $ | 52,388 |  |  | $ | 75,365 |  |  |  | $ | — |  |  | $ | 192,085 |  |  | $ | 192,716 |
Derecognition of operating leases | $ | (259,607) |  |  | $ | (259,607) |  |  |  | — |  |  | — |  |  | — |
Derecognition of financing obligation | $ | — |  |  | $ | — |  |  |  | $ | — |  |  | $ | (200,000) |  |  | $ | (200,000) |
| Successor |  |  | Predecessor
| September 30, 2025 |  |  | December 31, 2024
Weighted average remaining lease term | 16.1 years |  |  | 26.2 years
Weighted average discount rate | 7.3 | % |  |  | 8.5 | %
As of September 30, 2025 (Successor), future minimum lease payments under noncancellable operating leases are as follows:
| Successor |  |
(in thousands) | September 30, 2025 |  |
Remaining 2025 | $ | 57,542 |  |  |
2026 | 221,678 |  |  |
2027 | 217,461 |  |  |
2028 | 220,535 |  |  |
2029 | 221,896 |  |  |
Thereafter | 2,434,592 |  |  |
Total lease payments | 3,373,704 |  |  |
Less: present value discount | (1,486,960) |  |  |
Lease obligations(1) | $ | 1,886,744 |  |  |
__________________________________ (1) Total lease obligations exclude $358.1 million of payments for leases signed but not yet commenced as of September 30, 2025 (Successor). Pending Lease Transactions The Company plans to sell and lease back its Bally’s Twin River property to GLP by the end of 2028 for $735.0 million, with initial annual rent of $58.8 million. GLP has the right to call this transaction starting October 2028. All such transactions are subject to required regulatory approvals. On October 28, 2025, the Company and GLP amended the related agreement to, among other things, extend GLP's start date of its right to call to October 1, 2028 from October 1, 2026. Lessor The Company leases its hotel rooms to patrons and records the corresponding lessor revenue in Non-gaming revenue within our condensed consolidated statements of operations. The Company had lessor revenues related to the rental of hotel rooms of $38.4 million and $41.7 million for the three months ended September 30, 2025 (Successor) and three months ended September 30, 2024 (Predecessor), respectively. The Company had lessor revenues related to the rental of hotel rooms of $90.8 million, $11.0 million and $118.0 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively. Hotel leasing arrangements vary in duration, but are short-term in nature.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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