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LEASES | 12 Months Ended
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Dec. 31, 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 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 $1.93 billion and $1.62 billion as of December 31, 2025 (Successor) and 2024 (Predecessor), respectively, and right of use assets of $1.77 billion and $1.54 billion as of December 31, 2025 (Successor) and 2024 (Predecessor), respectively, which were included in the consolidated balance sheets. GLPI Leases As of December 31, 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 A SC 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 December 31, 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, Bally's Baton Rouge Casino and Hotel, Casino Queen Marquette and DraftKings at Casino Queen properties originally being leased under the terms of the Queen Master Lease, which required 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 December 31, 2025 (Successor). Effective July 1, 2025 (Successor), 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 were 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. In 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 increasing initial annual payments by $4.1 million, subject to a minimum 1% annual increase or greater based on CPI, for a total modified initial minimum annual payment of $14.6 million. The lease modification did not change the lease classification. As of December 31, 2025 (Successor), the renewal options are not considered reasonably certain to be exercised. 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 December 31, 2025 (Successor), the construction receivable balance was $63.2 million, classified within Accounts receivable, net, and the prepaid rent balance was $175.8 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, including capitalized interest of $4.8 million. This loss is classified within General and administrative on the Consolidated Statement of Operations. During the fourth quarter of 2025, the Company received reimbursements from GLP of $201.6 million. Components of the Company’s lease costs were as follows:
| Successor |  |  | Predecessor
| Period from February 8, 2025 to December 31, 2025 |  |  | Period from January 1, 2025 to February 7, 2025 |  | Year Ended December 31, 2024
(in thousands) |  |  |
Operating lease expense(1) |  |  |  |  |  |
Operating lease cost | $208,377 |  |  | $21,714 |  | $157,829
Variable lease cost | 8,873 |  |  | 1,238 |  | 12,121
Operating lease expense | 217,250 |  |  | 22,952 |  | 169,950
Short-term lease expense | 21,925 |  |  | 2,393 |  | 22,871
Total operating lease expense | $239,175 |  |  | $25,345 |  | $192,821
Gain on sale lease-back, net(2)(3) | $— |  |  | $— |  | $86,254
__________________________________ (1)Included within “General and administrative” in the Consolidated Statements of Operations (2)Included within “Gain on sale-leaseback, net” in the Consolidated Statements of Operations. (3)Gain on sale-leaseback, net includes a gain of $26.4 million and $209.8 million from the termination of the previous right of use assets and lease liabilities and difference in the transaction price and the derecognition of assets, respectively, related to Bally’s Kansas City and Bally’s Shreveport, as well as a loss of $150.0 million as a result of the lease modification of the land underlying the Company’s Bally’s Chicago project during the year ended December 31, 2024 (Predecessor). Supplemental cash flow and other information related to operating leases are as follows:
| Successor |  |  | Predecessor
| Period from February 8, 2025 to December 31, 2025 |  |  | Period from January 1, 2025 to February 7, 2025 |  | Year Ended December 31, 2024
(in thousands) |  |  |
Cash paid for amounts included in the lease liability - operating cash flows from operating leases | $195,915 |  |  | $30,843 |  | $145,891
Right of use assets obtained in exchange for operating lease liabilities | $129,273 |  |  | $— |  | $495,747
Derecognition of operating leases | $(259,607) |  |  | $— |  | $—
Derecognition of financing obligation | $— |  |  | $— |  | $(200,000)
| Successor |  |  | Predecessor
| December 31, 2025 |  |  | December 31, 2024
Weighted average remaining lease term | 15.6 years |  |  | 26.2 years
Weighted average discount rate | 7.3% |  |  | 8.5%
As of December 31, 2025 (Successor), future minimum lease payments under noncancelable operating leases are as follows:
(in thousands) |
2026 | $236,872
2027 | 230,118
2028 | 229,308
2029 | 229,933
2030 | 231,032
Thereafter | 2,255,078
Total lease payments | 3,412,341
Less: present value discount | (1,478,504)
Lease obligations(1) | $1,933,837
__________________________________ (1)Total lease obligations exclude future minimum lease payments under the Chicago MLA, which has not yet commenced as of December 31, 2025 (Successor). Lease Transactions On February 11, 2026, the Compan y completed the previously announced sale-lea seback of its Bally’s Twin River property to GLP for total consideration of $700 million, with initial annual rent of $56 million. Following the sale-leaseback, Bally's Twin River is leased under the terms of Master Lease No. 2. Lessor The Company leases its hotel rooms to patrons. Hotel leasing arrangements vary in duration, but are short-term in nature. Additionally, the Company leases lottery equipment to government lottery commissions in conjunction with providing related operations, maintenance, and support services. These arrangements are priced either as (i) a fixed fee per machine per period or (ii) a variable fee based on a percentage of the lottery organization’s gross ticket sales. The Company records lessor revenue in “Non-gaming revenue” within the consolidated statements of operations. For the period from February 8, 2025 to December 31, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the year ended December 31, 2024 (Predecessor), the Company recognized $119.4 million, $11.0 million and $148.7 million of lessor revenues.

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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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