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FAIR VALUE MEASUREMENTS | 12 Months Ended
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Dec. 31, 2025
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. There were no assets and liabilities measured at fair value on a nonrecurring basis.
|  |  | Successor
|  |  | December 31, 2025
(in thousands) | Balance Sheet Location |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Cash and cash equivalents | Cash and cash equivalents |  | $798,423 |  | $— |  | $—
Restricted cash | Restricted cash |  | 108,263 |  | — |  | —
Investment in GLPI partnership | Other assets |  | — |  | 18,946 |  | —
Investment in The Star | Other assets |  | 301,285 |  | — |  | —
Derivative assets not designated as hedging instruments: |  |  |  |  |  |
Cross currency swaps | Prepaid expenses and other current assets |  | — |  | 3,975 |  | —
Cross currency swaps | Other assets |  | — |  | 1,111 |  | —
Total derivative assets at fair value |  | — |  | 5,086 |  | —
Total assets |  |  | $1,207,971 |  | $24,032 |  | $—
Liabilities: |  |  |  |  |  |  |
Contingent consideration | Accrued and other current liabilities |  | $— |  | $— |  | $115,000
Contingent consideration | Other long-term liabilities |  | — |  | — |  | 8,885
Derivative liabilities not designated as hedging instruments: |  |  |  |  |  |
Cross currency swaps | Accrued and other current liabilities |  | — |  | 17,643 |  | —
Cross currency swaps | Other long-term liabilities |  | — |  | 51,716 |  | —
Derivative liabilities designated as hedging instruments: |  |  |  |  |  |
Interest rate contracts | Accrued and other current liabilities |  | — |  | 9,166 |  | —
Interest rate contracts | Other long-term liabilities |  | — |  | 29,854 |  | —
Total derivative liabilities at fair value |  | — |  | 108,379 |  | —
Total liabilities |  |  | $— |  | $108,379 |  | $123,885
|  |  | Predecessor
|  |  | December 31, 2024
(in thousands) | Balance Sheet Location |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |
Cash and cash equivalents | Cash and cash equivalents |  | $171,233 |  | $— |  | $—
Restricted cash | Restricted cash |  | 60,021 |  | — |  | —
Investment in GLPI partnership | Other assets |  | — |  | 20,418 |  | —
Derivative assets not designated as hedging instruments |  |  |  |  |  |
Cross currency swaps | Prepaid expenses and other current assets |  | — |  | 4,871 |  | —
Cross currency swaps | Other assets |  | — |  | 615 |  | —
Derivative assets designated as hedging instruments: |  |  |  |  |  |
Interest rate contracts | Prepaid expenses and other current assets |  | — |  | 340 |  | —
Interest rate contracts | Other assets |  | — |  | 336 |  | —
Cross currency swaps | Prepaid expenses and other current assets |  | — |  | 148 |  | —
Cross currency swaps | Other assets |  | — |  | 13,181 |  | —
Total derivative assets at fair value |  | — |  | 19,491 |  | —
Total assets |  |  | $231,254 |  | $39,909 |  | $—
Liabilities: |  |  |  |  |  |  |
Contingent consideration | Other long-term liabilities |  | $— |  | $— |  | $59,923
Derivatives not designated as hedging instruments: |  |  |  |  |  |
Sinclair Performance Warrants | Other long-term liabilities |  | — |  | — |  | 58,668
Cross currency swaps | Other long-term liabilities |  | — |  | 11,174 |  | —
Derivative liabilities designated as hedging instruments: |  |  |  |  |  |
Interest rate contracts | Accrued and other current liabilities |  | — |  | 1,855 |  | —
Interest rate contracts | Other long-term liabilities |  | — |  | 13,372 |  | —
Cross currency swaps | Accrued and other current liabilities |  | — |  | 1,189 |  | —
Cross currency swaps | Other long-term liabilities |  | — |  | 1,624 |  | —
Total derivative liabilities at fair value |  | — |  | 29,214 |  | 58,668
Total liabilities |  |  | $— |  | $29,214 |  | $118,591
There were no transfers made among the three levels in the fair value hierarchy for the period from February 8, 2025 to December 31, 2025 (Successor), period from January 1, 2025 to February 7, 2025 (Predecessor) and year ended December 31, 2024 (Predecessor). The following table summarizes the changes in fair value of the Company’s Level 3 assets and liabilities:
(in thousands) | Sinclair Performance Warrant Liability |  | Contingent Consideration Liability
Balance as of December 31, 2023 (Predecessor) | $44,703 |  | $58,580
Change in fair value | 13,965 |  | 1,343
Balance as of December 31, 2024 (Predecessor) | 58,668 |  | 59,923
Change in fair value | 1,180 |  | 786
Balance as of February 7, 2025 (Predecessor) | $59,848 |  | $60,709
Balance as of February 8, 2025 (Successor) | $— |  | $60,709
Change in fair value | — |  | 63,176
Balance as of December 31, 2025 (Successor) | $— |  | $123,885
The gains (losses) recognized in the consolidated statements of operations for derivative instruments are as follows:
|  |  | Successor |  |  | Predecessor
| Consolidated Statements of Operations Location |  | 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) |  |  |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Deal Contingent FX Forwards | Other non-operating income (expense), net |  | $(774) |  |  | $— |  | $—
Sinclair Performance Warrants | Other non-operating income (expense), net |  | — |  |  | (1,180) |  | (13,965)
Cross currency swaps(1) | Other non-operating income (expense), net |  | 11,696 |  |  | 50 |  | (9,078)
Derivatives designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts | Interest expense, net |  | $4,422 |  |  | $(105) |  | $(11,031)
Cross currency swaps | Interest expense, net |  | 2,063 |  |  | 7 |  | (3,658)
__________________________________ (1)Amounts during the year ended December 31, 2024 (Predecessor), as a result of the Company’s de-designation of its EUR-GBP cross currency swaps as net investment hedges, are included in General and administrative. Derivative Instruments The fair values of interest rate contracts and cross currency swap assets and liabilities are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on estimates using currency spot and forward rates and standard pricing models that consider the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard pricing models utilize inputs that are derived from or corroborated by observable market data such as interest rate yield curves as well as currency spot and forward rates. When designated as hedging instruments, changes in the fair value of these contracts are reported as a component of other comprehensive income (loss). When not designated as hedging instruments, changes in fair value of these contracts are reported within Other non-operating income (expense), net in the consolidated statements of operations. Sinclair Performance Warrants Sinclair Performance Warrants were accounted for as a derivative instrument classified as a liability within Level 3 of the hierarchy through February 7, 2025 (Predecessor) as the warrants are not traded in active markets and are subject to certain assumptions and estimates made by management related to the probability of meeting performance milestones. These assumptions and the probability of meeting performance targets may have a significant impact on the value of the warrant. The Performance Warrants were valued using an option pricing model, considering the Company’s estimated probabilities of achieving the performance milestones for each tranche. Inputs to this valuation approach include volatility between 40% and 67%, risk free rates between 3.84% and 4.79%, the Company’s common stock price for each period and expected terms between 1.5 and 6.3 years. In connection with the Queen Merger, as of February 7, 2025, all outstanding Performance Warrants became immediately exercisable at a price of $0.01 per share and were reclassified out of liabilities and into equity and are no longer measured at fair value. The fair value is recorded within “Other long-term liabilities” of the consolidated balance sheets as of December 31, 2024 (Predecessor). Contingent consideration In connection with the acquisition of Bally’s Golf Links on September 12, 2023 (Predecessor), the purchase price included future cash payments totaling up to $125 million to the seller, based upon future events, which were uncertain at the time of acquisition. The Company recorded contingent consideration at fair value as a liability on the acquisition date, which was subsequently remeasured at each reporting date within “Other, non-operating expenses, net” in the consolidated statements of operations. The contingent consideration was valued at $59.9 million as of December 31, 2024 (Predecessor) and $123.9 million as of December 31, 2025 (Successor). As of December 31, 2024 (Predecessor), Level 3 inputs to this valuation approach included the Company’s estimated probabilities of achieving the conditions for payment, expected terms between 1.5 and 3 years, and discount rates between 7.2% and 7.8%. As of December 31, 2025 (Successor), the contingency related to $115 million of the $125 million total payments was resolved and is payable in 2026. As such, that contingency was marked to its fair value of $115 million and is classified as a current liability. Fair Value Option Equity Method Investments The Company has long-term investments in unconsolidated entities which it accounts for under the equity method of accounting. The Company has elected the fair value option allowed by ASC 825, with respect to these investments. Under the fair value option, the investments are remeasured at fair value at each reporting period through earnings. The Company measures fair value using quoted prices in active markets that are classified within Level 1 of the hierarchy, with changes to fair value included within Other non-operating (expense) income, net of the consolidated statements of operations. Investment in GLPI Partnership The Company holds a limited partnership interest in GLP Capital, L.P. (“GLP”), the operating partnership of GLPI. The investment is reported at fair value based on Level 2 inputs, with changes to fair value included within “Other non-operating income (expense), net” in the consolidated statements of operations. Long-term debt The fair value of the Company’s Term Loan Facility and senior notes are estimated based on quoted prices in active markets and are classified as Level 1 measurements. The fair value of the Revolving Credit Facility approximates its carrying amount as it is revolving, variable rate debt, and is also classified as a Level 1 measurement. In the table below, the carrying amounts of the Company’s long-term debt is net of debt issuance costs, debt discounts and fair value adjustments. Refer to Note 14 “Long- Term Debt” for further information.
| Successor |  |  | Predecessor
| December 31, 2025 |  |  | December 31, 2024
(in thousands) | Carrying Amount |  | Fair Value |  |  | Carrying Amount |  | Fair Value
Term Loan Facility | $1,408,953 |  | $1,458,438 |  |  | $1,858,800 |  | $1,792,804
Intralot British Term Loan | 537,234 |  | 519,315 |  |  | — |  | —
Intralot Greek Term Loan | 234,962 |  | 230,370 |  |  | — |  | —
Intralot 6.00% Retail Bond due 2029 | 157,214 |  | 155,022 |  |  | — |  | —
5.625% Senior Notes due 2029 | 580,494 |  | 562,500 |  |  | 738,517 |  | 587,813
5.875% Senior Notes due 2031 | 517,458 |  | 484,181 |  |  | 721,456 |  | 535,631
Intralot 6.75% Senior Secured Notes due 2031 | 708,787 |  | 699,706 |  |  | — |  | —
Intralot Supplemental Indenture | 2,436 |  | 2,436 |  |  | — |  | —
Intralot Floating Rate Senior Notes due 2031 | 353,119 |  | 347,858 |  |  | — |  | —

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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