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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2025
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Disposition of Carved-Out Business
In the fourth quarter of 2024, the Company completed the sale of portions of its international interactive business in Asia and
certain other international markets in its Bally's Intralot B2C reportable segment (the “Carved-Out Business”) to a company
(the “Buyer”) formed by members of management of the Carved-Out Business for total consideration of $32.9 million, which
consisted of a €30 million seven-year term note, subject to applicable interest. The disposition includes the Company’s interest
in various contracts with Breckenridge Curacao B.V. (“Breckenridge”), which was previously determined to be a VIE and was
consolidated by the Company. The Company disposed of net assets of approximately $56.2 million, which include the
previously consolidated net assets of Breckenridge, and released foreign currency translation adjustments of $4.7 million.
Additionally, the Company held a net investment hedge on the net investment in the foreign operations sold and thus released
$9.1 million of accumulated other comprehensive income as a result of de-designating the hedge as of the disposal date. The
Company recorded a pre-tax loss of approximately $27.8 million upon the sale, which is included in “General and
administrative” in the consolidated statements of operations for the year ended December 31, 2024 (Predecessor). The net assets
disposed of consisted primarily of goodwill of $20.7 million, and working capital including cash and cash equivalents of $4.2
million and restricted cash of $37.5 million, which consists of player related funds and funds held with payment service
providers, net of liabilities.
Additionally in connection with the disposition, the Company acquired penny warrants that represent a 19.99% fully diluted
equity interest in the Carved-Out Business, for approximately $1.9 million, which as a result is an unconsolidated entity
accounted for under the equity method and is considered to be a related party under ASC 850.
Ownership of certain intellectual property previously owned by Bally’s and used by the Carved-Out Business has been
transferred into an independent trust (“the Trust”). The Trust licenses the use of such intellectual property to the Carved-Out
Business under a commercial license arrangement, with licensing fees paid to the Trust by the Buyer for a term of five years
(subject to annual automatic extension) based on net gaming revenues of the Carved-Out Business. Any proceeds generated
from the Trust property are distributed to the Company by the Trust and are recognized as licensing revenue and included in
“Non-gaming revenue” in the consolidated statements of operations, as development of iGaming capabilities remains a core
part of Bally’s strategy.
Licensing revenue recognized by the Company was $19.3 million, $3.7 million, and $6.9 million during 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), respectively.
During the period from February 8, 2025 to December 31, 2025, the Company recorded a provision for credit loss of $17.1
million, reducing the net carrying value of the seven-year term note to $17.1 million, included in Other assets within the
consolidated balance sheets, as of December 31, 2025 (Successor). The carrying value of the loan receivable was $31.2 million
as of December 31, 2024 (Predecessor) recorded in Other Assets.
The Company recorded interest income on the seven-year term note of $2.7 million, $0.3 million and $0.5 million included
within Interest expense, net in the consolidated statements of operations during 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), respectively. Receivables from this equity method investee are included in Accounts receivable, net and
were $6.1 million and $1.1 million as of December 31, 2025 (Successor) and December 31, 2024 (Predecessor), respectively.
Variable Interest Entities
Management has concluded that the Trust established in connection with the aforementioned disposal of the Carved-Out
Business, is a VIE that will be consolidated based on the applicable criterion. Additionally, in connection with the acquisition of
a controlling interest in Intralot during the fourth quarter of 2025, the Company evaluated the variable interests held by Intralot
and concluded that DC09 LLC and Royal Highgate Ltd. are VIEs for which the Company is the primary beneficiary. As a
result, these entities are consolidated in the Company’s consolidated financial statements.
As of December 31, 2025 (Successor) and 2024 (Predecessor), consolidated VIEs had total assets of $60.8 million and
$263.9 million, respectively, and total liabilities of $18.6 million and $27.9 million, respectively. Consolidated VIEs had total
revenues of $19.3 million, $3.7 million and $169.8 million 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), respectively.