DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The Company utilizes derivative instruments in order to mitigate interest rate and currency exchange rate risk in accordance

with its financial risk and liability management policy.

During the year ended December 31, 2024 (Predecessor), the Company settled $500.0 million of notional interest rate collars

and received $3.9 million in termination payments, reflecting the fair value on the settlement date. The fair value on the

settlement date is recorded as a component of accumulated other comprehensive income (loss), which will be reclassified into

“Interest expense, net” in the consolidated statements of operations in the same period in which the hedged interest payments

associated with the Company’s borrowings are recorded. Additionally, the Company simultaneously entered into a series of

interest rate contracts in a notional aggregate amount of $1.00 billion, to further manage the Company’s exposure to interest

rate movements associated with the Company’s variable rate Term Loan Facility through its synthetic conversion to fixed rate

debt. The tenor of these contracts were matched with the maturity of the Term Loan Facility tranche maturing on October 1,

2028.

Additionally, the Company is a party to a series of interest rate contracts and cross currency swap derivative transactions with

multiple bank counterparties in order to synthetically convert a notional aggregate amount of $500.0 million of the Company’s

USD denominated variable rate Term Loan Facility, as disclosed in Note 14 “Long-Term Debt,” into fixed rate debt over five

years and $200 million of the Term Loan Facility, to an equivalent GBP denominated floating rate instrument over three years.

These contracts mature in October 2028 and 2026, respectively.

Cross Currency Swaps

Net Investment Hedges - The Company is exposed to fluctuations in foreign exchange rates on investments it holds in its

European foreign entities. The Company uses fixed and fixed-cross-currency swaps to hedge its exposure to changes in the

foreign exchange rate on its foreign investment in Europe and their exposure to changes in the EUR-GBP exchange rate.

Currency forward agreements involve fixing the USD-EUR exchange rate for delivery of a specified amount of foreign

currency on a specified date. The currency forward agreements are typically cash settled in USD for their fair value at or close

to their settlement date. Cross-currency swaps involve the receipt of functional-currency-fixed-rate amounts from a

counterparty in exchange for the Company making foreign-currency-fixed-rate payments over the life of the agreement. These

derivative arrangements qualified as net investment hedges under ASC 815, with the gain or loss resulting from changes in the

spot value of the derivative reported in other comprehensive income (loss). Amounts are reclassified out of other

comprehensive income (loss) into earnings when the hedged net investment is either sold or substantially liquidated.

Additionally, the accrual of foreign currency and USD denominated coupons are recognized in “Interest expense, net” in the

consolidated statements of operations.

Economic Hedges - During the fourth quarter of 2024 (Predecessor), as a result of the sale of the Carved-Out Business, the

Company de-designated its EUR-GBP cross currency swaps as net investment hedges and began recording changes in fair

value of the derivative and the accrual of foreign currency and USD denominated coupons through earnings reported in Other

non-operating income (expense), net in the consolidated statements of operations. At the time of de-designation, the total

amount of accumulated other comprehensive loss was $9.1 million and was recorded as part of Loss on disposal of business in

General and administrative expenses in the consolidated statements of operations. Refer to Note 3 “Related Party Transactions,”

Note 12 “Fair Value Measurements” and Note 17 “Stockholders’ Equity” for further information.

During the fourth quarter of 2025 (Successor), concurrent with the Intralot Transaction, the Company de-designated its USD-

GBP cross currency swaps as net investment hedges and began recording changes in fair value of the derivative and the accrual

of foreign currency and USD denominated coupons through earnings reported in Other non-operating income (expense), net in

the consolidated statements of operations. Refer to Note 1 “General Information” and Note 7 “Business Combinations” for

further information.

The following tables summarize the Company’s cross currency swap arrangements as of December 31, 2024 (Predecessor). The

Company did not have any cross currency swap arrangements designated as hedging instruments as of December 31, 2025

(Successor).

December 31, 2025 (Successor)

December 31, 2024 (Predecessor)

(in thousands)

Hedge Designation

Notional

Sold

Notional

Purchased

Hedge Designation

Notional

Sold

Notional

Purchased

Cross currency swaps

Economic Hedge

€461,595

£387,531

Economic Hedge

€461,595

£387,531

Cross currency swaps

Economic Hedge

£546,759

$700,000

Net Investment Hedge

£546,759

$700,000

Cash Flow Hedges

Interest Rate Contracts - The Company’s objectives in using interest rate derivatives are to hedge its exposure to variability in

cash flows on a portion of its floating-rate debt, to add stability to interest expense and to manage its exposure to interest rate

movements. To accomplish these objectives, the Company primarily uses interest rate swaps and collars as part of its financial

risk and liability management policy. The Company’s interest rate swaps and collars are designated as cash flow hedges under

ASC 815. The changes in the fair value of these instruments are recorded as a component of accumulated other comprehensive

income (loss) and reclassified into “Interest expense, net” in the consolidated statements of operations in the same period in

which the hedged interest payments associated with the Company’s borrowings are recorded. Refer to Note 12 “Fair Value

Measurements” and Note 17 “Stockholders’ Equity” for further information.

As of December 31, 2025 (Successor) and December 31, 2024 (Predecessor), the Company’s cash flow hedges included interest

rate swaps of $1.5 billion, respectively. Refer to Note 12 “Fair Value Measurements” for further information.

Foreign Exchange Forward Contracts

During the third quarter of 2025, the Company entered into a series of foreign exchange forward contracts (the “Deal

Contingent FX Forwards”) to hedge the EUR cash proceeds to be received in connection with the sale of its international

interactive business to Intralot. The Company agreed to sell total notional amounts of €1.00 billion and buy USD at fixed

exchange rates between 1.16489 and 1.18390. The Deal Contingent FX Forwards do not qualify for hedge accounting treatment

and are therefore carried at fair value with gains or losses recorded to Other non-operating income (expense), net. Refer to Note

12 “Fair Value Measurements” for further information. The Deal Contingent FX Forwards settled upon completion of the deal

with Intralot in October 2025.