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Derivatives and Hedging Activities | 3 Months Ended
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Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | 8. Derivatives and Hedging Activities On November 12, 2025, subsidiaries of the Company entered into two interest rate swap agreements with Macquarie Bank Limited designed to manage our exposure to interest rate volatility associated with our Senior Notes. The swaps are effective from December 9, 2025, until maturity on December 9, 2027. The swaps fix the interest rate at 3.6208% on a notional amount of £250.0 million ($329.7 million), payable to Macquarie Bank Limited, with Macquarie Bank Limited paying an amount to the Company on the notional amount of £250.0 million ($329.7 million) at an interest rate equal to the floating amount due on the Senior Notes, subject to a floor of 3.00%. Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During the three months ended March 31, 2026, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve-months, the Company estimates that an additional $1.8 million will be reclassified as a decrease to interest expense. As of March 31, 2026, and December 31, 2025, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Schedule of Cash Flow Hedges of Interest Rate Risk
Interest Rate Derivative |  | Number of Instruments |  | Notional
Interest rate swaps |  | 2 |  | £250.0 million ($329.7 million)
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of March 31, 2026 and December 31, 2025. Schedule of Derivative Liability
|  | March 31, 2026 |  |  | December 31, 2025 |
|  | (in millions) |
Other short-term assets |  | $ | 1.1 |  |  | $ | — |
Other long-term assets |  |  | 2.3 |  |  |  | — |
Other current liabilities |  |  | — |  |  |  | (0.2 | )
Other long-term liabilities |  |  | — |  |  |  | (0.4 | )
Total derivatives designated as hedging instruments |  | $ | 3.4 |  |  | $ | (0.6 | )
There was no effect of offsetting of the derivative financial instruments at March 31, 2026 or December 31, 2025. The tables below present the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income for the three months ended March 31, 2026 and March 31, 2025. Schedule of Fair Value of Cash Flow Hedge Accounting Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives
|  | Three Months Ended March 31, 2026 |  |  | Three Months Ended March 31, 2025 |
|  | (in millions) |
Interest rate products |  | $ | 4.1 |  |  | $ | — |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
|  | Three Months Ended March 31, 2026 |  |  | Three Months Ended March 31, 2025 |
|  | (in millions) |
Interest expense, net |  | $ | 0.1 |  |  | $ | — |
The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three months ended March 31, 2026 and March 31, 2025.
|  | Three Months Ended March 31, 2026 |  |  | Three Months Ended March 31, 2025 |
|  | (in millions) |
Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded |  |  |  |  |  |  |  |
Interest expense, net |  | $ | (10.5 | ) |  | $ | (7.0 | )
|  | Three Months Ended March 31, 2026 |  |  | Three Months Ended March 31, 2025 |
|  | (in millions) |
Amount of gain (loss) reclassified from accumulated other comprehensive income into income |  |  |  |  |  |  |  |
Interest expense, net |  | $ | 0.1 |  |  | $ | — |
Credit-risk-related Contingent Features In November 2025, each of Inspired Gaming (UK) Limited and Gaming Acquisitions Limited, wholly owned (indirect) subsidiaries of the Company (each, a “Hedging Subsidiary”), entered into an industry standard ISDA Master Agreement, with a negotiated Schedule thereto (each, an “ISDA Agreement”), with Macquarie Bank Limited, the counterparty to the derivative transactions, and which ISDA Agreements set forth various provisions which govern the relationship between each such Hedging Subsidiary and the counterparty with respect to such derivative instruments. Such provisions include certain events which, if triggered by either party, may give rise to a termination of the relevant derivative instruments, which may trigger a requirement for the exchange of a breakage payment between the parties. Each ISDA Agreement contains a provision whereby if any of the Company’s subsidiaries that has granted credit support in respect of such derivative transactions defaults on any of its indebtedness above a threshold amount, including default where repayment of such indebtedness has not been accelerated by the relevant creditor, then the relevant Hedging Subsidiary could also be declared in default on its derivative obligations. Each ISDA Agreement also contains a provision where the relevant Hedging Subsidiary could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the relevant Hedging Subsidiary’s default on its indebtedness. As of March 31, 2026, no derivatives were in a net liability position. As of March 31, 2026, no Hedging Subsidiary has posted any collateral related to the ISDA Agreement, as no collateral is required under the terms thereof. If the Hedging Subsidiaries had breached any of the provisions under the terms which resulted in an acceleration of the ISDA Agreements, as at March 31, 2026, no assets would have been required for the Company to settle its obligations under the respective ISDA Agreements.

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