What changed in this filing

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Item 1. Financial Statements

2026-05-18 compared with 2025-11-12 · 663 added, 646 removed, 811 unchanged (62% of the section changed)

3 unchanged sentences

(In thousands, except share data)

Successor Predecessor

September 30,

2025 December 31,

2026 (Successor) December 31,

2025 (Successor)

Cash and cash equivalents $ 559,304 $ 798,423

27 unchanged sentences

Common stock ($ 0.01 par value, 200,000,000 shares authorized;

49,131,302 (Successor) and 40,787,007 (Predecessor) shares issued;

49,131,302 (Successor) and 40,787,007 (Predecessor) shares outstanding)

48,947,327 (Successor) and 48,524,809 (Successor) shares issued;

48,947,327 (Successor) and 48,524,809 (Successor) shares outstanding)

Preferred stock ($ 0.01 par value;

13 unchanged sentences

Successor Predecessor

Three Months Ended September 30, 2025 Period from February 8, 2025 to September 30, 2025 Period from January 1, 2025 to February 7, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Gaming $ 590,855 $ 313,779 $ 185,767

5 unchanged sentences

General and administrative 316,046 160,391 114,401

Loss on sale-leaseback — — — 150,000 150,000

Gain on sale-leaseback ( 105,845 ) — —

Depreciation and amortization 97,443 47,481 22,343

1 unchanged sentence

Income (loss) from operations 91,611 ( 1,810 ) ( 20,766 )

Other (expense) income:

Other expense:

Interest expense, net ( 109,905 ) ( 51,737 ) ( 27,229 )

Other non-operating (expense) income, net ( 42,632 ) 5,302 ( 2,365 ) ( 49,854 ) ( 38,370 )

Other non-operating expense, net ( 145,812 ) ( 9,030 ) ( 2,365 )

Total other expense, net ( 255,717 ) ( 60,767 ) ( 29,594 )

1 unchanged sentence

(Benefit) provision for income taxes ( 3,249 ) ( 97,093 ) 664

Net loss $ ( 106,199 ) $ ( 300,119 ) $ ( 51,024 ) $ ( 247,855 ) $ ( 481,965 )

Net loss attributable to non-controlling interest ( 3,287 ) ( 3,287 ) — — —

Net loss attributable to Bally’s Corporation $ ( 102,912 ) $ ( 296,832 ) $ ( 51,024 ) $ ( 247,855 ) $ ( 481,965 )

Basic loss per share $ ( 1.70 ) $ ( 4.90 ) $ ( 1.05 ) $ ( 5.10 ) $ ( 9.96 )

Weighted average common shares outstanding - basic 60,636 60,628 48,743 48,596 48,405

Diluted loss per share $ ( 1.70 ) $ ( 4.90 ) $ ( 1.05 ) $ ( 5.10 ) $ ( 9.96 )

Net (loss) income ( 160,857 ) 34,516 ( 51,024 )

Net income attributable to non-controlling interest 1,057 — —

Net loss (income) attributable to Bally’s Corporation $ ( 161,914 ) $ 34,516 $ ( 51,024 )

Basic (loss) income per share $ ( 2.69 ) $ 0.57 $ ( 1.05 )

Weighted average common shares outstanding, basic and diluted 60,248 60,322 48,743

Diluted (loss) income per share $ ( 2.69 ) $ 0.57 $ ( 1.05 )

Weighted average common shares outstanding - diluted 60,248 60,729 48,743

1 unchanged sentence

BALLY’S CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) Income (unaudited)

(In thousands)

Successor Predecessor

Net loss $ ( 106,199 ) $ ( 300,119 ) $ ( 51,024 ) $ ( 247,855 ) $ ( 481,965 )

Other comprehensive income (loss):

Foreign currency translation adjustments ( 22,480 ) 123,002 ( 13,097 ) 150,021 103,342

Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Net (loss) income $ ( 160,857 ) $ 34,516 $ ( 51,024 )

Other comprehensive (loss) income:

Foreign currency translation adjustments, net of tax ( 24,081 ) 43,040 ( 13,097 )

Net unrealized derivative gain (loss) on cash flow hedges, net of tax 1,607 ( 13,428 ) 968

Net unrealized derivative gain (loss) on net investment hedges, net of tax — ( 17,449 ) 2,686

Other comprehensive income (loss) ( 7,294 ) 66,085 ( 9,443 ) 84,151 69,313

Total comprehensive loss $ ( 113,493 ) $ ( 234,034 ) $ ( 60,467 ) $ ( 163,704 ) $ ( 412,652 )

Other comprehensive (loss) income ( 22,474 ) 12,163 ( 9,443 )

Total comprehensive (loss) income ( 183,331 ) 46,679 ( 60,467 )

Comprehensive income attributable to non-controlling interest 6,940 — —

Comprehensive (loss) income attributable to Bally’s Corporation $ ( 190,271 ) $ 46,679 $ ( 60,467 )

See accompanying notes to condensed consolidated financial statements.

4 unchanged sentences

Paid-in Capital Treasury

Stock Accumulated Deficit Accumulated Other Comprehensive Loss Non-controlling Interest Total Stockholders’ Equity (Deficit)

Stock Accumulated Deficit Accumulated Other Comprehensive Income Non-controlling Interest Total Stockholders’

Shares Issued and Outstanding Amount

Balance as of December 31, 2024 40,787,007 $ 408 $ 1,414,410 $ — $ ( 1,123,649 ) $ ( 260,267 ) $ — $ 30,902

Balance as of December 31, 2025 (Successor) 48,524,809 $ 484 $ 1,574,827 $ — $ ( 650,074 ) $ 69,421 $ 1,550,172 $ 2,544,830

Issuance of restricted stock and other stock awards 422,518 4 3,676 — — — — 3,680

Share-based compensation — — 2,551 — — — — 2,551

Purchase of Incremental Intralot Shares — — ( 32,100 ) — — — 11,239 ( 20,861 )

Bally’s Thunder Plains Park acquisition issuance — — — — — — 1,900 1,900

Dividends paid to minority shareholders of Bally’s Intralot — — — — — — ( 6,183 ) ( 6,183 )

Other comprehensive loss — — — — — ( 15,534 ) ( 6,940 ) ( 22,474 )

Net loss — — — — ( 161,914 ) — 1,057 ( 160,857 )

Balance as of February 7, 2025 (Predecessor) 40,806,667 $ 408 $ 1,416,288 $ — $ ( 1,174,673 ) $ ( 269,710 ) $ — $ ( 27,687 )

Balance as of March 31, 2026 (Successor) 48,947,327 $ 488 $ 1,548,954 $ — $ ( 811,988 ) $ 53,887 $ 1,551,245 $ 2,342,586

Common Stock Additional

Paid-in Capital Treasury

Stock Retained Earnings (Deficit) Accumulated Other Comprehensive Income Non-controlling Interest Total Stockholders’

Stock Accumulated Deficit Accumulated Other Comprehensive Loss Non-controlling Interest Total Stockholders’ Equity (Deficit)

Shares Issued and Outstanding Amount

Balance as of February 8, 2025 (Successor) 71,258,763 $ 712 $ 1,171,824 $ — $ — $ — $ — $ 1,172,536

Share repurchases ( 22,804,384 ) ( 228 ) ( 420,114 ) — — — — ( 420,342 )

Issuance of restricted stock and other stock awards 557,417 5 ( 5,132 ) — — — — ( 5,127 )

Bally’s Chicago Inc.

Issuance — — — — — — 12,361 12,361

Share-based compensation — — 2,740 — — — — 2,740

Other comprehensive income — — — — — 12,163 — 12,163

Net income — — — — 34,516 — — 34,516

Balance as of March 31, 2025 (Successor) 49,011,796 $ 489 $ 749,318 $ — $ 34,516 $ 12,163 $ 12,361 $ 808,847

Issuance of restricted stock and other stock awards 108,301 1 ( 225 ) — — — — ( 224 )

Share-based compensation — — 2,350 — — — — 2,350

Other — — ( 1,314 ) — — — — ( 1,314 )

Other comprehensive income — — — — — 61,216 — 61,216

Net loss — — — — ( 228,436 ) — — ( 228,436 )

Balance as of June 30, 2025 (Successor) 49,120,097 $ 490 $ 750,129 $ — $ ( 193,920 ) $ 73,379 $ 12,361 $ 642,439

Issuance of restricted stock and other awards 11,205 — ( 263 ) — — — — ( 263 )

Share-based compensation — — 1,938 — — — — 1,938

Bally’s Chicago Inc.

Issuance — — — — — — ( 8,722 ) ( 8,722 )

Balance as of December 31, 2024 (Predecessor) 40,787,007 $ 408 $ 1,414,410 $ — $ ( 1,123,649 ) $ ( 260,267 ) $ — $ 30,902

Share-based compensation - equity awards — — 1,954 — — — — 1,954

Release of restricted units 19,660 — ( 76 ) — — — — ( 76 )

Other comprehensive loss — — — — — ( 9,443 ) — ( 9,443 )

Net loss — — — — ( 51,024 ) — — ( 51,024 )

Balance as of September 30, 2025 (Successor) 49,131,302 $ 490 $ 751,804 $ — $ ( 296,832 ) $ 66,085 $ 352 $ 521,899

BALLY’S CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) (unaudited)

(In thousands, except share data)

Balance as of February 7, 2025 (Predecessor) 40,806,667 $ 408 $ 1,416,288 $ — $ ( 1,174,673 ) $ ( 269,710 ) $ — $ ( 27,687 )

Common Stock Additional

Paid-in Capital Treasury

Stock Accumulated Deficit Accumulated Other Comprehensive Loss Non-controlling Interest Total Stockholders’

Stock Retained Earnings Accumulated Other Comprehensive Income Non-controlling Interest Total Stockholders’

Shares Outstanding Amount

Balance as of December 31, 2023 (Predecessor) 39,973,202 $ 400 $ 1,400,479 $ — $ ( 555,895 ) $ ( 209,558 ) $ 428 $ 635,854

Issuance of restricted stock and other stock awards 423,805 4 ( 2,778 ) — — — — ( 2,774 )

Share-based compensation — — 3,058 — — — — 3,058

Settlement of consideration 86,368 1 ( 125 ) — — — — ( 124 )

Other — — 1,750 — — — — 1,750

Other comprehensive loss — — — — — ( 14,045 ) — ( 14,045 )

Net loss — — — — ( 173,914 ) — — ( 173,914 )

Balance as of March 31, 2024 (Predecessor) 40,483,375 $ 405 $ 1,402,384 $ — $ ( 729,809 ) $ ( 223,603 ) $ 428 $ 449,805

Issuance of restricted stock and other stock awards 135,981 1 262 — — — — 263

Share-based compensation — — 4,472 — — — — 4,472

Other comprehensive loss — — — — — ( 793 ) — ( 793 )

Net loss — — — — ( 60,196 ) — — ( 60,196 )

Balance as of June 30, 2024 (Predecessor) 40,619,356 $ 406 $ 1,407,118 $ — $ ( 790,005 ) $ ( 224,396 ) $ 428 $ 393,551

Issuance of restricted stock and other stock awards 33,990 — ( 103 ) — — — — ( 103 )

Share-based compensation — — 4,099 — — — — 4,099

Balance as of February 8, 2025 (Successor) 71,258,763 $ 712 $ 1,171,824 $ — $ — $ — $ — $ 1,172,536

Release of restricted units 557,417 5 ( 5,132 ) — — — — ( 5,127 )

Share-based compensation - equity awards — — 2,740 — — — — 2,740

Bally’s Chicago Issuance — — — — — — 12,361 12,361

Share repurchases ( 22,804,384 ) ( 228 ) ( 420,114 ) — — — — ( 420,342 )

Other comprehensive income — — — — — 12,163 — 12,163

Net loss — — — — ( 247,855 ) — — ( 247,855 )

Balance as of September 30, 2024 (Predecessor) 40,653,346 $ 406 $ 1,411,114 $ — $ ( 1,037,860 ) $ ( 140,245 ) $ 428 $ 233,843

Net income — — — — 34,516 — — 34,516

Balance as of March 31, 2025 (Successor) 49,011,796 $ 489 $ 749,318 $ — $ 34,516 $ 12,163 $ 12,361 $ 808,847

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

Successor Predecessor

(in thousands) Period from February 8, 2025 to September 30, 2025 Period from January 1, 2025 to February 7, 2025 Nine Months Ended September 30, 2024

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Cash flows from operating activities:

Net loss $ ( 300,119 ) $ ( 51,024 ) $ ( 481,965 )

Net (loss) income $ ( 160,857 ) $ 34,516 $ ( 51,024 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

2 unchanged sentences

Share-based compensation 2,551 2,740 1,954

Impairment charges — — 12,757

Non-cash amortization of debt discount and debt issuance costs 19,004 14,648 1,004

Loss on sale-leaseback — — 150,000

Gain on sale-leaseback ( 105,845 ) — —

Loss on extinguishment of debt 63,420 17,372 —

2 unchanged sentences

(Income) loss from equity method investments 2,913 ( 863 ) 594

Foreign exchange (gain) loss 37,044 ( 194 ) 26,447

Change in value of performance warrants — — 1,180

Change in contingent consideration payable — ( 867 ) 786

Foreign exchange gain ( 21,088 ) ( 1,591 ) ( 194 )

Other operating activities ( 29,819 ) 854 1,545

Changes in operating assets and liabilities ( 151,512 ) ( 7,691 ) ( 62,592 )

Net cash provided by (used in) operating activities ( 29,810 ) ( 80,186 ) 76,177

Net cash (used in) provided by operating activities ( 145,021 ) 42,001 ( 80,186 )

Cash flows from investing activities:

Cash paid for acquisitions, net of cash acquired — 21,233 —

Proceeds from sale-leaseback 685,000 — —

Proceeds from net investment hedges — — —

Cash paid for shares in Intralot ( 13,799 ) — —

Cash paid for The Star Investment ( 83,720 ) — —

Cash paid for asset acquisitions ( 16,212 ) — —

Capital expenditures ( 38,864 ) ( 30,457 ) ( 16,424 )

2 unchanged sentences

Other investing activities 143 ( 962 ) 1,042

Net cash used in investing activities ( 235,710 ) ( 17,697 ) ( 191,081 )

Net cash provided by (used in) investing activities 120,187 ( 20,797 ) ( 17,697 )

Cash flows from financing activities:

1 unchanged sentence

Repayments of long-term debt ( 2,042,084 ) ( 259,623 ) ( 10,000 )

Deferred payables 42,249 11,064 81,666

Cash paid for repurchased shares ( 416,180 ) — —

Deferred payables, net 39,635 8,973 11,064

Share repurchases — ( 416,180 ) —

Payment of financing fees ( 19,875 ) ( 21,326 ) —

Payment of contingent consideration ( 115,000 ) — —

Purchase of incremental Intralot shares ( 20,861 ) — —

Bally’s Chicago Inc.

issuance 18,132 — —

share issuance — 12,361 —

Other financing activities ( 2,502 ) ( 5,132 ) ( 76 )

Net cash provided by financing activities 300,907 97,988 75,706

Net cash (used in) provided by financing activities ( 242,446 ) 14,073 97,988

Effect of foreign currency on cash and cash equivalents and restricted cash 13,981 ( 1,497 ) ( 457 )

5 unchanged sentences

Successor Predecessor

(in thousands) Period from February 8, 2025 to September 30, 2025 Period from January 1, 2025 to February 7, 2025 Nine Months Ended September 30, 2024

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Supplemental disclosure of cash flow information:

6 unchanged sentences

Consideration issued for the Queen Merger — 555,751 —

Consideration receivable from sale of assets to GLP 134,790 — —

Intralot shares received as settlement of loan receivable

Liability for NY land asset acquisition ( 185,428 ) — —

GLP Capital, L.P.

partnership units received 15,143 — —

NCI issued for asset acquisition ( 1,900 ) — —

Successor Predecessor

September 30, February 7, December 31,

Reconciliation of cash and cash equivalents and restricted cash:

2025 2025 2024

March 31, 2026 December 31, 2025 February 7, 2025

Cash and cash equivalents $ 559,304 $ 798,423 $ 173,549

40 unchanged sentences

Baton Rouge, Louisiana Casino 2025

The Belle of Baton Rouge (2)

Bally’s Baton Rouge Casino and Hotel (“Bally’s Baton Rouge”) (2)

Baton Rouge, Louisiana Casino and Hotel 2025

3 unchanged sentences

Louis, Illinois Casino and Hotel 2025

Bally’s Thunder Plains Park

Hillsdale, Wyoming

__________________________________

2 unchanged sentences

Refer to Note 15 “ Leases ” for further information.

(3) Temporary casino facility as permanent casino resort is constructed.

Site of future permanent casino resort is leased from GLPI.

The Company’s International Interactive reportable segment includes the Company’s interactive European gaming operations, the Company’s global licensing revenue generating operations, as well as one casino property, Bally’s Newcastle, in the UK.

The North America Interactive reportable segment includes a portfolio of sports betting, iGaming, and free-to-play gaming brands, and the North American operations of Gamesys.

(3) Temporary casino facility as the Company’s future permanent casino resort in Chicago (the “Chicago Permanent Facility”) is constructed.

The site of the Chicago Permanent Facility is leased from GLPI.

The Company’s Bally’s Intralot B2B reportable segment includes Bally’s Intralot S.A.’s (“Intralot”) global business-to-business (“B2B”) operations and licensing revenue generating operations.

Intralot was acquired by the Company in the fourth quarter of 2025.

Refer to “Acquisition of Intralot” subsection below for further information.

The Company’s Bally’s Intralot B2C reportable segment includes the Company’s business-to-consumer (“B2C”) gaming operations in international jurisdictions and one casino property, Bally’s Newcastle, in the UK.

The North America Interactive reportable segment includes a portfolio of sports betting and iGaming offerings in the United States and Canada.

Refer to Note 18 “ Segment Reportin g” for further information.

3 unchanged sentences

On February 7, 2025, the Company completed the previously announced transactions under the Agreement and Plan of Merger (as amended, the “Merger Agreement”) with SG Parent LLC, a Delaware limited liability company (“Parent”), The Queen Casino & Entertainment, Inc., a Delaware corporation and affiliate of Parent (“Queen”), Epsilon Sub I, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub I”), Epsilon Sub II, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub II”, and together with the Company and Merger Sub I, the “Company Parties”), and, solely for purposes of specified provisions thereof, SG CQ Gaming LLC, a Delaware limited liability company (“SG Gaming” and together with Parent and Queen, the “Buyer Parties”).

As a result of the transactions, at closing, Parent and its affiliates beneficially owned 73.8 % of the issued and outstanding Company common stock.

Pursuant to the Merger Agreement, (i) SG Gaming contributed to the Company all shares of common stock of Queen that it owns (the “Queen Share Contribution”) in exchange for 26,909,895 shares of common stock of the Company (“Company Common Stock”) based on a 2.4536890595 share exchange ratio, (ii) the Company issued approximately 3,542,201 shares of Company Common Stock to the other stockholders of Queen, (iii) immediately thereafter, Merger Sub I merged into the Company (the “Company Merger”), with the Company surviving the Company Merger and (iv) immediately thereafter, Merger Sub II merged into Queen (the “Queen Merger,” and together with the Company Merger, the “Merger”), with Queen surviving the Queen Merger as a direct, wholly owned subsidiary of the Company.

On February 7, 2025, as a result of the transactions, Parent and its affiliates beneficially owned 73.8 % of the issued and outstanding Company common stock.

Pursuant to the Merger Agreement, (i) SG Gaming contributed to the Company all shares of common stock of Queen that it owned (the “Queen Share Contribution”) in exchange for 26,909,895 shares of common stock of the Company (“Company Common Stock”) based on a 2.4536890595 share exchange ratio, (ii) the Company issued approximately 3,542,201 shares of Company Common Stock to the other stockholders of Queen, (iii) immediately thereafter, Merger Sub I merged into the Company (the “Company Merger”), with the Company surviving the Company Merger and (iv) immediately thereafter, Merger Sub II merged into Queen (the “Queen Merger,” and together with the Company Merger, the “Merger”), with Queen surviving the Queen Merger as a direct, wholly owned subsidiary of the Company.

At the effective time of the Merger, each share of the Company’s Common Stock issued and outstanding (other than shares of common stock owned by (i) the Company or any of its wholly owned subsidiaries, (ii) Parent or any of Parent’s affiliates, (iii) by holders exercising statutory appraisal rights;

7 unchanged sentences

In connection with the Merger, as of February 7, 2025, all outstanding Performance Warrants became immediately exercisable at a price of $ 0.01 per share.

Acquisition of Intralot

In 2025, following the Queen Merger, the Company held an investment in Intralot, which was accounted for as an equity method investment under the fair value option.

The total initial investment represented approximately 26.86 % of Intralot’s outstanding shares.

As part of this investment structure, the Company held a € 25.0 million delayed draw term loan receivable from a third‑party investment holding company, the repayment of which was contractually tied to the delivery of Intralot shares.

During the three months ended June 30, 2025 (Successor), the Company settled this outstanding delayed draw term loan by receiving 34.3 million shares of Intralot in full satisfaction of the loan, consistent with the fair value model that estimated repayment based on the value of Intralot shares.

In addition, on June 30, 2025, the Company purchased 4.8 million additional Intralot shares for € 1.06 per share.

These transactions collectively triggered a mandatory tender offer for the remaining outstanding shares of Intralot.

During the three months ended September 30, 2025 (Successor), the mandatory tender offer was completed, and the Company’s acquired an additional 6.1 million shares of Intralot, increasing its ownership to 34.35 % of Intralot’s outstanding shares prior to the transaction described below.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

On October 8, 2025 (the “Intralot Closing Date”), the Company completed the previously announced acquisition under the transaction agreement (the “Transaction Agreement”) of Intralot, pursuant to which Intralot agreed to acquire Bally’s International Interactive through a combined cash-and-equity transaction.

Pursuant to the Transaction Agreement, (i) Intralot paid the Company $ 1.8 billion in cash and issued approximately 873.7 million new shares in exchange for all of the issued and outstanding capital stock of Bally’s Holdings Limited which held Bally’s International Interactive, (ii) the Company’s ownership of Intralot increased to a controlling 57.9 % interest through the issuance of equity to the Company’s consolidated subsidiary Premier Entertainment Sub, LLC via PE Sub Holdings LLC, an indirect wholly owned subsidiary of the Company, making the Company the majority shareholder of Intralot (the “Intralot Transaction”).

As a result of obtaining a controlling financial interest in Intralot, the Company retained control of Bally’s International Interactive, via Bally’s Holdings Limited, throughout the transaction.

On the Intralot Closing Date, legal ownership of Bally’s Holdings Limited transferred from Premier Entertainment Sub to Intralot;

however, Bally’s Corporation simultaneously obtained control of Intralot.

Accordingly, Bally’s maintained control of Bally’s International Interactive, and as a result, the transfer of Bally’s International Interactive was accounted for as an equity transaction with the initial recognition of a 42.1 % non-controlling interest, and no gain or loss was recognized in earnings.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) and include the accounts of the Company, its majority-owned subsidiaries and entities the Company identifies as variable interest entities (“VIEs”), of which the Company is determined to be the primary beneficiary.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, its majority-owned subsidiaries and entities the Company identifies as variable interest entities (“VIEs”), of which the Company is determined to be the primary beneficiary.

All intercompany balances and transactions have been eliminated in consolidation.

3 unchanged sentences

Foreign currency transaction gains and losses are included in net loss.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”) for interim financial information, including the instructions to Form 10-Q and Rule 10-01 of the SEC’s Regulation S-X.

Accordingly, certain information and note disclosures normally required in complete financial statements prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted.

Accordingly, certain information and note disclosures normally required in complete financial statements prepared in conformity with GAAP have been condensed or omitted.

In the Company’s opinion, these condensed consolidated financial statements include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

2 unchanged sentences

The actual results that we experience may differ materially from our estimates.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

As described in Note 1 “General Information”, the Company completed the Merger with Queen on February 7, 2025 (the “Closing”), with Queen surviving the Merger as a wholly owned subsidiary of the Company.

The Parent and its affiliates maintained a controlling financial interest, as defined by ASC 810, in Queen before and after the Merger, and in the Company upon consummation of the Merger.

The Parent and its affiliates maintained a controlling financial interest, as defined by ASC 810, Consolidation , in Queen before and after the Merger, and in the Company upon consummation of the Merger.

The Merger with Queen was accounted for as a transaction between entities under common control because the Parent and its affiliates contributed a wholly owned subsidiary into the Company, which became a controlled subsidiary of the Parent and its affiliates upon consummation of the merger.

3 unchanged sentences

As a result, the financial statements included in this report reflect (i) the historical operating results of Bally’s prior to the Merger and (ii) the combined results of the Company following the Closing.

The accompanying unaudited condensed consolidated financial statements include a Predecessor period, which includes the period through February 7, 2025 concurrent with the Merger, and a Successor period from February 8, 2025 through September 30, 2025.

A black line between the Successor and Predecessor periods has been placed in the condensed consolidated financial statements and in the tables to the notes to the condensed consolidated financial statements to highlight the lack of comparability between these two periods.

14 unchanged sentences

Equity adjustment associated with the Queen merger $ 338,724

For the three months ended March 31, 2026 (Successor) and the period from February 8, 2025 to March 31, 2025 (Successor), revenue for Queen was $ 68.5 million and $ 34.7 million, respectively, and net income was $ 1.6 million and $ 13.0 million for the same periods, respectively.

Equity Method Investments

The Company holds a 37.7 % equity interest in The Star Entertainment Group Limited (“The Star”), an ASX-listed company, which it accounts for as an equity method investment under the fair value option allowed by ASC 825, Financial Instruments .

Under the fair value option, the investment is 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, net of the condensed consolidated statements of operations.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

For the three months ended September 30, 2025 (Successor) and period from February 8, 2025 to September 30, 2025 (Successor), revenue for Queen was $ 58.6 million and $ 154.6 million, respectively and net income was $ 17.1 million and $ 71.9 million, respectively.

Equity Method Investments

In 2025, following the Queen merger, the Company has an investment in Intralot S.A.

Integrated Lottery Systems and Services (“Intralot”), a Greek publicly listed company on the Athens Stock Exchange, that supplies integrated gaming and transaction processing systems, game content, sports betting management and interactive gaming services to state-licensed gaming and lottery organizations worldwide.

In 2025, following the Queen Merger, the Company had an investment in Intralot.

The total initial investment represented approximately 26.86 % of the outstanding shares of Intralot.

During the three months ended June 30, 2025 (Successor), an existing loan receivable was settled by payment to the Company of 34.3 million shares of Intralot.

On June 30, 2025, the Company also purchased 4.8 million additional shares of Intralot for € 1.06 per share.

These transactions triggered a mandatory tender offer obligation for the remaining outstanding shares of Intralot.

During the three months ended September 30, 2025, the mandatory tender offer was completed and the Company acquired an additional 6.1 million shares of Intralot, bringing the Company’s total ownership in Intralot to 34.35 % of the outstanding shares.

The investment is accounted for as an equity method investment under the fair value option as the Company believes this best depicts the economics of the investment.

Subsequent to the end of the quarter, the Company acquired a controlling stake in Intralot.

Refer to Note 20 “Subsequent Events” for further information.

In 2024, the Company completed the sale of portions of its international interactive business in Asia and certain other international markets in its International Interactive reportable segment (the “Carved-Out Business”) to a company (the “Buyer”) formed by members of management of the Carved-Out Business.

In connection with the disposition, the Company acquired penny warrants that represent a 19.99 % fully diluted interest in the Buyer, for approximately $ 1.9 million.

The Company accounts for this interest as an equity method investment.

During the fourth quarter of 2025, the Company acquired a controlling financial interest in Intralot as described in Note 1 “General Information” and will account for the Intralot Transaction as a business combination (refer to Note 7 “Business Combinations” for further information).

Prior to the Intralot Transaction, the Company accounted for its shares as an equity method investment under the fair value option.

The Company also has other investments in unconsolidated subsidiaries, which are accounted for using equity method accounting.

The Company records its share of net income or loss and changes in fair value for equity method investments accounted for under the fair value option within Other non-operating (expense) income, net in the condensed consolidated statements of operations.

The Company records its share of net income or loss and changes in fair value for equity method investments accounted for under the fair value option within Other non-operating expense, net in the condensed consolidated statements of operations.

Refer to Note 4 “Consolidated Financial Information” for further information.

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The Company consolidates its investment in a VIE when it determines that it is its primary beneficiary.

In determining whether it is the primary beneficiary of the VIE, the Company considers qualitative and quantitative factors, including, but not limited to:

which activities most significantly impact the VIE’s economic performance and which party controls such activities and significance of the Company’s investment and other means of participation in the VIE’s expected profits/losses.

In determining whether it is the primary beneficiary of the VIE, the Company considers qualitative and quantitative factors, including, but not limited to which activities most significantly impact the VIE’s economic performance and which party controls such activities and significance of the Company’s investment and other means of participation in the VIE’s expected profits/losses.

Significant judgments related to these determinations include estimates about the current and future fair values and performance of assets held by these VIEs and general market conditions.

Management has analyzed and concluded that a trust that was established in connection with the disposal of the Asia Interactive Business, is a VIE that will be consolidated based on the applicable criteria.

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), consolidated VIEs had total assets of $ 247.7 million and $ 263.9 million, respectively, and total liabilities of $ 38.6 million and $ 27.9 million, respectively.

Consolidated VIEs had total revenue of $ 4.8 million and $ 40.9 million for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), respectively, and total revenue of $ 16.8 million, $ 3.7 million and $ 149.4 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company may change its original assessment of a VIE upon subsequent events such as the modification of contractual arrangements that affect the characteristics or adequacy of the entity’s equity investments at risk and the disposition of all or a portion of an interest held by the primary beneficiary.

The Company performs this analysis on an ongoing basis.

Related Parties

The Company evaluates related parties pursuant to ASC 850, Related Party Disclosures (“ASC 850”).

Related parties include VIE entities, shareholders of significant subsidiaries, key management personnel of the Company, and equity method investments held by the Company.

Refer to Note 3 “Related Party Transactions” for further information.

Non-controlling interest

In the first quarter of 2025, Bally’s Chicago, Inc., a consolidated subsidiary of the Company, successfully completed a private placement (the “Private Placement”), whereby shares of Class A-1, A-2, A-3 and A-4 were issued to third parties for total consideration of $ 12.4 million, net of $ 0.8 million of issuance costs.

On August 14, 2025, Bally’s Chicago, Inc.

As described in Note 1 “General Information,” on October 8, 2025 the Company acquired a controlling financial interest in Intralot.

In connection with the transaction, Bally’s International Interactive, a wholly owned subsidiary, was contributed to Intralot.

As a result, the Company consolidates Intralot and its subsidiaries, including Bally’s International Interactive, and the equity interests in Intralot held by third parties are reflected as a noncontrolling interest in the Company’s Condensed Consolidated Statements of Stockholders’ Equity.

The non-controlling interest recognized at the Intralot Closing Date represents (i) the fair value of the equity interests in Intralot held by third parties, which is based on Intralot’s closing share price as of that date and (ii) the carrying value of the noncontrolling interests attributable to Bally’s International Interactive.

As of March 31, 2026 (Successor), third parties held approximately 40.6 % of the outstanding equity interests in Intralot.

Net income attributable to non-controlling interest was $ 4.0 million for the three months ended March 31, 2026 (Successor).

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

During the first quarter of 2025, Bally’s Chicago, Inc., a consolidated subsidiary of the Company, successfully completed a private placement, whereby shares of Class A-1, A-2, A-3 and A-4 were issued to third parties for total consideration of $ 12.4 million, net of $ 0.8 million of issuance costs.

Additionally, on August 14, 2025 (Successor), Bally’s Chicago, Inc.

completed its public offering and concurrent private placement, whereby additional shares of Class A-1, A-2, A-3 and A-4 were issued for total consideration of $ 5.8 million, net of $ 0.3 million of issuance costs.

As of September 30, 2025 (Successor), the Company’s non-controlling interest in Bally’s Chicago, Inc.

Net loss attributable to non-controlling interest was $ 3.3 million for the three and nine months ended September 30, 2025 (Successor).

The Star Entertainment Group Investment

On April 7, 2025, the Company entered into a Binding Term Sheet with The Star Entertainment Group Limited (“The Star”), an ASX-listed company, to invest up to A$ 300.0 million in a multi-tranche issuance of convertible notes and subordinated debt (the “Investment”).

On April 8, 2025, The Star announced a commitment from its largest shareholder, Investment Holdings Pty, to subscribe for A$ 100.0 million of the Investment, reducing the Company’s commitment to A$ 200.0 million.

On April 9, 2025, the Company funded A$ 66.7 million, consisting of Tranche 1A convertible notes of A$ 22.2 million (the “Convertible Notes”) and subordinated debt with a principal amount of A$ 44.4 million.

Additionally, on May 23, 2025, the Company and The Star entered into a Subscription Agreement and a Subordination Deed Poll in favor of certain The Star’s senior lenders.

Following shareholder approval obtained on June 25, 2025, the Company funded an additional principal amount of A$ 66.7 million in subordinated debt on June 27, 2025 (together with the A$ 44.4 million, the “Subordinated Notes”).

As of September 30, 2025, the outstanding principal balance on the Subordinated Notes and Convertible Notes were A$ 111.1 million and A$ 22.2 million, respectively.

The remainder of the Company’s A$ 66.7 million commitment (the “Forward Obligation”) was funded on October 9, 2025 in the form of subordinated debt.

Upon regulatory approval of the Investment, the Subordinated Notes will settle into the Convertible Notes on a cashless basis.

Both the Convertible Notes and Subordinated Notes mature on July 2, 2029, and bear interest at an annual rate of 9 %, paid in-kind and compounded quarterly.

The Star may elect to settle accrued interest in cash or by issuing its ordinary shares.

The Company can convert the principal amount of the Convertible Notes into ordinary shares of The Star at any time once regulatory approval has been received at a conversion price of A$ 0.08 per share.

The Company accounts for the instruments funded to date, along with the embedded derivatives associated with their conversion and redemption features, by utilizing the fair value option under ASC 825, Financial Instruments , as the Company believes this best depicts the economics of the investment.

Refer to Note 12 “Fair Value Measurements” for further information.

As of March 31, 2026 (Successor), the Company’s non-controlling interest in Bally’s Chicago, Inc.

Net loss attributable to non-controlling interest was $ 2.9 million for the three months ended March 31, 2026 (Successor) and de minimis for the period from February 8, 2025 to March 31, 2025 (Successor).

Cash and Cash Equivalents and Restricted Cash

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Restricted cash includes player deposits, payment service provider deposits, and VLT and table games related cash payables to certain states where we operate, which are unavailable for the Company’s use.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Accounts Receivable, Net

Accounts receivable, net consists of the following:

Successor Predecessor

September 30, December 31,

(in thousands) 2025 2024

(in thousands) March 31, 2026 (Successor) December 31, 2025 (Successor)

Amounts due from GLPI (1)

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__________________________________

(1) Represents amounts due from GLPI related to the development of the Company’s future permanent casino resort in Chicago.

(1) Represents amounts due from GLPI related to the development of the Chicago Permanent Facility.

Refer to Note 15 “Leases” for further information.

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The Company will then pay the new bill to the intermediary institutions, inclusive of any embedded premium, which the Company records as Interest expense, net, within three months or less.

Amounts outstanding under these deferred payable arrangements were $ 125.4 million and $ 72.8 million as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, and are included in Accrued and other current liabilities on the condensed consolidated balance sheets.

For the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), the Company borrowed $ 125.5 million and $ 82.5 million, respectively under these deferred payable arrangements.

For the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), the Company borrowed $ 231.6 million, $ 79.6 million and $ 184.8 million, respectively, under these deferred payable arrangements.

For the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), the Company repaid $ 87.9 million and $ 61.7 million, respectively.

For the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor) the Company repaid $ 189.4 million and $ 68.5 million and $ 103.1 million, respectively.

For the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), the Company incurred $ 2.1 million and $ 1.7 million, respectively, of interest expense under these arrangements.

For the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), the Company incurred $ 5.8 million, $ 0.5 million and 3.9 million, respectively, of interest expense under these arrangements.

Amounts outstanding under these deferred payable arrangements were $ 85.3 million and $ 47.0 million as of March 31, 2026 (Successor) and December 31, 2025 (Successor), respectively, and are included in Accrued and other current liabilities on the condensed consolidated balance sheets.

The Company borrowed $ 86.6 million, $ 13.9 million and $ 79.6 million, under these deferred payable arrangements during the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

Additionally, the Company repaid $ 46.9 million, $ 5.0 million and $ 68.5 million, during the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company incurred $ 1.4 million, $ 1.6 million and $ 0.5 million of interest expense under these arrangements during the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

Gaming Expenses

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Gaming expenses also include racing expenses comprised of payroll costs, off track betting (“OTB”) commissions and other expenses associated with the operation of live racing and simulcasting.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Advertising Expense

The Company expenses advertising costs as incurred.

Advertising expenses, including production and agency fees of campaigns, for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor) was $ 3.0 million and $ 3.5 million, respectively.

Advertising expenses, including production and agency fees of campaign, for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor) was $ 7.1 million, $ 0.9 million, and $ 13.2 million respectively.

Advertising expenses, including production and agency fees of campaigns, for the three months ended March 31, 2026 (Successor) was $ 5.1 million.

Advertising expenses, including production and agency fees of campaign, for the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), was $ 1.4 million and $ 0.9 million, respectively.

The above advertising expenses are included in General and administrative on the condensed consolidated statements of operations.

Additionally, the Company incurred certain advertising and marketing costs directly associated with the Company’s iGaming products and services of $ 39.4 million for both the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), respectively and $ 89.0 million, $ 12.6 million and $ 132.6 million during the period from February 8, 2025 to September 30, 2025 (Successor), period from January 1, 2025 to February 7, 2025 (Predecessor), and the nine months ended September 30, 2024 (Predecessor), respectively.

Additionally, the Company incurred certain advertising and marketing costs directly associated with the Company’s iGaming products and services of $ 38.0 million for the three months ended March 31, 2026 (Successor).

Certain advertising and marketing costs incurred directly associated with the Company’s iGaming products and services of $ 18.1 million and $ 12.6 million during the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

These costs are included within Gaming expenses in the condensed consolidated statements of operations.

Share-Based Compensation

The Company recognized total share-based compensation expense of $ 1.9 million and $ 4.1 million for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), and $ 7.0 million, $ 2.0 million and $ 11.6 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively.

The total income tax benefit for share-based compensation arrangements was $ 0.5 million and $ 1.1 million for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), and $ 1.9 million, $ 0.5 million and $ 3.0 million for the period from February 8, 2025 to September 30, 2025 (Successor) the period from January 1, 2025 to February 7, 2025 (Predecessor), and the nine months ended September 30, 2024 (Predecessor), respectively.

Strategic Partnership - Sinclair Broadcast Group

In 2020, the Company and Sinclair Broadcast Group, Inc.

(“Sinclair”) entered into the Framework Agreement, providing for a long-term strategic relationship between Sinclair and the Company.

Under the Framework Agreement, the Company issued to Sinclair warrants to purchase up to 4,915,726 shares of the Company at an exercise price of $ 0.01 per share (“the Penny Warrants”), a warrant to purchase up to 3,279,337 shares of the Company at an exercise price of $ 0.01 per share, subject to the achievement of various performance metrics (the “Performance Warrants”), and an option to purchase up to 1,639,669 additional shares, in four tranches with purchase prices ranging from $ 30.00 to $ 45.00 per share, exercisable over a seven-year period beginning in November 2024 (the “Options”).

Additionally, the Company is required to share 60 % of the tax benefits it realizes from the Penny Warrants, Options, Performance Warrants and other related payments.

Changes in the estimate of the tax benefit to be realized and tax rates in effect at the time, among other changes, was treated as an adjustment to the intangible asset.

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 the Options were returned to the Company in exchange for 384,536 penny warrants.

The Performance Warrants were reclassified from liability to equity as of February 7, 2025.

Refer to Note 12 “Fair Value Measurements” for more information.

The Company recognized total share-based compensation expense of $ 2.6 million for the three months ended March 31, 2026 (Successor).

For the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), total share-based compensation expense was $ 2.7 million and $ 2.0 million, respectively.

The total income tax benefit for share-based compensation arrangements was $ 0.7 million for the three months ended March 31, 2026 (Successor), and $ 0.7 million and $ 0.5 million for the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

Bally’s Chicago Service Agreements

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The Company expects to receive $ 50.0 million towards the construction and build out of certain casino facilities related to such services, payable in installments over 2 years, subject to certain conditions precedent (the “Bally’s Chicago Construction Investments”).

Under the aforementioned hospitality services agreement, the Company received $ 4.4 million of Bally’s Chicago Construction Investments in the third quarter of 2025.

Under the aforementioned hospitality services agreement, the Company received $ 7.8 million of Bally’s Chicago Construction Investments during the three months ended March 31, 2026 (Successor).

As of March 31, 2026 (Successor), the Company has received $ 12.2 million in proceeds under this agreement.

The Bally’s Chicago Construction Investments are recorded in “Other long-term liabilities” and will be amortized as a reduction of Non-gaming operating costs and expenses over the contract term upon commencement of operations at the permanent casino and resort.

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Provision for Income Taxes

During the three months ended September 30, 2025 (Successor) and the three and nine months ended September 30, 2024 (Predecessor), the Company recorded a benefit for income tax of $ 41.3 million, $ 33.6 million and $ 3.7 million, respectively.

For the period from February 8, 2025 to September 30, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), the Company recorded a provision of $ 47.0 million and $ 0.7 million, respectively.

The effective tax rate for three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor) was 28.0 % and 11.9 %, respectively.

The effective tax rate for the period from February 8, 2025 to September 30, 2025 (Successor), period from January 1, 2025 to February 7, 2025 (Predecessor), and the nine months ended September 30, 2024 (Predecessor) was ( 18.6 )%, ( 1.3 )%, and 0.8 %, respectively.

As of September 30, 2025 (Successor), the Company projects an annual tax provision relative to its pre-tax loss in the US due to the valuation allowance on interest, the $ 10.5 million discrete benefit of the One Big Beautiful Bill in the third quarter of 2025, and a tax provision internationally relative to its pre-tax income, which results in a combined ( 19 )% annual effective tax rate, as the combined pre-tax income by jurisdiction is minimized.

During the three months ended March 31, 2026 (Successor) and the period from February 8, 2025 to March 31, 2025 (Successor), the Company recorded a benefit for income tax of $ 3.2 million and $ 97.1 million, respectively.

For the period from January 1, 2025 to February 7, 2025 (Predecessor), the Company recorded a provision of $ 0.7 million.

The effective tax rate for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor) was 2.0 %, 155.2 % and ( 1.3 )%, respectively.

As of March 31, 2026 (Successor), the Company projects an annual tax benefit relative to its pre-tax loss offset in part by the valuation allowance on interest and a $ 13.3 million discrete provision on the benefit of the Bally’s Twin River sale-leaseback during the three months ended March 31, 2026 (Successor).

RELATED PARTY TRANSACTIONS

The Company holds a warrant, representing a 19.99 % fully diluted equity interest in the Carved-Out Business, 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, Related Party Disclosures .

Revenues generated from this equity method investee are included in Non-gaming revenue and were $ 4.8 million, $ 16.8 million and $ 3.7 million for the three months ended September 30, 2025 (Successor), the period from February 8, 2025 to September 30, 2025 (Successor), and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

There was no revenue generated from this equity method investee during the three and nine months ended September 30, 2024 (Predecessor).

Receivables from this equity method investee are included in Accounts receivable, net and were $ 4.3 million and $ 1.1 million as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively.

In connection with the disposal of the Carved-Out Business, the Company entered into a seven -year term loan with the Buyer for a principal amount of € 30 million, subject to applicable interest.

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), the Company had a loan receivable of approximately $ 32.4 million and $ 31.2 million, respectively, included in Other assets within the condensed consolidated balance sheets.

The Company recorded interest income of $ 0.6 million, $ 1.8 million and $ 0.3 million, respectively, for the three months ended September 30, 2025 (Successor), the period from February 8, 2025 to September 30, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), included within Interest expense, net in the condensed consolidated statements of operations.

Disposition of Carved-Out Business

In 2024, the Company sold 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 € 30.0 million seven-year term note, subject to applicable interest.

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 condensed consolidated statements of operations, as development of iGaming capabilities remains a core part of Bally’s strategy.

During the fourth quarter of 2025 (Successor), the Company recorded a provision for credit loss of $ 17.1 million on the aforementioned term note.

The net carrying value of the term note, included in Other assets within the condensed consolidated balance sheets, was $ 16.7 million and $ 17.1 million as of March 31, 2026 (Successor) and December 31, 2025 (Successor), respectively.

The Company recorded interest income on the seven-year term note of $ 0.5 million and $ 0.3 million included within Interest expense, net in the consolidated statements of operations during the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively, and a de minimis amount during the three months ended March 31, 2026 (Successor).

As of March 31, 2026 (Successor), the Company had $ 0.9 million, included within Accounts payable in the condensed consolidated balance sheets, payable to this equity method investee, and $ 6.1 million in receivables from this equity method investee included Accounts receivable, net as of December 31, 2025 (Successor).

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 condensed consolidated financial statements.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), consolidated VIEs had total assets of $ 59.7 million and $ 60.8 million respectively, and total liabilities of $ 22.6 million and $ 18.6 million, respectively.

Consolidated VIEs had total revenues of $ 2.5 million, $ 4.9 million and $ 3.7 million for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

BALLY’S CORPORATION

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Successor Predecessor

(in thousands) Three Months Ended September 30, 2025 Period from February 8, 2025 to September 30, 2025 Period from January 1, 2025 to February 7, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Advertising, general and administrative $ 300,648 $ 140,416 $ 100,969

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Merger costs 2,137 15,875 11,233

Restructuring charges, net (1)

— — — ( 1,068 ) 17,921

Impairment charges — — — — 12,757

Total general and administrative $ 316,046 $ 160,391 $ 114,401

__________________________________

(1) Includes $ 0.3 million and $ 20.0 million of employee-related severance costs within the Company’s Casinos & Resorts reportable segment related to the closure of its Tropicana Las Vegas casino on April 4, 2024 and immaterial adjustments within the International Interactive and North America Interactive reportable segments related to the 2023 interactive technology restructuring initiatives.

There was no restructuring liability as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor) on the condensed consolidated balance sheets.

Other Non-Operating (Expense) Income, Net

Amounts included in Other non-operating (expense) income, net were as follows:

Amounts included in Other non-operating expense, net were as follows:

Successor Predecessor

Loss on extinguishment of debt $ — $ ( 17,372 ) $ — $ — $ —

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Change in value of performance warrants — $ — $ ( 1,180 )

Loss on extinguishment of debt ( 63,420 ) ( 17,372 ) —

(Loss) gain on fair value of fair value option assets ( 104,273 ) 5,544 —

Net income (loss) from equity method investments 6,413 7,877 ( 594 ) ( 1,073 ) ( 284 )

Foreign exchange gain (loss) ( 32,097 ) ( 37,044 ) 194 ( 30,246 ) ( 26,447 )

Net (loss) income from equity method investments ( 2,913 ) 863 ( 594 )

Foreign exchange gain 21,088 1,591 194

Other, net 3,706 344 ( 785 )

Total other non-operating income (expense), net $ ( 42,632 ) $ 5,302 $ ( 2,365 ) $ ( 49,854 ) $ ( 38,370 )

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Total other non-operating expense, net ( 145,812 ) $ ( 9,030 ) $ ( 2,365 )

Interest Expense, Net

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Successor Predecessor

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Interest income $ 2,591 $ 1,450 $ ( 1 )

1 unchanged sentence

Total interest expense, net $ ( 109,905 ) $ ( 51,737 ) $ ( 27,229 )

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Standards Implemented

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326).

The amendments clarify guidance related to Topic 326 for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers, and allowing for a practical expedient that assumes that current conditions as of the balance sheet do not change for the remaining life of the asset.

The amendments are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, and was adopted on a prospective basis.

The adoption of this ASU did not have a material impact on the Company’s financial statements and related disclosures.

Standards to Be Implemented

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Early adoption is prohibited.

The Company is currently in the process of evaluating the impact of this amendment on its condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures .

The amendments in this update enhance the transparency and decision usefulness of income tax disclosures.

This update will be effective for annual periods beginning after December 15, 2024, with early adoption permitted.

The Company is currently in the process of evaluating the impact of this amendment on its condensed consolidated financial statements and related disclosures.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements - Amendments to Remove References to the Concepts Statements .

This amendment to the Codification removes references to various Concepts Statements.

This update will be effective for public business entities for fiscal years beginning after December 15, 2024, with early adoption permitted if adopted as of the beginning of the fiscal year that includes that interim period.

The Company is currently in the process of evaluating the impact of this amendment on its condensed consolidated financial statements and related disclosures.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company is currently in the process of evaluating the impact of this amendment on its financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

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The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) The amendments in this update are intended to simplify the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40).

The amendments in this update are intended to simplify the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods.

The amendments in this update are effective for annual reporting periods after December 15, 2027.

The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Improvements to Hedge Accounting.

The amendments in this update address stakeholder concerns and intend to more closely align hedge accounting with the economics of an entity’s risk management activities.

The amendments are effective for fiscal years beginning after December 15, 2026, with early adoption permitted.

The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements.

The amendments in this update are intended to improve the clarity and navigability of interim reporting guidance and specify when it applies.

The ASU addresses the form and content of interim financial statements, adds a consolidated list of required interim disclosures from other Codification topics, and establishes a principle requiring disclosure of events occurring after the end of the last annual reporting period that have a material impact on the entity.

The amendments are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

REVENUE RECOGNITION

The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers , which requires the revenue to be recognized when a performance obligation is satisfied by transferring the control of promised goods or services and is measured at the transaction price or the amount of consideration that the Company expects to receive through satisfaction of the identified performance obligations.

The Company generates revenue from four principal sources:

(1) gaming (which includes retail gaming, online gaming, sports betting and racing), (2) hotel, (3) food and beverage and (4) retail, entertainment and other.

The Company generates revenue from six principal sources:

(1) gaming (which includes retail gaming, online gaming, consumer lottery, sports betting and racing), (2) hotel, (3) food and beverage, (4) licensing, (5) technology services and (6) retail, entertainment and other.

Sales tax and other taxes collected on behalf of governmental authorities are accounted for on a net basis and are not included in revenue or operating expenses.

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Each wagering contract contains a single performance obligation.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Consumer lottery revenue is earned from jurisdictions where the Company has a license from the applicable government authority to operate games to provide game management services.

Each consumer lottery contract contains a single performance obligation to stand ready to operate games and lotteries in the specific jurisdiction.

Transaction Price

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The transaction price for racing operations, inclusive of live racing events conducted at the Company’s racing facilities, is the commission received from the pari-mutuel pool less contractual fees and obligations, primarily consisting of purse funding requirements, simulcasting fees, tote fees and certain pari-mutuel taxes that are directly related to the racing operations.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

For purposes of allocating the transaction price in a wagering contract between the wagering performance obligation and the obligation associated with incentives earned under loyalty programs, the Company allocates an amount to the loyalty program contract liability based on the stand-alone selling price of the incentive earned.

The performance obligation related to loyalty program incentives are deferred and recognized as revenue upon redemption by the customer.

For certain consumer lottery contracts, payments to the applicable government authority for the license to operate are not considered consideration payable to a customer under ASC 606.

Accordingly, such payments are recognized as operating expenses and are not presented as a reduction of revenue.

Revenue Recognition

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Racing revenue includes several of our casinos and resorts’ share of wagering from live racing and the import of simulcast signals, and is recognized upon completion of the wager based upon an established take-out percentage.

The estimated retail value related to goods and services provided to customers without charge or upon redemption under the Company’s player loyalty programs included in departmental revenues, and therefore reducing gaming revenues, are as follows:

Successor Predecessor

Hotel $ 20,088 $ 49,527 $ 7,098 $ 22,697 $ 63,603

Food and beverage 21,924 51,241 7,559 21,467 61,982

Retail, entertainment and other 1,764 9,440 713 2,517 7,387

$ 43,776 $ 110,208 $ 15,370 $ 46,681 $ 132,972

Consumer lottery revenue is recognized as tickets are sold and the variability is resolved.

Certain operations within the Company’s Casinos & Resorts and North America Interactive reportable segments act as an agent in operating gaming services on behalf of the state in which they are licensed.

At these respective casino properties, gaming revenue is recognized when the wager is settled, which is when the customer has received the benefits of the Company’s gaming services and the Company has a present right to payment.

The Company recorded revenue from its operations in these states on a net basis, which represents the percentage share entitled to the Company.

Additionally, certain operations within the Company’s Bally’s Intralot B2C reportable segment act as an agent in providing virtual sports betting services on behalf of the applicable government authority.

The Company collects wagers from players, remits net proceeds to the applicable government authority after payment of prizes, and retains a commission.

As the Company does not control the underlying wagering activity, revenue is recognized on a net basis in an amount equal to the commission to which the Company is entitled.

Revenue is recognized over time as wagering activity occurs and the outcome of the underlying bets is resolved.

Non-gaming Revenue

Performance Obligations

Hotel, food and beverage, and retail, entertainment and other services have been determined to be separate, stand-alone performance obligations and revenue is recognized as the good or service is transferred at the point in time of the transaction.

Hotel, food and beverage, licensing, and retail, entertainment and other services have been determined to be separate, stand-alone performance obligations and revenue is recognized as the good or service is transferred at the point in time of the transaction.

Technology services contracts involve the Company using its software to provide services related to customers’ lottery, VLT, and sports betting operations.

The Company will also provide related hardware and support services.

Technology services contracts can contain multiple performance obligations, including a performance obligation to stand ready to provide access to the software throughout the contract term and distinct performance obligations for sales of related hardware and implementation, customization, maintenance, and technical support services.

Transaction Price

The transaction price for hotel, food and beverage, and retail, entertainment and other, is the net amount collected from the customer for such goods and services.

The transaction price for hotel, food and beverage, licensing, and retail, entertainment and other, is the net amount collected from the customer for such goods and services or under the license agreement.

The estimated standalone selling price of hotel rooms is determined based on observable prices.

The standalone selling price of these goods and services are determined based upon the actual retail prices charged to customers for those items.

The transaction price for technology services contracts is primarily variable and is generally based on either (i) a monthly fee per enrolled machine, (ii) a percentage of gross revenue, or (iii) a percentage of net drop, which represents total amounts wagered less winnings and payouts to players.

BALLY’S CORPORATION

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Food, beverage and retail revenues are recognized at the time the goods are sold from Company-operated outlets.

Licensing revenue is recognized under the sales-and usage-based royalty exception available in ASC 606 for licenses of intellectual property whereby revenue is recognized in the period that the underlying sale or usage occurs as the fees due to the Company are contingent and based on the customer’s usage of the intellectual property.

Technology services revenues from the use of the Company’s software to provide services to customers are recognized over time as the variability is resolved.

Other revenue includes cancellation fees for hotel and meeting space services, which are recognized upon cancellation by the customer, and golf revenues from the Company’s operations of Bally’s Golf Links, which are recognized at the time of sale.

Additionally, other revenue includes market access and business-to-business service revenue generated by the International Interactive and North America Interactive reportable segments, which is recognized at the time the goods are sold or the service is provided, and are included in Non-gaming revenue within our condensed consolidated statements of operations.

Additionally, other revenue includes market access and business-to-business service revenue generated by the Bally’s Intralot B2B and North America Interactive reportable segments, which is recognized at the time the goods are sold or the service is provided, and are included in Non-gaming revenue within our condensed consolidated statements of operations.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following tables provide a disaggregation of revenue by segment (in thousands):

Three Months Ended September 30, 2025 (Successor)

Casinos & Resorts International Interactive North America Interactive Corporate & Other Total

The following table provides a disaggregation of total revenue by segment:

(in thousands) Casinos & Resorts Bally’s Intralot B2B Bally’s Intralot B2C North America Interactive Corporate & Other Total

Three Months Ended March 31, 2026 (Successor)

Gaming $ 300,698 $ — $ 239,132 $ 51,025 $ — $ 590,855

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Licensing — 3,011 — — — 3,011

Technology Services — 58,905 — — — 58,905

Retail, entertainment and other 15,743 12,040 806 9,431 1,644 39,664

Total non-gaming revenue 94,519 5,480 16,545 2,665 119,209

Non-gaming 79,030 73,956 806 9,431 1,644 164,867

Total revenue $ 379,728 $ 73,956 $ 239,938 $ 60,456 $ 1,644 $ 755,722

Period from February 8, 2025 to September 30, 2025 (Successor)

Period from February 8, 2025 to March 31, 2025 (Successor)

Gaming $ 178,534 $ — $ 107,736 $ 27,509 $ — $ 313,779

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Licensing — 4,883 — — — 4,883

Technology Services — — — — — —

Retail, entertainment and other 9,350 — 131 48 1,536 11,065

Total non-gaming revenue 230,311 20,700 17,182 5,834 274,027

Non-gaming 48,317 4,883 131 48 1,536 54,915

Total revenue $ 226,851 $ 4,883 $ 107,867 $ 27,557 $ 1,536 $ 368,694

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Licensing — 3,720 — — — 3,720

Retail, entertainment and other 6,005 416 2,007 273 8,701

Total non-gaming revenue 28,315 4,136 2,007 273 34,731

Total revenue $ 124,299 $ 78,985 $ 16,941 $ 273 $ 220,498

Three Months Ended September 30, 2024 (Predecessor)

Gaming $ 256,234 $ 228,693 $ 38,979 $ — $ 523,906

Hotel 41,672 — — — 41,672

Food and beverage 35,403 — — — 35,403

Retail, entertainment and other 20,049 2,244 5,142 1,558 28,993

Total non-gaming revenue 97,124 2,244 5,142 1,558 106,068

Total revenue $ 353,358 $ 230,937 $ 44,121 $ 1,558 $ 629,974

Nine Months Ended September 30, 2024 (Predecessor)

Gaming $ 762,197 $ 687,109 $ 115,408 $ — $ 1,564,714

Hotel 118,026 — — — 118,026

Food and beverage 103,478 — — — 103,478

Technology Services — — — — — —

Retail, entertainment and other 6,005 — 416 2,007 273 8,701

Total non-gaming revenue 276,541 7,907 14,780 6,171 305,399

Non-gaming 28,315 3,720 416 2,007 273 34,731

Total revenue $ 124,299 $ 3,720 $ 75,265 $ 16,941 $ 273 $ 220,498

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Contract Assets and Contract Related Liabilities

The Company’s receivables related to contracts with customers are primarily comprised of marker balances, interactive platform business-to-business service receivables, other amounts due from gaming activities, amounts due for hotel stays and amounts due from tracks and OTB locations.

The Company’s receivables related to contracts with customers were $ 56.6 million and $ 41.3 million as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively.

The Company’s receivables related to contracts with customers were $ 52.8 million and $ 57.5 million as of March 31, 2026 (Successor) and December 31, 2025 (Successor), respectively.

The Company has the following liabilities related to contracts with customers:

liabilities for loyalty programs, advance deposits made for goods and services yet to be provided and unpaid wagers.

All of the contract liabilities are short-term in nature and are included in “Accrued and other current liabilities” in the condensed consolidated balance sheets.

Loyalty program incentives earned by customers are typically redeemed within one year from when they are earned and expire if a customer’s account is inactive for more than 12 months;

therefore, the majority of these incentives outstanding at the end of a period will either be redeemed or expire within the next 12 months.

All of the contract liabilities are short-term in nature and are included in Note 13 “Accrued and Other Current Liabilities” in the condensed consolidated balance sheet.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Loyalty program incentives earned by customers are typically redeemed within one year from when they are earned and expire if a customer’s account is inactive for more than twelve months ;

therefore, the majority of these incentives outstanding at the end of a period will either be redeemed or expire within the next twelve months .

Advance deposits are typically interactive player deposits and customer deposits for future banquet events, hotel room reservations, and gift cards.

The Company holds restricted cash for interactive player deposits and records a corresponding withdrawal liability.

The banquet and hotel reservation deposits are usually received weeks or months in advance of the event or hotel stay.

Unpaid wagers include the Company’s outstanding chip liability and unpaid slot, pari-mutuel and sports betting tickets.

Liabilities related to contracts with customers as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor) were as follows:

Successor Predecessor

September 30, December 31,

(in thousands) 2025 2024

Liabilities related to contracts with customers were as follows:

(in thousands) March 31, 2026 (Successor) December 31, 2025 (Successor)

Unpaid wagers $ 57,243 $ 60,238

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Total $ 95,794 $ 98,269

The Company recognized $ 5.8 million and $ 7.1 million for three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), respectively, of revenue related to loyalty program redemptions.

The Company recognized $ 14.4 million, $ 2.2 million and $ 22.6 million, respectively, of revenue related to loyalty program redemptions for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor).

The Company recognized $ 5.1 million, $ 3.2 million and $ 2.2 million of revenue related to loyalty program redemptions for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

BUSINESS COMBINATIONS

Intralot Transaction

As described in Note 1 “General Information”, the Company completed the Intralot Transaction on October 8, 2025, with the Company obtaining a controlling financial interest in Intralot and retaining control of Bally’s International Interactive.

The transaction with Intralot was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations (“ASC 805”), with the Company as the accounting acquirer.

Intralot is a global gaming technology and services company that provides integrated lottery systems, sports betting solutions and interactive gaming platforms to state-licensed gaming operators worldwide.

The Intralot Transaction expands the Company’s international gaming and technology footprint, enhances its digital and sports betting capabilities, and strengthens its position as a vertically integrated gaming and entertainment operator, which aligns with the Company’s broader strategic initiatives.

The preliminary fair value of the transaction consideration for the Company’s 57.9 % interest in Intralot as of the Intralot Closing Date was approximately $ 1.6 billion, which represents the fair value of Intralot shares issued to the Company plus the Company’s pre-existing investment in Intralot of approximately $ 280.6 million as of the Intralot Closing Date.

As disclosed in Note 2 “Summary of Significant Accounting Policies,” the Company’s previous investment in Intralot was accounted for as an equity method investment under the fair value option and was adjusted to fair value immediately prior to closing of the transaction.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The preliminary allocation of the purchase price is as follows:

As of October 8, 2025

(in thousands) Preliminary as of October 8, 2025 Year to Date Adjustments Preliminary as of March 31, 2026

Cash and cash equivalents $ 2,054,955 $ — $ 2,054,955

Restricted cash 41,341 — 41,341

Other current assets 143,403 4,130 147,533

Property and equipment 87,769 ( 1,905 ) 85,864

Right of use assets 20,486 — 20,486

Intangible assets 828,235 20,634 848,869

Other assets 39,349 — 39,349

Total current liabilities ( 150,097 ) — ( 150,097 )

Lease liabilities ( 18,211 ) — ( 18,211 )

Long-term debt ( 1,982,214 ) — ( 1,982,214 )

Other long-term liabilities ( 159,822 ) ( 4,469 ) ( 164,291 )

Non-controlling interest ( 1,063,664 ) — ( 1,063,664 )

Goodwill 1,763,226 ( 18,390 ) 1,744,836

Total fair value of net assets acquired $ 1,604,756 $ — $ 1,604,756

The purchase consideration has been allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based upon their preliminary estimated fair values as of the acquisition date, with the excess of the purchase consideration over the aggregate net fair values recorded as goodwill, which is not deductible for tax purposes.

Qualitative factors that contribute to the recognition of goodwill include an organized workforce and expected synergies from future cost savings and revenue driven by the integration of Bally’s intellectual property into Intralot’s product offerings as well as cross selling product offerings of Intralot and Bally’s International Interactive into existing and new markets.

Goodwill has been assigned to the segments expected to benefit from the transaction on a relative fair value basis, which includes $ 964.5 million and $ 780.4 million to the Bally’s Intralot B2B and Bally’s Intralot B2C segments, respectively.

The Non-controlling interest was initially measured at its fair value based on the trading price of Intralot stock on the date of closing.

Certain adjustments have been made to Intralot’s historical carrying values to conform accounting policies with the Company, including IFRS to GAAP conversion adjustments, with any such adjustments recorded to equity.

The Company recorded intangible assets based on estimates of fair value which consisted of the following (in thousands):

Valuation Approach Estimated Useful Life (in years) Estimated Fair Value

Developed technology Relief from royalty method 13 $ 258,568

Intralot trade name Relief from royalty method 13 61,390

Customer relationships Multi-period excess earnings method 25 219,748

Backlog Multi-period excess earnings method 8 309,163

Total fair value of intangible assets $ 848,869

The valuation of intangible assets was determined using an income approach methodology including the multi-period excess earnings method and the relief from royalty method.

Level 3 inputs used in estimating future cash flows included terminal growth rates of 3 %, a royalty rate of 1.5 % for the Intralot trade name and 15.0 % for other acquired intangibles, discount rates between 7.5 % and 8.5 %, and operating cash flows.

The projected future cash flows are discounted to present value using an appropriate discount rate.

As of March 31, 2026 (Successor), the Company is in the process of completing its valuation of tangible and intangible assets and the allocation of the purchase price to net assets, including the allocation of goodwill to reporting units, which will be completed once the valuation process has been finalized.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company incurred $ 6.6 million of transaction-related expenses for the three months ended March 31, 2026 (Successor) in connection with the transaction primarily related to legal and professional fees, which have been included within “General and administrative” in the condensed consolidated statements of operations.

Revenue and net loss of Intralot attributable to Bally’s of $ 95.2 million and $ 31.7 million, respectively, have been included within the accompanying condensed consolidated statement of income for the three months ended March 31, 2026 (Successor).

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information is presented to illustrate the estimated effects of the transaction as if the transaction had occurred on January 1, 2024:

(in thousands) Three Months Ended March 31, 2025

Pro forma revenue $ 690,228

Pro forma net loss $ ( 42,008 )

The pro forma amounts include the historical operating results of the Company and Intralot prior to the acquisition, with adjustments directly attributable to the transaction including amortization expense of intangible assets, debt amortization expense and interest expenses.

The unaudited pro forma financial information is not necessarily indicative of the results of operations that actually would have been achieved had the transaction been consummated as of the dates indicated, nor is it indicative of any future results.

In addition, the unaudited pro forma financial information does not reflect the expected realization of any synergies or cost savings associated with the transaction.

Merger with Queen Casino & Entertainment, Inc.

The Merger between the Company and Queen was accounted for as a transaction between entities under common control in accordance with ASC Topic 805, Business Combinations (“ASC 805”), in which the accounting acquirer (Parent and its affiliates) obtained control of the Company.

As described in Note 2, “Summary of Significant Accounting Policies”, the Company has elected to push down its Parent’s basis in its net assets into its financial statements, and as a result, the net assets of the Predecessor were measured and recognized at their fair values as of the acquisition date and were combined with those of Queen at Queen’s historical carrying amounts and are presented on a combined basis.

The Merger between the Company and Queen was accounted for as a transaction between entities under common control in accordance with ASC 805, in which the accounting acquirer (Parent and its affiliates) obtained control of the Company.

The Company has elected to push down its Parent’s basis in its net assets into its financial statements, and as a result, the net assets of the Predecessor were measured and recognized at their fair values as of the acquisition date and were combined with those of Queen at Queen’s historical carrying amounts and are presented on a combined basis.

The following disclosures relate to the Company’s election to apply push down and show the effect of the change in control.

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Immediately following the transaction, the Company repurchased 22,804,384 shares at a price of $ 18.25 for total a total repurchase price of $ 416.2 million.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The preliminary allocation of the purchase price is as follows:

As of February 7, 2025

(in thousands) Preliminary as of February 7, 2025 Year to Date Adjustments Preliminary as of September 30, 2025

The final allocation of the purchase price is as follows:

(in thousands) As of February 7, 2025

Cash and cash equivalents $ 173,550

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Net assets acquired $ 955,647

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The purchase consideration has been allocated to the tangible and identifiable intangible assets and liabilities based upon their estimated fair values as of the acquisition date, with the excess of the purchase consideration over the aggregate net fair values recorded as goodwill, which is not deductible for tax purposes.

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The projected future cash flows are discounted to present value using an appropriate discount rate.

As of December 31, 2025 (Successor), the Company has finalized its valuation of tangible and intangible assets and the allocation of the purchase price to the assets acquired and liabilities assumed.

The Company incurred $ 2.1 million, $ 15.9 million and $ 11.2 million of transaction related expenses for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

Transaction-related expenses were incurred in connection with the Merger and are primarily related to legal and professional fees, which have been included in General and administrative in the condensed consolidated statements of operations.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The estimated fair values were based on assumptions that the Company believes are reasonable.

As of September 30, 2025 (Successor), the Company is in the process of completing its valuation of tangible and intangible assets and the allocation of the purchase price to the assets acquired and liabilities assumed, including the allocation of goodwill to reporting units, which will be completed once the valuation process has been finalized.

The Company incurred $ 1.2 million and $ 9.8 million of transaction related expenses for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), respectively.

The Company incurred $ 21.7 million, $ 11.2 million and $ 11.8 million of transaction-related expenses for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor), and the nine months ended September 30, 2024 (Predecessor), respectively.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), prepaid expenses and other current assets was comprised of the following:

Successor Predecessor

September 30, December 31,

(in thousands) 2025 2024

Services and license agreements $ 44,419 $ 43,141

Short term notes receivable 19,956 17,342

Prepaid expenses and other current assets was comprised of the following:

(in thousands) March 31, 2026 (Successor) December 31, 2025 (Successor)

Sales tax $ 47,237 $ 44,161

Services and license agreements 35,043 26,732

Prepaid marketing 13,235 13,516

Loan receivable 10,103 8,573

Prepaid insurance 9,647 14,866

Short term derivative assets 4,038 3,975

Short term notes receivable 14,375 14,730

Other 29,605 33,056

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PROPERTY AND EQUIPMENT

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), property and equipment was comprised of the following:

Successor Predecessor

September 30, December 31,

(in thousands) 2025 2024

Property and equipment was comprised of the following:

(in thousands) March 31, 2026 (Successor) December 31, 2025 (Successor)

Land and improvements (1)(2)

$ 236,930 $ 98,527

Building and improvements (2)

176,438 712,236

Equipment 270,633 265,357

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Construction in process 37,326 27,621

49,059 149,906

Total property, plant and equipment 776,918 1,157,887

Accumulated depreciation (2)

( 108,060 ) ( 94,148 )

Property and equipment, net $ 668,858 $ 1,063,739

__________________________________

(1) In connection with the signing of the Chicago MLA, as defined and discussed in Note 15 “Leases”, during the third quarter of 2025, the Company reclassified $ 134.8 million from construction in process to Accounts receivable, net, $ 162.5 million from construction in process to Other assets and $ 3.7 million from construction in progress to Prepaid expenses and other current assets.

(1) Includes $ 191.9 million as of March 31, 2026 (Successor) related to the City of New York conveyance arrangement.

(2) During the first quarter of 2026, the Company derecognized $ 65.6 million, $ 542.3 million, and $( 13.5 ) million of Land and improvements, Building and improvements, and Accumulated depreciation, respectively, as part of the Bally’s Twin River sale-leaseback transaction with GLPI.

Refer to Note 15 “Leases” for further information.

Depreciation expense relating to property and equipment was $ 28.7 million, $ 14.5 million and $ 7.6 million for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor), and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

The Company recorded capitalized interest of $ 1.7 million and $ 0.8 million during the period from February 8, 2025 to March 31, 2025 (Successor), and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

There was no recorded capitalized interest during the three months ended March 31, 2026 (Successor).

Bally’s New York

In November 2025, the Company entered into a conveyance arrangement with the City of New York, under which it obtained specific land and associated property interests for its New York development initiative when the transaction closed on February 12, 2026.

The transaction was accounted for as an asset acquisition.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Depreciation expense relating to property and equipment was $ 19.8 million and $ 19.3 million for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), respectively.

Depreciation expense related to property and equipment was $ 47.3 million, $ 7.6 million and $ 138.6 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively.

The Company recorded capitalized interest of $ 4.8 million, $ 0.8 million, $ 1.9 million and $ 5.9 million during the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor), the three months ended September 30, 2024 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively.

There was no capitalized interest recorded by the Company during the three months ended September 30, 2025 (Successor).

Upon closing, the Company recognized a $ 190.1 million land asset and a corresponding liability of $ 183.6 million for its obligation to fund specified capital improvements and related infrastructure associated with the conveyance arrangement.

The liability was initially measured at fair value based on the present value of estimated future cash expenditures.

The fair value was determined using level 3 inputs, including a discount rate of 6.6 % and the Company’s estimates of cost to complete the committed capital spend.

Accretion of the liability over the construction period is capitalized to the related land asset, and the liability is reduced as capital expenditures are incurred.

Refer to Note 17 “Commitments and Contingencies” for additional information regarding the conveyance arrangement and related commitments.

As of March 31, 2026 (Successor), the Company’s current portion of the liability, recorded within Accrued and other current liabilities, was $ 4.7 million.

The long-term portion of the liability, recorded within Other long-term liabilities was $ 180.7 million.

The Company recorded $ 1.8 million of accretion during the three months ended March 31, 2026 (Successor).

GOODWILL AND INTANGIBLE ASSETS

The change in carrying value of goodwill by reportable segment for the nine months ended September 30, 2025 (Successor) is as follows (in thousands):

Casinos & Resorts International Interactive North America Interactive Corporate & Other Total

Goodwill as of December 31, 2024 (Predecessor) (1)

$ 313,285 $ 1,451,273 $ 35,386 $ — $ 1,799,944

Effect of foreign exchange — ( 11,268 ) — — ( 11,268 )

Goodwill as of February 7, 2025 (Predecessor) (1)

The change in carrying value of goodwill by reportable segment is as follows:

(In thousands) Casinos & Resorts Bally’s Intralot B2B

Bally’s Intralot B2C North America Interactive Corporate & Other Total

Goodwill as of December 31, 2025 (Successor) (1)

$ 642,055 $ 994,179 $ 1,755,394 $ — $ 41,265 $ 3,432,893

Goodwill as of February 8, 2025 (Successor) 612,191 716,260 56,845 205,352 1,590,648

Current year measurement period adjustments — ( 18,390 ) — — — ( 18,390 )

1 unchanged sentence

Effect of foreign exchange — ( 4,720 ) ( 37,064 ) — — ( 41,784 )

Goodwill as of September 30, 2025 (Successor)

Goodwill as of March 31, 2026 (Successor) (1)

$ 642,055 $ 976,582 $ 1,712,817 $ — $ 41,265 $ 3,372,719

__________________________________

(1) Amounts are shown net of accumulated goodwill impairment charges of $ 5.4 million, $ 71.6 million and $ 140.4 million for Casinos & Resorts, International Interactive and North America Interactive, respectively.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The change in intangible assets, net for the nine months ended September 30, 2025 (Successor) is as follows (in thousands):

Intangible assets, net as of December 31, 2024 (Predecessor)

Effect of foreign exchange ( 3,662 )

Capitalized software 3,054

Amortization of intangible assets ( 14,765 )

Intangible assets, net as of February 07, 2025 (Predecessor) $ 1,291,970

Intangible assets, net as of February 08, 2025 (Successor) $ 1,941,245

(1) Amounts are shown net of accumulated goodwill impairment charges of $ 73.3 million for Bally’s Intralot B2B.

The change in intangible assets, net is as follows (in thousands):

Intangible assets as of December 31, 2025 (Successor) $ 3,000,983

Measurement period adjustments 20,634

Additions in current period 3,282

Effect of foreign exchange ( 36,524 )

Capitalized software 21,615

Amortization of intangible assets ( 150,269 )

Intangible assets, net as of September 30, 2025 (Successor)

Software development costs 8,158

Amortization expense ( 68,751 )

Intangible assets, net as of March 31, 2026 (Successor) $ 2,924,500

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Company’s identifiable intangible assets consist of the following:

September 30, 2025

March 31, 2026 (Successor)

(in thousands) Gross Carrying Amount Accumulated

7 unchanged sentences

Licensing asset 34,062 ( 2,567 ) 31,495

Backlog 304,260 ( 18,119 ) 286,141

Other 25,350 ( 5,976 ) 19,374

1 unchanged sentence

Intangible assets not subject to amortization:

Gaming licenses 61,101 — 61,101

Trade names 278,000 — 278,000

Total indefinite lived intangible assets 342,601 — 342,601

Total unamortizable intangible assets 278,000 — 278,000

Total intangible assets, net $ 3,208,365 $ ( 283,865 ) $ 2,924,500

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

December 31, 2024

December 31, 2025 (Successor)

(in thousands) Gross Carrying Amount Accumulated

1 unchanged sentence

Amortizable intangible assets:

Trade names $ 31,723 $ ( 18,032 ) $ 13,691

Hard Rock license 8,000 ( 2,545 ) 5,455

Gaming licenses $ 1,279,780 $ ( 43,882 ) $ 1,235,898

Customer relationships 588,320 ( 91,471 ) 496,849

Developed technology 535,530 ( 53,724 ) 481,806

Backlog 297,551 ( 8,554 ) 288,997

Trade names 144,801 ( 8,628 ) 136,173

Licensing asset 34,902 ( 1,384 ) 33,518

Internally developed software 31,214 ( 1,351 ) 29,863

Gaming licenses 47,797 ( 19,864 ) 27,933

Other 25,412 ( 5,533 ) 19,879

1 unchanged sentence

Intangible assets not subject to amortization:

Gaming licenses 546,908 — 546,908

Trade names 278,000 — 278,000

Other 1,213 — 1,213

Total indefinite lived intangible assets 646,905 — 646,905

Total unamortizable intangible assets 278,000 — 278,000

Total intangible assets, net $ 3,215,510 $ ( 214,527 ) $ 3,000,983

Amortization of intangible assets was approximately $ 58.6 million and $ 58.5 million for the three months ended September 30, 2025 (Successor) and September 30, 2024 (Predecessor), respectively.

Amortization of intangible assets was approximately $ 150.3 million, $ 14.8 million and $ 177.8 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively.

The following table reflects the remaining amortization expense associated with the finite-lived intangible assets as of September 30, 2025 (Successor):

Amortization of intangible assets was approximately $ 68.8 million, $ 32.9 million and $ 14.8 million for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor), and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following table reflects the remaining amortization expense associated with the finite-lived intangible assets as of March 31, 2026 (Successor):

(in thousands)

4 unchanged sentences

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.

The Company has entered into 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 .

During the year ended December 31, 2023, the Company entered into 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 $ 200.0 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.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Additionally, the Company has 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.

Additionally, during the year ended December 31, 2024 the Company 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.

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 qualify as net investment hedges under ASC 815, Derivatives and Hedging , 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 will be recognized in Interest expense, net in the condensed consolidated statements of operations.

Refer to Note 12 “Fair Value Measurements” and Note 16 “Stockholders’ Equity” for further information.

Economic Hedges - During the fourth quarter of 2024, the Company dedesignated 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.

The following tables summarize the Company’s cross currency swap arrangements as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor) (in thousands):

September 30, 2025 (Successor) December 31, 2024 (Predecessor)

Hedge Designation Notional Sold Notional Purchased Notional Sold Notional Purchased

Cross currency swaps Economic Hedges € 461,595 £ 387,531 £ 461,595 £ 387,531

Cross currency swaps Net Investment Hedge £ 546,759 $ 700,000 $ 546,759 $ 700,000

Economic Hedges - During the fourth quarter of 2024 (Predecessor), 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.

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 condensed consolidated statements of operations.

Refer to Note 1 “General Information” and Note 7 “Business Combinations” for further information.

The following table summarize the Company’s cross currency swap arrangements as of March 31, 2026 (Successor) and December 31, 2025 (Successor).

(in thousands) Hedge Designation Notional Sold Notional Purchased

Cross currency swaps Economic Hedge € 461,595 £ 387,531

Cross currency swaps Economic Hedge £ 546,759 $ 700,000

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Cash Flow Hedges

1 unchanged sentence

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 condensed 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 16 “Stockholders’ Equity” for further information.

As of September 30, 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 1.1839 .

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 (expense) income, net.

The Company’s interest rate swaps and collars were designated as cash flow hedges under ASC 815.

Economic Hedges - During the three months ended March 31, 2026 (Successor), as a result of the paydown of the Term Loan Facility and issuance of the 2026 Term Loan Credit Facility, the Company de-designated its Interest Rate Contracts as cash flow hedges and began recording changes in fair value of the derivative and the accrual of interest rate movements through earnings reported in Other non-operating income (expense), net in the condensed consolidated statements of operations.

At the time of de-designation, amounts in Accumulated other comprehensive income (loss) were frozen and will be amortized through Interest expense, net through the maturity date of the Interest Rate Contracts.

In addition, as a result of the lower principal of the 2026 Term Loan Credit Facility compared to the notional amounts of the Interest Rate Contracts, a pro-rata amount of accumulated other comprehensive loss of was recorded in Other non-operating expense, net in the condensed consolidated statements of operations.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), the notional value of the Company’s interest rate contracts was $ 1.5 billion.

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.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

FAIR VALUE MEASUREMENTS

1 unchanged sentence

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

September 30, 2025

March 31, 2026 (Successor)

(in thousands) Balance Sheet Location Level 1 Level 2 Level 3

1 unchanged sentence

Restricted cash Restricted cash 94,083 — —

Fair value option equity method investments Other assets 309,064 — —

Investment in The Star Other assets 197,012 — —

Investment in GLPI partnership Other assets — 33,581 —

The Star Investment - fair value option:

Subordinated Notes Other assets — — 65,024

Convertible Notes Other assets — — 13,145

Derivative assets not designated as hedging instruments:

Cross currency swaps Prepaid expenses and other current assets — 4,038 —

Deal Contingent FX Forwards Prepaid expenses and other current assets — 2,712 —

Derivative assets designated as hedging instruments:

Cross currency swaps Other assets — 5,870 —

1 unchanged sentence

Total assets $ 850,399 $ 43,489 $ —

Contingent consideration Accrued and other current liabilities $ — $ — $ 56,681

Contingent consideration Other long-term liabilities $ — $ — $ 8,885

The Star Investment - fair value option:

Forward Obligation (1)

Accrued and other current liabilities — — 5,848

Derivative liabilities not designated as hedging instruments:

1 unchanged sentence

Cross currency swaps Other long-term liabilities — 39,502 —

Deal Contingent FX Forwards Accrued and other current liabilities — 3,792 —

Derivative liabilities designated as hedging instruments:

Interest rate contracts Accrued and other current liabilities — 6,806 —

Interest rate contracts Other long-term liabilities — 19,083 —

Cross currency swaps Other long-term liabilities — 34,393 —

Total derivative liabilities at fair value — 77,784 —

Total liabilities $ — $ 77,784 $ 8,885

__________________________________

(1) The Forward Obligation is considered a derivative instrument not designated for hedge accounting.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

December 31, 2024

December 31, 2025 (Successor)

(in thousands) Balance Sheet Location Level 1 Level 2 Level 3

2 unchanged sentences

Investment in GLPI partnership Other assets — 18,946 —

Investment in The Star Other assets 301,285 — —

Derivative assets not designated as hedging instruments:

1 unchanged sentence

Cross currency swaps Other assets — 1,111 —

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 derivatives at fair value — 5,086 —

Total assets $ 1,207,971 $ 24,032 $ —

Contingent consideration Accrued and other current liabilities $ — $ — $ 115,000

Contingent consideration Other long-term liabilities — — 8,885

Derivatives not designated as hedging instruments

Sinclair Performance Warrants Other long-term liabilities — — 58,668

Cross currency swaps Accrued and other current liabilities — 17,643 —

Cross currency swaps Other long-term liabilities — 51,716 —

2 unchanged sentences

Interest rate contracts Other long-term liabilities — 29,854 —

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 — 108,379 —

Total liabilities $ — $ 108,379 $ 123,885

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The following tables summarize the changes in fair value of the Company’s Level 3 assets and liabilities:

Sinclair Performance Warrant Liability Contingent Consideration Liability The Star Investment

(in thousands) Subordinated Notes Convertible Notes Forward Obligation Asset (Liability)

Beginning as of December 31, 2024 (Predecessor)

$ 58,668 $ 59,923 $ — $ — $ —

Change in fair value 1,180 786 — — —

Ending as of February 7, 2025 (Predecessor) $ 59,848 $ 60,709 $ — $ — $ —

Beginning as of February 8, 2025 (Successor) $ — $ 60,709 $ — $ — $ —

Change in fair value — — — — —

Contingent Consideration Liability

(in thousands)

Beginning as of December 31, 2025 (Successor)

Payments in period ( 115,000 )

Ending as of March 31, 2026 (Successor) $ 8,885

— 60,709 — — —

Additions in the period (acquisition fair value) — — 70,291 13,429 —

Change in fair value — 1,675 11,655 2,485 6,728

Effect of foreign exchange — — 3,032 1,239 173

Ending as of June 30, 2025 (Successor) — 62,384 84,978 17,153 6,901

Change in fair value — 3,182 ( 16,922 ) ( 2,769 ) ( 12,576 )

Effect of foreign exchange — — ( 3,032 ) ( 1,239 ) ( 173 )

Ending as of September 30, 2025 (Successor) $ — $ 65,566 $ 65,024 $ 13,145 $ ( 5,848 )

(in thousands) Sinclair Performance Warrant Liability Contingent Consideration Liability

2 unchanged sentences

Change in fair value 1,180 786

Ending as of March 31, 2024 (Predecessor)

$ 44,703 $ 56,745

Change in fair value ( 6,317 ) 1,040

Ending as of June 30, 2024 (Predecessor)

Ending as of February 7, 2025 (Predecessor)

$ 59,848 $ 60,709

Beginning as of February 8, 2025 (Successor)

Change in fair value — —

Ending as of September 30, 2024

$ 55,318 $ 58,844

Ending as of March 31, 2025 (Successor)

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The gains (losses) recognized in the condensed consolidated statements of operations for derivative instruments were as follows:

The fair value gains (losses) recognized in the condensed consolidated statements of operations for derivative instruments were as follows:

Condensed Consolidated Statements of Operations Location Successor Predecessor

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Derivatives not designated as hedging instruments

Sinclair Performance Warrants Other non-operating (expense) income, net $ — $ — $ ( 1,180 ) $ ( 16,932 ) $ ( 10,615 )

Cross Currency Swaps Other non-operating (expense) income, net 12,096 18,919 50 — —

Deal Contingent FX Forwards Other non-operating (expense) income, net ( 774 ) ( 774 ) — — —

Sinclair Performance Warrants Other non-operating expense, net $ — $ — $ ( 1,180 )

Cross Currency Swaps Other non-operating expense, net 22,732 221 50

Interest rate contracts Other non-operating expense, net 11,894 — —

Derivatives designated as hedging instruments

5 unchanged sentences

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.

When not designated as hedging instruments, changes in fair value of these contracts are reported within Other non-operating income (expense), net in the condensed consolidated statements of operations.

Sinclair Performance Warrants

4 unchanged sentences

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 condensed 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 condensed consolidated statements of operations.

The contingent consideration was valued at $ 8.9 million and $ 123.9 million as of March 31, 2026 (Successor) and December 31, 2025 (Successor), respectively.

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 %.

During the three months ended March 31, 2026 (Successor), the contingency related to $ 115 million of the $ 125 million total payments was resolved and paid.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Contingent Consideration

Contingent consideration related to acquisitions is recorded at fair value as a liability on the acquisition date and subsequently remeasured at each reporting date, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy.

The remeasurements are based primarily on the expected probability of achievement of the contingency targets which are subject to management’s estimates.

These changes in fair value are recognized within “Other non-operating (expense) income, net” of the condensed consolidated statements of operations.

In connection with the acquisition of Bally’s Golf Links on September 12, 2023, the Company recorded contingent consideration, which had a total fair value of $ 65.6 million as of September 30, 2025 (Successor).

The amount included in purchase consideration is the fair value, under GAAP, of expected cash payments totaling up to $ 125 million to the seller, based upon future events, which are uncertain.

The contingent consideration was recorded at fair value, using discounted cash flow analyses with level 3 inputs, and is remeasured quarterly, with fair value adjustments recognized in earnings, until the contingencies are resolved.

Inputs to this valuation approach include the Company’s estimated probabilities of achieving the conditions for payment, expected terms between 0.3 and 1.2 years, and discount rates of 5.9 % to 6.4 %.

The settlement of the contingent consideration liabilities will be due to the seller in the event the license agreement is extended or if the Company is successful in its bid for a casino license.

Fair Value Option Equity Method Investment

The Company has a long-term investment in an unconsolidated entity 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 this investment.

Under the fair value option, the investment is 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 condensed consolidated statements of operations.

Investment in GLPI Partnership

The Company holds a limited partnership interest in GLP Capital, L.P., 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 (expense) income, net of the condensed consolidated statements of operations.

The Star Investment - Fair Value Option

As described in Note 2 “Summary of Significant Accounting Policies”, during the second quarter of 2025 (Successor), the Company invested A$ 22.2 million of Convertible Notes and A$ 111.1 million of Subordinated Notes in The Star.

These investments are accounted for as debt securities under ASC 320, Investments - Debt Securities , for which the Company has elected the fair value option allowed by ASC 825.

Under the fair value option, the investment is remeasured at fair value at each reporting period, with changes in fair value included within Other non-operating (expense) income, net.

For the three months ended September 30, 2025 (Successor) and for the period from February 8, 2025 to September 30, 2025 (Successor), the Company recognized $ 1.3 million and $ 2.2 million of interest income from the Star Investment, which it has elected to present as part of the total change in fair value.

The company measures fair value using binomial lattice model as well as discounted cash flow model, classified within Level 3 of the hierarchy.

Inputs to the valuation approach include the stock price and credit rating of The Star, volatility of 45 %, recovery rate of 10 %, risk free rate of 3.6 %, and the Company’s estimate of the probability of default.

The investment is reported at fair value based on Level 2 inputs, with changes to fair value included within Other non-operating expense, net of the condensed consolidated statements of operations.

Long-Term Debt

1 unchanged sentence

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 are net of debt issuance costs and debt discounts.

In the table below, the carrying amounts of the Company’s long-term debt are net of debt issuance costs, debt discounts and fair value adjustments.

Refer to Note 14 “Long-Term Debt” for further information.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Successor Predecessor

September 30, 2025 December 31, 2024

March 31, 2026 (Successor) December 31, 2025 (Successor)

(in thousands) Carrying Amount Fair Value Carrying Amount Fair Value

2026 Term Loans

$ 1,042,818 $ 1,100,000 $ — $ —

Term Loan Facility — — 1,408,953 1,458,438

11.00 % Senior Secured Notes due 2028

Intralot British Term Loan 526,077 514,944 537,234 519,315

Intralot Greek Term Loan 229,305 223,602 234,962 230,370

Intralot 6.00 % Retail Bond due 2029

153,087 151,889 157,214 155,022

3 unchanged sentences

524,004 429,056 517,458 484,181

Intralot 6.75 % Senior Secured Notes due 2031

691,497 658,088 708,787 699,706

Intralot Supplemental Indenture 2,377 2,377 2,436 2,436

Intralot Floating Rate Senior Notes due 2031 344,590 329,594 353,119 347,858

ACCRUED AND OTHER CURRENT LIABILITIES

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), accrued and other current liabilities consisted of the following:

Successor Predecessor

(in thousands) September 30,

2025 December 31,

Accrued and other current liabilities consist of the following:

(in thousands) March 31,

2026 (Successor) December 31,

2025 (Successor)

Gaming liabilities $ 221,788 $ 232,804

Interest payable 53,229 60,792

Compensation 84,066 82,352

Contingent consideration 57,017 —

Interest payable 67,209 87,081

Construction 59,996 46,109

Professional services 46,717 49,885

Construction accruals 23,267 2,144

Insurance reserves 26,774 23,898

Property taxes 18,682 8,502

Insurance reserve 32,097 32,829

Contingent consideration payable — 115,000

New York gaming license fee — 500,000

Other 207,617 181,739

3 unchanged sentences

LONG-TERM DEBT

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), long-term debt consisted of the following:

Successor Predecessor

(in thousands) September 30,

2025 December 31,

Term Loan Facility (1)

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), long-term debt consisted of the following:

(in thousands) March 31,

2026 (Successor) December 31,

2025 (Successor)

2026 Term Loans

$ 1,100,000 $ —

Term Loan Facility (1)

Intralot British Term Loan 527,472 538,720

Intralot Greek Term Loan 229,305 234,962

Revolving Credit Facility 303,750 —

11.00 % Senior Secured Notes due 2028

Intralot 6.00 % Greek Retail Bond due 2029

149,048 152,726

Fixed Rate Senior Notes:

5.625 % Senior Notes due 2029

2 unchanged sentences

735,000 735,000

Intralot 6.75 % Senior Secured Notes due 2031

687,916 704,886

Intralot Floating Rate Senior Notes due 2031 (2)

343,958 352,443

Intralot Supplemental Indenture 2,377 2,436

Unamortized original issue discount ( 53,976 ) —

Unamortized deferred financing fees ( 5,405 ) ( 33,117 )

Unamortized fair value adjustment (3)

1 unchanged sentence

Long-term debt, including current portion 4,407,101 4,500,657

Current portion of Term Loan and Revolving Credit Facility ( 19,450 ) ( 19,450 )

Long-term debt, net of discount, deferred financing fees and fair value adjustment, excluding current portion $ 3,722,621 $ 3,299,323

Current portion of Term Loan, and Intralot Greek Term Loan

( 17,198 ) ( 37,344 )

(1) The Company has a series of interest rate derivatives to synthetically convert $ 1.0 billion notional of the Company’s variable rate Term Loan Facility into fixed rate debt, and a series of cross currency swap derivatives to synthetically convert $ 500.0 million and $ 200.0 million notional of the Company’s USD denominated Term Loan Facility into fixed rate EUR and GBP denominated debt, respectively, through its maturity in 2028.

Long-term debt, net of discount and deferred financing fees;

excluding current portion $ 4,389,903 $ 4,463,313

__________________________________

(1) The Company had a series of interest rate derivatives to synthetically convert $ 1.0 billion notional of the Company’s variable rate Term Loan Facility into fixed rate debt, and a series of cross currency swap derivatives to synthetically convert $ 500.0 million and $ 200.0 million notional of the Company’s USD denominated Term Loan Facility into fixed rate EUR and GBP denominated debt, respectively, through its maturity in 2028.

Refer to Note 11 “ Derivative Instruments ” for further information.

(2) Represents adjustment to recognize the Company’s existing debt at fair value in the Company Merger, calculated as the difference between the fair value of the Company’s term loan facility and unsecured notes, estimated based on quoted prices in active markets as of the Closing Date, and the respective ending principal balances as of February 7, 2025.

The adjustment is amortized through Interest expense, net using the effective interest method.

In connection with the closing of the Merger on February 7, 2025, the Company entered into a note purchase agreement and issued $ 500.0 million in aggregate principal amount of first lien senior secured notes due 2028 (the “2028 Notes”) at an annual interest rate of 11 %, payable in cash quarterly in arrears, beginning on April 1, 2025.

In connection with the Merger, the Company settled the pre-existing debt of Queen and recorded a loss on extinguishment of debt of $ 17.4 million, recorded within Other non-operating (expense) income, net in the condensed consolidated statements of operations for the period from February 8, 2025 to September 30, 2025 (Successor).

(2) At March 31, 2026 the interest rate of the Floating Rate Senior Notes was 6.579 %.

(3) Represents the adjustment to recognize the Company’s existing debt at fair value in the Merger, as well as the fair value adjustment to the Company’s assumed Intralot debt in connection with the Intralot Transaction.

These adjustments are amortized through Interest expense, net using the effective interest method.

Unsecured Notes

On August 20, 2021, two unrestricted subsidiaries (together, the “Escrow Issuers”) of the Company issued $ 750.0 million aggregate principal amount of 5.625 % senior notes due 2029 (the “2029 Notes”) and $ 750.0 million aggregate principal amount of 5.875 % Senior Notes due 2031 (the “2031 Notes” and, together with the 2029 Notes, the “Senior Notes”).

In August 2021, two unrestricted subsidiaries (together, the “Escrow Issuers”) of the Company issued $ 750.0 million aggregate principal amount of 5.625 % senior notes due 2029 (the “2029 Notes”) and $ 750.0 million aggregate principal amount of 5.875 % senior notes due 2031 (the “2031 Notes” and, together with the 2029 Notes, the “Senior Notes”).

The Senior Notes were issued pursuant to an indenture, dated as of August 20, 2021, among the Escrow Issuers and U.S.

Bank National Association, as trustee.

Certain of the net proceeds from the Senior Notes offering were placed in escrow accounts for use in connection with the Gamesys acquisition.

On October 1, 2021, upon the closing of the Gamesys acquisition, the Company assumed the issuer obligation under the Senior Notes.

The Senior Notes are guaranteed, jointly and severally, by each of the Company’s restricted subsidiaries that guarantees the Company’s obligations under its Credit Agreement (as defined below).

The Senior Notes are guaranteed, jointly and severally, by certain of the Company’s restricted subsidiaries that guarantees the Company’s obligations under its Credit Agreement (as defined below).

The 2029 Notes mature on September 1, 2029 and the 2031 Notes mature on September 1, 2031.

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Credit Facility

On October 1, 2021, the Company and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) with Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the other lenders party thereto, providing for senior secured financing of up to $ 2.565 billion, consisting of a senior secured term loan facility in an aggregate principal amount of $ 1.945 billion (the “Term Loan Facility”), which will mature in 2028, and a senior secured revolving credit facility in an aggregate principal amount of $ 620.0 million (the “Revolving Credit Facility”), which will mature in 2026.

On October 1, 2021, the Company and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) with Deutsche Bank AG New York Branch, as administrative agent and collateral agent, and the other lenders party thereto, providing for senior secured financing of up to $ 2.565 billion, consisting of a senior secured term loan facility in an aggregate principal amount of $ 1.945 billion (the “Term Loan Facility”), which was to mature in 2028, and a senior secured revolving credit facility in an aggregate principal amount of $ 620.0 million (the “Revolving Credit Facility”).

In February 2026, total commitments under the Revolving Credit Facility had been reduced to approximately $ 519.3 million following certain commitment reductions, including reductions in connection with the Bally’s Twin River sale-leaseback transaction, which were partially offset by incremental commitments.

As of March 31, 2026 (Successor), there was $ 183.6 million available under the Company’s Revolving Credit Facility.

In September 2025, the Company executed a Third Amendment to the Credit Agreement (“Amendment No.

3”) and an Incremental Joinder Agreement that collectively extended and increased the revolving credit facility and updated certain covenants and pricing provisions.

Following the effectiveness of these amendments in January 2026, a portion of the revolving credit facility will mature in 2028, while the remaining portion will mature in 2026.

In February 2026, the Company also executed a Fourth Amendment to the Credit Agreement (“Amendment No.

4”), which increased the interest rate margins applicable to revolving loans and swingline loans.

The credit facilities allow the Company to increase the size of the Term Loan Facility or request one or more incremental term loan facilities or increase commitments under the Revolving Credit Facility or add one or more incremental revolving facilities in an aggregate amount not to exceed the greater of $ 325.0 million and 50 % of the Company’s consolidated EBITDA for the most recent four-quarter period plus or minus certain amounts as specified in the Credit Agreement, including an unlimited amount subject to compliance with a consolidated total secured net leverage ratio as set out in the Credit Agreement.

The credit facilities are guaranteed by the Company’s restricted subsidiaries, subject to certain exceptions, and secured by a first-priority lien on substantially all of the Company’s and each of the guarantors’ assets, subject to certain exceptions.

As of June 30, 2023, with the discontinuation of the LIBOR reference rate, borrowings under the credit facilities bear interest at a rate equal to, at the Company’s option, either (1) the term Secured Overnight Financing Rate (“SOFR”), adjusted for certain additional costs and subject to a floor of 0.50 % in the case of term loans and 0.00 % in the case of revolving loans or (2) a base rate determined by reference to the greatest of (a) the federal funds rate plus 0.50 %, (b) the prime rate, (c) the one-month SOFR rate plus 1.00 %, (d) solely in the case of term loans, 1.50 % and (e) solely in the case of revolving loans, 1.00 %, in each case of clauses (1) and (2), plus an applicable margin.

The Company’s borrowings under the credit facilities bear interest at a rate equal to, at the Company’s option, either (1) the term Secured Overnight Financing Rate (“SOFR”), adjusted for certain additional costs and subject to a floor of 0.50 % in the case of term loans and 0.00 % in the case of revolving loans or (2) a base rate determined by reference to the greatest of (a) the federal funds rate plus 0.50 %, (b) the prime rate, (c) the one-month SOFR rate plus 1.00 %, (d) solely in the case of term loans, 1.50 % and (e) solely in the case of revolving loans, 1.00 %, in each case of clauses (1) and (2), plus an applicable margin.

In addition, on a quarterly basis, the Company is required to pay each lender under the Revolving Credit Facility a 0.50 % or 0.375 % commitment fee in respect of commitments under the Revolving Credit Facility, with the applicable commitment fee determined based on the Company’s total net leverage ratio.

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These covenants are subject to exceptions and qualifications set forth in the Credit Agreement.

The Revolving Credit Facility contains a financial covenant regarding a maximum first lien net leverage ratio that applies when borrowings under the Revolving Credit Facility exceed 30 % of the total revolving commitment.

As of September 30, 2025 (Successor), the Company was in compliance with all such covenants.

In September 2025, the Company executed a Third Amendment to the Credit Agreement (“Amendment No.

3”) and an Incremental Joinder Agreement that collectively extended and increased the revolving credit facility and updated certain covenants and pricing provisions.

Following the effectiveness of these amendments, which is subject to regulatory approval, a portion of the revolving credit facility will mature in 2028, while the remaining portion will mature in 2026.

The amendments also provide for reductions in revolving commitments and related prepayments if specified transactions are completed.

The revolving credit facility will continue to bear interest, at the Company’s option, at a SOFR-based or base-rate benchmark plus an applicable margin determined by the Company’s consolidated total-leverage ratio.

The Credit Facilities continue to be guaranteed by the Company’s restricted subsidiaries (subject to customary exceptions) and secured by a first-priority lien on substantially all of the assets of the Company and such guarantors.

Amendment No.

3 also refined the financial maintenance covenant applicable to the revolving lenders and reduced the utilization threshold at which the covenant becomes effective to 25 %.

The Revolving Credit Facility contains a financial covenant regarding a maximum first lien net leverage ratio that, following the effectiveness of Amendment No.

3, applies when utilization under the Revolving Credit Facility exceeds 25 % of the total revolving commitment.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In May 2026, the Required Revolving Lenders and Administrative Agent under the Company’s Revolving Credit Facility conditionally waived compliance with the consolidated net leverage ratio covenant for each fiscal quarter ending during the period commencing March 31, 2026 through the earlier of (i) the Company’s election to terminate the waiver upon certifying compliance with the covenant as of the most recently ended fiscal quarter, or (ii) the date immediately preceding the delivery of the compliance certificate for the quarter ending March 31, 2027 (the “Covenant Waiver Period”).

The waiver remains subject to the Company’s ongoing satisfaction of certain liquidity maintenance requirements, restrictions on additional secured indebtedness, compliance with the covenants under the Company’s term loan credit agreement and agreement to enter into an amendment to the revolving credit facility within a specified period in order to incorporate certain covenants from the Company’s term loan credit agreement.

Failure to satisfy any such condition will result in automatic termination of the waiver and reinstatement of the covenant in full force and effect.

As of the date of this filing, the Company was in compliance with all applicable terms of the waiver.

The Company expects to remain in compliance through the Covenant Waiver Period and, for applicable covenants, through the next twelve months.

In an effort to mitigate the interest rate risk associated with the Company’s variable rate credit facilities, the Company utilizes interest rate and cross currency swap derivative instruments.

Refer to Note 11 “Derivative Instruments” for further information.

In connection with the issuance of the 2026 Term Loan Credit Facility described below, the Company repaid in full the outstanding balance under its Term Loan Facility, paying $ 1.48 billion in cash for a $ 1.47 billion reduction in principal and $ 5.9 million settlement of accrued interest, and recognized a $ 63.4 million loss on extinguishment of debt which represents the unamortized fair value adjustment as of the repayment date.

2026 Term Loans

On February 11, 2026, the Company, as borrower, and certain of its subsidiaries, as guarantors, entered into a new term loan credit facility (the “2026 Term Loan Credit Facility”).

The 2026 Term Loan Credit Facility provides for $ 1.1 billion of senior secured term loans (the “2026 Term Loans”) maturing on February 11, 2031, however, if the Company’s 2029 Notes remain outstanding as of March 1, 2029, the maturity date of the Term Loans will be March 1, 2029.

Borrowings under the 2026 Term Loan Credit Facility bear interest, at the Company’s option, at either (i) an alternate base rate, subject to a 3.0 % floor, plus a margin of 6.5 % per annum, or (ii) Term SOFR, subject to a 3.0 % floor, plus a margin of 7.5 % per annum.

The Company may elect to pay a portion of the accrued interest on the 2026 Term Loans in kind, up to 3.5 % per annum.

The 2026 Term Loans are guaranteed by certain of the Company’s restricted subsidiaries and are secured by substantially all assets of the Company and the guarantors, subject to certain exceptions.

The 2026 Term Loans are secured on a pari passu basis with the obligations under the Company’s Revolving Credit Facility.

The 2026 Term Loan credit facility contain covenants that limit the ability of the Company and its restricted subsidiaries to, among other things, incur additional indebtedness, pay dividends or make certain other restricted payments, sell assets, make certain investments and grant liens.

Intralot Greek Retail Bond

In February 2024, Intralot established a common bond loan program (the “Intralot Greek Retail Bond”) for the issuance of up to € 130.0 million aggregate principal amount of bonds, with a minimum issuance of € 120.0 million The bonds admitted to trading on the Fixed Income Securities category of the Regulated Market of the Athens Stock Exchange.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), there was € 130.0 million aggregate principal amount outstanding under the Intralot Greek Retail Bond.

The bonds bear interest at a fixed rate of 6.00 % per annum, payable semi-annually, which will remain fixed throughout the duration of the bonds.

Upon its maturity on February 27, 2029, Intralot will be required to repay the principal in full, together with outstanding accrued interest and any other amounts payable.

Intralot may redeem all or a portion of the bonds, subject to a minimum redemption amount of € 15.0 million and a requirement that at least € 50.0 million in aggregate principal amount remain outstanding after any partial redemption.

The Intralot Greek Retail Bond is an unsecured obligation of Intralot, with the benefit of a first-priority pledge over a designated bond loan collateral account.

The bonds rank pari passu with the claims of all other unsecured creditors of Intralot, with the exception of claims that have a statutory privilege.

The Intralot Greek Retail Bond is not guaranteed by any of Intralot’s subsidiaries.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

In the event of a change of control each bondholder has the right to require Intralot to repurchase of part or all of such bondholder’s bonds at a price equal to 101 % of the nominal value, plus accrued and unpaid interest and any additional amounts.

Intralot Greek Senior Facilities Agreement

On October 3, 2025, Intralot Capital Luxembourg S.A.

(“Intralot Capital”), a wholly owned indirect subsidiary of the Company, entered into a Senior Facilities Agreement (the “Intralot Greek Term Loan”) with Alpha Bank S.A., Optima Bank S.A., Piraeus Bank S.A., CrediaBank S.A.

and other parties, providing for an amortizing euro-denominated term loan facility in an aggregate amount up to € 200.0 million.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), Intralot had € 200.0 million outstanding under the Intralot Greek Term Loan.

The Intralot Greek Term Loan bears interest at a fixed rate equal to 7.0 % per annum.

Interest periods may be selected in accordance with the agreement terms.

The Intralot Greek Term Loan requires semi-annual principal repayments plus accrued interest through the maturity date of October 8, 2029.

The Intralot Greek Term Loan is secured by substantially all assets of Intralot Capital and the guarantors party thereto, subject to certain exceptions.

Subject to an intercreditor agreement, Intralot Greek Term Loan caries the same security priority as other senior secured obligations of Intralot Capital.

Intralot British Pound Term Loan

Intralot Capital is a party to a Senior Facilities Agreement (the “Intralot British Term Loan”) with various lenders and agents, providing for a sterling-denominated term loan facility in an aggregate principal amount of £ 400.0 million, maturing on October 8, 2031.

The Intralot British Term Loan is secured by first-ranking security interests, including pledges of shares in Intralot Capital and material subsidiaries of Intralot and, in certain jurisdictions, security over substantially all assets of the obligors.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), £ 400.0 million was outstanding under the Intralot British Term Loan.

The Intralot British Term Loan bears interest at a rate equal to SONIA (Sterling Overnight Index Average) plus a margin of 5.5 %.

Interest periods may be one, three, or six months, or such other periods as agreed among the parties.

The Borrower pays accrued interest on the last day of each interest period.

Intralot Fixed and Floating Interest Rate Bonds

Intralot Capital has issued € 600 million aggregate principal amount of 6.75 % Senior Secured Fixed Rate Notes due 2031 (the “Intralot Fixed Rate Notes”) and € 300 million aggregate principal amount of Senior Secured Floating Rate Notes due 2031 (the “Intralot Floating Rate Notes” and, together with the Intralot Fixed Rate Notes, the “Intralot Notes”), pursuant to an indenture dated September 30, 2025 (the “Intralot Indenture”) among Intralot Capital, Intralot, and its subsidiaries, as guarantor, and The Law Debenture Trust Corporation p.l.c., as trustee.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), the full € 900 million aggregate principal amount of the Intralot Notes was outstanding.

The Intralot Fixed Rate Notes bear interest at a fixed rate of 6.750 % per annum, payable semi-annually, commencing on April 15, 2026.

The Intralot Floating Rate Notes bear interest at a rate per annum, reset quarterly, equal to three-month EURIBOR (subject to a 0 % floor) plus 4.500 %, payable quarterly, commencing on February 28, 2026.

The Intralot Notes mature on October 15, 2031.

The Intralot Notes are senior secured obligations of Intralot Capital, secured by first-ranking security interests (to the extent legally possible) over the share of obligors and material subsidiaries, structural intercompany receivables, and to the extent customary in the applicable jurisdiction, substantially all assets of the obligors.

Enforcement of security is subject to an intercreditor agreement, and the Intralot Notes may share collateral on an equal ranking or junior basis with other permitted indebtedness as described in the Intralot Indenture.

The Intralot Notes are unconditionally guaranteed, jointly and severally, by Intralot and future guarantors that is required to become a guarantor under the Intralot Indenture.

The guarantees are subject to customary limitations under applicable law.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The Intralot Fixed Rate Notes may be redeemed at the option of Intralot Capital, in whole or in part, at any time on or after October 15, 2027, at determined redemption prices over time, plus accrued and unpaid interest.

Prior to October 15, 2027, Intralot Capital may redeem the Intralot Fixed Rate Notes at a premium, which is the greater of (a) 1 % of the outstanding principal amount and (b) the present value of the redemption price at October 15, 2027 plus all required interest payments through that date, computed using a discount rate equal to the Bund Rate plus 50 basis points, over the outstanding principal amount.

The Intralot Floating Rate Notes may be redeemed at the option of Intralot Capital at any time on or after October 15, 2026, at a redemption price equal to 100.0 % of the principal amount redeemed plus accrued and unpaid interest.

In addition, prior to October 15, 2027 (in the case of Intralot Fixed Rate Notes) or October 15, 2026 (in the case of Intralot Floating Rate Notes), Intralot Capital may redeem up to 40 % of the aggregate principal amount of the Intralot Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 106.750 % (in the case of Intralot Fixed Rate Notes) of the principal amount plus accrued and unpaid interest, subject to certain conditions, including that at least 50 % of the original aggregate principal amount of the Intralot Notes must remain outstanding immediately after each such redemption.

The Intralot Notes are not convertible into equity securities of Intralot Capital or any other entity.

Intralot Super Senior Revolving Credit Facility

Intralot Capital is a party to a Super Senior Revolving Credit Facility Agreement (the “Intralot RCF Agreement”) with various lenders and agents, providing for total permitted revolving credit commitments in an aggregate principal amount equal to the greater of € 190.0 million and 40 % of Intralot’s four-quarter consolidated EBITDA.

Current commitments total € 160.0 million.

The facility may be utilized by way of revolving loans, letters of credit, or ancillary facilities.

The minimum utilization amount is € 0.5 million for euro-denominated borrowings.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), the Company had no borrowing outstanding under the Intralot RCF Agreement and no letters of credit outstanding.

The Intralot RCF Agreement initially bears interest at the applicable reference rate plus a margin of 4.50 % per annum, subject to future leverage-based adjustments ranging from 4.75 % to 3.75 % based on Intralot’s senior secured net leverage ratio.

Intralot Capital pays a commitment fee equal to 30 % of the applicable margin on unused commitments, payable quarterly in arrears.

Letter of credit fees are equal to the applicable margin for revolving loans, plus a fronting fee of 0.125 % per annum.

The facility matures on July 1, 2030.

The Intralot RCF Agreement is subject to mandatory prepayment upon a change of control and customer conditions precedent to borrowing.

The Intralot RCF Agreement contains customary covenants, including limitations on incurring additional indebtedness and issuance of disqualified stock and preferred stock;

restricted payments;

transactions with affiliates;

and reporting requirements.

The financial covenants include the maintenance of a senior secured net leverage ratio, tested quarterly, as well as a total net leverage ratio not exceeding 4.75 :1.00.

The Intralot Indenture and the Intralot RCF Agreement contain customary restrictive covenants, including limitations on incurring additional indebtedness and the issuance of disqualified stock and preferred stock, restricted payments, liens, asset sales, and transactions with affiliates;

and reporting requirements.

If the Intralot Notes or facilities obtain investment grade ratings from two rating agencies and no default has occurred and is continuing, certain of these covenants will be suspended.

Upon a reversion date (when the instruments no longer maintain investment grade ratings from two rating agencies), the suspended covenants will be reinstated with respect to future events.

The Company’s debt agreements contain customary cross-default and cross-acceleration provisions.

As of March 31, 2026 (Successor), the Company was in compliance with all covenants under its debt agreements and there were no defaults in principal, interest, sinking fund, or redemption provisions with respect to any of its outstanding indebtedness.

Except as noted above with respect to the waiver of the consolidated first lien net leverage ratio covenant under the Company’s Revolving Credit Facility, no waivers of acceleration or covenant violations were in effect as of March 31, 2026 (Successor).

The Company expects to be in compliance with all applicable covenants for the next twelve months.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Debt Maturities

As of March 31, 2026 (Successor), the contractual annual principal maturities of long-term debt, including the Revolving Credit Facility, are as follows:

(in thousands)

Remaining 2026 $ 17,198

2029 1,007,968

Thereafter 3,700,473

Operating Leases

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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 $ 1.89 billion and $ 1.62 billion as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, and right of use assets of $ 1.70 billion and $ 1.54 billion as of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively, which were included in the condensed consolidated balance sheets.

As of September 30, 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.

The Company had total operating lease liabilities of $ 2.42 billion and $ 1.93 billion as of March 31, 2026 (Successor) and December 31, 2025 (Successor), respectively, and right of use assets of $ 2.25 billion and $ 1.77 billion as of March 31, 2026 (Successor) and December 31, 2025 (Successor), respectively, which were included in the condensed consolidated balance sheets.

GLPI Master Leases

As of March 31, 2026 (Successor), the Company leases certain properties from GLPI under three separate master lease agreements, the “Master Lease,” the “Master Lease No.

2,” and the “Queen Master Lease.” 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, Bally’s Shreveport, DraftKings at Casino Queen, The Queen Baton Rouge and Bally’s Twin River properties are leased under the terms of the Master Lease No.

2 which requires combined initial minimum annual payments of $ 118.3 million.

All components of the Master Lease and Master Lease No.

2 are accounted for as operating leases within the provisions of ASC 842, Leases (“ASC 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 September 30, 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, The Belle of Baton Rouge, Casino Queen Marquette and DraftKings at Casino Queen properties being leased under the terms of the Queen Master Lease, which requires 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 September 30, 2025 (Successor).

Effective July 1, 2025, 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 was reallocated from the Casino Queen Master Lease to Master Lease No.

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.

As of September 30, 2025 (Successor), the renewal options are not considered reasonably certain to be exercised.

During the third quarter of 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 an increase in annual rent of $ 4.1 million, also subject to a minimum 1 % annual increase or greater based on CPI.

This lease modification did not change the lease classification.

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 Company’s Bally’s Baton Rouge and Casino Queen Marquette properties are leased under the terms of the Queen Master Lease, which requires initial combined minimum annual payments of $ 3.0 million, plus annual development rent of $ 11.3 million.

All components of the Master Lease, Master Lease No.

2 and the Queen Master Lease are accounted for as operating leases within the provisions of ASC 842, Leases (“ASC 842”), over the lease term or until a re-assessment event occurs.

All three 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 March 31, 2026 (Successor).

On February 11, 2026, the Company completed the sale-leaseback of the land and real estate assets of Bally’s Twin River to GLPI for total consideration of $ 700.0 million.

The transaction was structured as a tax-free capital contribution and a substantial portion of the proceeds was used to reduce the Company’s debt.

In connection with this transaction, the Bally’s Twin River property was added to Master Lease No.

2, increasing minimum annual payments by $ 56.0 million, and with annual escalations and extension options disclosed above.

During the three months ended March 31, 2026 (Successor), the Company recorded a gain of $ 105.8 million, within Gain on sale-leaseback in the condensed consolidated statements of operations, representing the difference in the transaction price and the derecognition of assets.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

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 and modified in 2024.

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 $ 14.6 million, subject to minimum 1 % annual increase or greater based on CPI.

As of March 31, 2026 (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 GLPI (the “Chicago MLA”), that amended the existing ground lease for the property on which the Company plans to develop its Chicago Permanent Facility and a development agreement with GLPI (the “Chicago Development Agreement”) pursuant to which GLPI has committed to advance up to $ 940.0 million (the “GLPI Development Advances”) for the payment of hard costs used to construct the Chicago Permanent Facility in exchange for increasing the amount of rent payable to GLPI 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 September 30, 2025, the construction receivable balance was $ 134.8 million, classified within Accounts receivable, net, and the prepaid rent balance was $ 161.8 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.

This loss is classified within General and administrative on the Condensed Consolidated Statement of Operations.

During the fourth quarter of 2025, the Company received the first reimbursement from GLP of $ 125.4 million.

Initial annual rent under the Chicago MLA was $ 20.0 million, with additional rent equal to 8.5 % of the GLPI Development Advances that are granted to the Company.

Under the Chicago Development Agreement, as construction occurs, the Company will recognize a construction receivable on the condensed consolidated balance sheets due from GLPI.

To the extent costs exceed the amount to be reimbursed by GLPI, 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 March 31, 2026 (Successor) and December 31, 2025 (Successor), the prepaid rent balance, classified within Other assets, was $ 193.2 million and $ 175.8 million, respectively.

Components of lease expense, included within General and administrative in the condensed consolidated statements of operations, for operating leases were as follows:

Successor Predecessor

(in thousands) Three Months Ended March 31, 2026 (Successor) Period from February 8, 2025 to March 31, 2025 (Successor) Period from January 1, 2025 to February 7, 2025 (Predecessor)

Operating leases:

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Supplemental cash flow and other information related to operating leases are as follows:

Successor Predecessor

(in thousands) Three Months Ended March 31, 2026 (Successor) Period from February 8, 2025 to March 31, 2025 (Successor) Period from January 1, 2025 to February 7, 2025 (Predecessor)

Cash paid for amounts included in the lease liability - operating cash flows from operating leases $ 65,665 $ 18,484 $ 30,843

Right of use assets obtained in exchange for operating lease liabilities 509,912 — —

Derecognition of operating leases $ ( 259,607 ) $ ( 259,607 ) — — —

Derecognition of financing obligation $ — $ — $ — $ ( 200,000 ) $ ( 200,000 )

Successor Predecessor

September 30, 2025 December 31, 2024

GLPI Development Advances received

March 31, 2026 (Successor) December 31, 2025 (Successor)

Weighted average remaining lease term 15.1 years 15.6 years

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

As of September 30, 2025 (Successor), future minimum lease payments under noncancellable operating leases are as follows:

(in thousands) September 30, 2025

As of March 31, 2026 (Successor), future minimum lease payments under noncancellable operating leases are as follows:

(in thousands) March 31, 2026 (Successor)

Remaining 2026 $ 223,106

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__________________________________

(1) Total lease obligations exclude $ 358.1 million of payments for leases signed but not yet commenced as of September 30, 2025 (Successor).

Pending Lease Transactions

The Company plans to sell and lease back its Bally’s Twin River property to GLP by the end of 2028 for $ 735.0 million, with initial annual rent of $ 58.8 million.

GLP has the right to call this transaction starting October 2028.

All such transactions are subject to required regulatory approvals.

On October 28, 2025, the Company and GLP amended the related agreement to, among other things, extend GLP's start date of its right to call to October 1, 2028 from October 1, 2026.

The Company leases its hotel rooms to patrons and records the corresponding lessor revenue in Non-gaming revenue within our condensed consolidated statements of operations.

The Company had lessor revenues related to the rental of hotel rooms of $ 38.4 million and $ 41.7 million for the three months ended September 30, 2025 (Successor) and three months ended September 30, 2024 (Predecessor), respectively.

The Company had lessor revenues related to the rental of hotel rooms of $ 90.8 million, $ 11.0 million and $ 118.0 million for the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), respectively.

(1) Total lease obligations exclude future minimum lease payments under the Chicago MLA, which has not yet commenced as of March 31, 2026 (Successor).

The Company leases its hotel rooms to patrons.

Hotel leasing arrangements vary in duration, but are short-term in nature.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

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 recorded lessor revenues in “Non-gaming revenue” of $ 41.7 million, $ 18.7 million and $ 11.0 million for the three months ended March 31, 2026 (Successor), period from February 8, 2025 to March 31, 2025 (Successor), and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

STOCKHOLDERS’ EQUITY

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There is no fixed time period to complete share repurchases.

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), $ 95.5 million was available for use under the capital return program.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), $ 95.5 million was available for use under the capital return program.

There was no share repurchase activity under the capital return program and no cash dividends paid during all periods presented in the Company’s condensed consolidated financial statements.

Common Stock Offering

On April 20, 2021, the Company issued a total of 12,650,000 shares of Bally’s common stock in an underwritten public offering at a price to the public of $ 55.00 per share.

Net proceeds from the offering were approximately $ 671.4 million, after deducting underwriting discounts, but before expenses.

On April 20, 2021, the Company issued to affiliates of Sinclair a warrant to purchase 909,090 common shares for an aggregate purchase price of $ 50.0 million, or $ 55.00 per share.

The net proceeds were used to finance a portion of the purchase price of the Gamesys acquisition.

The exercise price of the warrant is nominal and its exercise is subject to, among other conditions, requisite gaming authority approvals.

Sinclair agreed not to acquire more than 4.9 % of Bally’s outstanding common shares without such approvals.

In addition, in accordance with the agreements that Bally’s and Sinclair entered into in November 2020, Sinclair exchanged 2,086,908 common shares for substantially identical warrants.

Preferred Stock

The Company has authorized the issuance of up to 10 million shares of $ 0.01 par value preferred stock.

As of September 30, 2025 (Successor) and December 31, 2024 (Predecessor), no shares of preferred stock have been issued.

As of March 31, 2026 (Successor) and December 31, 2025 (Successor), no shares of preferred stock have been issued.

Shares Outstanding

As of September 30, 2025 (Successor), the Company had 49,131,302 common shares issued and outstanding.

The Company issued warrants and other contingent consideration in acquisitions and strategic partnerships that are expected to result in the issuance of common shares in future periods resulting from the exercise of warrants or the achievement of certain performance targets.

As of March 31, 2026 (Successor), the Company had 48,947,327 common shares issued and outstanding.

The Company has issued warrants and other contingent consideration in acquisitions and strategic partnerships that are expected to result in the issuance of common shares in future periods resulting from the exercise of warrants or the achievement of certain performance targets.

These incremental shares are summarized below:

Sinclair Penny Warrants (Note 2)

MKF penny warrants (Note 12)

Penny Warrants (Note 2)

Outstanding awards under Equity Incentive Plans 1,898,546

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Accumulated Other Comprehensive Income (Loss)

The following tables reflect the changes in accumulated other comprehensive loss by component:

The following tables reflect the changes in Accumulated other comprehensive income (loss) by component:

(in thousands) Foreign Currency Translation Adjustment Benefit Plans Cash Flow Hedges (1)

Net Investment Hedges Total

Accumulated other comprehensive (loss) income at December 31, 2024 (Predecessor)

Accumulated other comprehensive income (loss) at December 31, 2025 (Successor)

$ 126,567 $ 18 $ ( 16,729 ) $ ( 40,435 ) $ 69,421

Other comprehensive income (loss) before reclassifications ( 13,097 ) — 1,425 3,655 ( 8,017 )

Other comprehensive loss before reclassifications ( 31,693 ) — ( 1,136 ) — ( 32,829 )

Reclassifications from accumulated other comprehensive income (loss) to earnings (2)

— — 3,310 — 3,310

Tax effect 7,612 — ( 567 ) — 7,045

Accumulated other comprehensive (loss) income at February 07, 2025 (Predecessor)

Net current period other comprehensive income (loss) 102,486 18 ( 15,122 ) ( 40,435 ) 46,947

Amount attributable to non-controlling interest 6,940 — — — 6,940

Accumulated other comprehensive income (loss) at March 31, 2026 (Successor)

$ 109,426 $ 18 $ ( 15,122 ) $ ( 40,435 ) $ 53,887

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(in thousands) Foreign Currency Translation Adjustment Cash Flow Hedges (1)

Net Investment Hedges Total

Accumulated other comprehensive (loss) income at February 8, 2025 (Successor)

__________________________________

Other comprehensive income (loss) before reclassifications 167,541 ( 28,310 ) ( 53,444 ) 85,787

Reclassifications from accumulated other comprehensive income (loss) to earnings — 2,318 1,960 4,278

Tax effect ( 44,539 ) 6,897 13,662 ( 23,980 )

Accumulated other comprehensive income (loss) at September 30, 2025 (Successor)

(1) As of March 31, 2026 (Successor), approximately $ 7.7 million of existing gains and losses are estimated to be reclassified into earnings within the next 12 months.

(2) Includes $ 8.0 million reclassification due to de-designation of its interest rate contracts as cash flow hedges.

Refer to Note 11 “ Derivative Instruments ” for further information.

(in thousands) Foreign Currency Translation Adjustment Benefit Plans Cash Flow Hedges Net Investment Hedges Total

Accumulated other comprehensive (loss) income at December 31, 2024 (Predecessor)

$ ( 261,745 ) $ 1,746 $ ( 8,189 ) $ 7,921 $ ( 260,267 )

Other comprehensive (loss) income before reclassifications ( 13,097 ) — 1,425 3,655 ( 8,017 )

Reclassifications from accumulated other comprehensive (loss) income to earnings — — ( 105 ) 7 ( 98 )

Tax effect — — ( 352 ) ( 976 ) ( 1,328 )

Net current period other comprehensive (loss) income ( 13,097 ) — 968 2,686 ( 9,443 )

Accumulated other comprehensive (loss) income at February 07, 2025 (Predecessor)

$ ( 274,842 ) $ 1,746 $ ( 7,221 ) $ 10,607 $ ( 269,710 )

(1) As of September 30, 2025 (Successor), approximately $ 14.1 million of existing gains and losses are estimated to be reclassified into earnings within the next 12 months.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(in thousands) Foreign Currency Translation Adjustment Benefit Plans Cash Flow Hedges Net Investment Hedges Total

Accumulated other comprehensive (loss) income at December 31, 2023

Accumulated other comprehensive (loss) income at February 8, 2025 (Successor)

$ — $ — $ — $ — $ —

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Tax effect ( 15,635 ) — 4,878 6,339 ( 4,418 )

Accumulated other comprehensive (loss) income at September 30, 2024

Net current period other comprehensive income (loss) 43,040 — ( 13,428 ) ( 17,449 ) 12,163

Accumulated other comprehensive income (loss) at March 31, 2025 (Successor)

$ 43,040 $ — $ ( 13,428 ) $ ( 17,449 ) $ 12,163

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Further, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters.

New York Conveyance Agreement

On November 17, 2025, the Company entered into a Conveyance Agreement (the “Conveyance Agreement”) with the City of New York (the “City”) and Bally’s New York Operating Company, LLC, a Delaware limited liability company and a subsidiary of the Company (“Bally’s New York”).

Pursuant to the Conveyance Agreement, the City agreed to (i) dispose of certain parkland property interests to Bally’s New York (the “Development Parcel”), (ii) alienate certain parkland in order to grant Bally’s New York a non-exclusive easement over such lands for purposes of accessing the Development Parcel and (iii) discontinue certain lands as parkland and alienate and transfer jurisdiction of such lands to the City’s Department of Transportation for use as public roadways (the “Ring Road Parcel”) to facilitate access to the Development Parcel and so the Development Parcel may be used by the Company for a gaming facility.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

The closing of the transactions contemplated by the Conveyance Agreement occurred in February 2026 and was contingent upon, among other things, (i) Bally’s New York’s agreement to (a) make certain capital improvements to Ferry Point Park in the Bronx, NY with a fair market value of approximately $ 161.0 million and (b) to deliver security instruments to the City to secure the performance and completion of such capital improvements, (ii) the Company being awarded a downstate gaming facility license from the New York State Gaming Commission, (iii) payment by Bally’s New York to the City’s Department of Parks & Recreation of an administrative fee in the amount of $ 1.0 million, (iv) Bally’s New York’s agreement to pay for all costs and expenses for the development and mapping of the Ring Road Parcel and (v) Bally’s New York’s payment of real property transfer taxes with respect to the transactions contemplated by the Conveyance Agreement.

Additionally, as part of the conditions for closing of the Conveyance Agreement, Bally’s New York amended its License Agreement and Licensor Consent with the City, which includes an obligation for Bally’s New York to design and construct a new permanent clubhouse on the licensed property.

New York Gaming License Commitments

In December 2025, the Company was awarded one of New York State’s three downstate commercial casino licenses for its planned Bally’s Bronx project, requiring the Company to pay a $ 500.0 million license fee, which was paid in the three months ended March 31, 2026 (Successor), as well as post a bond or cash deposit equal to 5 % of the total project investment.

The Company must also implement its community benefit commitments, including periodic public reporting, and engage an independent Compliance Monitoring Team approved by the New York State Gaming Commission to oversee regulatory, anti‑money‑laundering, and community‑benefit compliance.

Capital Expenditure Commitments

Bally’s Twin River - Pursuant to the terms of the Regulatory Agreement in Rhode Island, the Company is committed to invest $ 100.0 million in its Rhode Island properties over the term of the master contract through June 30, 2043, including an expansion and the addition of new amenities at Bally’s Twin River.

As of September 30, 2025 (Successor), approximately $ 42.0 million of the commitment remains.

As of March 31, 2026 (Successor), approximately $ 40.0 million of the commitment remains.

Bally’s Chicago - Pursuant to the Host Community Agreement with the City of Chicago, the Company’s indirect subsidiary is required to spend at least $ 1.34 billion on the design, construction and outfitting of the temporary casino and the permanent resort and casino.

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In addition, land acquisition costs and financing costs, among other types of costs, are not counted toward meeting this requirement.

September 30, 2025 (Successor), approximately $ 900.0 million of this commitment remains.

As of March 31, 2026 (Successor), approximately $ 600.0 million of this commitment remains.

City of Chicago Guaranty

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Under the Illinois Gambling Act, the Company will be responsible to pay the Illinois Gaming Board a reconciliation fee payment three years after the date operations commenced (in a temporary or permanent facility) in an amount equal to 75% of the adjusted gross receipt (“AGR”) for the most lucrative 12-month period of operations, minus the amount equal to the initial payment per gaming position paid.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Performance and other bonds

Certain contracts require the Company to provide a surety bond as a guarantee of performance for the benefit of customers.

These bonds give beneficiaries the right to obtain payment and/or performance from the issuer of the bond if certain specified events occur.

In the case of performance bonds, such events include the Company’s failure to perform its required obligations under the applicable contracts.

In general, the Company would only be liable for these guarantees in the event of breach of its obligations and failure to perform under each applicable contract, which the Company determined is not probable.

Accordingly, no liability has been recorded as of March 31, 2026 (Successor) and December 31, 2025 (Successor) related to these bonds.

Sponsorship Commitments

As of September 30, 2025 (Successor), the Company has entered into multiple sponsorship agreements with various professional sports leagues and teams.

As of March 31, 2026 (Successor), the Company has entered into multiple sponsorship agreements with various professional sports leagues and teams.

These agreements commit a total of $ 105.4 million through 2036 and grant the Company rights to use official league marks for branding and promotions, among other benefits.

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The Company has certain multi-year agreements with its various market access and content providers, as well as its online sports betting platform partners, that require the Company to pay variable fees based on revenue, with minimum annual guarantees.

As of September 30, 2025 (Successor), the cumulative minimum obligation committed in these agreements is approximately $ 33.3 million through 2029.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

As of March 31, 2026 (Successor), the cumulative minimum obligation committed in these agreements is approximately $ 25.3 million through 2029.

SEGMENT REPORTING

The Company has three operating and reportable segments:

Casinos & Resorts, International Interactive and North America Interactive.

The “Corporate & Other” category includes interest expense, select immaterial operating segments, unallocated corporate operating expenses, and other adjustments, such as eliminations of inter-segment transactions, to reconcile with the Company’s consolidated results.

In the fourth quarter of 2025, the Company updated its operating and reportable segments in connection with the Intralot Transaction to better align with the Company’s strategic growth initiatives and how its chief operating decision maker evaluates performance and allocates resources.

As a result, the Company determined it had four operating and reportable segments:

Casinos & Resorts, Bally’s Intralot B2B, Bally’s Intralot B2C, and North America Interactive.

Prior period reportable segment results and related disclosures have been conformed to reflect the Company’s current reportable segments.

The Company’s four reportable segments as of March 31, 2026 (Successor) are:

Casinos & Resorts - Includes 19 casino and resort properties, two horse racetracks and one golf course.

Bally’s Intralot B2B - Includes Intralot’s B2B global lottery and technology services operations and the Company’s licensing business.

Bally’s Intralot B2C - Includes the Company’s interactive European gaming operations, Intralot’s B2C lottery operations, as well as one casino property, Bally’s Newcastle, in the UK.

North America Interactive - A portfolio of sports betting and iGaming offerings in the United States and Canada.

The “Corporate & Other” category includes interest expense, select immaterial operating segments, unallocated corporate operating expenses, and other adjustments, such as the elimination of inter-segment transactions, to reconcile with the Company’s consolidated results.

This category further accounts for other expenses such as share-based compensation, acquisition and transaction costs, and other non-recurring charges.

During the first quarter of 2025, the Company moved a component of the North America Interactive operating segment to a separate operating segment, which is reported in the Corporate & Other category, to better align with the Company’s strategic growth initiatives and how its chief operating decision maker evaluates performance and allocates resources.

Comparable prior period segment results have been re-cast to reflect this change.

The prior year results presented below were reclassified to conform to the new segment presentation.

The Company’s three reportable segments as of September 30, 2025 (Successor) are:

Casinos & Resorts - Includes the Company’s 19 casino and resort properties, one horse racetrack and one golf course in the US.

International Interactive - Includes the Company’s interactive European gaming operations, the Company’s global licensing revenue generating operations, as well as one casino property, Bally's Newcastle, in the UK.

North America Interactive - A portfolio of sports betting, iGaming, and free-to-play gaming brands.

The Company’s chief operating decision maker is its Executive Committee, consisting of the Chief Executive Officer, President, and Chief Financial Officer.

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The Company uses consolidated Adjusted EBITDA and segment Adjusted EBITDAR when evaluating the operating performance of the business because management believes that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide a more fulsome understanding of the core operating results and as a means to evaluate period-to-period performance.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Management believes segment Adjusted EBITDAR is representative of its ongoing business operations including its ability to service debt and to fund capital expenditures, acquisitions and operations, in addition to it being a commonly used measure of performance in the gaming industry and used by industry analysts to evaluate operations and operating performance.

As of September 30, 2025 (Successor), the Company’s operations were predominately in the US and Europe with a less substantive footprint in other countries world-wide.

For geographical reporting purposes, revenue generated outside of the US has been aggregated into the International Interactive reporting segment, and consists primarily of revenue from the UK.

Revenue generated from the UK represented approximately 29 %, 28 % and 32 % of total revenue for the three months ended September 30, 2025 (Successor) the period from February 8, 2025 to September 30, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

For the three and nine months ended September 30, 2024 (Predecessor), the Company’s revenue generated outside of the US consisted primarily of revenue from the UK and Japan of approximately 28 % and 27 % of total revenue, respectively.

As of March 31, 2026 (Successor), the Company’s operations were substantially in the US and UK with a less substantive footprint in other countries world-wide.

Revenue generated from the UK represented approximately 27 %, 27 % and 32 % of total revenue for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

The Company does not have any revenues from any individual customers that exceed 10% of total reported revenues.

The following table sets forth revenue and Adjusted EBITDAR for the Company’s three reportable segments and reconciles Adjusted EBITDAR on a consolidated basis to net (loss) income.

The following table sets forth revenue and Adjusted EBITDAR for the Company’s four reportable segments and reconciles Adjusted EBITDAR on a consolidated basis to net (loss) income.

The Other category is included in the following tables in order to reconcile the segment information to the Company’s condensed consolidated financial statements.

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Successor Predecessor

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Casinos & Resorts $ 379,728 $ 226,851 $ 124,299

International Interactive 215,085 533,901 78,985 230,937 695,016

Bally’s Intralot B2B 73,956 4,883 3,720

Bally’s Intralot B2C 239,938 107,867 75,265

North America Interactive 60,456 27,557 16,941

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Casinos & Resorts $ 96,196 $ 71,540 $ 23,554

International Interactive 91,861 222,261 28,940 90,030 254,854

Bally’s Intralot B2B 15,116 4,883 3,720

Bally’s Intralot B2C 87,092 43,312 25,220

North America Interactive ( 7,137 ) ( 2,345 ) ( 5,661 )

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Transaction costs ( 13,989 ) ( 7,738 ) ( 5,106 )

Restructuring — — — 1,068 ( 17,921 )

Tropicana Las Vegas demolition and closure costs ( 6,194 ) ( 5,931 ) ( 2,605 )

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(Loss) gain on sale-leaseback, net 105,845 — —

Impairment charges — — — — ( 12,757 )

Merger Agreement costs (3)

( 1,248 ) ( 21,669 ) ( 11,233 ) ( 9,802 ) ( 11,791 )

Payment Service Provider write-off (4)

Merger Agreement and Intralot Transaction costs (3)

( 8,758 ) ( 15,875 ) ( 11,233 )

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Benefit (provision) for income taxes 3,249 97,093 ( 664 )

Net loss $ ( 106,199 ) $ ( 300,119 ) $ ( 51,024 ) $ ( 247,855 ) $ ( 481,965 )

Net (loss) income $ ( 160,857 ) $ 34,516 $ ( 51,024 )

__________________________________

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Adjusted EBITDAR should not be construed as an alternative to GAAP net income, its most directly comparable GAAP measure, nor is it directly comparable to similarly titled measures presented by other companies.

(2) Consists primarily of the operating lease components contained within certain triple net leases with GLPI.

(2) Consists primarily of the operating lease components contained within certain triple net leases for the real estate assets used in the operations of casino properties.

Refer to Note 15 “ Leases ” for further information.

(3) Costs incurred in connection with the Merger Agreement and the Intralot transaction discussed in Note 1 “General Information”.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

(3) Costs incurred in connection with the Merger Agreement discussed in Note 1 “General Information”.

(4) In the three months ended September 30, 2024 (Predecessor), the Company recorded a $ 6.3 million charge to reduce amounts due from payment service providers (“PSP”) due to a circumstance whereby the payment processer for certain online sports wagering deposits failed to capture and settle funds with patrons of the Company.

The Company was not able to recover the full amount due from the payment service provider, resulting in a write down to the recoverable amount.

The following table sets forth significant segment expenses and other segment items by reportable segment (in thousands):

Casinos & Resorts International Interactive North America Interactive

Three Months Ended September 30, 2025 (Successor)

Casinos & Resorts Bally’s Intralot B2B Bally’s Intralot B2C North America Interactive

Three Months Ended March 31, 2026 (Successor)

Revenue $ 379,728 $ 73,956 $ 239,938 $ 60,456

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General and administrative 26,707 9,586 10,781 6,445

Segment expense allocations 47 190 ( 95 ) 736

Other segment items (1)

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Segment EBITDAR $ 96,196 $ 15,116 $ 87,092 $ ( 7,137 )

Period from February 8, 2025 to September 30, 2025 (Successor)

Period from February 8, 2025 to March 31, 2025 (Successor)

Revenue $ 226,851 $ 4,883 $ 107,867 $ 27,557

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Segment EBITDAR $ 23,554 $ 3,720 $ 25,220 $ ( 5,661 )

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Casinos & Resorts International Interactive North America Interactive

Three Months Ended September 30, 2024 (Predecessor)

Revenue $ 353,358 $ 230,937 $ 44,121

segment expenses

Marketing costs 25,741 27,139 10,245

Gaming tax 48,072 41,853 13,984

Compensation 101,431 22,958 7,151

Other direct costs — 33,117 14,140

Casino property costs 35,849 — —

General and administrative 18,314 15,884 4,550

Other segment items (1) 23,509 ( 44 ) 55

Segment EBITDAR $ 100,442 $ 90,030 $ ( 6,004 )

Nine months ended September 30, 2024 (Predecessor)

Revenue $ 1,038,738 $ 695,016 $ 130,188

segment expenses

Marketing costs 67,077 96,261 35,305

Gaming tax 142,234 114,541 34,254

Compensation 293,091 81,884 17,017

Other direct costs — 33,117 14,140

Casino property costs 141,633 74,242 28,970

General and administrative 52,838 48,856 13,610

Other segment items (1)

__________________________________

Segment EBITDAR $ 289,661 $ 254,854 $ ( 17,314 )

__________________________________

(1) Other Segment Items primarily includes Gaming and non-gaming expenses within our Casinos & Resorts reportable segment, and certain other immaterial costs and allocations within each of the Company’s reportable segments.

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Successor Predecessor

(in thousands) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Capital Expenditures

Casinos & Resorts $ 32,501 $ 10,706 $ 5,306

International Interactive 618 906 148 86 444

Bally’s Intralot B2B 2,824 — —

Bally’s Intralot B2C 2,867 — 148

North America Interactive 642 — —

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__________________________________

(1) Includes $ 27.9 million, $ 83.9 million, $ 11.0 million, $ 70.3 million and $ 108.3 million related to our future Bally’s Chicago permanent facility during the three months ended September 30, 2025 (Successor), the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the three and nine months ended September 30, 2024 (Predecessor), respectively.

(1) Includes $ 26.3 million and $ 11.0 million related to the Chicago Permanent Facility during the period from February 8, 2025 to March 31, 2025 (Successor) and the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

Total assets are not regularly reviewed for each operating segment when assessing segment performance or allocating resources and accordingly, are not presented.

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Successor Predecessor

(in thousands, except per share data) Three Months Ended September 30, 2025 Period from February 8, 2025 to September 30, 2025 Period from January 1, 2025 to February 7, 2025 Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024

Net loss attributable to Bally’s Corporation $ ( 102,912 ) $ ( 296,832 ) $ ( 51,024 ) $ ( 247,855 ) $ ( 481,965 )

(in thousands, except per share data) Three Months Ended March 31, 2026 Period from February 8, 2025 to March 31, 2025 Period from January 1, 2025 to February 7, 2025

Net loss (income) attributable to Bally’s Corporation $ ( 161,914 ) $ 34,516 $ ( 51,024 )

Weighted average common shares outstanding, basic 60,248 60,322 48,743

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Weighted average common shares outstanding, diluted 60,248 60,729 48,743

Basic loss per share $ ( 1.70 ) $ ( 4.90 ) $ ( 1.05 ) $ ( 5.10 ) $ ( 9.96 )

Diluted loss per share $ ( 1.70 ) $ ( 4.90 ) $ ( 1.05 ) $ ( 5.10 ) $ ( 9.96 )

There were 322,112 , 234,816 , 5,056,640 , 4,927,900 and 5,108,453 share-based awards that were considered anti-dilutive for the three months ended September 30, 2025 (Successor), the period from February 8, 2025 to September 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and three and nine months ended September 30, 2024 (Predecessor), respectively.

Basic (loss) income per share $ ( 2.69 ) $ 0.57 $ ( 1.05 )

Diluted (loss) income per share $ ( 2.69 ) $ 0.57 $ ( 1.05 )

There were 25,058 , 19,943 and 5,056,640 share-based awards that were considered anti-dilutive for the three months ended March 31, 2026 (Successor), the period from February 8, 2025 to March 31, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor), respectively.

The Company has Penny Warrants which participate in dividends with the Company’s common stock subject to certain contingencies.

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Refer to Note 2 “ Summary of Significant Accounting Policies ” for further information regarding the Framework Agreement.

BALLY’S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

SUBSEQUENT EVENTS

Intralot Transaction

On October 8, 2025, Intralot completed the acquisition of the Company’s issued and outstanding capital stock of Bally’s Holdings Limited, a Jersey limited company and subsidiary of the Company, holding the Company’s “International Interactive” business (“Bally’s International Interactive”) for a combined total consideration of € 2.7 billion and combined it with Intralot’s global lottery and gaming operations (the “Intralot Transaction”).

The Intralot Transaction consideration comprised of € 1.530 billion of cash paid by Intralot, and 873.7 million newly issued Intralot shares to the Company.

Post-close, the Company’s updated equity interest in Intralot when combined with the Company’s prior ownership of 207.5 million shares, is 58 %.

In connection with the Intralot Transaction, Intralot entered into new debt financings of approximately € 1.5 billion, and repaid € 0.2 billion of its previously existing debt.

The Company will account for the Intralot Transaction as a business combination whereby it acquired a controlling financial interest in Intralot in the fourth quarter of 2025.

Given the short period of time from the completion of the Intralot Transaction and the date of these condensed consolidated financial statements, the initial accounting for the purchase price allocation is incomplete at this time.

The Company is not able to provide the valuation of certain components of consideration paid to the assets acquired or liabilities assumed.

The Company will reflect the preliminary purchase price allocation in its consolidated financial statements for the year ended December 31, 2025.

With proceeds from the transaction, the Company paid down $ 500.0 million of its secured indebtedness, applied pro rata across its 2028 Notes and Term Loan Facility.

Subsequently, the Company satisfied the remaining principal balance of its 2028 Notes with an additional payment of $ 395.0 million, and incurred and paid a make-whole payment pursuant to the note agreement.

Additionally, the Company repaid all outstanding amounts under the Revolving Credit Facility.

The Company is currently evaluating the effect of these debt payments and the associated unamortized original issue discounts, deferred financing fees, and fair value adjustments on the 2028 Notes and Term Loan Facility to its consolidated financial statements in the fourth quarter of 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements