## Bally’s Corporation (BALY) — filings-first deep dive (interactive, choose your path) **How to use this report:** skim the **Executive takeaway**, then jump to any section. Each section ends with **“Drill-down prompts”** you can use as quick follow-ups (no extra context required). --- ## 1) Executive takeaway (what matters most) Bally’s is currently a **highly levered, multi-vertical gaming operator** with (i) **Casinos & Resorts** (asset-heavy, regulated, GLPI lease exposure), (ii) **International Interactive** (Gamesys + licensing + Bally’s Newcastle), and (iii) **North America Interactive** (iGaming/sportsbook + free-to-play). ["global gaming, hospitality and entertainment"](0001747079-25-000140|0) ["Casinos & Resorts reportable segment"](0001747079-25-000140|0) ["International Interactive reportable segment"](0001747079-25-000140|0) ["North America Interactive reportable segment"](0001747079-25-000140|0) The capital structure and ownership profile were reshaped by the **Queen transaction**, with Parent and its affiliates owning **73.8%** at close. ["beneficially owned 73.8%"](0001747079-25-000140|0) As of **Sept 30, 2025**, Bally’s reported **$160.7m cash**, **$79.2m restricted cash**, and **$3.742b gross long-term debt (incl. current portion)** (all USD, in thousands in the filing). ["Cash and cash equivalents…160,689"](0001747079-25-000140|0) ["Restricted cash…79,224"](0001747079-25-000140|0) ["Long-term debt…3,742,071"](0001747079-25-000140|0) --- # Jump menu (pick your lane) 1. **Business map & segments** (what you’re actually buying) 2. **Profit engine** (segment EBITDAR + where margins are/aren’t) 3. **Balance sheet & liquidity** (cash, leverage, lease obligations) 4. **Debt stack & covenants** (what can break) 5. **Major transactions & pro forma view** (Queen + Intralot deal mechanics) 6. **Controls / reporting quality flags** (material weakness disclosure) --- ## 2) Business map & segments (the operating “shape”) ### Reportable segments (as described in the latest 10-Q) - **International Interactive**: interactive European gaming operations + global licensing + **Bally’s Newcastle (UK)**. ["International Interactive reportable segment includes"](0001747079-25-000140|0) - **North America Interactive**: sports betting, iGaming, and free-to-play brands + North American operations of Gamesys. ["North America Interactive reportable segment includes"](0001747079-25-000140|0) **Context you should internalize:** Bally’s segment mix creates a recurring tension between (a) regulated, capital/lease-heavy physical casinos and (b) marketing-sensitive interactive economics (especially North America). The filings explicitly show **North America Interactive EBITDAR losses** in 2024 periods, which is a key “proof point” that scale/efficiency is still a work in progress. ["Segment EBITDAR…(6,004)"](0001747079-25-000140|0) **Drill-down prompts (copy/paste):** - “Summarize Casinos & Resorts property footprint from filings and flag any concentration risks.” - “Explain Bally’s International Interactive model (Gamesys + licensing) and the KPIs implied by disclosures.” --- ## 3) Profit engine — segment economics you can anchor on (filing numbers) ### Segment revenue & Segment EBITDAR (management’s segment profit measure) Below is pulled from Bally’s 10-Q segment note for **Predecessor** periods in 2024. | Period (USD ‘000) | Casinos & Resorts | International Interactive | North America Interactive | |---|---:|---:|---:| | **Revenue — Q3 2024** | 353,358 ["Revenue…353,358"](0001747079-25-000140|0) | 230,937 ["Revenue…230,937"](0001747079-25-000140|0) | 44,121 ["Revenue…44,121"](0001747079-25-000140|0) | | **Segment EBITDAR — Q3 2024** | 100,442 ["Segment EBITDAR…100,442"](0001747079-25-000140|0) | 90,030 ["Segment EBITDAR…90,030"](0001747079-25-000140|0) | (6,004) ["Segment EBITDAR…(6,004)"](0001747079-25-000140|0) | | **Revenue — 9M 2024** | 1,038,738 ["Revenue…1,038,738"](0001747079-25-000140|0) | 695,016 ["Revenue…695,016"](0001747079-25-000140|0) | 130,188 ["Revenue…130,188"](0001747079-25-000140|0) | | **Segment EBITDAR — 9M 2024** | 289,661 ["Segment EBITDAR…289,661"](0001747079-25-000140|0) | 254,854 ["Segment EBITDAR…254,854"](0001747079-25-000140|0) | (17,314) ["Segment EBITDAR…(17,314)"](0001747079-25-000140|0) | **Interpretation (what the table implies):** - **Casinos & Resorts and International Interactive** were both **meaningfully EBITDAR-positive** in 2024 periods above, supporting the idea that Bally’s core cash generation is still largely in those two pillars. ["Segment EBITDAR…289,661"](0001747079-25-000140|0) ["Segment EBITDAR…254,854"](0001747079-25-000140|0) - **North America Interactive** is the “option value / execution risk” segment: EBITDAR-negative in 2024 periods shown, and management commentary suggests improvements tied to Queen sports business inclusion + top-line growth offset by marketing and other costs. ["Adjusted EBITDAR loss of $6.0 million"](0001747079-25-000140|0) ["improved…inclusion of the Queen’s sports business"](0001747079-25-000140|0) ["offset by higher marketing investment"](0001747079-25-000140|0) **Drill-down prompts:** - “Build a ‘segment quality scorecard’ (cyclicality, regulation, capex intensity, margin durability) using filings only.” - “Explain how Bally’s defines Adjusted EBITDAR and why that definition matters for leverage/covenants.” --- ## 4) Balance sheet & liquidity snapshot (what the company can fund) ### Condensed balance sheet highlights (Sept 30, 2025 vs Dec 31, 2024) All figures are **USD in thousands** (per filing). | (USD ‘000) | Sept 30, 2025 | Dec 31, 2024 | |---|---:|---:| | Cash & cash equivalents | 160,689 ["Cash and cash equivalents…160,689"](0001747079-25-000140|0) | 171,233 ["Cash and cash equivalents…171,233"](0001747079-25-000140|0) | | Restricted cash | 79,224 ["Restricted cash…79,224"](0001747079-25-000140|0) | 60,021 ["Restricted cash…60,021"](0001747079-25-000140|0) | | Total assets | 7,554,927 ["Total assets…7,554,927"](0001747079-25-000140|0) | 5,860,137 ["Total assets…5,860,137"](0001747079-25-000140|0) | | Long-term debt, net (ex current) | 3,722,621 ["Long-term debt, net…3,722,621"](0001747079-25-000140|0) | 3,299,323 ["Long-term debt, net…3,299,323"](0001747079-25-000140|0) | | Total liabilities | 7,033,028 ["Total liabilities…7,033,028"](0001747079-25-000140|0) | 5,829,235 ["Total liabilities…5,829,235"](0001747079-25-000140|0) | | Total stockholders’ equity | 521,899 ["Total stockholders’ equity…521,899"](0001747079-25-000140|0) | 30,902 ["Total stockholders’ equity…30,902"](0001747079-25-000140|0) | ### Lease burden (often economically “debt-like”) - Bally’s disclosed **future minimum operating lease payments** totaling **$3.374b** (undiscounted) and **$1.887b lease obligations** (PV, excluding certain not-yet-commenced leases). ["Total lease payments…3,373,704"](0001747079-25-000140|0) ["Lease obligations…1,886,744"](0001747079-25-000140|0) ["exclude $358.1 million…not yet commenced"](0001747079-25-000140|0) **Why it matters:** for a casino operator with major master leases, lease commitments can be the real “fixed charge” that competes with interest expense in downturns or during heavy development cycles. **Drill-down prompts:** - “Create a net leverage + fixed-charge framework using only debt + lease disclosures in the 10-Q.” - “Summarize Bally’s capital return program constraints (debt + regulatory).” --- ## 5) Debt stack & covenants (stress points and flexibility) ### Long-term debt composition (Sept 30, 2025) USD in thousands. | Instrument | Principal / balance | |---|---:| | Term Loan Facility | 1,872,063 ["Term Loan Facility…1,872,063"](0001747079-25-000140|0) | | Revolving Credit Facility | 393,000 ["Revolving Credit Facility…393,000"](0001747079-25-000140|0) | | 11.00% Senior Secured Notes due 2028 | 500,000 ["11.00% Senior Secured Notes due 2028…500,000"](0001747079-25-000140|0) | | 5.625% Senior Notes due 2029 | 750,000 ["5.625% Senior Notes due 2029…750,000"](0001747079-25-000140|0) | | 5.875% Senior Notes due 2031 | 735,000 ["5.875% Senior Notes due 2031…735,000"](0001747079-25-000140|0) | | **Total long-term debt (incl. current), gross** | **3,742,071** ["Long-term debt, including current portion…3,742,071"](0001747079-25-000140|0) | ### Covenant / restriction highlights (what can “bind”) - The Senior Notes indenture restricts things like **additional debt, dividends/restricted payments, affiliate transactions, asset sales, liens**, and major M&A/asset sale actions, subject to exceptions. ["indenture contains covenants that limit"](0001747079-25-000140|0) - Revolver has a **financial covenant** tied to a **first lien net leverage ratio** when utilization crosses a threshold; the company states it was **in compliance** as of Sept 30, 2025. ["financial covenant…maximum first lien net leverage ratio"](0001747079-25-000140|0) ["in compliance with all such covenants"](0001747079-25-000140|0) - Bally’s also discloses a **Rhode Island Regulatory Agreement** with a leverage-based restriction concept (gross debt / Adjusted EBITDA) for restricted payments if leverage exceeds a stated level. ["restrict our ability…if our leverage ratio exceeds 5.50 to 1.00"](0001747079-25-000140|0) ### Interest-rate sensitivity (simple stress test disclosed) A 1% rate move on variable-rate debt was disclosed as roughly **$22.7m annual interest expense sensitivity**. ["increase…approximately $22.7 million"](0001747079-25-000140|0) **Drill-down prompts:** - “Map Bally’s creditor stack by seniority (secured vs unsecured) using only filing language.” - “Explain how the Rhode Island Regulatory Agreement interacts with capital returns and debt incurrence.” --- ## 6) Major transactions & “pro forma lens” (Queen + Intralot mechanics) ### (A) Queen merger ownership outcome At closing, Parent and affiliates held **73.8%** of common stock. ["beneficially owned 73.8%"](0001747079-25-000140|0) ### (B) Intralot transaction & debt paydown disclosures (8-K/A EX-99.1) The 8-K/A pro forma exhibit is explicit that, **concurrently with the Intralot Acquisition**, Bally’s used cash consideration flows to **pay down debt** (including fully paying off the **$500m 2028 Notes**). ["Concurrently with the Intralot Acquisition…paid down portions"](0001213900-25-123742|1) ["paid off the entire $500 million principal balance of its 2028 Notes"](0001213900-25-123742|1) It also describes a subsequent **Term Loan Facility paydown** (example: $401.5m paid, with $394.6m principal) and an expected accounting treatment as a **partial extinguishment** with discount write-off. ["paid down…Term Loan Facility…$401.5 million"](0001213900-25-123742|1) ["partial extinguishment"](0001213900-25-123742|1) ### (C) Pro forma combined P&L (year ended Dec 31, 2024) From the pro forma combined statement of operations (USD in thousands): | Pro forma (USD ‘000) | Amount | |---|---:| | Total revenue | 3,092,765 ["Total revenue…3,092,765"](0001213900-25-123742|1) | | Net income (loss) | (724,255) ["Net income (loss)…(724,255)"](0001213900-25-123742|1) | | Net income (loss) attributable to Bally’s | (633,836) ["attributable to Bally’s…(633,836)"](0001213900-25-123742|1) | **How to interpret pro forma (important):** pro forma is not guidance; it’s a mechanical “as if” combination with stated adjustments and can embed significant purchase accounting, financing, and one-time items. But it’s useful for understanding (i) **scale**, (ii) **fixed-charge drag**, and (iii) how much of the story is **financing-driven** vs **operating-driven**. ["Unaudited Pro Forma Condensed Combined"](0001213900-25-123742|1) **Drill-down prompts:** - “Extract and summarize the specific pro forma adjustments that drive interest expense and goodwill/intangibles.” - “Translate the pro forma into a ‘quality of earnings’ bridge (operating vs financing vs purchase accounting).” --- ## 7) Controls / reporting-quality flags (don’t ignore this) Bally’s disclosed that its **disclosure controls and procedures were not effective** due to a **material weakness** related to segregation of duties over journal entries within the **International Interactive** segment. ["disclosure controls…were not effective"](0001747079-25-000140|0) ["material weakness…International Interactive"](0001747079-25-000140|0) ["lack segregation of duties"](0001747079-25-000140|0) They also describe remediation steps including a new **ERP system** and use of an international consulting firm. ["implemented a new enterprise resource planning (“ERP”) system"](0001747079-25-000140|0) ["Hired an international consulting firm"](0001747079-25-000140|0) **Why this matters for an investor:** even when numbers are audited/reviewed, a persistent material weakness increases the risk of (i) late filings, (ii) restatements, or (iii) management distraction—especially relevant when the company is simultaneously doing major M&A and capital structure actions. **Drill-down prompts:** - “List the specific accounts/disclosures most exposed by the described material weakness (based on the filing language).” - “Summarize all M&A-related accounting complexity disclosed (purchase price allocation, fair value adjustments, etc.).” --- ## Appendix: quick “hot-button” items worth attention (from latest filings) - **Capital return program:** up to **$700m** authorized; **$95.5m available** as of Sept 30, 2025; no repurchases/dividends during periods shown. ["capital return program…up to $700 million"](0001747079-25-000140|0) ["$95.5 million was available"](0001747079-25-000140|0) ["no share repurchase activity…no cash dividends"](0001747079-25-000140|0) - **Chicago development lease economics:** annual rent **$20m** plus **8.5%** of development advances; construction receivable and prepaid rent mechanics disclosed. ["Annual rent…$20 million"](0001747079-25-000140|0) ["additional rent equal to 8.5%"](0001747079-25-000140|0) ["construction receivable balance…$134.8 million"](0001747079-25-000140|0) ["prepaid rent balance was $161.8 million"](0001747079-25-000140|0) --- ### If you want the “next layer” (still filings-only), here are the best follow-ups: 1) “Write a downside-case memo: what breaks first—covenants, liquidity, or lease coverage?” 2) “Build a timeline of 2025 events: Queen merger → debt issuance → Chicago MLA → revolver amendment → Intralot financing/debt paydowns.” 3) “Create a ‘sources and uses’ model using only 10-Q cash flow lines + 8-K pro forma financing descriptions.”

## Bally’s Corporation (BALY) — filings-first deep dive (interactive, choose your path) **How to use this report:** skim the **Executive takeaway**, then jump to any section. Each section ends with **“Drill-down prompts”** you can use as quick follow-ups (no extra context required). --- ## 1) Executive takeaway (what matters most) Bally’s is currently a **highly levered, multi-vertical gaming operator** with (i) **Casinos & Resorts** (asset-heavy, regulated, GLPI lease exposure), (ii) **International Interactive** (Gamesys + licensing + Bally’s Newcastle), and (iii) **North America Interactive** (iGaming/sportsbook + free-to-play). ["global gaming, hospitality and entertainment"](0001747079-25-000140|0) ["Casinos & Resorts reportable segment"](0001747079-25-000140|0) ["International Interactive reportable segment"](0001747079-25-000140|0) ["North America Interactive reportable segment"](0001747079-25-000140|0) The capital structure and ownership profile were reshaped by the **Queen transaction**, with Parent and its affiliates owning **73.8%** at close. ["beneficially owned 73.8%"](0001747079-25-000140|0) As of **Sept 30, 2025**, Bally’s reported **$160.7m cash**, **$79.2m restricted cash**, and **$3.742b gross long-term debt (incl. current portion)** (all USD, in thousands in the filing). ["Cash and cash equivalents…160,689"](0001747079-25-000140|0) ["Restricted cash…79,224"](0001747079-25-000140|0) ["Long-term debt…3,742,071"](0001747079-25-000140|0) --- # Jump menu (pick your lane) 1. **Business map & segments** (what you’re actually buying) 2. **Profit engine** (segment EBITDAR + where margins are/aren’t) 3. **Balance sheet & liquidity** (cash, leverage, lease obligations) 4. **Debt stack & covenants** (what can break) 5. **Major transactions & pro forma view** (Queen + Intralot deal mechanics) 6. **Controls / reporting quality flags** (material weakness disclosure) --- ## 2) Business map & segments (the operating “shape”) ### Reportable segments (as described in the latest 10-Q) - **International Interactive**: interactive European gaming operations + global licensing + **Bally’s Newcastle (UK)**. ["International Interactive reportable segment includes"](0001747079-25-000140|0) - **North America Interactive**: sports betting, iGaming, and free-to-play brands + North American operations of Gamesys. ["North America Interactive reportable segment includes"](0001747079-25-000140|0) **Context you should internalize:** Bally’s segment mix creates a recurring tension between (a) regulated, capital/lease-heavy physical casinos and (b) marketing-sensitive interactive economics (especially North America). The filings explicitly show **North America Interactive EBITDAR losses** in 2024 periods, which is a key “proof point” that scale/efficiency is still a work in progress. ["Segment EBITDAR…(6,004)"](0001747079-25-000140|0) **Drill-down prompts (copy/paste):** - “Summarize Casinos & Resorts property footprint from filings and flag any concentration risks.” - “Explain Bally’s International Interactive model (Gamesys + licensing) and the KPIs implied by disclosures.” --- ## 3) Profit engine — segment economics you can anchor on (filing numbers) ### Segment revenue & Segment EBITDAR (management’s segment profit measure) Below is pulled from Bally’s 10-Q segment note for **Predecessor** periods in 2024. | Period (USD ‘000) | Casinos & Resorts | International Interactive | North America Interactive | |---|---:|---:|---:| | **Revenue — Q3 2024** | 353,358 ["Revenue…353,358"](0001747079-25-000140|0) | 230,937 ["Revenue…230,937"](0001747079-25-000140|0) | 44,121 ["Revenue…44,121"](0001747079-25-000140|0) | | **Segment EBITDAR — Q3 2024** | 100,442 ["Segment EBITDAR…100,442"](0001747079-25-000140|0) | 90,030 ["Segment EBITDAR…90,030"](0001747079-25-000140|0) | (6,004) ["Segment EBITDAR…(6,004)"](0001747079-25-000140|0) | | **Revenue — 9M 2024** | 1,038,738 ["Revenue…1,038,738"](0001747079-25-000140|0) | 695,016 ["Revenue…695,016"](0001747079-25-000140|0) | 130,188 ["Revenue…130,188"](0001747079-25-000140|0) | | **Segment EBITDAR — 9M 2024** | 289,661 ["Segment EBITDAR…289,661"](0001747079-25-000140|0) | 254,854 ["Segment EBITDAR…254,854"](0001747079-25-000140|0) | (17,314) ["Segment EBITDAR…(17,314)"](0001747079-25-000140|0) | **Interpretation (what the table implies):** - **Casinos & Resorts and International Interactive** were both **meaningfully EBITDAR-positive** in 2024 periods above, supporting the idea that Bally’s core cash generation is still largely in those two pillars. ["Segment EBITDAR…289,661"](0001747079-25-000140|0) ["Segment EBITDAR…254,854"](0001747079-25-000140|0) - **North America Interactive** is the “option value / execution risk” segment: EBITDAR-negative in 2024 periods shown, and management commentary suggests improvements tied to Queen sports business inclusion + top-line growth offset by marketing and other costs. ["Adjusted EBITDAR loss of $6.0 million"](0001747079-25-000140|0) ["improved…inclusion of the Queen’s sports business"](0001747079-25-000140|0) ["offset by higher marketing investment"](0001747079-25-000140|0) **Drill-down prompts:** - “Build a ‘segment quality scorecard’ (cyclicality, regulation, capex intensity, margin durability) using filings only.” - “Explain how Bally’s defines Adjusted EBITDAR and why that definition matters for leverage/covenants.” --- ## 4) Balance sheet & liquidity snapshot (what the company can fund) ### Condensed balance sheet highlights (Sept 30, 2025 vs Dec 31, 2024) All figures are **USD in thousands** (per filing). | (USD ‘000) | Sept 30, 2025 | Dec 31, 2024 | |---|---:|---:| | Cash & cash equivalents | 160,689 ["Cash and cash equivalents…160,689"](0001747079-25-000140|0) | 171,233 ["Cash and cash equivalents…171,233"](0001747079-25-000140|0) | | Restricted cash | 79,224 ["Restricted cash…79,224"](0001747079-25-000140|0) | 60,021 ["Restricted cash…60,021"](0001747079-25-000140|0) | | Total assets | 7,554,927 ["Total assets…7,554,927"](0001747079-25-000140|0) | 5,860,137 ["Total assets…5,860,137"](0001747079-25-000140|0) | | Long-term debt, net (ex current) | 3,722,621 ["Long-term debt, net…3,722,621"](0001747079-25-000140|0) | 3,299,323 ["Long-term debt, net…3,299,323"](0001747079-25-000140|0) | | Total liabilities | 7,033,028 ["Total liabilities…7,033,028"](0001747079-25-000140|0) | 5,829,235 ["Total liabilities…5,829,235"](0001747079-25-000140|0) | | Total stockholders’ equity | 521,899 ["Total stockholders’ equity…521,899"](0001747079-25-000140|0) | 30,902 ["Total stockholders’ equity…30,902"](0001747079-25-000140|0) | ### Lease burden (often economically “debt-like”) - Bally’s disclosed **future minimum operating lease payments** totaling **$3.374b** (undiscounted) and **$1.887b lease obligations** (PV, excluding certain not-yet-commenced leases). ["Total lease payments…3,373,704"](0001747079-25-000140|0) ["Lease obligations…1,886,744"](0001747079-25-000140|0) ["exclude $358.1 million…not yet commenced"](0001747079-25-000140|0) **Why it matters:** for a casino operator with major master leases, lease commitments can be the real “fixed charge” that competes with interest expense in downturns or during heavy development cycles. **Drill-down prompts:** - “Create a net leverage + fixed-charge framework using only debt + lease disclosures in the 10-Q.” - “Summarize Bally’s capital return program constraints (debt + regulatory).” --- ## 5) Debt stack & covenants (stress points and flexibility) ### Long-term debt composition (Sept 30, 2025) USD in thousands. | Instrument | Principal / balance | |---|---:| | Term Loan Facility | 1,872,063 ["Term Loan Facility…1,872,063"](0001747079-25-000140|0) | | Revolving Credit Facility | 393,000 ["Revolving Credit Facility…393,000"](0001747079-25-000140|0) | | 11.00% Senior Secured Notes due 2028 | 500,000 ["11.00% Senior Secured Notes due 2028…500,000"](0001747079-25-000140|0) | | 5.625% Senior Notes due 2029 | 750,000 ["5.625% Senior Notes due 2029…750,000"](0001747079-25-000140|0) | | 5.875% Senior Notes due 2031 | 735,000 ["5.875% Senior Notes due 2031…735,000"](0001747079-25-000140|0) | | **Total long-term debt (incl. current), gross** | **3,742,071** ["Long-term debt, including current portion…3,742,071"](0001747079-25-000140|0) | ### Covenant / restriction highlights (what can “bind”) - The Senior Notes indenture restricts things like **additional debt, dividends/restricted payments, affiliate transactions, asset sales, liens**, and major M&A/asset sale actions, subject to exceptions. ["indenture contains covenants that limit"](0001747079-25-000140|0) - Revolver has a **financial covenant** tied to a **first lien net leverage ratio** when utilization crosses a threshold; the company states it was **in compliance** as of Sept 30, 2025. ["financial covenant…maximum first lien net leverage ratio"](0001747079-25-000140|0) ["in compliance with all such covenants"](0001747079-25-000140|0) - Bally’s also discloses a **Rhode Island Regulatory Agreement** with a leverage-based restriction concept (gross debt / Adjusted EBITDA) for restricted payments if leverage exceeds a stated level. ["restrict our ability…if our leverage ratio exceeds 5.50 to 1.00"](0001747079-25-000140|0) ### Interest-rate sensitivity (simple stress test disclosed) A 1% rate move on variable-rate debt was disclosed as roughly **$22.7m annual interest expense sensitivity**. ["increase…approximately $22.7 million"](0001747079-25-000140|0) **Drill-down prompts:** - “Map Bally’s creditor stack by seniority (secured vs unsecured) using only filing language.” - “Explain how the Rhode Island Regulatory Agreement interacts with capital returns and debt incurrence.” --- ## 6) Major transactions & “pro forma lens” (Queen + Intralot mechanics) ### (A) Queen merger ownership outcome At closing, Parent and affiliates held **73.8%** of common stock. ["beneficially owned 73.8%"](0001747079-25-000140|0) ### (B) Intralot transaction & debt paydown disclosures (8-K/A EX-99.1) The 8-K/A pro forma exhibit is explicit that, **concurrently with the Intralot Acquisition**, Bally’s used cash consideration flows to **pay down debt** (including fully paying off the **$500m 2028 Notes**). ["Concurrently with the Intralot Acquisition…paid down portions"](0001213900-25-123742|1) ["paid off the entire $500 million principal balance of its 2028 Notes"](0001213900-25-123742|1) It also describes a subsequent **Term Loan Facility paydown** (example: $401.5m paid, with $394.6m principal) and an expected accounting treatment as a **partial extinguishment** with discount write-off. ["paid down…Term Loan Facility…$401.5 million"](0001213900-25-123742|1) ["partial extinguishment"](0001213900-25-123742|1) ### (C) Pro forma combined P&L (year ended Dec 31, 2024) From the pro forma combined statement of operations (USD in thousands): | Pro forma (USD ‘000) | Amount | |---|---:| | Total revenue | 3,092,765 ["Total revenue…3,092,765"](0001213900-25-123742|1) | | Net income (loss) | (724,255) ["Net income (loss)…(724,255)"](0001213900-25-123742|1) | | Net income (loss) attributable to Bally’s | (633,836) ["attributable to Bally’s…(633,836)"](0001213900-25-123742|1) | **How to interpret pro forma (important):** pro forma is not guidance; it’s a mechanical “as if” combination with stated adjustments and can embed significant purchase accounting, financing, and one-time items. But it’s useful for understanding (i) **scale**, (ii) **fixed-charge drag**, and (iii) how much of the story is **financing-driven** vs **operating-driven**. ["Unaudited Pro Forma Condensed Combined"](0001213900-25-123742|1) **Drill-down prompts:** - “Extract and summarize the specific pro forma adjustments that drive interest expense and goodwill/intangibles.” - “Translate the pro forma into a ‘quality of earnings’ bridge (operating vs financing vs purchase accounting).” --- ## 7) Controls / reporting-quality flags (don’t ignore this) Bally’s disclosed that its **disclosure controls and procedures were not effective** due to a **material weakness** related to segregation of duties over journal entries within the **International Interactive** segment. ["disclosure controls…were not effective"](0001747079-25-000140|0) ["material weakness…International Interactive"](0001747079-25-000140|0) ["lack segregation of duties"](0001747079-25-000140|0) They also describe remediation steps including a new **ERP system** and use of an international consulting firm. ["implemented a new enterprise resource planning (“ERP”) system"](0001747079-25-000140|0) ["Hired an international consulting firm"](0001747079-25-000140|0) **Why this matters for an investor:** even when numbers are audited/reviewed, a persistent material weakness increases the risk of (i) late filings, (ii) restatements, or (iii) management distraction—especially relevant when the company is simultaneously doing major M&A and capital structure actions. **Drill-down prompts:** - “List the specific accounts/disclosures most exposed by the described material weakness (based on the filing language).” - “Summarize all M&A-related accounting complexity disclosed (purchase price allocation, fair value adjustments, etc.).” --- ## Appendix: quick “hot-button” items worth attention (from latest filings) - **Capital return program:** up to **$700m** authorized; **$95.5m available** as of Sept 30, 2025; no repurchases/dividends during periods shown. ["capital return program…up to $700 million"](0001747079-25-000140|0) ["$95.5 million was available"](0001747079-25-000140|0) ["no share repurchase activity…no cash dividends"](0001747079-25-000140|0) - **Chicago development lease economics:** annual rent **$20m** plus **8.5%** of development advances; construction receivable and prepaid rent mechanics disclosed. ["Annual rent…$20 million"](0001747079-25-000140|0) ["additional rent equal to 8.5%"](0001747079-25-000140|0) ["construction receivable balance…$134.8 million"](0001747079-25-000140|0) ["prepaid rent balance was $161.8 million"](0001747079-25-000140|0) --- ### If you want the “next layer” (still filings-only), here are the best follow-ups: 1) “Write a downside-case memo: what breaks first—covenants, liquidity, or lease coverage?” 2) “Build a timeline of 2025 events: Queen merger → debt issuance → Chicago MLA → revolver amendment → Intralot financing/debt paydowns.” 3) “Create a ‘sources and uses’ model using only 10-Q cash flow lines + 8-K pro forma financing descriptions.”