v3.25.2
REVENUE RECOGNITION
6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION 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.
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.

Gaming Revenue

Performance Obligations

Retail gaming service contracts involving our land-based casinos, each have an obligation to honor the outcome of a wager and to pay out an amount equal to the stated odds, including the return of the initial wager, if the customer receives a winning hand. These elements of honoring the outcome of the hand of play and generating a payout are considered one performance obligation, with an additional performance obligation for those customers earning incentives under the Company’s player loyalty program.

Online gaming and sports betting represent a single performance obligation for the Company to operate contests or games and award prizes or payouts to users based on results of the arrangement. Additionally, the use of incentives across the online gaming products create future customer rights and are a separate performance obligation.

Racing revenue is earned through advance deposit wagering, which consists of patrons wagering through an advance deposit account. Each wagering contract contains a single performance obligation.

Transaction Price

The Company applies a practical expedient to account for its gaming contracts on a portfolio basis as such wagers have similar characteristics and the Company reasonably expects the impact on the consolidated financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from the application of an individual wagering contract. The transaction price for a retail gaming, online gaming or sports betting wagering contract is the difference between wins and losses, not the total amount wagered. In addition, in the event of a multi-stage contest, the Company will allocate transaction price ratably from contest start to the contest’s final stage.
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.

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.

Revenue Recognition

The allocated revenue for retail gaming wagers is recognized when the wagering occurs as all such wagers settle immediately. Online gaming revenue is recognized at the point in time when the player completes a gaming session and payout occurs. Sports betting involves a player wagering money on an outcome or series of outcomes. If a player wins the wager, the Company pays the player a pre-determined amount known as fixed odds, and its revenue is recognized as total wagers net of payouts made and incentives awarded to players. 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:
 SuccessorPredecessor
(in thousands)Three Months Ended June 30, 2025Period from February 8, 2025 to June 30, 2025Period from January 1, 2025 to February 7, 2025Three Months Ended June 30, 2024Six Months Ended June 30, 2024
Hotel$18,643 $29,439 $7,098 $20,435 $40,906 
Food and beverage18,258 29,317 7,559 20,302 40,515 
Retail, entertainment and other4,953 7,676 713 2,442 4,870 
 $41,854 $66,432 $15,370 $43,179 $86,291 
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.

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 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.
Revenue Recognition

Hotel revenue is recognized when the customer obtains control through occupancy of the room over their stay at the hotel. Advance deposits for hotel rooms are recorded as liabilities until revenue recognition criteria are met. Food, beverage and retail revenues are recognized at the time the goods are sold from Company-operated outlets. 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.
The following tables provide a disaggregation of revenue by segment (in thousands):
Three Months Ended June 30, 2025 (Successor)
Casinos & ResortsInternational InteractiveNorth America InteractiveCorporate & OtherTotal
Gaming$305,858 $195,860 $55,913 $— $557,631 
Non-gaming:
Hotel33,714 — — — 33,714 
Food and beverage34,828 — — — 34,828 
Licensing— 7,046 — — 7,046 
Retail, entertainment and other18,933 3,160 589 1,633 24,315 
Total non-gaming revenue87,475 10,206 589 1,633 99,903 
Total revenue$393,333 $206,066 $56,502 $1,633 $657,534 
Period from February 8, 2025 to June 30, 2025 (Successor)
Gaming$484,392 $303,596 $83,422 $— $871,410 
Non-gaming:
Hotel52,427 — — — 52,427 
Food and beverage55,082 — — — 55,082 
Licensing— 11,929 — — 11,929 
Retail, entertainment and other28,283 3,291 637 3,169 35,380 
Total non-gaming revenue135,792 15,220 637 3,169 154,818 
Total revenue$620,184 $318,816 $84,059 $3,169 $1,026,228 
Period from January 1, 2025 to February 7, 2025 (Predecessor)
Gaming$95,984 $74,849 $14,934 $— $185,767 
Non-gaming:
Hotel11,006 — — — 11,006 
Food and beverage11,304 — — — 11,304 
Licensing— 3,720 — — 3,720 
Retail, entertainment and other6,005 416 2,007 273 8,701 
Total non-gaming revenue28,315 4,136 2,007 273 34,731 
Total revenue$124,299 $78,985 $16,941 $273 $220,498 
Three Months Ended June 30, 2024 (Predecessor)
Gaming$255,545 $227,149 $42,057 $— $524,751 
Non-gaming:
Hotel35,264 — — — 35,264 
Food and beverage33,123 — — — 33,123 
Retail, entertainment and other19,119 2,247 4,443 2,710 28,519 
Total non-gaming revenue87,506 2,247 4,443 2,710 96,906 
Total revenue$343,051 $229,396 $46,500 $2,710 $621,657 
Six Months Ended June 30, 2024 (Predecessor)
Gaming$505,963 $458,416 $76,429 $— $1,040,808 
Non-gaming:
Hotel76,354 — — — 76,354 
Food and beverage68,075 — — — 68,075 
Retail, entertainment and other34,988 5,663 9,638 4,613 54,902 
Total non-gaming revenue179,417 5,663 9,638 4,613 199,331 
Total revenue$685,380 $464,079 $86,067 $4,613 $1,240,139 
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 $41.2 million and $41.3 million as of June 30, 2025 (Successor) and December 31, 2024 (Predecessor), 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.

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 June 30, 2025 (Successor) and December 31, 2024 (Predecessor) were as follows:
SuccessorPredecessor
June 30,December 31,
(in thousands)20252024
Unpaid wagers$36,322 $32,992 
Advanced deposits from customers29,489 26,141 
Loyalty programs10,159 12,167 
Total$75,970 $71,300 
The Company recognized $5.3 million and $7.8 million for three months ended June 30, 2025 (Successor) and June 30, 2024 (Predecessor), respectively, of revenue related to loyalty program redemptions. The Company recognized $8.5 million, $2.2 million and $15.5 million, respectively, of revenue related to loyalty program redemptions for the period from February 8, 2025 to June 30, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the six months ended June 30, 2024 (Predecessor)