v3.26.1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
June 30, 2026 (Successor)
(in thousands)Balance Sheet LocationLevel 1Level 2Level 3
Assets:
Cash and cash equivalentsCash and cash equivalents$390,184 $— $— 
Restricted cashRestricted cash97,587 — — 
Investment in The Star
Other assets158,402 — — 
Investment in GLPI partnershipOther assets— 33,702 — 
The Star paid-in-kind interest
Other assets— 4,809 — 
Derivative assets not designated as hedging instruments:
Cross currency swapsPrepaid expenses and other current assets— 2,789 — 
Cross currency swapsOther assets— 2,758 — 
Interest rate contractsPrepaid expenses and other current assets— 73 — 
Interest rate contractsOther assets— 183 — 
Total derivative assets at fair value— 5,803 — 
Total assets$646,173 $44,314 $— 
Liabilities:
Contingent considerationOther long-term liabilities$— $— $8,885 
Derivative liabilities not designated as hedging instruments:
Cross currency swapsAccrued and other current liabilities— 12,554 — 
Cross currency swapsOther long-term liabilities— 41,235 — 
Interest rate contractsAccrued and other current liabilities— 2,565 — 
Interest rate contractsOther long-term liabilities— 3,488 — 
Total derivative liabilities at fair value— 59,842 — 
Total liabilities$— $59,842 $8,885 
December 31, 2025 (Successor)
(in thousands)Balance Sheet LocationLevel 1Level 2Level 3
Assets:
Cash and cash equivalentsCash and cash equivalents$798,423 $— $— 
Restricted CashRestricted cash108,263 — — 
Investment in GLPI partnershipOther assets— 18,946 — 
Investment in The StarOther assets301,285 — — 
Derivative assets not designated as hedging instruments:
Cross currency swapsPrepaid expenses and other current assets— 3,975 — 
Cross currency swapsOther assets— 1,111 — 
Total derivatives at fair value— 5,086 — 
Total assets$1,207,971 $24,032 $— 
Liabilities:
Contingent considerationAccrued and other current liabilities$— $— $115,000 
Contingent considerationOther long-term liabilities— — 8,885 
Derivatives not designated as hedging instruments
Cross currency swapsAccrued and other current liabilities— 17,643 — 
Cross currency swapsOther long-term liabilities— 51,716 — 
Derivative liabilities designated as hedging instruments:
Interest rate contractsAccrued and other current liabilities— 9,166 — 
Interest rate contractsOther long-term liabilities— 29,854 — 
Total derivative liabilities at fair value— 108,379 — 
Total liabilities$— $108,379 $123,885 

The following tables summarize the changes in fair value of the Company’s Level 3 assets and liabilities:
Contingent Consideration Liability
(in thousands)
Beginning as of December 31, 2025 (Successor)
$123,885 
Payments in period(115,000)
Ending as of June 30, 2026 (Successor)(1)
$8,885 
__________________________________
(1)    There was no change in fair value during the three and six months ended June 30, 2026 (Successor).
The Star Investment
(in thousands)Sinclair Performance Warrant LiabilityContingent Consideration LiabilitySubordinated NotesConvertible NotesForward Obligation Asset
Beginning as of December 31, 2024 (Predecessor)
$58,668 $59,923 $— $— $— 
Change in fair value1,180 786 — — — 
Ending as of February 7, 2025 (Predecessor)
$59,848 $60,709 $— $— $— 
Beginning as of February 8, 2025 (Successor)
$— $60,709 $— $— $— 
Change in fair value— — — — — 
Ending as of March 31, 2025 (Successor)
— 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 

The fair value gains (losses) recognized in the condensed consolidated statements of operations for derivative instruments were as follows:
Condensed Consolidated Statements of Operations LocationSuccessorPredecessor
(in thousands)Three Months Ended June 30, 2026Three Months Ended
June 30, 2025		Six Months Ended June 30, 2026Period from February 8, 2025 to June 30, 2025Period from January 1, 2025 to February 7, 2025
Derivatives not designated as hedging instruments
Sinclair Performance WarrantsOther non-operating (expense) income, net$— $— $— $— $(1,180)
Cross Currency SwapsOther non-operating (expense) income, net(5,965)6,602 16,767 6,823 50 
Interest rate contractsOther non-operating (expense) income, net12,281 — 24,175 — — 
Derivatives designated as hedging instruments
Interest rate contractsInterest expense, net$— $898 $4,692 $1,383 $(105)
Cross currency swapsInterest expense, net— 1,036 — 1,405 7 

Derivative Instruments

The fair values of interest rate contracts and cross currency swap assets and liabilities are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on estimates using currency spot and forward rates and standard pricing models that consider the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard pricing models utilize inputs that are derived from or corroborated by observable market data such as interest rate yield curves as well as currency spot and forward rates. 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 (expense) income, net in the condensed consolidated statements of operations.
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 June 30, 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 first quarter of 2026, the contingency related to $115 million of the $125 million total payments was resolved and paid.

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.

Long-Term Debt

The fair value of the Company’s Term Loan Facility and senior notes are estimated based on quoted prices in active markets and are classified as Level 1 measurements. 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, debt discounts and fair value adjustments. Refer to Note 12 “Long-Term Debt” for further information.
June 30, 2026 (Successor)December 31, 2025 (Successor)
(in thousands)Carrying AmountFair ValueCarrying AmountFair Value
2026 Term Loans
$1,055,021 $1,100,000 $— $— 
Term Loan Facility— — 1,408,953 1,458,438 
Intralot British Term Loan528,937 519,072 537,234 519,315 
Intralot Greek Term Loan228,441 221,849 234,962 230,370 
Intralot 6.00% Retail Bond due 2029
152,166 151,961 157,214 155,022 
5.625% Senior Notes due 2029
599,008 522,287 580,494 562,500 
5.875% Senior Notes due 2031
530,770 463,050 517,458 484,181 
Intralot 6.75% Senior Secured Notes due 2031
688,733 695,863 708,787 699,706 
Intralot Supplemental Indenture2,368 2,368 2,436 2,436 
Intralot Floating Rate Senior Notes due 2031343,263 345,941 353,119 347,858