Ballys Corp

8. PROPERTY AND EQUIPMENT

As of June 30, 2024 and December 31, 2023, property and equipment was comprised of the following:

Depreciation expense relating to property and equipment was $19.8 million and $19.0 million for the three months ended June 30, 2024 and 2023, respectively, and $119.3 million and $37.6 million for the six months ended June 30, 2024 and 2023, respectively. Depreciation expense during the six months ended June 30, 2024 included $80.1 million of accelerated depreciation related to the closure of the Tropicana Las Vegas property on April 2, 2024. Refer to Note 13 “Restructuring Expense” for further information. The Company recorded capitalized interest of $2.1 million during each of the three months ended June 30, 2024 and 2023, and $3.9 million and $5.0 million during the six months ended June 30, 2024 and 2023, respectively.

Bally’s Chicago

A wholly-owned indirect subsidiary of the Company, Bally’s Chicago Operating Company, LLC entered into a Lease Termination and Short Term License Agreement with Chicago Tribune Company, LLC (“Tribune”), effective March 31, 2023, which, among other things, provided that the Company will have possession of 777 West Chicago Avenue, Chicago, Illinois 60610 on or before July 5, 2024, subject to $150 million in payments by the Company to Tribune payable in full upon Tribune vacating the site on or prior to July 5, 2024 (the “Payment”). $10 million of the Payment was paid upon execution of the Lease Termination and Short Term License Agreement and $90 million of the Payment was paid during the third quarter of 2023. The balance Payment amount of $50 million was secured by cash-collateralized letters of credit, issued by Citizens Bank. Cash collaterals are reported as restricted cash as of June 30, 2024. The Company paid the remaining $50 million on July 9, 2024 and gained possession of the property per the agreement with Tribune.

The Company recorded the present value of the remaining payments of $49.7 million within “Accrued and other current liabilities” with an offsetting increase to “Property and equipment, net” within the condensed consolidated balance sheets as of June 30, 2024.