Bally's Corp

20. SEGMENT REPORTING

During the first quarter of 2025, the Company moved a component of the North America Interactive operating segment into a

separate operating segment, which is reported in the Corporate & Other category. In the fourth quarter of 2025, the Company

further updated its operating and reportable segments in connection with the Intralot Transaction. These changes were made to

better align with the Company’s strategic growth initiatives and how its chief operating decision maker evaluates performance

and allo cates 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’sfour reportable segments as of December 31, 2025 (Successor) include:

Casinos & Resorts - Includes 19 casino and resort properties, one horse racetrack andone golf course.

Bally's Intralot B2B - Includes Intralot’s B2B global lottery andtechnology services operations and the Company’s licensing

Bally's Intralot B2C - Includes the Company’s interactive European gaming operations, Intralot’s B2C lottery operations, as

well asone 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.

The Company’s chief operating decision maker is its Executive Committee, consisting of the Chief Executive Officer,

President, and Chief Financial Officer. The Company uses consolidated Adjusted EBITDA and segment Adjusted EBITDAR to

analyze the performance of its business and they are used as determining factors for performance-based compensation for

members of the Company’s management team. 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.

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 December 31, 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

consists primarily of revenue from the UK. Revenue generated from the UK represented approximately 28% and 32% of total

revenue, respectively, during theperiod from February 8, 2025 to December 31, 2025 (Successor) and theperiod from January

1, 2025 to February 7, 2025 (Predecessor). During the year ended December 31, 2024 (Predecessor), revenue generated outside

of the US consisted primarily of revenue from the UK and Japan of approximately 28% and 6% of total revenue, 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’sfour reportable segments and reconciles

Adjusted EBITDAR on a consolidated basis to net loss. The Other category is included in the following tables in order to

reconcile the segment information to the Company’s consolidated financial statements.

(1)Adjusted EBITDAR is defined as earnings, or loss, for the Company before interest expense, net of interest income, provision (benefit) for income taxes,

depreciation and amortization, non-operating (income) expense, acquisition, integration and restructuring expense, share-based compensation, and certain

other gains or losses as well as, when presented for our reporting segments, an adjustment related to the allocation of corporate cost among segments, plus

rent expense associated with triple net operating leases.

(2)Consists primarily of the operating lease components contained within certain triple net leases with GLPI. Refer to Note 15 “Leases” for further

information.

(3)Costs incurred in connection with the Merger Agreement and Intralot Transaction discussed in Note 1 “General Information.”

(4)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. In addition to amounts recovered, the

Company received$5.1 million from the PSP as a signing bonus for entering into an extension agreement.

The following table sets forth significant segment expenses and other segment items by reportable segment:

(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.

(1)Includes$95.3 million,$11.0 million, and$133.6 million related to our future Bally’s Chicago project during theperiod from February 8, 2025 to

December 31, 2025 (Successor), theperiod from January 1, 2025 to February 7, 2025 (Predecessor) and the year ended December 31, 2024 (Predecessor),

respectively.

Total assets are not regularly reviewed for each operating segment when assessing segment performance or allocating resources

and accordingly, are not presented.

21. LOSS PER SHARE

Diluted earnings per share includes the determinants of basic earnings per share and, in addition, reflects the dilutive effect of

the common stock deliverable for stock options, using the treasury stock method, and for RSUs, RSAs and PSUs for which

future service is required as a condition to the delivery of the underlying common stock.

The Company has Penny Warrants which participate in dividends with the Company’s common stock subject to certain

contingencies. In the period in which the contingencies are met, those instruments are participating securities to which income

will be allocated using the two-class method. The Penny Warrants were considered exercisable for little to no consideration and

are therefore included in basic shares outstanding at their issuance date. Refer to Note 2 “Summary of Significant Accounting

Policies” for further information regarding the Framework Agreement.

22. SUBSEQUENT EVENTS

New Term Loan Facility

On February 11, 2026, the Company entered into a new$1.1 billion term loan credit facility due 2031 (the “Term Loans”). The

Term Loans were provided by funds managed by Ares Management Credit, King Street Capital Management, and TPG Credit.

The Term Loans are secured by substantially all material assets of the Company and its wholly owned subsidiaries, subject to

customary exceptions and exclusions.

Term Loan Facility and Revolving Credit Facility Repayments

On February 11, 2026, the Company repaid in full the outstanding balance under its Term Loan Facility, resulting in cash

payments of$1.48 billion. Additionally, in February 2026, the Company paid down$448.0 million of amounts outstanding

under its Revolving Credit Facility, which had been drawn in January 2026 to fund the New York gaming license fee.