Bally's CorpBALY
Bally's Corp Commitments Disclosure
COMMITMENTS AND CONTINGENCIES
Litigation
The Company is a party to other various legal and administrative proceedings which have arisen in the ordinary course of its
business. Estimated losses are accrued for these proceedings when the loss is probable and can be estimated. The current
liability for the estimated losses associated with these proceedings is not material to the Company’s consolidated financial
condition and those estimated losses are not expected to have a material impact on results of operations. Although the Company
maintains what it believes is adequate insurance coverage to mitigate the risk of loss pertaining to covered matters, legal and
administrative proceedings can be costly, time-consuming and unpredictable.
Although no assurance can be given, the Company does not believe that the final outcome of these matters, including costs to
defend itself in such matters, will have a material adverse effect on the company’s consolidated financial statements. Further, no
assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from
such matters.
New York Conveyance Agreement
On November 17, 2025, the Company entered into a Conveyance Agreement (the “Conveyance Agreement”) with the City of
New York (the “City”) and Bally’s New York Operating Company, LLC, a Delaware limited liability company and a
subsidiary of the Company (“Bally’s New York”). Pursuant to the Conveyance Agreement, the City agreed to (i) dispose of
certain parkland property interests to Bally’s New York (the “Development Parcel”), (ii) alienate certain parkland in order to
grant Bally’s New York a non-exclusive easement over such lands for purposes of accessing the Development Parcel and (iii)
discontinue certain lands as parkland and alienate and transfer jurisdiction of such lands to the City’s Department of
Transportation for use as public roadways (the “Ring Road Parcel”) to facilitate access to the Development Parcel and so the
Development Parcel may be used by the Company for a gaming facility.
The closing of the transactions contemplated by the Conveyance Agreement occurred in February 2026 and was contingent
upon, among other things, (i) Bally’s New York’s agreement to (a) make certain capital improvements to Ferry Point Park in
the Bronx, NY with a fair market value of approximately $161 million and (b) to deliver security instruments to the City to
secure the performance and completion of such capital improvements, (ii) the Company being awarded a downstate gaming
facility license from the New York State Gaming Commission, (iii) payment by Bally’s New York to the City’s Department of
Parks & Recreation of an administrative fee in the amount of $1 million, (iv) Bally’s New York’s agreement to pay for all costs
and expenses for the development and mapping of the Ring Road Parcel and (v) Bally’s New York’s payment of real property
transfer taxes with respect to the transactions contemplated by the Conveyance Agreement.
New York Gaming License Commitments
In December 2025, the Company was awarded one of New York State’s three downstate commercial casino licenses for its
planned Bally’s Bronx project, requiring the Company to pay a $500 million license fee, which was paid in the first quarter of
2026, as well as post a bond or cash deposit equal to 5% of the total project investment. The Company must also implement its
community benefit commitments, including periodic public reporting, and engage an independent Compliance Monitoring
Team approved by the New York State Gaming Commission to oversee regulatory, anti‑money‑laundering, and
community‑benefit compliance.
Capital Expenditure Commitments
Bally’s Twin River - Pursuant to the terms of the Regulatory Agreement in Rhode Island, the Company is committed to invest
$100 million in its Rhode Island properties over the term of the master contract through June 30, 2043, including an expansion
and the addition of new amenities at Bally’s Twin River. As of December 31, 2025 (Successor), approximately $40.5 million of
the commitment remains.
Bally’s Chicago - Pursuant to the Host Community Agreement with the City of Chicago, the Company’s indirect subsidiary is
required to spend at least $1.34 billion on the design, construction and outfitting of the temporary casino and the permanent
resort and casino. The actual cost of the development may exceed this minimum capital investment requirement. In addition,
land acquisition costs and financing costs, among other types of costs, are not counted toward meeting this requirement. As of
December 31, 2025 (Successor), approximately $800.0 million of this commitment remains.
Bally’s New York - As noted above pursuant to the Conveyance Agreement, Bally’s New York must spend $161 million in
capital improvements to Ferry Point Park to be completed within 7 years after closing.
City of Chicago Guaranty
In connection with the Host Community Agreement, entered into by Bally’s Chicago Operating Company, LLC (the
“Developer”), a wholly-owned indirect subsidiary of the Company, the Company provided the City of Chicago with a
performance guaranty whereby the Company agreed to have and maintain available financial resources in an amount reasonably
sufficient to allow the Developer to complete its obligations under the Host Community Agreement. In addition, upon notice
from the City of Chicago that the Developer has failed to perform various obligations under the Host Community Agreement,
the Company has agreed to indemnify the City of Chicago against any and all liability, claim or reasonable and documented
expense the City of Chicago may suffer or incur by reason of any nonperformance of any of the Developer’s obligations.
Bally’s Chicago Casino Fees
Under the Illinois Gambling Act, the Company will be responsible to pay the Illinois Gaming Board a reconciliation fee
payment three years after the date operations commenced (in a temporary or permanent facility) in an amount equal to 75% of
the adjusted gross receipt (“AGR”) for the most lucrative 12-month period of operations, minus the amount equal to the initial
payment per gaming position paid.
Performance and other bonds
Certain contracts require the Company to provide a surety bond as a guarantee of performance for the benefit of customers.
These bonds give beneficiaries the right to obtain payment and/or performance from the issuer of the bond if certain specified
events occur. In the case of performance bonds, such events include the Company’s failure to perform its required obligations
under the applicable contracts. In general, the Company would only be liable for these guarantees in the event of breach of its
obligations and failure to perform under each applicable contract, which the Company determined is not probable. Accordingly,
no liability has been recorded as of December 31, 2025 (Successor) and 2024 (Predecessor) related to these bonds.
Sponsorship Commitments
As of December 31, 2025 (Successor), the Company has entered into multiple sponsorship agreements with various
professional sports leagues and teams. These agreements commit a total of $114.9 million through 2036 and grant the Company
rights to use official league marks for branding and promotions, among other benefits.
Interactive Technology Commitments
The Company has certain multi-year agreements with its various market access and content providers, as well as its online
sports betting platform partners, that require the Company to pay variable fees based on revenue, with minimum annual
guarantees. As of December 31, 2025 (Successor), the cumulative minimum obligation committed in these agreements is $32.1
million through 2029.
Collective Bargaining Agreements
As of December 31, 2025 (Successor), the Company had approximately 11,700 employees. A large number of our employees at
our Casinos & Resorts properties within several US states are represented by a labor union and are subject to collective
bargaining agreements with us. As of December 31, 2025 (Successor), the Company had 36 collective bargaining agreements
covering approximately 3,679 employees. All collective bargaining agreements are in good standing and most have been
renegotiated with terms between and five years. There can be no assurance that we will be able to extend or enter into
replacement agreements. If the Company is able to extend or enter into replacement agreements, there can be no assurance as to
whether the terms will be on comparable terms to the existing agreements.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 13, 2020 | |
About Commitments Disclosures
Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.
Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.