Bally's CorpBALY
Bally's Corp Income Taxes Disclosure
INCOME TAXES
The components of income (loss) before taxes are as follows:
Successor | Predecessor | |||||
(in thousands) | Period from February 8, 2025 to December 31, 2025 | Period from January 1, 2025 to February 7, 2025 | Year Ended December 31, 2024 | |||
Domestic | $(432,530) | $(60,066) | $(456,728) | |||
Foreign | (185,445) | 9,706 | (95,774) | |||
Total | $(617,975) | $(50,360) | $(552,502) | |||
The components of the provision (benefit) for income taxes are as follows:
Successor | Predecessor | |||||
(in thousands) | Period from February 8, 2025 to December 31, 2025 | Period from January 1, 2025 to February 7, 2025 | Year Ended December 31, 2024 | |||
Current taxes | ||||||
Federal | $(488) | $— | $(3,219) | |||
State | (175) | 3 | 1,390 | |||
Foreign | 41,959 | 1,762 | (6,866) | |||
41,296 | 1,765 | (8,695) | ||||
Deferred taxes | ||||||
Federal | 19,928 | (367) | (18,326) | |||
State | 2,744 | (734) | (10,789) | |||
Foreign | (16,404) | — | 53,062 | |||
6,268 | (1,101) | 23,947 | ||||
Provision for income taxes | $47,564 | $664 | $15,252 | |||
A reconciliation of the provision for income taxes to the amount computed by applying the 21% US federal income tax rate to
income (loss) before income taxes after the adoption of ASU 2023-09 is as follows:
Successor | Predecessor | |||||||
Period from February 8, 2025 to December 31, 2025 | Period from January 1, 2025 to February 7, 2025 | |||||||
(in thousands, except percentages) | Amount | Percentage | Amount | Percentage | ||||
Income tax expense at US Federal Statutory Tax Rate | $(129,774) | 21.0% | $(10,576) | 21.0% | ||||
State and local income taxes, net of federal effect(1)(2) | 2,539 | (0.4)% | (577) | 1.2% | ||||
Foreign tax effects: | ||||||||
Gibraltar | ||||||||
Statutory tax rate difference between Gibraltar and United States | 25,700 | (4.2)% | (39) | 0.1% | ||||
Nondeductible expenses and nontaxable income | (1,944) | 0.3% | 1,481 | (2.9)% | ||||
Other | 563 | (0.1)% | (95) | 0.2% | ||||
United Kingdom | ||||||||
Statutory tax rate difference between the United Kingdom and United States | 686 | (0.1)% | 41 | (0.1)% | ||||
Changes in valuation allowance | 10,357 | (1.7)% | 134 | (0.3)% | ||||
Nondeductible expenses and nontaxable income | (20,325) | 3.3% | (520) | 1.0% | ||||
Other | 4,999 | (0.8)% | (1) | —% | ||||
Jersey | ||||||||
Statutory tax rate difference between Jersey and United States | 25,329 | (4.1)% | (901) | 1.8% | ||||
Other | 4,709 | (0.8)% | (56) | 0.1% | ||||
Isle of Man | ||||||||
Statutory tax rate difference between the Isle of Man and United States | 7,702 | (1.2)% | (301) | 0.6% | ||||
Spain | ||||||||
Provincial tax rate difference between Ceuta and United States | (7,920) | 1.3% | 67 | (0.2)% | ||||
Greece | ||||||||
Changes in valuation allowance | 8,978 | (1.5)% | — | —% | ||||
Other | (147) | —% | — | —% | ||||
Other foreign jurisdictions | 5,813 | (0.9)% | (86) | 0.2% | ||||
Effect of cross-border tax laws | ||||||||
Global intangible low-taxed income | (6,742) | 1.1% | 2,302 | (4.6)% | ||||
Subpart F income | 3,518 | (0.6)% | 789 | (1.6)% | ||||
Other | 69 | —% | — | —% | ||||
Changes in valuation allowances | 88,531 | (14.3)% | 6,392 | (12.7)% | ||||
Nontaxable or nondeductible items | ||||||||
Nondeductible transaction costs | 11,241 | (1.8)% | 2,235 | (4.4)% | ||||
Other | 4,416 | (0.7)% | 356 | (0.7)% | ||||
Changes in unrecognized tax benefits | (514) | 0.1% | 19 | —% | ||||
Other adjustments | ||||||||
Current period adjustment to deferred tax liability | 8,653 | (1.4)% | — | —% | ||||
Other | 1,127 | (0.2)% | — | —% | ||||
Effective Tax Rate | $47,564 | (7.7)% | $664 | (1.3)% | ||||
__________________________________
(1)The state and local jurisdictions that contribute to the majority of the tax effect in this category for the period from February 8, 2025 to December 31,
2025 (Successor) include Delaware, Illinois, Louisiana, Mississippi, Missouri, Kansas City (Missouri), and Pennsylvania.
(2)The state and local jurisdictions that contribute to the majority of the tax effect in this category for the period from January 1, 2025 to February 7, 2025
(Predecessor) include Rhode Island, Illinois and Indiana.
A reconciliation of the effective rate to the statutory US federal tax rate before the adoption of ASU 2023-09 is as follows:
Predecessor | |
(in thousands) | Year Ended December 31, 2024 |
Income tax benefit at statutory federal rate | $(116,025) |
State income taxes, net of federal effect | (30,390) |
Foreign tax rate adjustment | 64,884 |
Nondeductible professional fees | 3,117 |
Other permanent differences including lobbying expense | (8,906) |
Share-based compensation | 992 |
CARES Act | (3,153) |
Return to provision adjustments | 6,455 |
Global intangible low-tax income | 17,941 |
Change in uncertain tax positions | 681 |
Change in valuation allowance | 79,656 |
Total provision (benefit) for income taxes | $15,252 |
Effective income tax rate on continuing operations | (2.8)% |
Significant components of the Company’s deferred income taxes are as follows:
Successor | Predecessor | |||
(in thousands) | December 31, 2025 | December 31, 2024 | ||
Deferred tax assets: | ||||
Interest | $415,119 | $283,757 | ||
Net operating loss carryforwards | 112,748 | 44,510 | ||
Property and equipment | — | 26,911 | ||
Accrued and other current liabilities | 31,693 | 5,498 | ||
Framework Agreement liabilities | 6,324 | 20,344 | ||
Share-based compensation | 10,529 | 5,876 | ||
Goodwill | 12,426 | — | ||
Leases | 51,153 | 16,183 | ||
Valuation allowance | (275,077) | (234,599) | ||
Total deferred tax assets, net | 364,915 | 168,480 | ||
Deferred tax liabilities: | ||||
Land | (13,530) | (4,167) | ||
Property and equipment | (91,875) | — | ||
Change in accounting method | — | (281) | ||
Cumulative translation adjustment | (44,275) | — | ||
RI Joint Venture and GLPI Partnership | (174,647) | (175,614) | ||
Revaluation of instruments | (193,254) | — | ||
Amortizable assets | (388,365) | (104,323) | ||
Total deferred tax liabilities | (905,946) | (284,385) | ||
Net deferred tax liabilities | $(541,031) | $(115,905) |
The Company does not reinvest undistributed earnings, and accordingly, the Company has determined that no deferred tax
liability is required for undistributed foreign earnings as of December 31, 2025 (Successor) and 2024 (Predecessor). In addition,
the Company has recorded a deferred tax liability to other comprehensive income related to the translation of the financial
statements of foreign subsidiaries as of December 31, 2025 (Successor) and will continue to monitor for future changes.
The Company’s deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets
and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company will only recognize
a deferred tax asset when, based on available evidence, realization is more likely than not. The Company has assessed its
deferred tax liabilities arising from taxable temporary differences and has concluded such liabilities are not a sufficient source
of income for the realization of deferred tax assets, including indefinite life taxable temporary differences which offset, subject
to limitation, deferred tax assets with unlimited carry overs, such as the Section 163(j) interest limitation. Accordingly, a $275.1
million and $234.6 million valuation allowance has been established as of December 31, 2025 (Successor) and 2024
(Predecessor), respectively.
As of December 31, 2025 (Successor) there was $217.3 million of federal net operating carryforwards subject to a section 382
limitation with an unlimited carryforward period, and $590.1 million of state net operating loss carryforwards, which expire at
various dates through 2045.
The Internal Revenue Code (IRC) Section 382 provides for a limitation of the annual use of net operating loss and tax credit
carryforwards following certain ownership changes (as defined by the IRC Section 382) that limits the Company’s ability to
utilize these carryforwards prior to expiration. Section 382 can also apply when we acquire subsidiaries with net operating loss
carryforwards, as there may be limitations on the use of acquired net operating losses against our taxable income.
From time to time, the Company may be subject to audits covering a variety of tax matters by taxing authorities in any taxing
jurisdiction where the Company conducts business. While the Company believes that the tax returns filed and tax positions
taken are supportable and accurate, some tax authorities may not agree with the positions taken. As of December 31, 2025
(Successor), there was $20.6 million tax contingency accruals and deferred tax asset reductions for uncertain tax positions, of
which $18.1 million would impact the effective tax rate, if recognized. This can give rise to tax uncertainties which, upon audit,
may not be resolved in the Company’s favor. A reconciliation of the beginning and ending balances of the gross liability for
uncertain tax positions is as follows (in thousands):
Uncertain tax position liability at December 31, 2023 (Predecessor) | $29,286 |
Increases related to tax positions taken during the period | (4,462) |
Uncertain tax position liability at December 31, 2024 (Predecessor) | 24,824 |
Decreases related to tax positions taken during the period | (19) |
Uncertain tax position liability at February 7, 2025 (Predecessor) | 24,805 |
Uncertain tax position liability at February 8, 2025 (Successor) | $26,747 |
Decreases related to tax positions taken during prior periods | (586) |
Decreases related to settlements with taxing authorities | (5,539) |
Uncertain tax position liability at December 31, 2025 (Successor) | $20,622 |
The Company records interest and penalties related to uncertain tax positions as a component of the income tax provision
(benefit). The Company has reserved interest and penalties on uncertain tax positions of $0.8 million as of December 31, 2025
(Successor). The Company has reserved interest and penalties on uncertain tax positions of $1.0 million as of December 31,
2024 (Predecessor). The Company has recorded a $0.2 million benefit for interest on uncertain tax positions on the consolidated
statements of operations for the period from February 8, 2025 to December 31, 2025 (Successor). The Company has recorded a
$0.3 million provision for interest on uncertain tax positions on the consolidated statements of operations for the year ended
December 31, 2024 (Predecessor).
The Company and its subsidiaries file tax returns in several jurisdictions including the US and various US state and foreign
jurisdictions. The Company remains subject to examination for US federal income tax purposes for the years ended December
31, 2015 through 2025 (Successor), as a result of a 2020 net operating loss carryback claim. The Company remains subject to
examination for state and foreign income tax purposes for the years ended December 31, 2014 through 2025. The Company
settled the appeal of its audit by the State of Colorado during the period from February 8, 2025 to December 31, 2025
(Successor). In addition, the disallowance of a loss carryforward generated in a period outside of the normal statute of
limitations is generally open until the statute of limitations expires in the year of the utilization of the loss.
Income taxes paid, net of refunds received were as follows:
Successor | |
(in thousands) | Period from February 8, 2025 to December 31, 2025 |
US Federal | $5,226 |
US state and local | |
New Jersey | (2,742) |
Other states | 31 |
Total | (2,711) |
Foreign: | |
Gibraltar | 38,788 |
United Kingdom | 3,548 |
Spain | 2,662 |
Other foreign jurisdictions | 2,601 |
Total | 47,599 |
Total income taxes paid, net of refunds | $50,114 |
__________________________________
During the period from January 1, 2025 to February 7, 2025 (Predecessor), cash received from income tax refunds was $0.1 million in the
State of Delaware.
Cash received from income tax refunds, net of cash paid was $2.2 million during the year ended December 31, 2024
(Predecessor).
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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 Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.