Bally's CorpBALY
Bally's Corp Segments Disclosure
SEGMENT REPORTING
The Company has three operating and reportable segments: Casinos & Resorts, International Interactive and North America Interactive. 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 three reportable segments as of December 31, 2024 include:
Casinos & Resorts - Includes the Company’s 15 casino and resort properties, one horse racetrack and one golf course.
International Interactive - Includes the Company’s interactive European gaming operations, the Company’s global licensing revenue generating operations, as well as one casino property, Bally's Newcastle, in the UK.
North America Interactive - A portfolio of sports betting, iGaming, and free-to-play gaming brands.
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, 2024, 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 has been aggregated into the International Interactive reporting segment, and consists primarily of revenue from the UK and Japan. Revenue generated from the UK and Japan represented approximately 28% and 6%, 25% and 11%, and 25% and 12% of total revenue, respectively, during the year ended December 31, 2024, 2023 and 2022, 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’s three 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.
| Years Ended December 31, | |||||||||||||||||
| (in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
| Revenue | |||||||||||||||||
| Casinos & Resorts | $ | 1,363,113 | $ | 1,363,291 | $ | 1,227,563 | |||||||||||
| International Interactive | 909,493 | 973,210 | 946,442 | ||||||||||||||
| North America Interactive | 177,872 | 112,572 | 81,700 | ||||||||||||||
| Total | $ | 2,450,478 | $ | 2,449,073 | $ | 2,255,705 | |||||||||||
Adjusted EBITDAR(1) | |||||||||||||||||
| Casinos & Resorts | $ | 370,518 | $ | 428,968 | $ | 398,930 | |||||||||||
| International Interactive | 336,460 | 343,559 | 321,651 | ||||||||||||||
| North America Interactive | (40,236) | (55,653) | (65,729) | ||||||||||||||
| Corporate & Other | (52,212) | (63,770) | (53,024) | ||||||||||||||
| Total | 614,530 | 653,104 | 601,828 | ||||||||||||||
Operating (expense) income: | |||||||||||||||||
Rent expense associated with triple net operating leases(2) | (118,919) | (125,775) | (53,313) | ||||||||||||||
| Depreciation and amortization | (379,544) | (350,408) | (300,559) | ||||||||||||||
| Transaction costs | (41,060) | (80,376) | (85,604) | ||||||||||||||
| Restructuring | (17,921) | (31,014) | — | ||||||||||||||
Tropicana Las Vegas demolition and closure costs | (59,838) | — | — | ||||||||||||||
| Share-based compensation | (14,752) | (24,074) | (27,912) | ||||||||||||||
| Gain on sale-leaseback, net | 86,254 | 374,321 | 50,766 | ||||||||||||||
| (248,879) | (149,825) | (463,978) | |||||||||||||||
| Loss on disposal of business | (27,796) | — | — | ||||||||||||||
Merger Agreement costs(3) | (14,808) | — | — | ||||||||||||||
Payment service provider write-off (4) | (6,333) | — | — | ||||||||||||||
| Diamond Sports Group non-cash settlement | (1,114) | (144,883) | — | ||||||||||||||
| Other | (28,148) | (17,061) | (14,236) | ||||||||||||||
(Loss) income from operations | (258,328) | 104,009 | (293,008) | ||||||||||||||
| Other income (expense) | |||||||||||||||||
| Interest expense, net | (289,629) | (277,561) | (208,153) | ||||||||||||||
| Other | (4,545) | (12,186) | 46,692 | ||||||||||||||
| Total other expense, net | (294,174) | (289,747) | (161,461) | ||||||||||||||
| Loss before income taxes | (552,502) | (185,738) | (454,469) | ||||||||||||||
| (Provision) benefit for income taxes | (15,252) | (1,762) | 28,923 | ||||||||||||||
Net loss | $ | (567,754) | $ | (187,500) | $ | (425,546) | |||||||||||
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(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 18 “Leases” for further information.
(3) Costs incurred in connection with the Merger Agreement discussed in Note 1 “General Information.”
(4) In the third quarter, 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 (in thousands):
| Years Ended December 31, | Casinos & Resorts | International Interactive | North America Interactive | ||||||||||||||
| 2024 | |||||||||||||||||
| Revenue | $ | 1,363,113 | $ | 909,493 | $ | 177,872 | |||||||||||
| Less: segment expenses | |||||||||||||||||
| Marketing costs | 89,245 | 118,449 | 51,927 | ||||||||||||||
| Gaming tax | 190,505 | 158,691 | 48,015 | ||||||||||||||
| Compensation | 393,160 | 97,431 | 38,057 | ||||||||||||||
| Other direct costs | — | 134,192 | 57,065 | ||||||||||||||
| Casino property costs | 141,218 | — | — | ||||||||||||||
| General and administrative | 73,143 | 64,359 | 22,863 | ||||||||||||||
Other segment items(1) | 105,324 | (89) | 181 | ||||||||||||||
| Segment EBITDAR | $ | 370,518 | $ | 336,460 | $ | (40,236) | |||||||||||
| 2023 | |||||||||||||||||
| Revenue | $ | 1,363,291 | $ | 973,210 | $ | 112,572 | |||||||||||
| Less: segment expenses | |||||||||||||||||
| Marketing costs | 71,356 | 144,296 | 42,039 | ||||||||||||||
| Gaming tax | 160,493 | 145,239 | 21,871 | ||||||||||||||
| Compensation | 379,835 | 104,538 | 40,620 | ||||||||||||||
| Other direct costs | — | 179,060 | 40,510 | ||||||||||||||
| Casino property costs | 144,663 | — | — | ||||||||||||||
| General and administrative | 63,759 | 56,360 | 22,759 | ||||||||||||||
Other segment items(1) | 114,217 | 158 | 426 | ||||||||||||||
| Segment EBITDAR | $ | 428,968 | $ | 343,559 | $ | (55,653) | |||||||||||
| 2022 | |||||||||||||||||
| Revenue | $ | 1,227,563 | $ | 946,442 | $ | 81,700 | |||||||||||
| Less: segment expenses | |||||||||||||||||
| Marketing costs | 66,169 | 169,861 | 20,012 | ||||||||||||||
| Gaming tax | 148,945 | 134,338 | 6,268 | ||||||||||||||
| Compensation | 325,047 | 91,369 | 64,555 | ||||||||||||||
| Other direct costs | — | 181,168 | 31,268 | ||||||||||||||
| Casino property costs | 125,940 | — | — | ||||||||||||||
| General and administrative | 58,287 | 49,091 | 22,807 | ||||||||||||||
Other segment items(1) | 104,245 | (1,036) | 2,519 | ||||||||||||||
| Segment EBITDAR | $ | 398,930 | $ | 321,651 | $ | (65,729) | |||||||||||
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(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.
| Years Ended December 31, | |||||||||||||||||
| (in thousands) | 2024 | 2023 | 2022 | ||||||||||||||
| Capital Expenditures | |||||||||||||||||
| Casinos & Resorts | $ | 60,373 | $ | 143,526 | $ | 183,693 | |||||||||||
| International Interactive | 706 | 2,462 | 12,392 | ||||||||||||||
| North America Interactive | 2,147 | 1,986 | 6,635 | ||||||||||||||
Corporate & Other(1) | 136,601 | 163,509 | 9,536 | ||||||||||||||
| Total | $ | 199,827 | $ | 311,483 | $ | 212,256 | |||||||||||
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(1) Includes 133.6 million, 162.1 million and 8.5 million related to our future Bally’s Chicago project during the years ended December 31, 2024, December 31, 2023 and December 31, 2022, respectively.
Total assets are not regularly reviewed for each operating segment when assessing segment performance or allocating resources and accordingly, are not presented. As of December 31, 2024, over 97% of the Company’s long-lived assets, consisting primarily of property and equipment, are located within the United States.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.