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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
ASC Topic 820, “Fair Value Measurements and Disclosures,” establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques (market approach, income approach, and cost approach). The levels of the hierarchy are described below:
•Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities.
•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly quoted intervals.
•Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions, as there is little, if any, related market activity.
The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of assets and liabilities and their placement within the fair value hierarchy. The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate. The fair value of the Company’s trade accounts receivable and payable approximates the carrying amounts.
Long-Term Debt
The fair value of our Amended Credit Facilities, 5.625% Notes, 4.125% Notes, and the Convertible Notes is estimated based on quoted prices in active markets. Due to their trading frequency, these long-term debt instruments are classified as Level 2 measurements.
Other long-term obligations as of June 30, 2025 and December 31, 2024 included the repayment obligation of the hotel and event center located near Hollywood Casino Lawrenceburg. The fair value of the Lawrenceburg repayment obligation is estimated based on rates consistent with the Company’s credit rating for comparable terms and debt instruments and is classified as a Level 2 measurement.
As discussed in Note 5, “Long-Term Debt,” other long-term obligations as of December 31, 2024 included a third-party financing arrangement entered into in February 2021. This financing arrangement provided the Company with upfront and non-refundable cash proceeds while permitting us to participate in future proceeds on certain claims. The financing obligation was classified as a Level 3 measurement and as of December 31, 2024 was included within our Consolidated Balance Sheets in “Long-term debt, net of current maturities, debt discounts, and debt issuance costs.”
Other Liabilities
As of June 30, 2025 and December 31, 2024, other liabilities included a contingent purchase price liability related to Plainridge Park Casino, calculated based on earnings of the gaming operations over the first ten years of operations, which commenced on June 24, 2015. As of June 30, 2025, we were contractually obligated to make one additional annual payment. The fair value of this liability was estimated based on an income approach using a discounted cash flow model. This contingent purchase price liability is classified as a Level 3 measurement and is included within our unaudited Consolidated Balance Sheets in “Accrued expenses and other current liabilities.”
Additionally, as of both periods ended June 30, 2025 and December 31, 2024, other liabilities include a $39.5 million tax indemnification, as described in Note 2, “Significant Accounting Policies and Basis of Presentation.” Liabilities associated with the indemnification are recorded in “Other long-term liabilities” within our unaudited Consolidated Balance Sheets. The indemnity has been classified as a Level 3 measurement. Key assumptions used to estimate the fair value of the indemnification include the expected tax rate and the probability of potential outcomes based on valuation methods that utilize unobservable inputs that are significant to the overall fair value as of June 30, 2025 and December 31, 2024.
The carrying amounts and estimated fair values by input level of the Company’s financial instruments were as follows:
June 30, 2025
(in millions)Carrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:(1)
Cash and cash equivalents$671.6 $671.6 $671.6 $— $— 
Available-for-sale debt securities$31.5 $31.5 $— $— $31.5 
Held-to-maturity securities$6.7 $6.7 $— $6.7 $— 
Promissory notes$7.9 $7.9 $— $7.9 $— 
Financial liabilities:
Long-term debt
Amended Credit Facilities$1,888.9 $1,902.7 $— $1,902.7 $— 
5.625% Notes
$399.8 $398.5 $— $398.5 $— 
4.125% Notes
$395.9 $368.0 $— $368.0 $— 
Convertible Notes$106.2 $111.1 $— $111.1 $— 
Other long-term obligations$8.6 $7.6 $— $7.6 $— 
Other liabilities$44.7 $44.7 $— $2.7 $42.0 
December 31, 2024
(in millions)Carrying AmountFair ValueLevel 1Level 2Level 3
Financial assets:
Cash and cash equivalents$706.6 $706.6 $706.6 $— $— 
Equity securities$10.6 $10.6 $10.6 $— $— 
Available-for-sale debt securities$31.5 $31.5 $— $— $31.5 
Held-to-maturity securities$6.7 $6.7 $— $6.7 $— 
Promissory notes$7.9 $7.9 $— $7.9 $— 
Financial liabilities:
Long-term debt
Amended Credit Facilities$1,437.0 $1,453.9 $— $1,453.9 $— 
5.625% Notes
$399.8 $393.0 $— $393.0 $— 
4.125% Notes
$395.5 $356.0 $— $356.0 $— 
Convertible Notes$327.9 $355.7 $— $355.7 $— 
Other long-term obligations$210.5 $209.3 $— $8.1 $201.2 
Other liabilities$44.6 $44.6 $— $2.7 $41.9 
(1)During the three months ended June 30, 2025, the Company sold its equity securities for $12.0 million and recognized a gain of $0.6 million.

The following table summarizes the changes in fair value of our Level 3 assets and liabilities measured on a recurring basis:
(in millions)Other Assets and Liabilities
Balance as of January 1, 2025$274.6 
Interest (1)
13.9 
Included in income and other comprehensive income (1)
(215.0)
Balance as of June 30, 2025
$73.5 
(1)Primarily relates to the interest expense and non-cash gain on financing arrangement. See Note 5, “Long-Term Debt.”
The following table summarizes the significant unobservable inputs used in calculating fair value for our Level 3 assets and liabilities on a recurring basis as of June 30, 2025:
 Valuation TechniqueUnobservable InputDiscount Rate
Available-for-sale debt securitiesDiscounted cash flowDiscount rate35.0 %
Contingent purchase price - Plainridge Park CasinoDiscounted cash flowDiscount rate5.9 %