Company: BRSL
Filing Date: 2025-07-29
Form Type: 6-K
Source: 0001619762-25-000049
Chunk: 37

Company: Brightstar Lottery PLC
Filing Date: 2025-07-29
Form: 6-K
Chunk 37
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The following discussion is not intended to serve as a complete summary of the U.S. federal income tax considerations relevant to the Company’s distributions or the ownership of the Company’s ordinary shares. For additional information, please refer to the Company’s Form 20-F for the fiscal year ended December 31, 2024 ( “Taxation—Material U.S. Federal Income Tax Considerations ”), the terms of which are incorporated herein by reference.

We generally expect that our quarterly dividends will be subject to customary dividend tax treatment in the U.S., but if our total dividends paid during any given year exceed the Parent’s current and accumulated earnings and profits (“E&P”) as of the end of such year (determined under U.S. tax principles), a portion of our dividends paid in that year will be treated: (i) first, as a nontaxable return of capital, to the extent of a shareholder’s tax basis in ordinary shares (on a dollar-for-dollar basis), and (ii) subsequently, as capital gain.

Based on our current expectations, we expect that for U.S. shareholders the special dividend, the Q1 dividend paid on June 12, and any future dividends paid in the current fiscal year will be treated for U.S. income tax purposes as a nontaxable return on capital to the extent of a shareholder’s basis in its shares. To assist investors with U.S. tax reporting requirements, on July 27, 2025 and July 29, 2025, the Company posted IRS form 8937 “Report of Organizational Actions Affecting Basis of Securities” in the Investor Relations section of the Company’s website (ir.brightstarlottery.com). These forms provide an explanation of the tax consequences to U.S. shareholders regarding the Company’s treatment of the cash distributions of $0.20 per ordinary share paid by the Company on June 12, 2025 and the cash distribution of $3.00 per ordinary share paid by the Company on July 29, 2025. Under applicable U.S. tax law, these distributions are expected to be treated as a nontaxable return of capital, which are treated for U.S. income tax purposes as a return on capital to the extent of a shareholder’s basis in its ordinary shares, and thereafter as capital gain. The form 8937s will be updated as necessary following the determination of Brightstar’s financial results for fiscal year 2025 and a review of certain other factors.

Because the calculation of E