# EDGAR Filing Document

**Accession Number:** 0001935799
**File Stem:** 0001104659-25-074264
**Filing Date:** 2025-8
**Character Count:** 1867939
**Document Hash:** d9370815e6f6fcf612552f64ef26b63c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-074264.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001104659-25-074264

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 31

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bally's Chicago, Inc.
- **CENTRAL INDEX KEY:** 0001935799
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOTELS & MOTELS [7011]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 882870098
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-283772
- **FILM NUMBER:** 251185983

**BUSINESS ADDRESS:**
- **STREET 1:** 100 WESTMINSTER STREET
- **CITY:** PROVIDENCE
- **STATE:** RI
- **ZIP:** 02903
- **BUSINESS PHONE:** (401) 475-8474

**MAIL ADDRESS:**
- **STREET 1:** 100 WESTMINSTER STREET
- **CITY:** PROVIDENCE
- **STATE:** RI
- **ZIP:** 02903

[**TABLE OF CONTENTS**](#TOC)

#### As filed with the Securities and Exchange Commission on August 5, 2025

#### Registration No. 333-283772

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

#### AMENDMENT NO. 10 TO

### FORM S-1

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

### Bally's Chicago, Inc.
(Exact Name of Registrant as Specified in Its Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** <br> (State or Other Jurisdiction of <br> Incorporation or Organization)  | **7011** <br> (Primary Standard Industrial <br> Classification Code Number)  | **88-2870098** <br> (I.R.S. Employer <br> Identification No.)  |

---

#### 100 Westminster Street Providence, RI 02903 (401) 475-8474
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

#### Ameet Patel 640 N LaSalle, Suite 460 Chicago, IL 60654 (401) 475-8474
(Name, address, including zip code, and telephone number, including area code, of agent for service)

---

| | |
|:---|:---|
| **Copies to:**  | **Copies to:**  |
| **Sony Ben-Moshe, Esq. <br> Senet Bischoff, Esq. <br> John Slater, Esq. <br> Latham & Watkins LLP <br> 1271 Avenue of the Americas <br> New York, NY 10020 <br> (212) 906-1200**  | **Oscar David, Esq. <br> Timothy Kincaid, Esq. <br> Michael Blankenship, Esq. <br> Winston & Strawn LLP <br> 35 W. Wacker Drive <br> Chicago, IL 60601 <br> (312) 558-5600**  |

---

#### Approximate date of commencement of proposed sale to the public: As soon as practicable after this Registration Statement is declared effective .
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☒

 **The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.** 

------

[**TABLE OF CONTENTS**](#TOC)

The information contained in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

#### SUBJECT TO COMPLETION, DATED AUGUST 5, 2025

#### PRELIMINARY PROSPECTUS
![[MISSING IMAGE: lg_ballys-pn.jpg]](lg_ballys-pn.jpg)

### $7,429,250 Bally's Chicago, Inc.

### 2,207 Class A-1 Interests at $250 per share, with a par value of $0.001 per share 141 Class A-2 Interests at $2,500 per share, with a par value of $0.001 per share 165 Class A-3 Interests at $5,000 per share, with a par value of $0.001 per share 228 Class A-4 Interests at $25,000 per share, with a par value of $0.001 per share
This is the initial public offering of Bally's Chicago, Inc., a Delaware corporation and indirect subsidiary of Bally's Corporation, a Delaware corporation. Unless the context otherwise requires, the terms "the Company," "we," "us" or "our" in this prospectus refer to Bally's Chicago, Inc. and its consolidated subsidiaries, including Bally's Chicago Operating Company, LLC, a Delaware limited liability company ("Bally's Chicago OpCo"), and the terms "Bally's Corporation" or "Bally's" refer to Bally's Corporation.

We are offering on a best efforts basis up to 2,741 in aggregate Class A Interests, allocated among 2,207 shares of Class A-1 common stock (the "Class A-1 Interests") at $250 per share, 141 shares of Class A-2 common stock (the "Class A-2 Interests") at $2,500 per share, 165 shares of Class A-3 common stock (the "Class A-3 Interests") at $5,000 per share and 228 shares of Class A-4 common stock (the "Class A-4 Interests" and, together with the Class A-1 Interests, the Class A-2 Interests and the Class A-3 Interests, the "Class A Interests") at $25,000 per share of Bally's Chicago, Inc. We currently intend to provide preferential allocations of Class A Interests to City of Chicago residents and Illinois residents during this offering. We have not made any arrangements to place the proceeds from this offering in an escrow or trust account. There are no minimum purchase requirements for each investor. There is no minimum number of Class A Interests to be sold or minimum aggregate offering proceeds for this offering to close.

Certain investors (the "private placement investors") have entered into agreements with us pursuant to which they have agreed to purchase 58 Class A-1 Interests, 4 Class A-2 Interests, 6 Class A-3 Interests and 1,277 Class A-4 Interests, respectively, in a private placement (the "concurrent private placements") at a price per share equal to the initial public offering. The concurrent private placements are being made pursuant to Rule 506(c) under Regulation D promulgated under the Securities Act of 1933, as amended (the "Securities Act"). Each private placement investor has represented to us in writing that such private placement investor qualified as an "Accredited Investor" as such term is defined by Regulation D promulgated under the Securities Act, and has provided us with additional documentation to assist us in verifying such private placement investor's status as an Accredited Investor. Our agreements with the private placement investors are contingent upon, and are scheduled to close immediately subsequent to, the closing of this offering as well as the satisfaction of certain conditions to closing as further described in "*Concurrent Private Placements*."

On March 10, 2025, we entered into Initial Private Placements pursuant to Rule 506(c) under Regulation D promulgated under the Securities Act ("Rule 506(c)") by which we sold a total of 1,185 Class A Interests, including 272 Class A-1 Interests at $250 per share, 281 Class A-2 Interests at $2,500 per share, 171 Class A-3 Interests at $5,000 per share and 461 Class A-4 Interests at $25,000 per share, in each case to certain Accredited Investors for an aggregate purchase price of $13.2 million (the "Initial Private Placements"). Concurrently, we also sold an additional 2,800 shares of Class A-4 Interests to Bally's Chicago HoldCo, LLC at a purchase price of $25,000 per share (together with the sale of 1,185 Class A Interests, the "initial Class A Interest issuances"). In connection with the issuance of these shares, we entered into a subordinated loan agreement with Bally's Chicago HoldCo, pursuant to which Bally's Chicago HoldCo made subordinated term loans that were funded through Bally's Chicago HoldCo's transfer of 659 Class A-4 shares to us, as further described in "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Developments*."

Following the closing of this offering and the consummation of the Transactions (as defined herein), we will have five classes of stock: Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, Class A-4 Interests and Class B Interests (the "Class B Interests"). Class B Interests are not being offered hereby, and are held exclusively by Bally's Chicago Holding Company, LLC ("Bally's Chicago HoldCo"), our direct parent and a

------

[**TABLE OF CONTENTS**](#TOC)

wholly-owned subsidiary of Bally's Corporation. The rights of the holders of Class A Interests and Class B Interests will be identical, except with respect to the impact of the Subordinated Loans attributable to Class A-1 Interests, Class A-2 Interests and Class A-3 Interests described below, the rights to distributions as summarized below and that Class B Interests have no economic interest in Bally's Chicago, Inc. Each Class A Interest and each Class B Interest is entitled to one vote per share on all matters submitted to a vote of stockholders. Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power and 45.8% of the economic power of our stock.

We are a holding company and the sole managing member of Bally's Chicago OpCo, and we conduct our business through Bally's Chicago OpCo.

Following the closing of this offering and the concurrent private placements and the applications of proceeds therefrom and the consummation of the Transactions, our principal assets will consist of the limited liability company interests (the "LLC Interests") of Bally's Chicago OpCo that we currently hold plus those that we intend to purchase directly from Bally's Chicago OpCo with the net proceeds from this offering, the concurrent private placement and the Subordinated Loans (as defined herein), collectively representing an aggregate 19.8% economic interest in Bally's Chicago OpCo. The remaining 80.2% economic interest in Bally's Chicago OpCo will be owned by Bally's Chicago HoldCo through its ownership of LLC Interests.

In connection with this offering and the concurrent private placements, we intend to enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo pursuant to which Bally's Chicago HoldCo, as lender, will make subordinated loans to us, as borrower, in various tranches and in varying amounts based on the total number of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests sold in this offering and the concurrent private placements. None of the new investors purchasing Class A Interests in this offering and the concurrent private placements will be a party to the amended and restated subordinated loan agreement, or a borrower or lender under the Subordinated Loans (as defined herein). For each Class A-1 Interest sold in this offering and the concurrent private placements, we will incur $24,750 of subordinated loans from Bally's Chicago HoldCo (such loans, the "Class A-1 Subordinated Loans"). For each Class A-2 Interest sold in this offering and the concurrent private placements, we will incur $22,500 of subordinated loans from Bally's Chicago HoldCo (such loans, the "Class A-2 Subordinated Loans"). For each Class A-3 Interest sold in this offering and the concurrent private placements, we will incur $20,000 of subordinated loans from Bally's Chicago HoldCo (such loans, the "Class A-3 Subordinated Loans" and, together with the Class A-1 Subordinated Loans and Class A-2 Subordinated Loans, the "Subordinated Loans"). We will not incur any Subordinated Loans or other debt in connection with the issuance of the Class A-4 Interests or the Class B Interests. Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly. The Subordinated Loans will be non-recourse to the holders of our Class A Interests. See "*Subordinated Loans*."

Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution (as defined herein) that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. Therefore, even if our Board (or a duly authorized committee of the Board) authorizes and declares a dividend on our shares of stock, holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests will not be entitled to receive any such dividend until such time as the corresponding Subordinated Loans associated with such Class A Interests are paid in full, which may take a prolonged period of time to occur, if at all.

Our Subordinated Loans will accrue interest at a rate of 11.0% per annum, compounding quarterly, and accrued and unpaid interest will be added to the outstanding principal amount thereof on a quarterly basis. As a result, the amount of Subordinated Loans that are to be paid with a percentage of the amounts that would otherwise be paid on account of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests will increase during the period between the closing date of this offering and the date, if any, on which dividends are to be paid on the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests.

In addition, given the Class A-3 Subordinated Loans attributable to each Class A-3 Interest will be lower than the Class A-1 Subordinated Loans and Class A-2 Subordinated Loans attributable to the Class A-1 Interests and Class A-2 Interests, respectively, the Class A-3 Subordinated Loans are expected to be fully repaid prior to the Class A-1 Subordinated Loans and the Class A-2 Subordinated Loans, to the extent they are fully repaid.

------

[**TABLE OF CONTENTS**](#TOC)

Similarly, the Class A-2 Subordinated Loans are expected to be fully repaid prior to the Class A-1 Subordinated Loans, to the extent they are fully repaid. However, due to the significant amount of indebtedness (including both principal and interest) owed on the Subordinated Loans, we do not expect to fully repay the Subordinated Loans for an extended period of time following the closing of this offering, if at all.

While we do not currently intend to issue any additional securities in the future, we may be required to do so from time to time in order to continue to fund our operations. To the extent we decide to issue additional Class A Interests in the future, we may be required to offer you an opportunity to participate pro rata in the offering in order for such offering not to dilute the ownership of individuals or entities meeting the requirements of the Host Community Agreement. However, to the extent that you determine that you either do not want to participate or cannot participate in any such offering, you will suffer immediate dilution to the extent such offering is completed without your participation. Additionally, we cannot guarantee that we will offer financing options similar to the Subordinated Loans in the future, which would significantly increase the costs of any future investment.

Neither our Class A Interests nor our Class B Interests will be listed on any national securities exchange or on any other stock exchange, regulated trading facility or automated dealer quotation system in the United States or internationally. There is no trading market for our Class A Interests and, due to certain transferability restrictions described below and elsewhere in this prospectus, an active market for our Class A Interests will not likely develop in the future. As such, our Class A Interests will have limited liquidity and holders of our Class A Interests may not be able to monetize their full investment in our Class A Interests, if at all. See "*Description of Capital Stock*" and "*Shares Eligible for Future Sale*."

Our Class A Interests are subject to restrictions on transferability and redemption provisions, each of which will individually and in the aggregate materially impact the ability of holders of our Class A Interests to transfer their shares following the closing of this offering. Our Class A Interests can only be transferred without our consent to Permitted Transferees (as defined herein). Additionally, our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests can be transferred with our consent only after the Subordinated Loan attributable to such class of Interests has been paid in full and such Interests are converted to Class A-4 Interests. All Class A-1 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-1 Subordinated Loans, all Class A-2 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-2 Subordinated Loans and all Class A-3 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-3 Subordinated Loans. If a holder of Class A-1 Interests, Class A-2 Interests and/or Class A-3 Interests would like to transfer their Interests before the Subordinated Loans attributable to such class of Interests are paid off, such holder or the transferee may repay in full the pro rata amount of the remaining balance of the Subordinated Loans then outstanding attributable to such Interests before or substantially concurrently with such transfer and conversion. See "*Description of Capital Stock*" and "*Shares Eligible for Future Sale*." Class A Interests also cannot be transferred to employee benefit plans, IRAs and other Plans (as defined herein). See "*Certain ERISA Considerations*."

 *Moreover, as part of the qualification process, investors will be required to provide certain information described in this prospectus in order to invest in this offering. The method for submitting investment commitments and a more detailed description of this offering process are included in "Plan of Distribution — Offering Process."* 

#### See " Prospectus Summary — Our Relationship with Chicago " beginning on page 16 for additional requirements under the Host Community Agreement.
 **As a result of the terms of this offering, this offering is highly speculative and the securities involve a high degree of risk. Investing in our Class A Interests should be considered only by persons who can afford the loss of their entire investment. See "*Risk Factors*" beginning on page [52](#tRIFA).** 

 **We made a number of assumptions to determine the price of our Class A Interests. If any of our assumptions are incorrect, then the Class A Interests will be worth less than the price stated in this prospectus. In such case, the return on investment or rate of return on an investment in our Class A Interests could be significantly below an investor's expectation.** 

 **We are an "emerging growth company" and a "smaller reporting company" under the federal securities laws, and, as such, are subject to reduced public company reporting requirements. See "*Prospectus Summary —Implications of Being an Emerging Growth Company and a Smaller Reporting Company*."** 

 **Neither the SEC nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.** 

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | |
|:---|:---|:---|
| | **Per Class A-1 Interest**  | **Total**  |
| Number of shares sold  |  |  |
| Initial public offering price  | $250 | $|
| Subordinated loan<sup>(1)</sup>  | $24750 | $|
| Placement agent fees<sup>(2)</sup>  | $— | $|
| Proceeds to us, before expenses  | $— | $|

---

---

| | | |
|:---|:---|:---|
| | **Per Class A-2 Interest**  | **Total**  |
| Number of shares sold  |  |  |
| Initial public offering price  | $2500 | $|
| Subordinated loan<sup>(1)</sup>  | $22500 | $|
| Placement agent fees<sup>(2)</sup>  | $— | $|
| Proceeds to us, before expenses  | $— | $|

---

---

| | | |
|:---|:---|:---|
| | **Per Class A-3 Interest**  | **Total**  |
| Number of shares sold  |  |  |
| Initial public offering price  | $5000 | $|
| Subordinated loan<sup>(1)</sup>  | $20000 | $|
| Placement agent fees<sup>(2)</sup>  | $— | $|
| Proceeds to us, before expenses  | $— | $|

---

---

| | | |
|:---|:---|:---|
| | **Per Class A-4 Interest**  | **Total**  |
| Number of shares sold  |  |  |
| Initial public offering price  | $25000 | $|
| Subordinated loan<sup>(1)</sup>  | $0 | $|
| Placement agent fees<sup>(2)</sup>  | $— | $|
| Proceeds to us, before expenses  | $— | $|

---

(1) Includes amount of Subordinated Loans attributable to each Class A Interest sold in this offering. Purchasers of Class A Interests will not be borrowers or lenders under the Subordinated Loans.

(2) See "*Plan of Distribution*."

We have reserved up to 300 Class A Interests, or approximately 4.0% of our Class A Interests, for sale to our director nominees on the same terms as the Class A Interests being purchased by investors in this offering. These persons must commit to purchase at the same time as the investors in this offering. The number of Class A Interests available for sale in this offering will be reduced to the extent these persons purchase the reserved Class A Interests. See "*Plan of Distribution — Directed Share Program*."

The placement agents are deemed to be underwriters within the meaning of Section 2(a)(11) of the Securities Act, and any fees received by them will be deemed to be underwriting discounts or commissions under the Securities Act. See "*Plan of Distribution*."

This offering will terminate upon the earlier to occur of (i) 30 days after the registration statement of which this prospectus forms a part becomes effective with the SEC or (ii) the date on which all Class A Interests offered hereby have been sold.

 *Lead Placement Agent* 

### Loop Capital Markets
 *Co-Placement Agent* 

#### Innovation Capital
The date of this prospectus is , 2025.

------

[**TABLE OF CONTENTS**](#TOC)

![[MISSING IMAGE: cv_ofc2-html4c.jpg]](cv_ofc2-html4c.jpg)

------

[**TABLE OF CONTENTS**](#TOC)

#### **TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [INDUSTRY AND MARKET DATA](#tIAMD)  | [iii](#tIAMD) |
| [PROSPECTUS SUMMARY](#tPRSU)  | [1](#tPRSU) |
| [THE OFFERING](#tTHOF)  | [35](#tTHOF) |
| [QUESTIONS AND ANSWERS](#tQAA)  | [41](#tQAA) |
| [RISK FACTORS](#tRIFA)  | [52](#tRIFA) |
|  [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA](#tSNRF)  | [93](#tSNRF) |
| [OUR ORGANIZATIONAL STRUCTURE](#tOOSE)  | [96](#tOOSE) |
| [USE OF PROCEEDS](#tUOP)  | [98](#tUOP) |
| [DIVIDEND POLICY](#tDIPO)  | [99](#tDIPO) |
| [CAPITALIZATION](#tCAP)  | [101](#tCAP) |
| [DILUTION](#tDIL)  | [103](#tDIL) |
|  [UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL <br> INFORMATION](#tUPCI)  | [104](#tUPCI) |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tMDAA)  | [115](#tMDAA) |
| [BUSINESS](#tBUS)  | [134](#tBUS) |
| [MANAGEMENT](#tMAN)  | [156](#tMAN) |
| [SUBORDINATED LOANS](#tSUDE)  | [162](#tSUDE) |
| [EXECUTIVE COMPENSATION](#tEXCO)  | [164](#tEXCO) |
| [TRANSACTIONS WITH RELATED PERSONS](#tTWRP)  | [170](#tTWRP) |
| [PRINCIPAL STOCKHOLDERS](#tPRST)  | [174](#tPRST) |
| [DESCRIPTION OF CAPITAL STOCK](#tDOOI)  | [176](#tDOOI) |
| [DESCRIPTION OF CERTAIN INDEBTEDNESS](#tDOCI)  | [180](#tDOCI) |
| [PLAN OF DISTRIBUTION](#tPOD)  | [181](#tPOD) |
| [CONCURRENT PRIVATE PLACEMENTS](#tCPPS)  | [186](#tCPPS) |
| [SHARES ELIGIBLE FOR FUTURE SALE](#tIEFF)  | [187](#tIEFF) |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES](#tMUFI)  | [192](#tMUFI) |
| [CERTAIN ERISA CONSIDERATIONS](#tCEC)  | [198](#tCEC) |
| [LEGAL MATTERS](#tLEMA)  | [200](#tLEMA) |
| [EXPERTS](#tEXP)  | [200](#tEXP) |
| [WHERE YOU CAN FIND MORE INFORMATION](#tWYCF)  | [200](#tWYCF) |
| [INDEX TO FINANCIAL STATEMENTS](#tITFS)  | [F-1](#tITFS) |

---

We have not, and the placement agents have not, authorized anyone to provide you with any information other than that contained in this prospectus or in any free writing prospectus we may authorize to be delivered or made available to you. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus may only be used where it is legal to offer and sell our Class A Interests. The information in this prospectus is complete and accurate only as of the date on the front cover of this prospectus, regardless of the time of delivery of this prospectus or any sale of our Class A Interests. Our business, financial condition, results of operations and prospects may have changed since that date. We are not, and the placement agents are not, making an offer of these securities in any jurisdiction where the offer is not permitted.

This prospectus has been prepared by Bally's Chicago, Inc. and may be used by our placement agents in connection with offers and sales of these securities in primary market transactions in these securities.

i

------

[**TABLE OF CONTENTS**](#TOC)

Neither we nor the placement agents have undertaken any efforts to qualify this offering for offers to investors in any jurisdiction outside of the states of Illinois, Florida, New York and Texas. Investors must have a U.S. social security number and/or a U.S. tax identification number to be eligible to participate in this offering.

ii

------

[**TABLE OF CONTENTS**](#TOC)

#### INDUSTRY AND MARKET DATA
This prospectus includes estimates regarding market and industry data. Unless otherwise indicated, information concerning our industry and the markets in which we operate, including our general expectations, market position, market opportunity and market size, are based on our management's knowledge and experience in the markets in which we operate, together with currently available information obtained from various sources, including publicly available information, industry reports and publications, trade and business organizations, and other contacts in the markets in which we operate. Certain information is based on management estimates, which have been derived from third-party sources, as well as data from our internal research, and are based on certain assumptions that we believe to be reasonable.

In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While we believe the estimated market and industry data included in this prospectus are generally reliable, such information, which is derived in part from management's estimates and beliefs, is inherently uncertain and imprecise, and you are cautioned not to give undue weight to such estimates. Market and industry data are subject to change and may be limited by the availability of raw data, the voluntary nature of the data gathering process and other limitations inherent in any statistical survey of such data. In addition, projections, assumptions and estimates of the future performance of the markets in which we operate are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "*Risk Factors*" and "*Special Note Regarding Forward-Looking Statements*." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Accordingly, you are cautioned not to place undue reliance on such market and industry data or any other such estimates. The content of, or accessibility through, the sources and websites identified herein, except to the extent specifically set forth in this prospectus, does not constitute a portion of this prospectus and is not incorporated herein and any websites are an inactive textual reference only.

#### KEY PERFORMANCE INDICATORS
The key performance indicators used in managing our business is Income (loss) from operations for our Permanent Casino reportable segment and Adjusted EBITDAR for our Temporary Casino reportable segment. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Operating Structure*" for more information about our reportable segments. Temporary Casino Adjusted EBITDAR is a measure of the Company's segment profitability disclosed in accordance with the requirements of ASC 280, Segment Reporting, and it does not represent a non-GAAP measure. Temporary Casino Adjusted EBITDAR is defined as earnings, or loss, for the temporary casino before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, expansion costs, management fees to Bally's Corporation, rent expense from triple net operating leases, and certain other gains or losses.

iii

------

[**TABLE OF CONTENTS**](#TOC)

#### PROSPECTUS SUMMARY
 *The following summary highlights information contained elsewhere in this prospectus and is qualified in its entirety by the more detailed information and financial statements included elsewhere in this prospectus. This summary does not contain all of the information that may be important to you. You should read and carefully consider the following summary together with the entire prospectus, including our financial statements and the related notes thereto appearing elsewhere in this prospectus, before deciding to invest in our Class A Interests. Some of the statements in this prospectus constitute forward-looking statements that involve risks and uncertainties. See "Special Note Regarding Forward-Looking Statements and Industry Data." Our actual results could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those discussed in "Risk Factors" and other sections of this prospectus.* 

#### Our Mission
Our mission is to design, build and operate a world-class entertainment destination resort, befitting Chicago's status as a world-class city.

#### Our Company
We are a gaming, hospitality and entertainment company with the singular focus of building and operating a world-class entertainment destination resort in Chicago, Illinois. We intend to provide both Chicago residents and business and leisure travelers visiting Chicago with physical and interactive entertainment and gaming experiences.

We intend to build a destination casino, hotel and entertainment venue (our "permanent casino and resort") that will showcase "The Best of Chicago" arts and culture, food and sports, and curated dining and entertainment experiences. Our permanent casino and resort in Chicago will be located on the 30-acre property which previously hosted the Chicago Tribune Publishing Center, at the intersection of Chicago Avenue and Halsted Street in downtown Chicago, and will look to transform this currently underutilized site into a major economic driver for the city. Our permanent casino and resort will be in close proximity to a wide range of hotels, theaters, bars, restaurants, major shopping districts and the McCormick Place Convention Center, the proximity to which will help drive traffic to our permanent casino and resort, primarily due to our differentiated gaming attractions in comparison to other offerings in this geographic location.

In developing the entertainment destination resort, we intend to adhere to Bally's community-first policy, which is a fundamental and defining element of who we are as a company. We believe that in every community in which Bally's operates, it has built strong, lasting partnerships with local residents and businesses. Chicago will be no different. With this project, we are committed to ensuring that our permanent casino and resort generates significant economic stimulus and creates a wealth of employment opportunities for the greater Chicago community.

Among other features and amenities, once finalized, our permanent casino and resort is being designed to include approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,400 slot machines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 173 table games;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 10 food and beverage ("F&B") venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a hotel tower with 500 rooms and a rooftop bar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a 3,000-person mixed use entertainment and event center;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,300 parking spaces; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • outdoor green space, including an expansive public riverwalk with a water taxi stop.

On May 5, 2022, the City of Chicago selected us as the preferred bidder in Chicago's request for proposal process (the "RFP process") to construct and operate a world-class casino resort in downtown Chicago. We worked cooperatively with city officials and community leaders throughout the RFP process to

------

[**TABLE OF CONTENTS**](#TOC)

develop a project that embraced Chicago as a global gateway city, incorporating its vibrant cultural scene and highly diversified economy. Chicago selected us on the basis that they believe our plan provides the most economic value to Chicago and its taxpayers, including an upfront payment of $40.0 million and annual payments to the City totaling $4.0 million.

The gaming taxes on our gaming revenue will be paid to the state of Illinois and the City of Chicago, with the City of Chicago taxes applied to pay a portion of the City's obligations toward its fire and police union pensions. Additionally, our permanent casino and resort is projected to create approximately 12,250 design, development and construction jobs and approximately 3,000 permanent jobs upon the opening of our permanent casino and resort.

#### Bally's Corporation
Our ultimate parent, Bally's Corporation, is a global gaming, hospitality and entertainment company with a portfolio of casinos and resorts and online gaming businesses. Bally's Corporation provides its customers with physical and interactive entertainment and gaming experiences, including traditional casino offerings, iGaming, online bingo, sportsbook and free to play games ("F2P").

As of March 31, 2025, Bally's Corporation owns and manages 19 casinos in 11 states across the United States, one golf course in New York, one horse racetrack in Colorado, and Aspers Casino in the United Kingdom. Its land-based casino operations include approximately 17,300 slot machines, 600 table games and 4,165 hotel rooms, along with various restaurants, entertainment venues and other amenities. Certain of its properties are leased under multiple lease and master lease arrangements with GLP Capital, L.P. ("GLP"), a subsidiary of Gaming and Leisure Properties, Inc. ("GLPI"), a publicly traded gaming-focused real estate investment trust ("REIT"). It also owns Bally Bet, a first-in-class sports betting platform, Bally Casino, a growing iCasino platform, Bally's Interactive International division (formerly Gamesys Group), a leading global interactive gaming operator, and a significant economic stake in Intralot S.A. (ATSE: INLOT), a global lottery management and services business. Its revenues are primarily generated by these gaming and entertainment offerings. Bally's Corporation owns and operates its proprietary software and technology stack designed to allow it to provide consumers with differentiated offerings and exclusive content.

On February 7, 2025, Bally's Corporation completed its previously announced transactions under the Agreement and Plan of Merger (as amended, the "Merger Agreement"), pursuant to which The Casino Queen & Entertainment Inc. ("Casino Queen"), a corporation majority-owned by funds managed by Standard General L.P., Bally's Corporation's largest common stockholder, merged with Bally's Corporation (the "Merger"). Pursuant to the agreement, Bally's stockholders received cash merger consideration of $18.25 per share, unless such stockholders elected the rollover election to forego the cash consideration in order to remain invested in the combined company. In connection with the foregoing transactions, Bally's combined with Casino Queen, a regional casino operator and owner of a significant minority stake in global lottery operator Intralot S.A.

The Bally's Corporation Merger with Casino Queen was accounted for as a transaction between entities under common control. The Company has elected to push down its parent's basis in its net assets into its unaudited condensed consolidated financial statements, and as a result, unless the context otherwise requires, the "Company," for periods prior to the Closing, refers to Bally's (or the "Predecessor"), and for the periods after the Closing, refers to the combined company of Bally's and Casino Queen (or the "Successor").

#### Our Location
We have leased a 30-acre property on the banks of the Chicago River, which previously hosted the Chicago Tribune Publishing Center. The proposed site for our permanent casino and resort is at the intersection of Chicago Avenue and Halsted Street in downtown Chicago, which we believe will be an optimal location for our permanent casino and resort. We will look to transform this currently underutilized site into a major economic driver for the city. The proposed site for our permanent casino and resort is also near major shopping and cultural attractions along Michigan Avenue, as well as a wide selection of hotels and restaurants at various price points and that are popular among local residents and tourists.

------

[**TABLE OF CONTENTS**](#TOC)

The proposed site is less than five minutes away from a major highway exit, making it easily accessible by car. We also intend to build a new water taxi stop and a new pedestrian bridge across the Chicago River to make the proposed site even more accessible to Chicago residents and tourists in the downtown area. Our permanent casino and resort will be the only casino in the City of Chicago. The next closest casino is 16 miles outside of the city and not easily accessible via public transportation.

Once fully developed and operational, it will take a commuter approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 15 minutes on average to reach our permanent casino and resort from Chicago Loop via public transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 10 minutes on average to reach our permanent casino and resort from Magnificent Mile via public transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 45 minutes on average to reach our permanent casino and resort from Chicago O'Hare International Airport via public transportation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 50 minutes on average to reach our permanent casino and resort from Midway Airport via public transportation.

In addition, our permanent casino and resort will have approximately 2,000 feet of contiguous river walk, public parks and docks. Additionally, it will include riverfront restaurants and other amenities, including locations for scenic views.

------

[**TABLE OF CONTENTS**](#TOC)

![[MISSING IMAGE: mp_permresort-4clr.jpg]](mp_permresort-4clr.jpg)

 *For illustrative purposes, subject to change, see "Risk Factors — Development and Construction Risks"* 

#### Design & Construction
Demolition for construction of our permanent casino, performance center, resort, F&B offerings and hotel began on July 5, 2024, and our permanent casino and resort is expected to open to the public in September 2026. Our plan is to build in phases with demolition, site prep, parking and access to be followed by the construction of the permanent casino, performance center, and hotel tower, and would target that key elements of the project to be ready and prepared to serve patrons by the third quarter of 2026. However, there can be no assurances that we will be successful in doing so. Additionally, based upon our joint assessment with GLPI at the time that we entered into the GLP Term Sheet (as defined herein), we expect to incur expenses amounting to at least approximately $1.4 billion in the design, development and construction of our permanent casino and resort. However, this estimate is subject to change based on numerous factors outside of our control, which could cause the actual construction costs to increase. Any increased construction costs could materially and adversely affect the return on our investments. For additional discussion of these factors, please see "*Risk Factors — Development and Construction Risks.*"

------

[**TABLE OF CONTENTS**](#TOC)

![[MISSING IMAGE: pht_resort1-4c.jpg]](pht_resort1-4c.jpg)

![[MISSING IMAGE: pht_resort2-4c.jpg]](pht_resort2-4c.jpg)

 *Permanent casino and resort renderings (November 2024) Illustrative design, subject to change, see "Risk Factors — Development and Construction Risks"* 

In connection with the development and construction of our permanent casino and resort, we intend to contract or achieve:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 46% or more of the funds earmarked for construction and development will be disbursed to businesses with a certification as Minority (as defined by MCC 2-92-670(n) of the municipal code of the City of Chicago) or women-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 50% or more total hours spent on construction and development by City of Chicago residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • LEED Gold certification from Green Building Council; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 125 points under the Chicago Sustainable Development Policy.

In addition, we are in discussion with the Illinois Gaming Board and Midway International Airport to install slot machines at Midway International Airport.

------

[**TABLE OF CONTENTS**](#TOC)

In November 2022, we entered into the Oak Street Lease Agreement (as defined herein) to lease the proposed site on which we plan to develop our permanent casino and resort. The Oak Street Lease Agreement commenced on November 18, 2022 and had a 99-year term. On July 11, 2024, Bally's entered into a binding term sheet (the "GLP Term Sheet") with GLP for a strategic construction and financing arrangement, including up to $940.0 million of funding for the construction of our permanent casino and resort. In connection therewith, GLP acquired the fee interest in the proposed site on which we plan to develop our permanent casino and resort from the Oak Street Landlord (as defined herein) and succeeded to the Oak Street Landlord's interest as landlord under the Oak Street Lease Agreement. On July 17, 2025, we entered into (x) the GLP Lease Agreement (as defined herein), which amended and restated the Oak Street Lease Agreement, to lease such property and (y) the GLP Development Agreement (as defined herein) pursuant to which GLP has committed to advance up to $940 million of GLP Development Advances (as defined herein) for the payment of hard costs used to construct our permanent casino and resort in exchange for increasing the amount of rent that we pay to GLP under the GLP Lease Agreement. The GLP Lease Agreement has a 15-year term and up to four renewal terms of five years each, if elected by Bally's Chicago OpCo.

#### Performance of Comparable Casinos
For comparative context, we have included Win Per Unit Per Day ("WPUPD"), which is the average revenue a single gaming unit generates daily, and Adjusted Gross Revenue ("AGR"), which is the WPUPD on an annualized basis, data, slot machine counts, and table game counts as of and for the year ended December 31, 2024 for select gaming properties. This information has been derived from public filings of the respective casino operators. The properties included are the MGM National Harbor Casino and Encore Boston Harbor Casino, which are casino resorts in a campus environment that operate in or near similar major metropolitan areas, as well as Hard Rock Northern Indiana Casino, Rivers Casino, Ameristar East Chicago, Grand Victoria Casino, Harrah's Joliet Casino & Hotel, Hollywood Casino Aurora, Hollywood Casino Joliet, and Horseshoe Hammond, which are casinos located near the Chicago metropolitan area and in Northern Indiana. We have identified these properties as comparable to our proposed permanent casino and resort based on certain factors, including location in metropolitan areas with similar demographic profiles, comparable economic characteristics of the surrounding regions, and proximity to the City of Chicago.

Investors should be aware that these comparisons have limitations and may not be directly applicable to our proposed operations due to various factors, including but not limited to differences in local market conditions, variations in regulatory environments, property-specific operational strategies, and unique competitive landscapes in each market. The information provided is intended solely to offer context and does not constitute a projection or forecast of our future performance.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Comparable Properties for 2024<sup>(1)</sup>**  | **Comparable Properties for 2024<sup>(1)</sup>**  | **Comparable Properties for 2024<sup>(1)</sup>**  | **Comparable Properties for 2024<sup>(1)</sup>**  |
| **($ in MM, except WPUPD metrics)**  | **MGM <br> National <br> Harbor**  | **Encore <br> Boston**  | **Hard Rock <br> Northern <br> Indiana**  | **Rivers <br> Casino <br> Illinois**  |
| Slot Machines  | 2293 | 2633 | 1750 | 1516 |
| Slots WPUPD  | $610 | $440 | $494 | $580 |
| Table Games  | 161 | 180 | 77 | 120 |
| Table Games WPUPD  | $5582 | $4519 | $4277 | $4457 |
| **Total Gaming AGR<sup>(2)</sup>**  | $**839** | $**720** | $**436** | $**516** |

---

(2) Gaming AGR does not include retail sportsbook.

------

[**TABLE OF CONTENTS**](#TOC)

#### Illinois and Northern Indiana Slots

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  |
| | **# Slots**  | **Admissions**  | **AGR**  | **WPU**  |
| Ameristar East Chicago  | 1075 | N/A | $142 | $363 |
| Grand Victoria Casino  | 746 | 934 | $111 | $408 |
|  ***Hard Rock Northern Indiana***  | **1750** | **N/A** | $**316** | $**494** |
| Harrah's Joliet Casino & Hotel  | 754 | 687 | $106 | $387 |
| Hollywood Casino Aurora  | 837 | 853 | $78 | $255 |
| Hollywood Casino Joliet  | 918 | 662 | $79 | $237 |
| Horseshoe Hammond  | 1594 | N/A | $203 | $349 |
|  ***Rivers Casino Des Plaines***  | **1516** | **3069** | $**321** | $**580** |
| **Average** | **1149** | **1241** | $**170** | $**384** |
| **Median** | **997** | **853** | $**127** | $**375** |
|  ***Top Performers – Averages*** |  |  |  |  |
| Top Performer Average  | **1633** | **3069** | $**319** | $**537** |

---

#### Illinois and Northern Indiana Table Games

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |  | | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  |
| | **# Tables**  | **# Tables**  | **Admissions**  | **AGR**  | **WPU**  |
| Ameristar East Chicago  |  | 39 | N/A | $29 | $2052 |
| Grand Victoria Casino  |  | 45 | 934 | $28 | $1682 |
|  ***Hard Rock Northern Indiana***  |  | **77** | **N/A** | $**120** | $**4277** |
| Harrah's Joliet Casino & Hotel  |  | 21 | 687 | $18 | $2394 |
| Hollywood Casino Aurora  |  | 41 | 853 | $21 | $1431 |
| Hollywood Casino Joliet  |  | 14 | 662 | $11 | $2190 |
| Horseshoe Hammond  |  | 85 | N/A | $49 | $1567 |
|  ***Rivers Casino Des Plaines***  |  | **120** | **3069** | $**195** | $**4457** |
| **Average** |  | **55** | **1241** | $**59** | $**2506** |
| **Median** |  | **43** | **853** | $**29** | $**2121** |
|  ***Top Performers – Averages*** |  |  |  |  |  |
| **Top Performer Average**  |  | **98** | **3069** | $**158** | $**4367** |

---

(1) Based on publicly available information. All figures are as of and for the year ended December 31, 2024.

These illustrative comparisons are only for purposes of illustrating the publicly reported WPUPD per slot machine and table game, and the associated AGR for nearby casino properties in Illinois and Northern Indiana. These illustrative comparisons are not projections, goals or targets but reflect the actual reported results of these casino properties as reported by the Illinois and Indiana state gaming commissions for the relevant periods.

The illustrative comparisons set forth above were not prepared with a view toward compliance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation or presentation of prospective financial information. Such illustrative examples have been prepared by, and is the responsibility of, our management. Neither the Company's independent auditors, nor any other independent accountants, have compiled, examined, or performed any procedures with respect to the illustrative example information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the prospective financial information.

------

[**TABLE OF CONTENTS**](#TOC)

This prospectus does not include a reconciliation of estimated Total AGR to estimated GAAP revenue because we are unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results.

#### Hospitality Industry in Chicago
The hospitality industry in Chicago is showing strong signs of recovery and growth, driven by a combination of increasing tourism, business travel and a dynamic local culture. Occupancy rates are steadily climbing as travelers return to the city for its world-class dining, vibrant arts scene and high-profile events like conventions and festivals. Hotels are adapting to evolving guest expectations by modernizing amenities, prioritizing sustainability, and enhancing the overall guest experience. The city's strong marketing efforts and investment in infrastructure, such as O'Hare's expansion, have also boosted its appeal as a global destination. With these improvements, Chicago's hospitality sector has positioned itself as a leader in urban tourism and accommodation.

In 2024, the Chicago hospitality industry exceeded the expectations, booking over 2,005 total meetings and events, representing 2.65 million hotel room nights, delivering an economic impact of over $4.8 billion for Chicago. This was driven primarily by a steady influx of visitors exploring Chicago's vibrant neighborhoods, iconic landmarks and world-class cultural offerings. The City saw 55 million visitors — over 3 million more than 2023 — and filled 11.6 million hotel rooms.

 *2024 Hotel Occupancy Rates*![[MISSING IMAGE: tb_hottelaccu-bw.jpg]](tb_hottelaccu-bw.jpg)

 *2024 Hotel Rooms Occupied (Millions)*![[MISSING IMAGE: tb_hottelrooms-bw.jpg]](tb_hottelrooms-bw.jpg)

 *2024 Hotel Revenue and Taxes*![[MISSING IMAGE: tb_hottelrevenue-bw.jpg]](tb_hottelrevenue-bw.jpg)

#### Temporary Casino
While we work to construct our permanent casino and resort on the banks of the Chicago River, we built a temporary casino in downtown Chicago (our "temporary casino" and, together with our permanent casino and resort, our "casino and resort"). However, as the name implies, our temporary casino is expected to close once we open our permanent casino and resort, as our license to operate our temporary casino would cease in order to open our permanent casino and resort in the third quarter of 2026.

------

[**TABLE OF CONTENTS**](#TOC)

Our temporary casino is situated in the former location of the Medinah Temple, which acted as a community and social center in Chicago from its construction in 1912. Our temporary casino began operations on September 9, 2023. Our temporary casino includes approximately 1,000 gaming positions and two F&B venues.

![[MISSING IMAGE: mp_ballysmedihah-4c.jpg]](mp_ballysmedihah-4c.jpg)

Our new work for our temporary casino respects and maintains the existing landmarked items identified by the City of Chicago in the Medinah Temple, including the exterior façade. While we performed minor improvements on the façade, such work was focused on the replacement of signage in the same locations utilized by previous tenants. Within the Medinah Temple, we preserved the stained glass windows, stage proscenium, column capitals and third floor ceiling, including the four domes. As of March 31, 2025 (Successor), we have incurred approximately $70.0 million in costs in connection with the design and development of our temporary casino.

#### Timeline of Key Milestones <sup>(1)</sup>

---

| | |
|:---|:---|
| **Date**  | **Key Milestone**  |
| **September 9, 2023**  | **Grand opening of our temporary casino** |
| July 5, 2024  | Tribune surrenders and vacates proposed site of our permanent casino and resort |
| July 5, 2024  | Decommission and demolition of building on site of our permanent casino and resort |
| Q1 2025  | Commencement of construction of our permanent casino and resort |
| **Q3 2026**  | **Grand opening of our permanent casino and resort<sup>(2)</sup>** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)

This timeline reflects our current business strategy. However, our ability to implement our business strategy is subject to numerous risks and uncertainties. We face many risks inherent in our business generally. You should carefully consider all of the information set forth in this prospectus and, in particular, the information under the heading "*Risk Factors.*" These risks include various construction and development risks in connection with our permanent casino and resort. See "*Risk Factors — Development and Construction Risks*."

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)

The Host Community Agreement with the City of Chicago provides for significant liquidated damages in the event that we do not meet the milestones specified as to our temporary casino and our permanent casino and resort. See "— *Our Relationship with Chicago — Host Community Agreement with the City of Chicago*" for more information on these milestones. Also see "*Risk Factors — Development and Construction Risks*" for more information on various construction and development risks in connection with our permanent casino and resort.

#### Competitive Strengths

#### Fully integrated destination resort focused on the attractive mainstream market segment
Our permanent casino and resort is focused on the mainstream market segment. We believe this segment provides attractive long-term growth opportunities and the mainstream market gaming segment has relatively high margins in comparison to other gaming segments.

Our permanent casino and resort is being designed to feature a hotel tower including 500 rooms and a rooftop bar. Our dining and beverage options are also designed for broad market appeal and include a range of restaurants, cafes, bars and lounges. Our location, in the heart of the City of Chicago, offers an immersive entertainment environment in street and riverscape surroundings inspired by iconic shopping in the Magnificent Mile district. Our permanent casino and resort will also feature a new landscaped riverwalk with activation elements such as artwork, walking paths and a dog park. It will also include a new park along the river, terraced steps and outdoor seating for restaurants, cafes, bars and lounges. The park will be accessible to the public during the hours typical of Chicago public parks. We believe that our combination of entertainment and leisure activities, differentiated gaming attractions in comparison to other offerings in this geographic location and outdoor space, including being the only casino in the City of Chicago, delivered in an easily accessible location, will provide a customer experience that is hard to replicate without having to visit multiple destinations.

#### Strategic location with strong and improving accessibility
The following map illustrates the centralized location of our permanent casino and resort in Chicago:

![[MISSING IMAGE: mp_permanresort-4clr.jpg]](mp_permanresort-4clr.jpg)

------

[**TABLE OF CONTENTS**](#TOC)

Our permanent casino and resort will be strategically located in the heart of the City of Chicago, as the only casino located directly adjacent to the Chicago River, with easy access to the blue transit line as well as to multiple bus stops. The City of Chicago is the third most populous city in the United States, with 2.7 million residents in 2023 according to the United States Census Bureau. According to Forbes and Business Insider, tourism to the City of Chicago reached approximately 55 million visitors prior to the COVID-19 pandemic and is expected to fully rebound by the end of 2024.

We believe we can also leverage the traffic flow from nearby hotels, theaters, bars, restaurants, shopping districts and McCormick Place Convention Center to drive significant traffic to our permanent casino and resort, primarily due to our differentiated gaming and entertainment attractions in comparison to other offerings in this geographic location. Our close proximity to the Chicago River, which is a top tourist attraction in Chicago, will allow us to drive marketing promotions to tourists and drive further traffic to our permanent casino and resort. We intend to build a new water taxi stop and a new pedestrian bridge across the Chicago River to capitalize on traffic flow and make the proposed site even more accessible to Chicago residents and tourists in the downtown area. We also expect to be a natural and popular first stop for a large number of visitors to Chicago due to our close proximity to the River West, Fulton River District, River North and West Loop entertainment districts.

#### Backed by an established operator with a leading and diversified national gaming footprint
We are backed by Bally's Corporation, an established operator in our casino and resort industry that is capable of providing expertise, know-how and support across the entire gaming spectrum, ranging from generation and advertising technology to the collection, processing and extrapolation of data and odds, to visualization solutions, risk management and platform services.

The deep understanding of our public company parent of the gaming industry, customer needs and preferences, regulatory processes and the evolving competitive landscape offers us a significant competitive advantage over our competitors. Upon the closing of this offering, we will continue to benefit from our relationship with Bally's Corporation through the scale of Bally's operations, including the centralization of shared services and support functions such as legal, information technology, human resources, supply chain logistics, warehousing, strategic sourcing and transportation. We will also continue to benefit from Bally's Corporation's extensive customer and sales network, as well as its well-developed and recognized customer loyalty programs, which we will continue to leverage to further drive visitation.

After its merger with Casino Queen, Bally's Corporation's casino offerings stretch across eleven states across the United States. We believe the breadth of their offerings and reach gives us a competitive advantage in launching operations in a new city or state, as we are able to leverage their considerable resources and know-how to deliver the best offerings to potential customers.

#### Powerful network effects accelerate our value proposition
Under the Bally's brand, we are able to benefit from powerful network effects, which further accelerate our value proposition. As a national participant in the gaming industry, Bally's Corporation has casinos resorts spread across numerous major cities and has hosted tens of millions of customers since all of its casino resorts and online gaming operations commenced operations. We believe that, by operating under the Bally's brand, we will be able to attract existing and new customers to our new casino and resort, as we will not be required to gain their trust upon launching our operation.

#### Experienced and Dedicated Management Team
Our management team has extensive experience in the gaming and hospitality industries. Management team members have prior tenures at other large-scale casino and entertainment companies, such as PENN Entertainment, Delaware North Companies, International Game Technology and Northstar Lottery Group. Our management team has an average of more than 11 years of experience in the gaming and hospitality industries. In addition, as of March 31, 2025 (Successor) Bally's had approximately 10,000 employees who are dedicated to Bally's national and international operations to ensure exceptional customer experiences. We will also receive certain centralized corporate and management services from Bally's Corporation, including shared service staff who will devote a portion of their time to our operations. We intend to continue to

------

[**TABLE OF CONTENTS**](#TOC)

capitalize on the deep industry expertise, management skills and strong execution capabilities of our management team to successfully formulate and implement our strategies, and continue to streamline our operations by utilizing the services provided by our affiliates.

#### Our Business and Growth Strategies

#### Continue to focus on the mainstream market segment
We intend to focus on mainstream market gaming due to its attractive growth opportunities and higher margin profile. We are designing our non-gaming attractions to complement the mainstream market focus of our permanent casino and resort by delivering experiences that appeal to mainstream market players. We aim to leverage our differentiated entertainment, retail, F&B and hotel amenities to drive visitation, longer stays and greater spending by our patrons. Under our current plan, our permanent casino and resort is being designed to include approximately 3,400 slot machines and 173 table games. In addition, we currently envision outdoor green space, including an expansive public riverwalk with a water taxi stop. Other non-gaming attractions expected to be part of our permanent casino and resort include a hotel tower with 500 rooms, a rooftop bar, a 3,000-person mixed use entertainment and event center, as well as retail and F&B outlets. We expect our current plan for our permanent casino and resort to diversify our offerings and create long-term shareholder value.

#### Continue to drive visitation and revenue growth through innovative non-gaming attractions
We intend to enhance and diversify our differentiated non-gaming amenities and service offerings with the goal to drive further visitation to our casino and resort by both residents of Chicago and tourists visiting Chicago, and deliver long-term growth and high margins. We believe our permanent casino and resort will be different from existing resorts and casinos in Illinois and neighboring states because of our strategic location along the Chicago River, as well as our innovative and interactive entertainment attractions, which are intended to appeal to both individuals and groups interested in gaming and those not interested in gaming alike. We intend to leverage Bally's Corporation's existing attractions to provide superior entertainment experiences. For example, we intend to host premier concerts and events over time to increase our brand recognition locally, which we believe we can do using our nationwide access to premier talent. We also intend to enhance existing attractions and update them over time, and to optimize our mix of retail and F&B offerings that appeal to our target customers.

#### Continue to pursue strategic marketing initiatives and differentiate the "Bally's" brand
We plan to continue to build the "Bally's" brand to increase awareness among potential customers, particularly in Chicago and the Midwest. We intend to continue to pursue innovative promotions, including engaging influencers and celebrities to promote our casino and resort's themes and entertainment facilities, and to host special events. We also plan to enhance our advertising activities, including through a variety of social media, print, television, online, outdoor, onsite and other means. In addition, we intend to leverage our relationship with Bally's Corporation to promote our casino and resort through complementary and cost-effective cross-marketing and sales campaigns.

#### Prudently manage our capital structure
We commenced operations in June 2022, and we intend to develop a capital structure to match and support the on-going ramp-up of our operations. We intend to strengthen our balance sheet by focusing on optimizing our leverage, maintaining a competitive cost of capital and improving balance sheet flexibility. We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the initial Class A Interest issuances, the Subordinated Loans and the IPO Expenses Note (as defined herein), to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest.

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to Bally's Chicago, Inc. to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes (as defined herein).

------

[**TABLE OF CONTENTS**](#TOC)

We believe we will be sufficiently capitalized through the opening of our permanent casino and resort, and intend to prudently manage our capital structure as we continue to grow our operations.

#### Our Relationship with Bally's Corporation

#### Permanent Services Agreement
We intend to benefit from Bally's Corporation's significant experience and knowledge in the U.S. gaming market. In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into a services agreement (the "Permanent Services Agreement") with Bally's Management Group, LLC (f/k/a Twin River Management Group, Inc.) ("BMG"), a subsidiary of Bally's Corporation. Pursuant to the Permanent Services Agreement, BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing upon the opening of our permanent casino and resort. Pursuant to the Permanent Services Agreement, we agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the U.S. Internal Revenue Code of 1986, as amended (the "Code"). The initial term of the agreement is one year, beginning upon the opening of our permanent casino and resort, and will be automatically renewed for successive one-year terms, unless either party serves on the other a written notice of termination. We believe the support provided by Bally's Corporation increases our competitive advantage and will contribute to the success of our business. See "*Transactions with Related Persons — Permanent Services Agreement.*"

#### Temporary Services Agreement
In August 2023, Bally's Chicago OpCo entered into a services agreement (the "Temporary Services Agreement") with BMG, a subsidiary of Bally's Corporation. Pursuant to the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing related to our temporary casino. Pursuant to the Temporary Services Agreement, we agreed to pay BMG a monthly fee equal to $5.0 million, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is two years, beginning August 30, 2023, and will be automatically renewed for successive one-year terms for as long as our temporary casino is licensed to continue operations, unless BMG serves on Bally's Chicago OpCo a written notice of termination. The Temporary Services Agreement shall automatically terminate when our temporary casino permanently closes and our permanent casino and resort opens to the public. See "*Transactions with Related Persons — Temporary Services Agreement.*"

#### Guarantee of Bally's Corporation's Obligations
We and Bally's Chicago HoldCo, our direct parent and the entity that holds 2,141 of our Class A-4 Interests and all of our Class B Interests, as well as certain other current and future unrestricted subsidiaries of Bally's Corporation under its credit facilities and bond indentures, have guaranteed Bally's Chicago OpCo's obligations under the GLP Lease Agreement and GLP Development Agreement; *provided*, however, that at such time as Bally's Chicago OpCo becomes a restricted subsidiary under Bally's Corporation's credit facilities and bond indentures, (i) Bally's Corporation will be required to guarantee the GLP Lease Agreement and GLP Development Agreement and (ii) following the delivery of such guarantee, the guarantees of the GLP Lease Agreement and GLP Development Agreement provided by Bally's Chicago HoldCo and such other unrestricted subsidiaries of Bally's Corporation shall terminate.

In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all of the

------

[**TABLE OF CONTENTS**](#TOC)

obligations, including, without limitation, indebtedness and lease obligations, of Bally's Corporation and its subsidiaries upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; *provided* that, at any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's Corporation's revolving credit facilities outstanding at such time). Furthermore, in March 2025, we and Bally's Chicago OpCo entered into an agreement (the "Guarantee Agreement") with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional obligations, including, without limitation, indebtedness and lease obligations that Bally's Corporation or its subsidiaries enter into at any time in the future. See "*Transactions with Related Persons — Guarantee of Bally's Corporation's Obligations.*"

#### Stockholders Agreement
In March 2025, we and Bally's Chicago HoldCo entered into a stockholders agreement (the "Stockholders Agreement"), pursuant to which for so long as Bally's Chicago HoldCo beneficially owns at least 50% of the aggregate number of our stock outstanding, certain actions by us or any of our subsidiaries, including Bally's Chicago OpCo, will require the prior written consent of Bally's Chicago HoldCo. The actions that will require prior written consent include: (i) change in control transactions of our company or any of our subsidiaries, including Bally's Chicago OpCo, (ii) acquiring or disposing of assets or any business enterprise or division thereof for consideration in excess of $50.0 million in any single transaction or series of transactions, (iii) increasing or decreasing the size of our board of directors, (iv) initiating any liquidation, dissolution, bankruptcy, or other insolvency proceeding involving us or any of our subsidiaries, including Bally's Chicago OpCo, and (v) any transfer, issue, sale, or disposition by us of any shares of stock, other equity securities, equity-linked securities, or securities that are convertible into equity securities of us or our subsidiaries to any person or entity that is a non-strategic financial investor in a private placement transaction or series of transactions.

#### Support Letter
In January 2025, we obtained a letter of support from Bally's Corporation, pursuant to which Bally's Corporation commits to fund all of our operating, investing, and financing activities through at least December 31, 2026 and further commits not to make any decision or action that would reasonably be expected to negatively affect our ability to continue as a going concern through at least December 31, 2026.

#### Additional Capital Requirements
In the event that less than $250 million in aggregate gross proceeds from Class A Interests and corresponding Subordinated Loans are received in this offering and the concurrent private placement transactions, Bally's Corporation intends to cause Bally's Chicago HoldCo to provide additional funding to us in an amount up to such shortfall. This funding may be provided through the purchase by Bally's Chicago HoldCo of Class A Interests in this offering or the concurrent private placements, which interests can be held for resale, or through the issuance by us of additional debt, equity, equity-linked securities or intercompany notes to Bally's Corporation, Bally's Chicago HoldCo or their affiliates, among other methods.

Based on Bally's equity commitments to Bally's Chicago OpCo and the financing we have received from GLPI, we believe that we are sufficiently capitalized until the opening of our permanent casino and resort. However, unforeseen events could necessitate us to raise additional capital. If we do need to raise additional capital, we may seek to do so through various sources, including equity offerings, debt financings, collaborations, strategic alliances and/or licensing arrangements. We cannot assure you that we will be able to obtain additional funds on acceptable terms, or at all. If we raise additional funds by issuing equity or equity-linked securities, our stockholders may experience dilution. Debt financing, if available, may

------

[**TABLE OF CONTENTS**](#TOC)

involve restrictive covenants, which may limit our ability to operate moving forward. If we raise funds through collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our intellectual property and/or future revenue streams, or grant licenses on terms that may not be favorable to us. Furthermore, if Bally's Chicago HoldCo purchases Class A Interests in this offering or the concurrent private placements, we may pursue a secondary public offering of such Class A Interests in the future. We regularly communicate with the City of Chicago and provide updates regarding our compliance with the City's requirements under the Host Community Agreement. We are engaging in our best efforts to meet such requirements and intend to continue to engage in our best efforts to meet such requirements in the future.

#### Compliance with the Host Community Agreement
We continuously assess our adherence to the Host Community Agreement to ensure satisfaction of the terms and conditions included therein. As of the date of this prospectus and regarding the requirements to date, we have no knowledge of non-compliance with the terms of the Host Community Agreement as established by the City of Chicago. The Host Community Agreement establishes certain timelines, ownership requirements, milestones and objectives that must be satisfied by us in order to retain our license to build and operate our resort and casino, including those listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • *Timing*. The Host Community Agreement requires us to (i) with respect to the temporary casino, (A) complete (as such term is defined in the Host Community Agreement) the construction of our temporary casino not later than twelve months following the date on which the Illinois Gaming Board found us to be preliminarily suitable for licensing (subject to certain extensions), (B) commence operation not later than two months following the completion date in (i)(A) and (C) achieve final completion (as such term is defined in the Host Community Agreement) not later than three months following the completion date in (i)(A) and (ii) with respect to the permanent casino and resort, (A) complete (as such term is defined in the Host Community Agreement) the construction of our permanent casino and resort not later than thirty-six months and one day following the commencement date in (i)(B) (subject to certain extensions), (B) commence operation not later than three months following the completion date in (ii)(A) and (C) achieve final completion (as such term is defined in the Host Community Agreement) not later than six months following the completion date in (ii)(A). The Illinois Gaming Board found us to be preliminarily suitable for licensing on June 15, 2023. As of the date of this prospectus, we have completed, commenced the operation of, and achieved final completion of the temporary casino in accordance with the Host Community Agreement. We commenced the construction of our permanent casino and resort in the first quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • *Ownership requirements*. This offering will be open to residents of Illinois, Florida, New York and Texas, with preferential allocations to residents of the City of Chicago and other parts of the State of Illinois. Bally's will not provide preferential allocations to investors based upon any investor's self-reported characteristics, including without limitation gender, race, and nationality. This distribution plan is consistent with the intent of the Host Community Agreement to ensure that a broader representation of residents of the City of Chicago have ownership of the city's first casino and resort.

Under the Host Community Agreement, Bally's commits that 25% of Bally's Chicago OpCo's equity will be owned by Minority individuals and Minority-Owned and Controlled Businesses (as such terms are defined in the Host Community Agreement) no later than twelve months following July 13, 2022 or such later date as may be determined by the City of Chicago, and will continue for no less than five years thereafter. The Host Community Agreement's ownership requirement applies to total ownership of Bally's Chicago OpCo's equity and not just this offering. To assist with assessing overall compliance with the Host Community Agreement's ownership requirements, we will provide an opportunity for investors to voluntarily self-disclose certain identifying characteristics. However, we will not provide preferential allocations to investors in this offering based upon their responses. We expect to continue to request such information from all prospective investors.

As of the date of this prospectus, 2,141 shares of our Class A-4 Interests and 30,000 shares of our Class B Interests are held by Bally's Chicago HoldCo, and 1,185 Class A Interests are, to our knowledge, held by various investors that have satisfied these criteria.

------

[**TABLE OF CONTENTS**](#TOC)

 *Although we are and will continue to request self-disclosure of certain identifying characteristics of investors, there are no assurances that we will be able to satisfy these criteria, which could cause us to fall into non-compliance with the Host Community Agreement. Such failure could result in the City of Chicago issuing a notice of default and seeking the exercise of remedies available under the terms of the Host Community Agreement at law or in equity, which could include the payment of money damages by Bally's or the termination of the Host Community Agreement. See "Risk Factors — Business Operational Risks — Failure to comply with the community investment program obligations specified in the Host Community Agreement could have a material adverse effect on our financial condition and results of operations" and "Risk Factors — Risks Related to this Offering and Ownership of our Class A Interest — This offering has resulted in lawsuits and may in the future lead to additional lawsuits" for more information regarding the effects of non-compliance on our company.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • *Other Commitments*. The Host Community Agreement also sets forth other commitments, including with respect to achievement of various hiring levels, compliance with certain marketing and operating plans, compliance with the City of Chicago's sustainable development policy, assurance of labor harmony, relocation of and compensation for existing businesses and tenants, compliance with a traffic control plan, adherence to ethical and responsible gaming practices, training of employees, payment of applicable customary permit and license fees and compliance with the Americans with Disabilities Act. As of the date of this prospectus, we have no knowledge of non-compliance with such requirements and intend to continue to engage in our best efforts to meet such requirements in the future.

We are actively engaged in communications with the City of Chicago regarding all open items and are using — and intend to continue to use — our best efforts to comply with the Host Community Agreement, in order to retain our license to build and operate our planned resort and casino.

#### Our Relationship with Chicago
We are designing, developing and constructing a world-class entertainment destination resort in partnership with the City of Chicago. In connection with this partnership, we have entered into various agreements and development programs as set forth below.

#### Host Community Agreement with the City of Chicago
On June 9, 2022, we signed a host community agreement with the City of Chicago to develop our destination casino and resort in downtown Chicago (the "Host Community Agreement"). The Host Community Agreement provides us with the exclusive right to operate a permanent casino and a temporary casino for up to three years while our permanent casino and resort is constructed.

Pursuant to the Host Community Agreement, our permanent casino and resort is being designed to feature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 150 permanent gaming tables, including 20 poker tables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in-person and mobile sports wagering facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a 5-star quality high-end luxury hotel with 100 rooms initially, as well as amenities such as a rooftop bar, a fitness center, subject to expansion to up to 500 rooms within approximately five years of the opening of our permanent casino and resort;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 65,000 square feet of entertainment and event space, including a flexible theater space with approximately 2.4 acres of greenspace that can be used to host outdoor events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • six restaurants/cafes and a food hall, including a three-meal diner with capacity for approximately 150 seats, a Bally's Sports Bar with capacity for approximately 200 seats, a food hall with capacity for approximately 175 seats, an Asian restaurant with capacity for approximately 50 seats, a steakhouse with capacity for approximately 150 seats, an Italian restaurant with capacity for approximately 200 seats and a grab-and-go coffee bar with capacity for approximately 20 seats;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • four bars and lounges, including a casino bar, a cocktail lounge with capacity for over 50 seats, a VIP lounge with capacity for over 60 seats and a rooftop bar with capacity for over 100 seats (including two hidden speakeasies that patrons can visit);

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 3,000 square feet of ancillary retail space, including sundries and souvenir shops;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a garage or parking facility with approximately 3,300 parking spaces, including approximately 2,200 patron spaces, approximately 600 employee spaces and approximately 500 valet spaces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a visitor center for tourists and business travelers visiting Chicago, including a concierge service operated in coordination with Choose Chicago, a nonprofit organization that specializes in Chicago travel options; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an approximately 23,000 square foot museum, with exhibits presenting Chicago sports and history and other rotating exhibitions.

In furtherance of these obligations, the Host Community Agreement establishes a minimum capital investment of $1.34 billion on the design, construction and equipping of our temporary casino and our permanent casino and resort. As of March 31, 2025 (Successor), approximately $1.0 billion of this commitment remains. The actual cost of the development may exceed this minimum capital investment amount. In addition, land acquisition costs and financing costs, among other types of costs, are not counted toward meeting this minimum capital investment amount.

Additionally, as part of the design, development and construction of our temporary casino and our permanent casino and resort, the Host Community Agreement requires us to employ approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 2,900 individuals in the construction of our temporary casino;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,000 individuals in the construction of our permanent casino and resort; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 2,500 individuals in the construction of the hotel tower.

Once operational, the Host Community Agreement requires us to employ:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 550 individuals in our temporary casino; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 3,000 individuals in our permanent casino and resort.

In connection with the entry into the Host Community Agreement with the City of Chicago, we were required to make a one-time payment to the City of Chicago equal to $40.0 million, and are required to make ongoing payments of $4.0 million per year beginning on September 9, 2023, the date that our temporary casino opened to the general public. Additionally, in connection with the Host Community Agreement, Bally's Corporation was required to provide the City of Chicago with a guaranty whereby the Company is required to have and maintain available financial resources in an amount reasonably sufficient to fund all amounts necessary to allow us to meet our obligations under the Host Community Agreement and, to the extent we fail to perform any obligations thereunder, assume full responsibility for and perform our obligations in accordance with the terms, covenants and conditions set forth in the Host Community Agreement. The guaranty also required that we indemnify and hold the City of Chicago harmless from and against any and all loss, cost, damage, injury, liability, claim or reasonable and documented expense the City of Chicago may suffer or incur by reason of any nonpayment or nonperformance of any of our obligations.

The Illinois Gambling Act requires the Illinois Gaming Board (the "IGB"), in determining whether or not to issue the casino owners license, to have considered diverse ownership goals. The IGB approved the issuance of the license to us on October 26, 2023.

In addition, the Host Community Agreement requires that 40% of seats on our board of directors (our "Board") be reserved for Minorities or women.

The Host Community Agreement provides that in the event that 75% of the gaming area of our permanent casino and resort is not open to the general public by September 10, 2026 (the "Completion Deadline"), subject to any extensions as a result of Force Majeure Periods (as defined in the Host Community Agreement), we must pay the City of Chicago an amount, calculated on a daily basis, equal to the product of (i) 85% of the projected local tax revenue multiplied by (ii) the number of days since the Completion Deadline, until 75% of the gaming area of our permanent casino and resort opens to the general public; *provided* that any local tax revenue actually received for such period shall not subtracted from any amounts due to the City of Chicago.

------

[**TABLE OF CONTENTS**](#TOC)

In addition, the Host Community Agreement also provides that in the event that 90%, taken as a whole, of our permanent casino and resort is not completed (as evidenced by the issuance of a temporary certificate of occupancy by the City of Chicago's Department of Buildings) by the Completion Deadline, subject to any extensions as a result of Force Majeure Periods (as defined in the Host Community Agreement), we must pay the City of Chicago an amount, calculated on a daily basis, equal to the product of (i) 10% of the projected local tax revenue multiplied by (ii) the number of days since the Completion Deadline, until 90%, taken as a whole, of our permanent casino and resort is completed (as evidenced by the issuance of a temporary certificate of occupancy by the City of Chicago's Department of Buildings).

If we show we timely commenced and have been diligently pursuing the construction of our permanent casino and resort, the City of Chicago may consent up to two three-month extensions of the Completion Deadline, followed by one two-month extension of the Completion Deadline, for a possible total extension of eight months. The first extension shall be consented to automatically by the City of Chicago and any subsequent consent shall not be unreasonably withheld, conditioned or delayed.

#### Gaming License
In order to operate our casino and resort, we will be required to obtain and hold licenses issued by the Illinois Gaming Board. The license issued by the Illinois Gaming Board to casino operators is referred to as an "owners license" and is issued by the Illinois Gaming Board for a period of up to four years. The owners license may then be renewed for subsequent four-year terms. The Illinois Gambling Act requires, among other things, that every applicant for an owners license provide evidence of their best efforts to attain certain ownership goals (25% ownership representation by minority persons and 5% ownership representation by women) (the "Best Efforts Ownership Standards"), which the Illinois Gaming Board considers when determining whether to grant the license.

On October 26, 2023, we obtained a four-year owners license from the Illinois Gaming Board. This license will expire on October 25, 2027, and may be renewed for subsequent four-year terms. On October 26, 2023, the Illinois Gaming Board also approved extending the operation of our temporary casino until September 9, 2026. The fee for the issuance or renewal of the owners license is $250,000. The license obligates the recipient to adhere to the standards and requirements set forth in the Illinois Gambling Act and the Illinois Gaming Board Rules, including the Best Efforts Ownership Standards. The Illinois Gaming Board has the authority to limit the term of the license at issuance or any renewal and may dictate additional restrictions upon the license. Based on its understanding of the licensing criteria applicable to gaming entities in Illinois and receipt of the owners license, Bally's believes it has satisfied its obligations to use its best efforts to attain the ownership goals set forth under the Illinois Gambling Act and has not received any notification to the contrary from the Illinois Gaming Board.

#### Community Investment Program
We have agreed with the City of Chicago that we will commit to hiring residents of Chicago with various workforce development organizations in both the construction of our temporary casino and our permanent casino and resort, but also with respect to employment once our casinos are operational.

We are committed to the following hiring targets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we are required to provide preference to Chicago-based businesses, if possible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the hiring of contractors for the construction of our temporary casino and our permanent casino and resort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 36% of funds need to go towards Minority-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 10% of funds need to go towards women-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the hiring of workers to build our temporary casino and our permanent casino and resort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 50% of total hours on our permanent casino and resort must be performed by Chicago residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 15.5% of construction work must be performed by residents of socially and economically disadvantaged areas;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the sourcing of goods and services and other vendor spending in connection with our temporary casino and our permanent casino and resort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 26% of funds need to go towards Minority-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 10% of funds need to go towards women-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 2% of funds need to go towards disadvantaged businesses, including businesses by owners that have historically been disadvantaged; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 3% of funds need to go towards veteran- or service-disabled veteran-owned businesses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a target goal of 60% Minority hiring in the operation of our casino.

Under the community investment program, we intend on reducing the disparities that exist in the initial procurement process of goods and services by requiring that all contracts and bids in excess of $10,000 be issued via a competitive bidding process. Additionally, we intend to list all employment and procurement opportunities on our website. We intend on hosting an annual diversity vendor fair on the premises of our permanent casino and resort, and intend on hiring a third-party expert in sourcing and contracting vendors to leverage their network of vendors, suppliers and individuals seeking jobs to push notifications, recruit bidders and support us in the process.

We have also agreed with the City of Chicago that we will commit to providing training opportunities for various roles in our casino and resort, including for table game dealers and F&B workers, and work to set up job fairs in order to attract potential applicants to employment opportunities in our casino and resort.

In line with our commitments to the City of Chicago, we also currently intend to provide preferential allocations of Class A Interests to City of Chicago residents and Illinois residents during this offering.

#### Our Community First Programs
As a member of the Bally's organization, we intend to adhere to the Bally's community-first policy, which is a fundamental and defining element of who we are as a company. We intend to build strong, lasting partnerships with local residents and businesses in Chicago.

As part of our community-first policy, we intend to implement programs to provide individuals with gaming addiction with support services, both offsite and onsite, including treatment of compulsive behavior disorders. We also intend to take extraordinary precautions to ensure that minors are prohibited from participating in any of the gaming activities at our casino and resort. Additionally, we intend to take precautions to ensure that our marketing practices do not disproportionately target disadvantaged communities, and will work to provide best-in-class social programs geared towards addressing gambling addiction throughout the Chicago area.

#### Corporate Structure
The below depicts our organizational structure upon the closing of this offering and the concurrent private placements and the consummation of the Transactions, taking into account the initial Class A Interest issuances and both the anticipated purchase of 4,086 LLC Interests and prior issuances of 3,326 LLC

------

[**TABLE OF CONTENTS**](#TOC)

Interests. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Developments*" for more information.

![[MISSING IMAGE: fc_corporatestruc-bw.jpg]](fc_corporatestruc-bw.jpg)

#### Conflicts of Interest
 *Services Agreements* 

Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into the Permanent Services Agreement and the Temporary Services Agreement with BMG, a subsidiary of Bally's Corporation, in January 2023 and in August 2023, respectively. See "*— Our Relationship with Bally's Corporation,*" "*Transactions with Related Persons — Permanent Services Agreement*" and "*Transactions with Related Persons — Temporary Services Agreement*" for more information.

 *Other Conflicts of Interest* 

We are currently dependent on Bally's for a majority of our working capital and financing requirements. As of March 31, 2025 (Successor), we and Bally's Chicago OpCo owe $642.4 million in promissory notes (the "Pre-IPO Intercompany Notes") to Bally's and various of its subsidiaries. The Pre-IPO Intercompany Notes have borne and bear interest at a rate equal to 0.0% per annum and are scheduled to mature on December 31, 2025, but all portions that remain outstanding are expected to be extinguished upon the closing of this offering.

Prior to the closing of this offering, Bally's Chicago HoldCo will assign to Bally's Chicago Inc. $62.7 million of Pre-IPO Intercompany Notes owed to it by Bally's Chicago OpCo as a capital contribution (the "Pre-IPO Capital Contribution"). The amount of the Pre-IPO Capital Contribution will equal the aggregate amount of Subordinated Loans that we will enter into based on the amount of the various classes of Class A Interests sold in this offering and the concurrent private placements.

In connection with the closing of this offering, we intend to pay the placement agent fees and offering and private placement expenses payable by us with the proceeds we receive from Class A investors in this offering and the concurrent private placements. In turn, we intend to issue Bally's Chicago OpCo a promissory note (the "IPO Expenses Note") in an amount equal to approximately $17.5 million, which is equal to the

------

[**TABLE OF CONTENTS**](#TOC)

placement agent fees and offering and private placement expenses payable by us, to cover the difference in the amount we will owe Bally's Chicago OpCo in connection with the purchase of the LLC Interests. Bally's Chicago OpCo intends to assign the IPO Expenses Note to Bally's Chicago HoldCo in exchange for the cancellation of certain indebtedness owed by Bally's Chicago OpCo to Bally's Chicago HoldCo. The IPO Expenses Note will bear interest at a rate equal to 11.0% per annum and will mature on December 31, 2034.

We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest. The 4,086 LLC Interests we purchase, together with the 3,326 LLC Interests we currently hold, will represent 19.8% of the economic interest in Bally's Chicago OpCo and the Class A Interests to be held by Bally's Chicago HoldCo and the public stockholders upon the closing of this offering will represent 19.8% of the voting power and 100.0% of the economic interest in Bally's Chicago, Inc.

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to us to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes. Upon the closing of this offering, the 30,000 LLC Interests that are currently held by Bally's Chicago HoldCo will represent 80.2% of the economic interest in Bally's Chicago OpCo. Bally's Chicago HoldCo, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power and 45.8% of the economic power of our stock.

No compensation of any kind, including finder's and consulting fees, will be paid by us to Bally's officers and directors, or any of their respective affiliates, for services rendered prior to or in connection with the closing of this offering. However, these individuals will be reimbursed for any out-of-pocket expenses incurred in connection with their work on this offering.

#### Guarantee of Bally's Corporation's Obligations
We and Bally's Chicago HoldCo, our direct parent and the entity that holds 2,141 of our Class A-4 Interests and all of our Class B Interests, as well as certain other current and future unrestricted subsidiaries of Bally's Corporation under its credit facilities and bond indentures, have guaranteed Bally's Chicago OpCo's obligations under the GLP Lease Agreement and GLP Development Agreement; *provided*, however, that at such time as Bally's Chicago OpCo becomes a restricted subsidiary under Bally's Corporation's credit facilities and bond indentures, (i) Bally's Corporation will be required to guarantee the GLP Lease Agreement and GLP Development Agreement and (ii) following the delivery of such guarantee, the guarantees of the GLP Lease Agreement and GLP Development Agreement provided by Bally's Chicago HoldCo and such other unrestricted subsidiaries of Bally's Corporation shall terminate.

In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation and its subsidiaries upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; *provided* that, at any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's Corporation's revolving credit facilities outstanding at such time). Furthermore, in March 2025, we and Bally's Chicago OpCo entered into the Guarantee Agreement with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional obligations, including, without limitation, indebtedness and lease obligations that Bally's Corporation or its subsidiaries enter into at any time in the future. See "*Transactions with Related Persons — Guarantee of Bally's Corporation's Obligations.*"

------

[**TABLE OF CONTENTS**](#TOC)

#### Bally's Chicago OpCo Amended and Restated Limited Liability Company Agreement
As Bally's Chicago, Inc. will hold LLC Interests in Bally's Chicago OpCo and will continue to be the sole managing member of Bally's Chicago OpCo after this offering and the concurrent private placements, Bally's Chicago, Inc. will have the obligation to absorb losses and receive benefits from Bally's Chicago OpCo, and consolidate the financial results of Bally's Chicago OpCo and, through Bally's Chicago OpCo and its operating entity subsidiaries, conduct our business.

Pursuant to the amended and restated limited liability company agreement of Bally's Chicago OpCo, Bally's Chicago, Inc. has the right to determine when distributions will be made to holders of LLC Interests and the amount of any such distributions, taken into consideration any applicable limitations and restrictions. See "*Dividend Policy.*" If a distribution is authorized, such distribution will be made to the holders of LLC Interests pro rata in accordance with the percentages of their respective LLC Interests held. See "*Transactions with Related Persons — Bally's Chicago OpCo Amended and Restated Limited Liability Company Agreement.*"

#### Stockholders Agreement
In March 2025, we and Bally's Chicago HoldCo entered into the Stockholders Agreement, pursuant to which for so long as Bally's Chicago HoldCo beneficially owns at least 50% of the aggregate number of our stock outstanding, certain actions by us or any of our subsidiaries, including Bally's Chicago OpCo, will require the prior written consent of Bally's Chicago HoldCo. See "*— Our Relationship with Bally's Corporation*" and "*Transactions with Related Persons — Stockholders Agreement*" for more information.

#### Support Letter
In January 2025, we obtained a letter of support from Bally's Corporation, pursuant to which Bally's Corporation commits to fund all of our operating, investing, and financing activities through at least December 31, 2026 and further commits not to make any decision or action that would reasonably be expected to negatively affect our ability to continue as a going concern through at least December 31, 2026.

#### Additional Capital Requirements
In the event that less than $250 million in aggregate gross proceeds from Class A Interests and corresponding Subordinated Loans are received in this offering and the concurrent private placement transactions, Bally's Corporation intends to cause Bally's Chicago HoldCo to provide additional funding to us in an amount up to such shortfall. This funding may be provided through the purchase by Bally's Chicago HoldCo of Class A Interests in this offering or the concurrent private placements, which interests can be held for resale, or through the issuance by us of additional debt, equity, equity-linked securities or intercompany notes to Bally's Corporation, Bally's Chicago HoldCo or their affiliates, among other methods.

Based on Bally's equity commitments to Bally's Chicago OpCo and the financing we have received from GLPI, we believe that we are sufficiently capitalized until the opening of our permanent casino and resort. However, unforeseen events could necessitate us to raise additional capital. If we do need to raise additional capital, we may seek to do so through various sources, including equity offerings, debt financings, collaborations, strategic alliances and/or licensing arrangements. We cannot assure you that we will be able to obtain additional funds on acceptable terms, or at all. If we raise additional funds by issuing equity or equity-linked securities, our stockholders may experience dilution. Debt financing, if available, may involve restrictive covenants, which may limit our ability to operate moving forward. If we raise funds through collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our intellectual property and/or future revenue streams, or grant licenses on terms that may not be favorable to us. Furthermore, if Bally's Chicago HoldCo purchases Class A Interests in this offering or the concurrent private placements, we may pursue a secondary public offering of such Class A Interests in the future. We regularly communicate with the City of Chicago and provide updates regarding our compliance with the City's requirements under the Host Community Agreement. We are engaging in our best efforts to meet such requirements and intend to continue to engage in our best efforts to meet such requirements in the future.

------

[**TABLE OF CONTENTS**](#TOC)

#### Compliance with the Host Community Agreement
We continuously assess our adherence to the Host Community Agreement to ensure satisfaction of the terms and conditions included therein. As of the date of this prospectus and regarding the requirements to date, we have no knowledge of non-compliance with the terms of the Host Community Agreement as established by the City of Chicago. The Host Community Agreement establishes certain timelines, ownership requirements, milestones and objectives that must be satisfied by us in order to retain our license to build and operate our resort and casino, including those listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • *Timing*. The Host Community Agreement requires us to (i) with respect to the temporary casino, (A) complete (as such term is defined in the Host Community Agreement) the construction of our temporary casino not later than twelve months following the date on which the Illinois Gaming Board found us to be preliminarily suitable for licensing (subject to certain extensions), (B) commence operation not later than two months following the completion date in (i)(A) and (C) achieve final completion (as such term is defined in the Host Community Agreement) not later than three months following the completion date in (i)(A) and (ii) with respect to the permanent casino and resort, (A) complete (as such term is defined in the Host Community Agreement) the construction of our permanent casino and resort not later than thirty-six months and one day following the commencement date in (i)(B) (subject to certain extensions), (B) commence operation not later than three months following the completion date in (ii)(A) and (C) achieve final completion (as such term is defined in the Host Community Agreement) not later than six months following the completion date in (ii)(A). The Illinois Gaming Board found us to be preliminarily suitable for licensing on June 15, 2023. As of the date of this prospectus, we have completed, commenced the operation of, and achieved final completion of the temporary casino in accordance with the Host Community Agreement. We commenced the construction of our permanent casino and resort in the first quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • *Ownership requirements*. This offering will be open to residents of Illinois, Florida, New York and Texas, with preferential allocations to residents of the City of Chicago and other parts of the State of Illinois. Bally's will not provide preferential allocations to investors based upon any investor's self-reported characteristics, including without limitation gender, race, and nationality. This distribution plan is consistent with the intent of the Host Community Agreement to ensure that a broader representation of residents of the City of Chicago have ownership of the city's first casino and resort.

Under the Host Community Agreement, Bally's commits that 25% of Bally's Chicago OpCo's equity will be owned by Minority individuals and Minority-Owned and Controlled Businesses (as such terms are defined in the Host Community Agreement) no later than twelve months following July 13, 2022 or such later date as may be determined by the City of Chicago, and will continue for no less than five years thereafter. The Host Community Agreement's ownership requirement applies to total ownership of Bally's Chicago OpCo's equity and not just this offering. To assist with assessing overall compliance with the Host Community Agreement's ownership requirements, we will provide an opportunity for investors to voluntarily self-disclose certain identifying characteristics. However, we will not provide preferential allocations to investors in this offering based upon their responses. We expect to continue to request such information from all prospective investors.

As of the date of this prospectus, 2,141 shares of our Class A-4 Interests and 30,000 shares of our Class B Interests are held by Bally's Chicago HoldCo, and 1,185 Class A Interests are, to our knowledge, held by various investors that have satisfied these criteria.

 *Although we are and will continue to request self-disclosure of certain identifying characteristics of investors, there are no assurances that we will be able to satisfy these criteria, which could cause us to fall into non-compliance with the Host Community Agreement. Such failure could result in the City of Chicago issuing a notice of default and seeking the exercise of remedies available under the terms of the Host Community Agreement at law or in equity, which could include the payment of money damages by Bally's or the termination of the Host Community Agreement. See "Risk Factors — Business Operational Risks — Failure to comply with the community investment program obligations specified in the Host Community Agreement could have a material adverse effect on our financial condition and results of operations" and "Risk Factors — Risks Related to this Offering and Ownership of our Class A Interest — This offering has resulted in lawsuits and may in the future lead to additional lawsuits" for more information regarding the effects of non-compliance on our company.* 

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • *Other Commitments*. The Host Community Agreement also sets forth other commitments, including with respect to achievement of various hiring levels, compliance with certain marketing and operating plans, compliance with the City of Chicago's sustainable development policy, assurance of labor harmony, relocation of and compensation for existing businesses and tenants, compliance with a traffic control plan, adherence to ethical and responsible gaming practices, training of employees, payment of applicable customary permit and license fees and compliance with the Americans with Disabilities Act. As of the date of this prospectus, we have no knowledge of non-compliance with such requirements and intend to continue to engage in our best efforts to meet such requirements in the future.

We are actively engaged in communications with the City of Chicago regarding all open items and are using — and intend to continue to use — our best efforts to comply with the Host Community Agreement, in order to retain our license to build and operate our planned resort and casino.

#### Distributions and Repayment of Subordinated Loans
We are a holding company and the sole managing member of Bally's Chicago OpCo, and we conduct our business through Bally's Chicago OpCo. If we decide to make a distribution in the future, we would need to cause Bally's Chicago OpCo to make distributions to us in an amount sufficient to cover the repayment of the IPO Expenses Note, future borrowings plus such distribution. If Bally's Chicago OpCo makes such distributions to us, the other holders of LLC Interests will be entitled to receive pro rata distributions.

In addition, Bally's Chicago OpCo will report as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Bally's Chicago OpCo will be allocated to holders of LLC Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of Bally's Chicago OpCo. Under the terms of the Bally's Chicago OpCo LLC Agreement, Bally's Chicago OpCo will be obligated to make tax distributions to holders of LLC Interests, including us, to the extent it has distributable cash. In addition to tax expenses, we will also incur expenses related to our operations, which we expect could be significant. We intend, as its managing member, to cause Bally's Chicago OpCo to make cash distributions to the owners of LLC Interests in an amount sufficient to (1) fund all or part of their tax obligations in respect of taxable income allocated to them and (2) cover our operating expenses. However, Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions, such as restrictions on distributions that would either violate any contract or agreement to which Bally's Chicago OpCo is then a party, including any debt or financing agreements, or any applicable law, or that would have the effect of rendering Bally's Chicago OpCo insolvent. If we do not have sufficient funds to pay tax or other liabilities or to fund our operations, we may have to borrow funds, including potentially from Bally's and its affiliates if available, which could materially adversely affect our liquidity and financial condition and subject us to various restrictions imposed by any such lenders. See "*Risk Factors — Risks related to our organizational structure — Our principal asset after the completion of this offering and the concurrent private placements will be our interest in Bally's Chicago OpCo, and, as a result, we will depend on distributions from Bally's Chicago OpCo to pay our taxes and expenses. Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions.*"

Furthermore, we intend, as its managing member, to cause Bally's Chicago OpCo to make distributions of OpCo cash available for distribution on a quarterly basis. We define *OpCo cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, less payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. We do not expect any such distributions until after the permanent casino and resort is fully operational and generates cash flow.

In turn, we intend to distribute cash available for distribution to the holders of our Class A Interests (subject to certain requirements discussed below). Holders of our Class B Interests will not be entitled to

------

[**TABLE OF CONTENTS**](#TOC)

participate in distributions declared by our Board. We define *cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, *less* payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. Cash that is distributed to holders of our Class A Interests will be distributed pro rata according to the number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding at the time of such distribution.

Given the capital intensity of developing, constructing, opening and operating a casino resort project of this scale, we currently expect that Bally's Chicago OpCo will not have any OpCo cash available for distribution until approximately three to five years after our permanent casino and resort begins operations. However, this may fluctuate depending on Bally's Chicago OpCo's ability to generate cash from operations and its cash flow needs, which, among other things, may be impacted by debt service payments on its senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly, will be pre-payable at any time without a premium or penalty at a prepayment price equal to the principal amount thereof plus accrued interest, and will have no maturity date. See "*Subordinated Loans*" for more information on the Subordinated Loans.

If the principal and interest of any of the Subordinated Loans have been paid in full, by distributions from Bally's Chicago OpCo or any other means, we intend to distribute to holders of the corresponding Class A Interests with respect to any such Subordinated Loan an amount equal to 100% of the applicable distribution specified above in the form of a direct cash dividend.

While we intend, as its managing member, to cause Bally's Chicago OpCo to make distributions on a quarterly basis once it is able to generate OpCo cash available for distribution approximately three to five years after our permanent casino and resort begins operations, we and Bally's Chicago OpCo have not adopted a formal written dividend or distribution policy to pay a fixed amount of cash regularly or to pay any particular amount based on the achievement of, or derivable from, any specific financial metrics, including OpCo cash available for distribution. Further, we and Bally's Chicago OpCo are not contractually obligated to pay any dividends or make any distributions and do not have any required minimum quarterly dividend or distribution, except for tax-related distributions described above. Our and Bally's Chicago OpCo's distributions may vary from quarter to quarter, may be significantly reduced or may be eliminated entirely. While we and Bally's Chicago OpCo intend to make distributions equal to 100% of the cash available for distribution and OpCo cash available for distribution, respectively, on a quarterly basis, the actual amount of any distributions may fluctuate depending on our and Bally's Chicago OpCo's ability to generate cash from operations and our and Bally's Chicago OpCo's cash flow needs, which, among other things, may be impacted by debt service payments on our or Bally's Chicago OpCo's senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Our Board will have full discretion on how to deploy cash available for distribution, including the payment of dividends. Any debt we or Bally's Chicago OpCo may incur in the future is likely to restrict our and Bally's Chicago OpCo ability to pay dividends or distributions, and such restriction may prohibit us and Bally's Chicago OpCo from making distributions, or reduce the amount of cash available for distribution and OpCo cash available for distribution. In addition, Delaware law imposes requirements that may restrict our ability to pay dividends to

------

[**TABLE OF CONTENTS**](#TOC)

holders of our shares. See "*Risk Factors — Risks Related to this Offering and Ownership of our Class A Interests — You may not receive dividends or other distributions on the Class A Interests*" and "*Dividend Policy*."

#### Illustrative Examples
For illustrative purposes, below are examples of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • how we intend to initially make quarterly distributions of cash available for distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • how the compounding interest will affect the attributable value of the Subordinated Loans depending on the amount of distributions made on a quarterly basis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • how, in the event of a sale of Bally's Chicago OpCo, the amount paid in connection with such sale would be distributed per Class A Interest outstanding at the time of such sale.

These illustrative examples are only for purposes of illustrating how the effects of the Subordinated Loans would apply in such specific example. These illustrative examples are not projections, goals or targets. Nothing in these illustrative examples should be regarded as a representation by any person that these are projections, goals or targets. The cash available for distribution that is distributed to holders of our Class A Interests will be distributed pro rata according to the number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding at the time of such distribution. The examples below assume an equal number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding.

Given the capital intensity of developing, constructing, opening and operating a casino resort project of this scale, we currently expect that Bally's Chicago OpCo will not have any OpCo cash available for distribution until approximately three to five years after our permanent casino and resort begins operations. However, this may fluctuate depending on Bally's Chicago OpCo's ability to generate cash from operations and its cash flow needs, which, among other things, may be impacted by debt service payments on Bally's Chicago OpCo's senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. See "*Risk Factors — Risks Related to this Offering and Ownership of our Class A Interests — You may not receive dividends or other distributions on the Class A Interests*" and "*Dividend Policy*."

 ***The following example illustrates how we intend to initially make quarterly distributions of cash available for distributions once Bally's Chicago OpCo is able to generate OpCo cash available for distribution:***

If Bally's Chicago OpCo has $100,000,000 of OpCo cash available for distribution in a year, or $25,000,000 of OpCo cash available for distribution in a quarter, and in turn we have $25,000,000 of cash available for distribution in a year, or $6,250,000 of cash available for distribution in a quarter, we would intend to distribute such cash available for distribution as follows:

Initially, assuming an aggregate number of 10,000 Class A Interests to be issued in connection with this offering, distributed as 500 Class A-1 Interests, 1,000 Class A-2 Interests, 1,000 Class A-3 Interests and 7,500 Class A-4 Interests outstanding, when none of the Subordinated Loans have been fully repaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $1,250,000 per year, or $312,500 per quarter, towards the servicing of accrued interest and principal on the Class A-1 Subordinated Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $2,500,000 per year, or $625,000 per quarter, towards the servicing of accrued interest and principal on the Class A-2 Subordinated Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $2,500,000 per year, or $625,000 per quarter, towards the servicing of accrued interest and principal on the Class A-3 Subordinated Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $18,750,000 per year, or $4,687,500 per quarter, dividend to the holders of our Class A-4 Interests.

Once the Subordinated Loans for a particular class have been fully repaid, such class would receive the same amount as a dividend. Once all Subordinated Loans have been fully repaid, we would distribute the

------

[**TABLE OF CONTENTS**](#TOC)

$25,000,000 of cash available for distribution per year, or the $6,250,000 of cash available for distribution per quarter, to all Class A Interests on a pro rata basis as a dividend, which would amount to $2,500 per year per Class A Interest or $625 per quarter per Class A Interest.

The illustrative example above assumes an aggregate number of 10,000 Class A Interests to be issued in connection with this offering, distributed as 500 Class A-1 Interests, 1,000 Class A-2 Interests, 1,000 Class A-3 Interests and 7,500 Class A-4 Interests outstanding. However, we cannot guarantee that we will be able to sell such quantities of Class A Interests, whether in the aggregate or for each individual class. Consequently, the outstanding amount of Class A Interests upon completion of this offering may vary significantly from those presented in the example above. In the event that less than $250 million in aggregate amount of gross proceeds from Class A Interests and corresponding Subordinated Loans are received in this offering and the concurrent private placement transactions, Bally's Corporation intends to cause Bally's Chicago HoldCo to provide additional funding to us in an amount equal to such shortfall. The funding may be provided through the purchase by Bally's Chicago HoldCo of Class A Interests in this offering or the concurrent private placements or through the issuance by us of additional debt, equity, equity-linked securities or intercompany notes to Bally's Corporation, Bally's Chicago HoldCo or their affiliates, or other methods. See "— *Support Letter*."

In the event that there are different amounts of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests or Class A-4 Interests outstanding, the cash available for distribution that is distributed to holders of our Class A Interests will be distributed pro rata according to the number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding at the time of such distribution. Under this illustrative example, each 1% increase (decrease) in the number of Class A-1, A-2, A-3 or A-4 Interests outstanding as a percentage of our total outstanding shares, would increase (decrease) the cash available for distribution to such class of Class A Interests by approximately $25,000 on annual basis or $6,250 on a quarterly basis. The following illustrative examples further illustrative how the amounts outstanding per classes would affect distributions:

Assuming an aggregate number of 10,000 Class A Interests to be issued in connection with this offering, distributed as 5,000 Class A-1 Interests, 0 Class A-2 Interests, 0 Class A-3 Interests and 5,000 Class A-4 Interests outstanding, when none of the Subordinated Loans have been fully repaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $12,500,000 per year, or $3,125,000 per quarter, towards the servicing of accrued interest and principal on the Class A-1 Subordinated Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $0 per year, or $0 per quarter, towards the servicing of accrued interest and principal on the Class A-2 Subordinated Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $0 per year, or $0 per quarter, towards the servicing of accrued interest and principal on the Class A-3 Subordinated Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $12,500,000 per year, or $3,125,000 per quarter, dividend to the holders of our Class A-4 Interests.

Assuming an aggregate number of 10,000 Class A Interests to be issued in connection with this offering, distributed as 10,000 Class A-1 Interests, 0 Class A-2 Interests, 0 Class A-3 Interests and 0 Class A-4 Interests outstanding, when none of the Subordinated Loans have been fully repaid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $25,000,000 per year, or $6,250,000 per quarter, towards the servicing of accrued interest and principal on the Class A-1 Subordinated Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $0 per year, or $0 per quarter, towards the servicing of accrued interest and principal on the Class A-2 Subordinated Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $0 per year, or $0 per quarter, towards the servicing of accrued interest and principal on the Class A-3 Subordinated Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $0 per year, or $0 per quarter, dividend to the holders of our Class A-4 Interests.

Under both of the scenarios above, once the Subordinated Loans for a particular class have been fully repaid, such class would receive the same amount as a dividend. Once all Subordinated Loans have been fully repaid, we would distribute the $25,000,000 of cash available for distribution per year, or the $6,250,000

------

[**TABLE OF CONTENTS**](#TOC)

of cash available for distribution per quarter, to all Class A Interests on a pro rata basis as a dividend, which would amount to $2,500 per year per Class A Interest or $625 per quarter per Class A Interest.

The following tables include illustrative mathematical examples that illustrate how the compounding interest will affect the attributable value of the Subordinated Loans depending on the amount of distributions made on a quarterly basis. The tables assume an aggregate number of 10,000 Class A Interests to be issued in connection with this offering, distributed as 500 Class A-1 Interests, 1,000 Class A-2 Interests, 1,000 Class A-3 Interests and 7,500 Class A-4 Interests outstanding. However, we cannot guarantee that we will be able to sell such quantities of Class A Interests, whether in the aggregate or for each class. Consequently, the outstanding amount of Class A Interests upon completion of this offering may vary.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Class of <br> Interests**  | **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning in <br> Year 3<sup>(1)</sup>**  | **Balance of <br> corresponding <br> Subordinated <br> Loans <br> Interest as of <br> the Closing of <br> this Offering**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Assumed <br> Payoff date <br> taking into <br> account <br> compounding <br> interest and <br> assumed <br> distribution <br> amounts:**  |
| **Class of <br> Interests**  | **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning in <br> Year 3<sup>(1)</sup>**  | **Balance of <br> corresponding <br> Subordinated <br> Loans <br> Interest as of <br> the Closing of <br> this Offering**  | **Year 1<sup>(1)</sup>**  | **Year 2<sup>(1)</sup>**  | **Year 3**  | **Year 4**  | **Year 5**  | **Year 6**  | **Year 7**  | **Assumed <br> Payoff date <br> taking into <br> account <br> compounding <br> interest and <br> assumed <br> distribution <br> amounts:**  |
| A-1  | $0 | $24750  | $27587  | $30749  | $34273 | $38202 | $42581 | $47461 | $52901 | N/A  |
| A-1  | $25000000(3) | Same as above  | Same as above  | Same as above  | $31668 | $32693 | $33836 | $35109 | $36528 | N/A  |
| A-1  | $40000000(4) | Same as above  | Same as above  | Same as above  | $30105 | $29388 | $28588 | $27697 | $26704 | Year 19  |
| A-2  | $0 | $22500  | $25079  | $27954  | $31158 | $34729 | $38710 | $43147 | $48092 | N/A  |
| A-2  | $25000000(3) | Same as above  | Same as above  | Same as above  | $28553 | $29220 | $29965 | $30794 | $31719 | N/A  |
| A-2  | $40000000(4) | Same as above  | Same as above  | Same as above  | $26990 | $25915 | $24718 | $23383 | $21895 | Year 16  |
| A-3  | $0 | $20000  | $22292  | $24848  | $27696 | $30870 | $34409 | $38353 | $42749 | N/A  |
| A-3  | $25000000(3) | Same as above  | Same as above  | Same as above  | $25091 | $25362 | $25663 | $26000 | $26375 | N/A  |
| A-3  | $40000000(4) | Same as above  | Same as above  | Same as above  | $23528 | $22056 | $20416 | $18589 | $16551 | Year 12  |

---

(1) All assumptions assume no cash distributions until end of the first quarter of Year 3 after our permanent casino and resort begins operations.

(2) The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly.

(3) This assumed aggregate amount of distributions would result in payments on Subordinated Loans, or distributions, of approximately $2,500 per Class A Interest per year or $625 per Class A Interest per quarter.

(4) This assumed aggregate amount of distributions would result in payments on Subordinated Loans, or distributions, of approximately $4,000 per Class A Interest per year or $1,000 per Class A Interest per quarter.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Class of Interests**  | **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning in <br> Year 4<sup>(1)</sup>**  | **Balance of <br> corresponding <br> Subordinated <br> Loans <br> Interest as of <br> the Closing of <br> this Offering**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Assumed <br> Payoff date <br> taking into <br> account <br> compounding <br> interest and <br> assumed <br> distribution <br> amounts:**  |
| **Class of Interests**  | **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning in <br> Year 4<sup>(1)</sup>**  | **Balance of <br> corresponding <br> Subordinated <br> Loans <br> Interest as of <br> the Closing of <br> this Offering**  | **Year 1<sup>(1)</sup>**  | **Year 2<sup>(1)</sup>**  | **Year 3**  | **Year 4**  | **Year 5**  | **Year 6**  | **Year 7**  | **Assumed <br> Payoff date <br> taking into <br> account <br> compounding <br> interest and <br> assumed <br> distribution <br> amounts:**  |
| A-1  | $0 | $24750  | $27587  | $30749  | $34273  | $38202 | $42581 | $47461 | $52901 | N/A  |
|  | $25000000(3) | Same as above  | Same as above  | Same as above  | Same as above  | $35597 | $37072 | $38716 | $40549 | N/A  |
|  | $40000000(4) | Same as above  | Same as above  | Same as above  | Same as above  | $34034 | $33767 | $33469 | $33137 | Year 32  |
| A-2  | $0 | $22500  | $25079  | $27954  | $31158  | $34729 | $38710 | $43147 | $48092 | N/A  |
|  | $25000000(3) | Same as above  | Same as above  | Same as above  | Same as above  | $32124 | $33201 | $34402 | $35740 | N/A  |
|  | $40000000(4) | Same as above  | Same as above  | Same as above  | Same as above  | $30561 | $29896 | $29154 | $28328 | Year 20  |
| A-3  | $0 | $20000  | $22292  | $24848  | $27696  | $30870 | $34409 | $38353 | $42749 | N/A  |
|  | $25000000(3) | Same as above  | Same as above  | Same as above  | Same as above  | $28265 | $28900 | $29607 | $30396 | N/A  |
|  | $40000000(4) | Same as above  | Same as above  | Same as above  | Same as above  | $26702 | $25595 | $24360 | $22985 | Year 16  |

---

(1) All assumptions assume no cash distributions until end of the first quarter of Year 4 after our permanent casino and resort begins operations.

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

(2) The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly.

(3) This assumed aggregate amount of distributions would result in payments on Subordinated Loans, or distributions, of approximately $2,500 per Class A Interest per year or $625 per Class A Interest per quarter.

(4) This assumed aggregate amount of distributions would result in payments on Subordinated Loans, or distributions, of approximately $4,000 per Class A Interest per year or $1,000 per Class A Interest per quarter.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Class of <br> Interests**  | **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning in <br> Year 5<sup>(1)</sup>**  | **Balance of <br> corresponding <br> Subordinated <br> Loans <br> Interest as of <br> the Closing of <br> this Offering**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Illustrative Mathematical Examples, taking into <br> account compounding interest and assumed distribution amounts: <br> Resulting Balance of Subordinated Loans per <br> corresponding share at the End of Fiscal Year<sup>(1)(2)</sup>**  | **Assumed <br> Payoff date <br> taking into <br> account <br> compounding <br> interest and <br> assumed <br> distribution <br> amounts:**  |
| **Class of <br> Interests**  | **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning in <br> Year 5<sup>(1)</sup>**  | **Balance of <br> corresponding <br> Subordinated <br> Loans <br> Interest as of <br> the Closing of <br> this Offering**  | **Year 1<sup>(1)</sup>**  | **Year 2<sup>(1)</sup>**  | **Year 3**  | **Year 4**  | **Year 5**  | **Year 6**  | **Year 7**  | **Assumed <br> Payoff date <br> taking into <br> account <br> compounding <br> interest and <br> assumed <br> distribution <br> amounts:**  |
| A-1  | $0 | $24750  | $27587  | $30749  | $34273  | $38202  | $42581 | $47461 | $52901 | N/A  |
|  | $25000000(3) | Same as above  | Same as above  | Same as above  | Same as above  | Same as above  | $39976 | $41953 | $44156 | N/A  |
|  | $40000000(4) | Same as above  | Same as above  | Same as above  | Same as above  | Same as above  | $38413 | $38647 | $38909 | N/A  |
| A-2  | $0 | $22500  | $25079  | $27954  | $31158  | $34729  | $38710 | $43147 | $48092 | N/A  |
|  | $25000000(3) | Same as above  | Same as above  | Same as above  | Same as above  | Same as above  | $36105 | $37638 | $39347 | N/A  |
|  | $40000000(4) | Same as above  | Same as above  | Same as above  | Same as above  | Same as above  | $34542 | $34333 | $34100 | Year 31  |
| A-3  | $0 | $20000  | $22292  | $24848  | $27696  | $30870  | $34409 | $38353 | $42749 | N/A  |
|  | $25000000(3) | Same as above  | Same as above  | Same as above  | Same as above  | Same as above  | $31804 | $32844 | $34003 | N/A  |
|  | $40000000(4) | Same as above  | Same as above  | Same as above  | Same as above  | Same as above  | $30241 | $29539 | $28756 | Year 21  |

---

(1) All assumptions assume no cash distributions until end of the first quarter of Year 5 after our permanent casino and resort begins operations.

(2) The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly.

(3) This assumed aggregate amount of distributions would result in payments on Subordinated Loans, or distributions, of approximately $2,500 per Class A Interest per year or $625 per Class A Interest per quarter.

(4) This assumed aggregate amount of distributions would result in payments on Subordinated Loans, or distributions, of approximately $4,000 per Class A Interest per year or $1,000 per Class A Interest per quarter.

The following tables include illustrative mathematical examples that illustrate how, in the event of a sale of Bally's Chicago OpCo at the end of Year 7 after our permanent casino and resort begins operations, the amount paid in connection with such sale would be distributed per share outstanding at the time of such sale, taking into account the illustrative mathematical examples in each of the tables above and assuming an aggregate number of 10,000 Class A Interests to be issued in connection with this offering, distributed as 500 Class A-1 Interests, 1,000 Class A-2 Interests, 1,000 Class A-3 Interests and 7,500 Class A-4 Interests outstanding:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 3 after our permanent casino and resort begins operations:**  |
| **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning <br> in Year 3**  | **Assumed Price <br> Paid in <br> Connection with <br> the Sale of the <br> Company<sup>(1)</sup>**  | **Assumed Total <br> Senior <br> Indebtedness <br> Outstanding of <br> Bally's Chicago <br> OpCo at <br> the Time of the <br> Sale of the <br> Company**  | **Amount <br> Remaining After <br> Payment of <br> Senior <br> Indebtedness <br> Outstanding of <br> Bally's Chicago <br> OpCo**  | **Amount <br> Distributed <br> to Bally's <br> Chicago, Inc.<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-1 <br> Interest<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-2 <br> Interest<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-3 <br> Interest<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-4 <br> Interest<sup>(1)</sup>**  |
| $0  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;$30000<sup>(2</sup>) |
| $25000000  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;$0<sup>(3</sup>) | &nbsp;&nbsp;&nbsp;$0<sup>(3</sup>) | &nbsp;&nbsp;$3625<sup>(3</sup>) | &nbsp;&nbsp;$30000<sup>(3</sup>) |
| $40000000  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;$3296<sup>(4</sup>) | &nbsp;&nbsp;&nbsp;$8105<sup>(4</sup>) | &nbsp;&nbsp;$13449<sup>(4</sup>) | &nbsp;&nbsp;$30000<sup>(4</sup>) |

---

(1) In the event of a sale of Bally's Chicago OpCo, after payment or provision for payment of Bally's

------

[**TABLE OF CONTENTS**](#TOC)

Chicago OpCo's debt and liabilities (to the extent required by the terms of the agreements governing such debt and liabilities), including any amounts due under Bally's Chicago OpCo's senior indebtedness, each LLC Interest will be entitled to receive a proportionate interest in the net assets of Bally's Chicago OpCo. In turn, the interests in the net assets of Bally's Chicago OpCo received by Bally's Chicago, Inc. will be used to pay Bally's Chicago, Inc.'s debts and liabilities (to the extent required by the terms of the agreements governing such debt and liabilities), including any amounts under any senior indebtedness. Each Class A Interest will be entitled to receive a proportionate interest in the net assets remaining for distribution to holders of Class A Interests as adjusted for any amount of Subordinated Loans attributable to such class that remained outstanding at the time of the sale of Bally's Chicago OpCo.

(2) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $26,450,657, $48,092,104 and $42,748,536, respectively.

(3) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $18,263,970, $31,718,730 and $26,375,163, respectively.

(4) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $13,351,958, $21,894,706 and $16,551,139, respectively.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  | **Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and <br> assumed distribution amounts beginning Year 4 after our permanent casino and resort begins operations:**  |
| **Assumed <br> Aggregate <br> Class A <br> Distributions <br> per Year, <br> beginning <br> in Year 4**  | **Assumed Price <br> Paid in <br> Connection with <br> the Sale of the <br> Company<sup>(1)</sup>**  | **Assumed Total <br> Senior <br> Indebtedness <br> Outstanding of <br> Bally's Chicago <br> OpCo at <br> the Time of the <br> Sale of the <br> Company**  | **Amount <br> Remaining After <br> Payment of <br> Senior <br> Indebtedness <br> Outstanding of <br> Bally's Chicago <br> OpCo**  | **Amount <br> Distributed to <br> Bally's <br> Chicago, Inc.<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-1 <br> Interest<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-2 <br> Interest<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-3 <br> Interest<sup>(1)</sup>**  | **Average <br> Amount <br> Distributed per <br> Class A-4 <br> Interest<sup>(1)</sup>**  |
| $0  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;$30000<sup>(2</sup>) |
| $25000000  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(3</sup>) | &nbsp;&nbsp;&nbsp;$1672<sup>(3</sup>) | &nbsp;&nbsp;&nbsp;$7015<sup>(3</sup>) | &nbsp;&nbsp;$30000<sup>(3</sup>) |
| $40000000  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(4</sup>) | &nbsp;&nbsp;&nbsp;$1672<sup>(4</sup>) | &nbsp;&nbsp;&nbsp;$7015<sup>(4</sup>) | &nbsp;&nbsp;$30000<sup>(4</sup>) |

---

(1) In the event of a sale of Bally's Chicago OpCo, after payment or provision for payment of Bally's Chicago OpCo's debt and liabilities (to the extent required by the terms of the agreements governing such debt and liabilities), including any amounts due under Bally's Chicago OpCo's senior indebtedness, each LLC Interest will be entitled to receive a proportionate interest in the net assets of Bally's Chicago OpCo. In turn, the interests in the net assets of Bally's Chicago OpCo received by Bally's Chicago, Inc. will be used to pay Bally's Chicago, Inc.'s debts and liabilities (to the extent required by the terms of the agreements governing such debt and liabilities), including any amounts under any senior indebtedness. Each Class A Interest will be entitled to receive a proportionate interest in the net assets remaining for distribution to holders of Class A Interests as adjusted for any amount of Subordinated Loans attributable to such class that remained outstanding at the time of the sale of Bally's Chicago OpCo.

(2) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $26,450,657, $48,092,104 and $42,748,536, respectively.

(3) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $20,274,413, $35,739,616 and $30,396,049, respectively.

(4) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $16,568,667, $28,328,124 and $22,984,557, respectively.

------

**[**TABLE OF CONTENTS**](#TOC)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  | Illustrative Mathematical Examples, taking into account assumed total senior indebtedness, compounding interest and assumed distribution amounts beginning Year 5 after our permanent casino and resort begins operations::  |
| Assumed Aggregate Class A Distributions per Year, beginning in Year 5  | Assumed Price Paid in Connection with the Sale of the Company<sup>(1)</sup>  | Assumed Total Senior Indebtedness Outstanding of Bally's Chicago OpCo at the Time of the Sale of the Company  | Amount Remaining After Payment of Senior Indebtedness Outstanding of Bally's Chicago OpCo  | Amount Distributed to Bally's Chicago, Inc.<sup>(1)</sup>  | Average Amount Distributed per Class A-1 Interest<sup>(1)</sup>  | Average Amount Distributed per Class A-2 Interest<sup>(1)</sup>  | Average Amount Distributed per Class A-3 Interest<sup>(1)</sup>  | Average Amount Distributed per Class A-4 Interest<sup>(1)</sup>  |
| $0  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;&nbsp;$0<sup>(2</sup>) | &nbsp;&nbsp;$30000<sup>(2</sup>) |
| $25000000  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(3</sup>) | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(3</sup>) | &nbsp;&nbsp;&nbsp;$1244<sup>(3</sup>) | &nbsp;&nbsp;$30000<sup>(3</sup>) |
| $40000000  | $1200000000 | $0 | $1200000000 | $300000000 | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(4</sup>) | &nbsp;&nbsp;&nbsp;&nbsp;$0<sup>(4</sup>) | &nbsp;&nbsp;&nbsp;$1244<sup>(4</sup>) | &nbsp;&nbsp;$30000<sup>(4</sup>) |

---

(1) In the event of a sale of Bally's Chicago OpCo, after payment or provision for payment of Bally's Chicago OpCo's debt and liabilities (to the extent required by the terms of the agreements governing such debt and liabilities), including any amounts due under Bally's Chicago OpCo's senior indebtedness, each LLC Interest will be entitled to receive a proportionate interest in the net assets of Bally's Chicago OpCo. In turn, the interests in the net assets of Bally's Chicago OpCo received by Bally's Chicago, Inc. will be used to pay Bally's Chicago, Inc.'s debts and liabilities (to the extent required by the terms of the agreements governing such debt and liabilities), including any amounts under any senior indebtedness. Each Class A Interest will be entitled to receive a proportionate interest in the net assets remaining for distribution to holders of Class A Interests as adjusted for any amount of Subordinated Loans attributable to such class that remained outstanding at the time of the sale of Bally's Chicago OpCo.

(2) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $26,450,657, $48,092,104 and $42,748,536, respectively.

(3) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $22,078,114, $39,347,018 and $34,003,451, respectively.

(4) The assumed total Class A-1 Subordinated Loans, Class A-2 Subordinated Loans and Class A-3 Subordinated Loans outstanding at the time of the sale of the Company under this illustrative example are $19,454,588, $34,099,966 and $28,756,399, respectively.

Summary of Risk Factors

Our ability to implement our business strategy is subject to numerous risks and uncertainties. We face many risks inherent in our business generally. You should carefully consider all of the information set forth in this prospectus and, in particular, the information under the heading "*Risk Factors*," prior to making an investment in our Class A Interests. These risks include, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are subject to various construction and development risks in connection with our permanent casino and resort in Chicago;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Any delay between the closing of our temporary casino and the opening of our permanent casino and resort could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The casino, hotel and hospitality industry is capital intensive and we may not be able to finance development, expansion and renovation projects, which could put us at a competitive disadvantage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Both our temporary casino site and permanent casino and resort site are leased and could experience risks associated with leased properties, including risks relating to lease termination, inability to obtain satisfactory lease extensions, consents and approvals, charges and our relationship with landlords, which could have a material adverse effect on our business, financial position or results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our proposed lines of business are highly sensitive to reductions in discretionary consumer spending;

------**

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The gaming industry, including retail casinos, iGaming and sports wagering, is highly competitive and increased competition, including through legislative legalization or expansion of gaming by states in or near Illinois or through Native American gaming facilities, could adversely affect our financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will be subject to extensive state and local regulation and licensing, and gaming authorities have significant control over our operations, which could have an adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our business will be subject to a variety of laws in the United States and in Illinois, many of which are unsettled and still developing, and which could subject us to claims or otherwise harm our business. Any change in existing regulations or their interpretation, or the regulatory or prosecutorial climate applicable to the products and services we offer in our temporary casino and intend to offer in our permanent casino and resort, or changes in gaming tax rates, tax rules and regulations or interpretation thereof related to such products and services, could adversely impact our ability to operate our business as currently conducted or as we seek to operate in the future, which could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will be reliant on effective payment processing services from a limited number of providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our profitability will be dependent, in part, on return to players;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will extend credit to a portion of our customers, and we may not be able to collect gaming receivables from our credit customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Declining popularity of games and changes in device preferences of players could have a negative effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may invest in or acquire other businesses, and our business may suffer if we are unable to successfully integrate acquired businesses into the Company or otherwise manage the growth associated with multiple acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our results of operations and financial condition could be adversely affected by the occurrence of natural disasters, such as blizzards, floods, tornadoes, fires, or other catastrophic events, including war, terrorism and public health crises such as the COVID-19 pandemic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Failure to comply with the community investment program obligations specified in the Host Community Agreement could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's interests may conflict with our interests and the interests of the other holders of our stock. Conflicts of interest between Bally's and us could be resolved in a manner unfavorable to us and the other holders of our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We rely on information technology and other systems and platforms, and any failures, errors, defects or disruptions in our systems or platforms could diminish our brand and reputation, subject us to liability, disrupt our business, affect our ability to scale our technical infrastructure and adversely affect our operating results and growth prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our business may be harmed from cybersecurity incidents and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers', business partners' or our own information or other breaches of information security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Servicing our indebtedness and funding our other obligations requires a significant amount of cash, and our ability to generate sufficient cash depends on many factors, some of which will be beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Class A Interests will not have an active trading market, and you may find it difficult to sell your Class A Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • You may not receive dividends or other distributions on the Class A Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests,

------

[**TABLE OF CONTENTS**](#TOC)

any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us until such time as such Subordinated Loans are fully paid and discharged, which means you may never directly receive a cash dividend on your Class A-1 Interests, Class A-2 Interests and Class A-3 Interests.

#### Corporate Information
Our principal executive offices are located at 640 N LaSalle, Suite 460, Chicago, IL 60654, and our telephone number is (401) 475-8474. Our website address is https://casinos.ballys.com/chicago/. The information contained on our website is not being incorporated by reference into this prospectus, and you should not consider information contained on our website to be part of this prospectus.

Our logo and the other "Bally's" trademarks and service marks of Bally's Corporation appearing in this prospectus are the property of BMG, a subsidiary of Bally's Corporation. This prospectus contains additional trade names, trademarks and service marks of other companies. We do not intend our use or display of other companies' trade names, trademarks or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. Subsequent use of such trademarks and service marks in this prospectus and prospectus supplements may occur without their respective superscript symbols (<sup>TM</sup> or <sup>SM</sup>) in order to facilitate readability and does not constitute a waiver of any rights that might be associated with the respective trademarks or service marks.

#### Implications of Being an Emerging Growth Company and a Smaller Reporting Company
We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). An emerging growth company may take advantage of certain reduced disclosure and other requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, unless the SEC determines the new rules are necessary for protecting the public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

We will remain an emerging growth company until the earliest to occur of: (i) the last day of the first fiscal year in which our annual gross revenue exceeds $1.235 billion; (ii) the date that we become a "large accelerated filer," with at least $700.0 million of equity securities held by non-affiliates as of the end of the second quarter of that fiscal year; (iii) the date on which we have issued, in any three-year period, more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the first fiscal year ending after the fifth anniversary of the closing of this offering. Given that there will not be an active trading market for our equity securities, we expect to value the equity securities held by non-affiliates for purposes of determining our qualification as an "emerging growth company" by relying on a stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering *plus* the corresponding amount of Subordinated Loans attributable to each Class A Interest. As of the closing of this offering and the concurrent private placements, we expect approximately $250.0 million of equity securities to be held by non-affiliates based on the valuation criteria described above.

------

[**TABLE OF CONTENTS**](#TOC)

We have elected to take advantage of certain of the reduced disclosure obligations in the registration statement of which this prospectus is a part and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide may be different than the information you receive from other public companies in which you hold stock.

Emerging growth companies can also take advantage of the extended transition period provided in Section 13(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have irrevocably elected not to use this extended transition period. As a result, our consolidated financial statements are comparable to the financial statements of companies that comply with new or revised accounting pronouncements as of public company effective dates.

We are also a "smaller reporting company" as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting shares of stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting shares of stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

------

[**TABLE OF CONTENTS**](#TOC)

#### THE OFFERING
Aggregate number of securities offered

2,741 Class A Interests (divided into Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests).

Securities offered

2,207 Class A-1 Interests, par value $0.001 per share;

141 Class A-2 Interests, par value $0.001 per share;

165 Class A-3 Interests, par value $0.001 per share; and

228 Class A-4 Interests, par value $0.001 per share.

Class A Interests to be sold in the concurrent private

placements

Immediately subsequent to the closing of this offering, and subject to certain conditions of closing as described in "*Concurrent Private Placements*," the private placement investors will purchase 58 Class A-1 Interests, 4 Class A-2 Interests, 6 Class A-3 Interests, and 1,277 Class A-4 Interests, respectively, in the concurrent private placements at a price per share equal to the initial public offering. The sale of the Class A Interests in the private placements is contingent upon the completion of this offering. We refer to these private placements as the concurrent private placements.

Class A Interests to be outstanding after this offering and the concurrent private

placements

7,412 Class A Interests (divided into Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests, representing the 4,086 Class A Interests to be issued in connection with this offering and concurrent private placement in addition to the 3,326 Class A Interests outstanding as a result of the initial Class A Interest issuances) representing 19.8% of the voting power and 100.0% of the economic interest in Bally's Chicago, Inc.

Class B Interests to be outstanding after this offering and the concurrent private

placements

30,000 Class B Interests representing 80.2% of the voting power and no economic interest in Bally's Chicago, Inc.

Offering type

This offering is being conducted on a best efforts basis. There is no minimum number of Class A Interests to be sold (or minimum number of Class A Interests to be sold of each class) or minimum aggregate offering proceeds for this offering to close. The Company currently intends to provide preferential allocations of Class A Interests to City of Chicago residents and Illinois residents during this offering.

Use of proceeds

We estimate that the net proceeds we will receive from the sale of Class A Interests in this offering will be approximately $7.4 million and, together with the net proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, will total approximately $102.2 million, in each case assuming the sale of Class A Interests at the public offering prices set forth on the cover of this prospectus, after deducting the placement agent fees and offering and private placement expenses payable by us.

We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the

------

[**TABLE OF CONTENTS**](#TOC)

Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest.

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to Bally's Chicago, Inc. to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes. See "*Use of Proceeds*."

Investor qualification

Prospective investors cannot be employee benefit plans (e.g., 401(k) plans), IRAs, or other Plans (as defined herein). See "*Plan of Distribution — Offering Process*."

Voting rights

Each Class A Interest and each Class B Interest is entitled to one vote per share on all matters submitted to a vote of stockholders.

Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power and 45.8% of the economic power of our stock. See "*Description of Capital Stock*."

Dividends

We are a holding company, and our principal assets are the LLC Interests that we currently hold plus those that we intend to purchase from Bally's Chicago OpCo. If we decide to make a distribution in the future, we would need to cause Bally's Chicago OpCo to make distributions to us in an amount sufficient to cover the repayment of the IPO Expenses Note, future borrowings plus such distribution. If Bally's Chicago OpCo makes such distributions to us, the other holders of LLC Interests will be entitled to receive pro rata distributions.

In addition, Bally's Chicago OpCo will report as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Bally's Chicago OpCo will be allocated to holders of LLC Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of Bally's Chicago OpCo. Under the terms of the Bally's Chicago OpCo LLC Agreement, Bally's Chicago OpCo will be obligated to make tax distributions to holders of LLC Interests, including us, to the extent it has distributable cash. In addition to tax expenses, we will also incur expenses related to our operations, which we expect could be significant. We intend, as its managing member, to cause Bally's Chicago OpCo to make cash distributions to the owners of LLC Interests in an amount sufficient to (1) fund all or part of their tax obligations in respect of taxable income allocated to them and (2) cover our operating expenses. However, Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions, such as restrictions on distributions that would either violate any contract or agreement to which Bally's Chicago OpCo is then a party, including any debt or financing agreements, or any applicable law, or that would have the effect of rendering Bally's Chicago OpCo insolvent. If we do not have sufficient funds to pay tax or other liabilities or to fund our

------

[**TABLE OF CONTENTS**](#TOC)

 *operations, we may have to borrow funds, including potentially from Bally's and its affiliates if available, which could materially adversely affect our liquidity and financial condition and subject us to various restrictions imposed by any such lenders. See "Risk Factors — Risks related to our organizational structure — Our principal asset after the completion of this offering and the concurrent private placements will be our interest in Bally's Chicago OpCo, and, as a result, we will depend on distributions from Bally's Chicago OpCo to pay our taxes and expenses. Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions."* 

Furthermore, we intend, as its managing member, to cause Bally's Chicago OpCo to make distributions of OpCo cash available for distribution on a quarterly basis. We define OpCo cash available for distribution as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, less payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. We do not expect any such distributions until after the permanent casino and resort is fully operational and generates cash flow.

In turn, we intend to distribute cash available for distribution to the holders of our Class A Interests (subject to certain requirements discussed below). Holders of our Class B Interests will not be entitled to participate in distributions declared by our Board. We define *cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, *less* payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. Cash that is distributed to holders of our Class A Interests will be distributed pro rata according to the number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding at the time of such distribution. Given the capital intensity of developing, constructing, opening and operating a casino resort project of this scale, we currently expect that Bally's Chicago OpCo will not have any OpCo cash available for distribution until approximately three to five years after our permanent casino and resort begins operations. However, this may fluctuate depending on Bally's Chicago OpCo's ability to generate cash from operations and its cash flow needs, which, among other things, may be impacted by debt service payments on its senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Pursuant to the terms of our second amended and

------

[**TABLE OF CONTENTS**](#TOC)

restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly, will be pre-payable at any time without a premium or penalty at a prepayment price equal to the principal amount thereof plus accrued interest, and will have no maturity date. See "*Subordinated Loans*" for more information on the Subordinated Loans.

If the principal and interest of any of the Subordinated Loans have been paid in full, by distributions from Bally's Chicago OpCo or any other means, we intend to distribute to holders of the corresponding Class A Interests with respect to any such Subordinated Loan an amount equal to 100% of the applicable distribution specified above in the form of a direct cash dividend.

While we intend, as its managing member, to cause Bally's Chicago OpCo to make distributions on a quarterly basis once it is able to generate OpCo cash available for distribution approximately three to five years after our permanent casino and resort begins operations, we and Bally's Chicago OpCo have not adopted a formal written dividend or distribution policy to pay a fixed amount of cash regularly or to pay any particular amount based on the achievement of, or derivable from, any specific financial metrics, including OpCo cash available for distribution. Further, we and Bally's Chicago OpCo are not contractually obligated to pay any dividends or make any distributions and do not have any required minimum quarterly dividend or distribution, except for tax-related distributions described above. Our and Bally's Chicago OpCo's distributions may vary from quarter to quarter, may be significantly reduced or may be eliminated entirely. While we and Bally's Chicago OpCo intend to make distributions equal to 100% of the cash available for distribution and OpCo cash available for distribution, respectively, on a quarterly basis, the actual amount of any distributions may fluctuate depending on our and Bally's Chicago OpCo's ability to generate cash from operations and our and Bally's Chicago OpCo's cash flow needs, which, among other things, may be impacted by debt service payments on our or Bally's Chicago OpCo's senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Our Board will have full discretion on how to deploy cash available for distribution, including the payment of dividends. Any debt we or Bally's Chicago OpCo may incur in the future is likely to restrict our and Bally's Chicago OpCo ability to pay dividends or distributions, and such restriction may prohibit us and Bally's Chicago OpCo from making distributions, or reduce the amount of cash available for distribution and OpCo cash available for distribution. In addition, Delaware law imposes requirements that

------

[**TABLE OF CONTENTS**](#TOC)

 *may restrict our ability to pay dividends to holders of our shares. See "Risk Factors — Risks Related to this Offering and Ownership of our Class A Interests — You may not receive dividends or other distributions on the Class A Interests" and "Dividend Policy."* 

Electronic form and trading market

The Class A Interests will be issued in electronic form only, and will not be available in physical form. Our Class A Interests are new securities; there are currently none issued and there is currently no established market for such shares.

Our Class A Interests will not be listed on any national securities exchange or on any other stock exchange, regulated trading facility or automated dealer quotation system in the United States or internationally. Additionally, there is no trading market for our Class A Interests and, due to transferability restrictions, an active market for our Class A Interests will not likely develop in the future. As such, our Class A Interests will have limited liquidity and holders of our Class A Interests may not be able to monetize their full investment in our Class A Interests, if at all. Furthermore, Class A-1 Interests, Class A-2 Interests and Class A-3 Interests can be transferred only after the Subordinated Loan attributable to such Interest has been paid in full and such interest has been converted to an A-4 Interest.

Transfer Restrictions

Our Class A Interests are subject to restrictions on transferability and redemption provisions, which will materially impact the ability of holders of our Class A Interests to transfer their shares.

These restrictions include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Class A Interests cannot be sold in open market transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Class A Interests cannot be marketed or listed on any secondary market for purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Class A Interests can only be transferred without our consent to Permitted Transferees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Class A-1 Interests, Class A-2 Interests and Class A-3 Interests can be transferred with our consent only after the Subordinated Loan attributable to such class of Interests has been paid in full and such Interests are converted to Class A-4 Interests; all Class A-1 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-1 Subordinated Loans, all Class A-2 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-2 Subordinated Loans and all Class A-3 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-3 Subordinated Loans (if a holder of Class A-1 Interests, Class A-2 Interests and/or Class A-3 Interests would like to transfer their Interests before the Subordinated Loans attributable to such class of Interests are paid off, such holder or the transferee may repay in full the pro rata amount of the remaining balance of the Subordinated Loans then outstanding attributable to such Interests before or substantially concurrently with such transfer and conversion); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Class A Interests cannot be transferred to employee benefit plans, IRAs or Plans (as defined herein).

------

[**TABLE OF CONTENTS**](#TOC)

See "*Shares Eligible for Future Sale*" beginning on page [187](#tIEFF) for additional information related to the transfer restrictions imposed on our Class A Interests.

U.S. federal income tax

consequences

For a description of the material U.S. federal income tax consequences of the acquisition, ownership and disposition of the Class A Interests, please see "*Material U.S. Federal Income Tax Consequences*" herein.

Certain ERISA Considerations

See "*Certain ERISA Considerations*" for information relating to the purchase and transfer restrictions on employee benefit plans, IRAs and other Plans (as defined therein).

Directed Share Program

We have reserved up to 300 Class A Interests, or approximately 4.0% of our Class A Interests, for sale to our director nominees on the same terms as the Class A Interests being purchased by investors in this offering. These persons must commit to purchase at the same time as the investors in this offering. The number of Class A Interests available for sale in this offering will be reduced to the extent these persons purchase the reserved Class A Interests. See "*Plan of Distribution — Directed Share Program.*"

Risk factors

You should read "*Risk Factors*" for a discussion of factors you should carefully consider before deciding to invest in our Class A Interests.

Order/Investment Commitment submission deadline

Prospective investors must have submitted their qualification application to us by the submission deadline, which is currently August 4, 2025, but may be sooner at our sole discretion depending upon market conditions.

Liquidation

In the event of a sale, liquidation, dissolution or winding up of Bally's Chicago OpCo, including a change of control, after payment or provision for payment of Bally's Chicago OpCo's debt and liabilities, including any amounts due under Bally's Chicago OpCo's senior indebtedness, each LLC Interest will be entitled to receive a proportionate interest in the net assets of Bally's Chicago OpCo. In turn, the interests in the net assets of Bally's Chicago OpCo received by Bally's Chicago, Inc. will be used to pay Bally's Chicago, Inc.'s debts and liabilities, including any amounts under any senior indebtedness and the Subordinated Loans owed by us at the time of such liquidation. Each Class A Interest will be entitled to receive a proportionate interest in the net assets remaining for distribution to holders of Class A Interests. Class B Interests hold no economic interest in Bally's Chicago, Inc. See "*Description of Capital Stock*."

The number of our shares of stock to be outstanding after this offering and the concurrent private placements is based on 3,326 Class A Interests and 30,000 Class B Interests outstanding as of March 31, 2025.

Except as otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • no purchases of Class A Interests by Bally's Corporation in this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the issuance of 58 Class A-1 Interests, 4 Class A-2 Interests, 6 Class A-3 Interests, and 1,277 Class A-4 Interests to the private placement investors upon the closing of the concurrent private placements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the filing and effectiveness of our second amended and restated certificate of incorporation and the adoption of our second amended and restated bylaws prior to the closing of this offering.

------

[**TABLE OF CONTENTS**](#TOC)

#### QUESTIONS AND ANSWERS

#### Q:

#### What is our business?
A:

We are a gaming, hospitality and entertainment company with the singular focus of building and operating a world-class entertainment destination resort in Chicago, Illinois. We intend to provide both Chicago residents and business and leisure travelers visiting Chicago with physical and interactive entertainment and gaming experiences.

#### Q:

#### What are the securities that we are offering?
A:

We are offering our Class A Interests. Upon the closing of this offering and the concurrent private placements and the consummation of the Transactions, we will have five classes of stock: Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, Class A-4 Interests and Class B Interests. Class B Interests are not being offered hereby, and are held exclusively by Bally's Chicago HoldCo. The rights of the holders of Class A Interests and Class B Interests will be identical, except with respect to the impact of the Subordinated Loans attributable to Class A-1 Interests, Class A-2 Interests and Class A-3 Interests described below and Class B Interests have no economic interest in Bally's Chicago, Inc. Each Class A Interest and each Class B Interest is entitled to one vote per share on all matters submitted to a vote of stockholders. Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power in the Company. We will be permitted, but not required, to pay dividends on our Class A Interests. Holders of our Class B Interests will not be entitled to participate in distributions declared by our Board. See "*Dividend Policy.*"

#### Q:

#### Are there any risks associated with an investment in our Class A Interests?
A:

*Yes*. Our Class A Interests are highly risky and speculative. Investing in our Class A Interests should be considered only by persons who can afford the loss of their entire investment. Additionally, our Class A Interests will not be listed on any national securities exchange or on any other stock exchange, regulated trading facility or automated dealer quotation system in the United States or internationally. There is no trading market for our Class A Interests and an active market for our Class A Interests will not likely develop in the future. As such, our Class A Interests will have limited liquidity and holders of our Class A Interests may not be able to monetize their full investment in our Class A Interests, if at all.

Our Class A Interests are also subject to restrictions on transferability and redemption provisions, each of which will individually and in the aggregate materially impact the ability of holders of our Class A Interests to transfer their Class A Interests following the closing of this offering. Our Class A Interests can only be transferred without our consent to Permitted Transferees. Additionally, our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests can be transferred with our consent only after the Subordinated Loan attributable to such class of Interests has been paid in full and such Interests are converted to Class A-4 Interests. All Class A-1 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-1 Subordinated Loans, all Class A-2 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-2 Subordinated Loans and all Class A-3 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-3 Subordinated Loans. If a holder of Class A-1 Interests, Class A-2 Interests and/or Class A-3 Interests would like to transfer their Interests before the Subordinated Loans attributable to such class of Interests are paid off, such holder or the transferee may repay in full the pro rata amount of the remaining balance of the Subordinated Loans then outstanding attributable to such Interests before or substantially concurrently with such transfer and conversion. See "*Shares Eligible for Future Sale*" beginning on page [187](#tIEFF). Class A Interests also cannot be transferred to employee benefit plans, IRAs and other Plans (as defined herein). See "*Certain ERISA Considerations*."

------

[**TABLE OF CONTENTS**](#TOC)

Our Class A Interests are shares of stock in Bally's Chicago, Inc. and do not constitute indebtedness. As such, our Class A Interests will rank junior to all indebtedness, including the Subordinated Loans, and other non-equity claims on our business with respect to assets available to satisfy claims, including in a liquidation of the Company.

In addition, pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. Therefore, even if our Board (or a duly authorized committee of the Board) authorizes and declares a dividend on our shares of stock, holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests will not be entitled to receive any such dividend until such time as the corresponding Subordinated Loans associated with such Class A Interests are paid in full, which may take a prolonged period of time to occur, if at all.

Our Subordinated Loans will accrue interest at a rate of 11.0% per annum, compounding quarterly, and accrued and unpaid interest will be added to the outstanding principal amount thereof on a quarterly basis. As a result, the amount of Subordinated Loans that are to be paid with a percentage of the amounts that would otherwise be paid on account of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests will increase during the period between the closing date of this offering and the date, if any, on which dividends are to be paid on the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests.

In addition, given the Class A-3 Subordinated Loans attributable to each Class A-3 Interest will be lower than the Class A-1 Subordinated Loans and Class A-2 Subordinated Loans attributable to the Class A-1 Interests and Class A-2 Interests, respectively, the Class A-3 Subordinated Loans are expected to be fully repaid prior to the Class A-1 Subordinated Loans and the Class A-2 Subordinated Loans, to the extent they are fully repaid. Similarly, the Class A-2 Subordinated Loans are expected to be fully repaid prior to the Class A-1 Subordinated Loans, to the extent they are fully repaid. However, due to the significant amount of indebtedness (including both principal and interest) owed on the Subordinated Loans, we do not expect to fully repay the Subordinated Loans for an extended period of time following the closing of this offering, if at all. As such, holders of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests may not directly receive the cash dividends or other distributions that otherwise would have been payable on such Class A-1 Interests, Class A-2 Interests and Class A-3 Interests for an equivalently long period of time, if at all, or realize any accretion in value above the initial amount invested. Moreover, the value of the principal and accrued interest on the Subordinated Loans could exceed the value of the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests otherwise payable upon a sale of the business, resulting in holders of the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests receiving nothing upon such a sale. See "*Risk Factors*."

#### Q:

#### Will investors purchasing Class A Interests receive dividends?
A:

We are a holding company, and our principal assets will be the LLC Interests that we currently hold plus those that we intend to purchase from Bally's Chicago OpCo. If we decide to make a distribution in the future, we would need to cause Bally's Chicago OpCo to make distributions to us in an amount sufficient to cover the repayment of the IPO Expenses Note, future borrowings plus such distribution. If Bally's Chicago OpCo makes such distributions to us, the other holders of LLC Interests will be entitled to receive pro rata distributions.

In addition, Bally's Chicago OpCo will report as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Bally's Chicago OpCo will be allocated to holders of LLC Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of Bally's Chicago OpCo. Under the terms of the Bally's Chicago OpCo LLC Agreement, Bally's Chicago OpCo will be obligated to make tax distributions to holders of LLC Interests, including us, to the extent it

------

[**TABLE OF CONTENTS**](#TOC)

has distributable cash. In addition to tax expenses, we will also incur expenses related to our operations, which we expect could be significant. We intend, as its managing member, to cause Bally's Chicago OpCo to make cash distributions to the owners of LLC Interests in an amount sufficient to (1) fund all or part of their tax obligations in respect of taxable income allocated to them and (2) cover our operating expenses. However, Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions, such as restrictions on distributions that would either violate any contract or agreement to which Bally's Chicago OpCo is then a party, including any debt or financing agreements, or any applicable law, or that would have the effect of rendering Bally's Chicago OpCo insolvent. If we do not have sufficient funds to pay tax or other liabilities or to fund our operations, we may have to borrow funds, including potentially from Bally's and its affiliates if available, which could materially adversely affect our liquidity and financial condition and subject us to various restrictions imposed by any such lenders. See "*Risk Factors — Risks related to our organizational structure — Our principal asset after the completion of this offering and the concurrent private placements will be our interest in Bally's Chicago OpCo, and, as a result, we will depend on distributions from Bally's Chicago OpCo to pay our taxes and expenses. Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions.*"

Furthermore, we intend to, as its managing member, cause Bally's Chicago OpCo to make distributions of OpCo cash available for distribution on a quarterly basis. We define *OpCo cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, *less* payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. We do not expect any such distributions until after the permanent casino and resort is fully operational and generates cash flow.

In turn, we intend to distribute cash available for distribution to the holders of our Class A Interests (subject to certain requirements discussed below). Holders of our Class B Interests will not be entitled to participate in distributions declared by our Board. We define *cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, *less* payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. Cash that is distributed to holders of our Class A Interests will be distributed pro rata according to the number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding at the time of such distribution. Given the capital intensity of developing, constructing, opening and operating a casino resort project of this scale, we currently expect that Bally's Chicago OpCo will not have any OpCo cash available for distribution until approximately three to five years after our permanent casino and resort begins operations. However, this may fluctuate depending on Bally's Chicago OpCo's ability to generate cash from operations and its cash flow needs, which, among other things, may be impacted by debt service payments on its senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago.

Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly, will be pre-payable at any time without a premium or penalty at a prepayment price equal to the principal

------

[**TABLE OF CONTENTS**](#TOC)

amount thereof plus accrued interest, and will have no maturity date. See "*Subordinated Loans*" for more information on the Subordinated Loans.

If the principal and interest of any of the Subordinated Loans have been paid in full, by distributions from Bally's Chicago OpCo or any other means, we intend to distribute to holders of the corresponding Class A Interests with respect to any such Subordinated Loan an amount equal to 100% of the applicable distribution specified above in the form of a direct cash dividend.

While we intend, as its managing member, to cause Bally's Chicago OpCo to make distributions on a quarterly basis once it is able to generate OpCo cash available for distribution approximately three to five years after our permanent casino and resort begins operations, we and Bally's Chicago OpCo have not adopted a formal written dividend or distribution policy to pay a fixed amount of cash regularly or to pay any particular amount based on the achievement of, or derivable from, any specific financial metrics, including OpCo cash available for distribution. Further, we and Bally's Chicago OpCo are not contractually obligated to pay any dividends or make any distributions and do not have any required minimum quarterly dividend or distribution, except for tax-related distributions described above. Our and Bally's Chicago OpCo's distributions may vary from quarter to quarter, may be significantly reduced or may be eliminated entirely. While we and Bally's Chicago OpCo intend to make distributions equal to 100% of the cash available for distribution and OpCo cash available for distribution, respectively, on a quarterly basis, the actual amount of any distributions may fluctuate depending on our and Bally's Chicago OpCo's ability to generate cash from operations and our and Bally's Chicago OpCo's cash flow needs, which, among other things, may be impacted by debt service payments on our or Bally's Chicago OpCo's senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Our Board will have full discretion on how to deploy cash available for distribution, including the payment of dividends. Any debt we or Bally's Chicago OpCo may incur in the future is likely to restrict our and Bally's Chicago OpCo ability to pay dividends or distributions, and such restriction may prohibit us and Bally's Chicago OpCo from making distributions, or reduce the amount of cash available for distribution and OpCo cash available for distribution. In addition, Delaware law imposes requirements that may restrict our ability to pay dividends to holders of our shares. See "*Risk Factors — Risks Related to this Offering and Ownership of our Class A Interests — You may not receive dividends or other distributions on the Class A Interests*" and "*Dividend Policy*."

#### Q:

#### Will investors purchasing Class A Interests be parties to the amended and restated subordinated loan agreement?
A:

*No*. Bally's Chicago HoldCo, as lender, will make the Subordinated Loans to us, as borrower, in various tranches and in varying amounts based on the total number of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests sold in this offering. None of the new investors purchasing Class A Interests in this offering will be a party to the amended and restated subordinated loan agreement, or a borrower or lender under the Subordinated Loans. The Subordinated Loans will be non-recourse to the holders of our Class A Interests.

#### Q:

#### Will we offer additional equity securities in the future?
A:

While we do not currently intend to issue any additional securities in the future, we may be required to do so from time to time in order to continue to fund our operations. To the extent we decide to issue additional Class A Interests or Class B Interests in the future, we may be required to offer you an opportunity to participate pro rata in the offering in order to meet the requirements of the Host Community Agreement. However, to the extent that you determine that you either do not want to participate or cannot participate in any such offering, you will suffer immediate dilution to the extent such offering is completed without your participation. Additionally, we cannot guarantee that we will offer financing options similar to the Subordinated Loans, which would significantly increase the costs of any future investment.

------

[**TABLE OF CONTENTS**](#TOC)

#### Q:

#### Will you file separate periodic reports with the SEC?
A:

*Yes.* Bally's Chicago, Inc. will be a registered SEC filer and thus is subject to the periodic reporting requirements of the SEC.

#### Q:

#### How will my Class A Interests be treated for United States federal income tax purposes?
A:

Class A Interests are to be treated as stock in Bally's Chicago, Inc. for United States federal income tax purposes. For a discussion of the material U.S. federal income tax consequences of the acquisition, ownership and disposition of our Class A Interests, please see "*Material U.S. Federal Income Tax Consequences*" herein.

#### Q:

#### How are the Class A Interests being offered?
A:

Our Class A Interests are being offered on a best efforts basis, by and through our placement agents (listed on the cover page of this prospectus). We currently intend to provide preferential allocations of Class A Interests to City of Chicago residents and Illinois residents during this offering. There is no minimum number of Class A Interests to be sold or minimum aggregate offering proceeds for this offering to close. The process for placing orders in this offering is different from that used for most public offerings of equity securities. You should carefully read the section entitled "*Plan of Distribution — Offering Process*" for additional information regarding how to place an order for our Class A Interests.

#### Q:

#### Will I receive a certificate for my Class A Interests?
A:

*No*. The Class A Interests will be issued in book-entry form only, and not in physical form. BitGo Trust (as defined below) will act as our registrar and transfer agent for our Class A Interests. Our Class A Interests will be held in book-entry form only on our books and records, and any transfers of our Class A Interests must be made through an account with BitGo Trust, a vendor that we have contracted to administer the books and records of our registrar.

#### Q:

#### Will the Class A Interests be listed on an exchange?
A:

Our Class A Interests will not be listed on a stock exchange such as the New York Stock Exchange or Nasdaq. Additionally, there is no trading market for our Class A Interests and, due to transferability restrictions, an active market for our Class A Interests will not likely develop in the future.

Therefore, our Class A Interests will have limited liquidity and holders of our Class A Interests may not be able to monetize their full investment in our Class A Interests, if at all.

#### Q:

#### Can I purchase Class A Interests using my existing brokerage account?
A:

*No*. In order to purchase our Class A Interests, investors will be required to open an account with BitGo Trust. You will not be able to purchase or sell any Class A Interests through any other brokerage account or any exchange or trading system. See "*Plan of Distribution — Offering Process.*"

#### Q:

#### What is Loop Capital Markets LLC and what role do they play in the offering and subsequent trading market?
A:

Loop Capital Markets LLC is serving as lead placement agent, along with other financial institutions, in this offering. Placement agents are financial specialists who work closely with issuers of securities to determine the initial offering price of the securities and solicit offers from investors to purchase the securities via the placement agents' distribution network.

#### Q:

#### How can I sell my Class A Interests if I decide that I no longer wish to hold them?
A:

You **<u>cannot</u>** freely sell your Class A Interests. Each Class A Interest is subject to strict controls that limit transferability.

------

[**TABLE OF CONTENTS**](#TOC)

Our Class A Interests can only be transferred without our consent to Permitted Transferees. Additionally, our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests can be transferred with our consent only after the Subordinated Loan attributable to such class of Interests has been paid in full and such Interests are converted to Class A-4 Interests. All Class A-1 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-1 Subordinated Loans, all Class A-2 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-2 Subordinated Loans and all Class A-3 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-3 Subordinated Loans. If a holder of Class A-1 Interests, Class A-2 Interests and/or Class A-3 Interests would like to transfer their Interests before the Subordinated Loans attributable to such class of Interests are paid off, such holder or the transferee may repay in full the pro rata amount of the remaining balance of the Subordinated Loans then outstanding attributable to such Interests before or substantially concurrently with such transfer and conversion. In order to attempt to transfer your Class A Interests, you will be required to submit an application for sale to us. See "*Shares Eligible for Future Sale*" beginning on page [187](#tIEFF). Class A Interests also cannot be transferred to employee benefit plans, IRAs and other Plans (as defined herein). See "*Certain ERISA Considerations*."

#### Q:

#### Do Bally's and its directors and officers get to participate in this offering as an investor?
A:

*Yes*. Our officers and directors, along with Bally's and its officers and directors will be allowed to purchase Class A Interests in this offering and execute trades in the secondary market for their own respective accounts through the placement agents.

We have reserved up to 300 Class A Interests, or approximately 4.0% of our Class A Interests, for sale to our director nominees on the same terms as the Class A Interests being purchased by investors in this offering. These persons must commit to purchase at the same time as the investors in this offering. See "*Plan of Distribution — Directed Share Program.*"

#### Q:

#### What is the relationship between us and Bally's Corporation?
A:

We were incorporated on May 24, 2022 as a wholly-owned subsidiary of Bally's. Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, a wholly-owned subsidiary of Bally's, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power and 45.8% of the economic power of our stock. We are currently dependent on Bally's for a majority of our working capital and financing requirements. As of March 31, 2025 (Successor), we and Bally's Chicago OpCo owe $642.4 million in Pre-IPO Intercompany Notes to Bally's and various of its subsidiaries. The Pre-IPO Intercompany Notes have borne and bear interest at a rate equal to 0.0% per annum and are scheduled to mature on December 31, 2025, but all portions that remain outstanding are expected to be extinguished upon the closing of this offering.

Prior to the closing of this offering, Bally's Chicago HoldCo will assign to Bally's Chicago Inc. $62.7 million of Pre-IPO Intercompany Notes owed to it by Bally's Chicago OpCo as the Pre-IPO Capital Contribution. The amount of the Pre-IPO Capital Contribution will equal the aggregate amount of Subordinated Loans that we will enter into based on the amount of the various classes of Class A Interests sold in this offering and the concurrent private placements.

We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest. The 4,086 LLC Interests we purchase, together with the 3,326 LLC Interests we currently hold, will represent 19.8% of the economic interest in Bally's Chicago OpCo and the Class A Interests to be held by Bally's Chicago HoldCo and the public stockholders upon the closing of this offering will represent 19.8% of the voting power and 100.0% of the economic interest in Bally's Chicago, Inc.

------

[**TABLE OF CONTENTS**](#TOC)

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to us to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes. Upon the closing of this offering, the 30,000 LLC Interests that are currently held by Bally's Chicago HoldCo will represent 80.2% of the economic interest in Bally's Chicago OpCo. Bally's Chicago HoldCo, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power and 45.8% of the economic power of our stock. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations and — Liquidity and Capital Resources.*"

In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into the Permanent Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Permanent Services Agreement, BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing upon the opening of our permanent casino and resort. Pursuant to the Permanent Services Agreement, we agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is one year, beginning upon the opening of our permanent casino and resort, and will be automatically renewed for successive one-year terms, unless either party serves on the other a written notice of termination. See "*Transactions with Related Persons — Permanent Services Agreement.*"

In addition, in August 2023, Bally's Chicago OpCo entered into the Temporary Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing related to our temporary casino. Pursuant to the Temporary Services Agreement, we agreed to pay BMG a monthly fee equal to $5.0 million, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is two years, beginning August 30, 2023, and will be automatically renewed for successive one-year terms for as long as our temporary casino is licensed to continue operations, unless BMG serves on Bally's Chicago OpCo a written notice of termination. The Temporary Services Agreement shall automatically terminate when our temporary casino permanently closes and our permanent casino and resort opens to the public. See "*Transactions with Related Persons — Temporary Services Agreement.*"

We and Bally's Chicago HoldCo, our direct parent and the entity that holds 2,141 of our Class A-4 Interests and all of our Class B Interests, as well as certain other current and future unrestricted subsidiaries of Bally's Corporation under its credit facilities and bond indentures, have guaranteed Bally's Chicago OpCo's obligations under the GLP Lease Agreement and GLP Development Agreement; *provided*, however, that at such time as Bally's Chicago OpCo becomes a restricted subsidiary under Bally's Corporation's credit facilities and bond indentures, (i) Bally's Corporation will be required to guarantee the GLP Lease Agreement and GLP Development Agreement and (ii) following the delivery of such guarantee, the guarantees of the GLP Lease Agreement and GLP Development Agreement provided by Bally's Chicago HoldCo and such other unrestricted subsidiaries of Bally's Corporation shall terminate.

In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation and its subsidiaries upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; *provided* that, at

------

[**TABLE OF CONTENTS**](#TOC)

any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's Corporation's revolving credit facilities outstanding at such time). Furthermore, in March 2025, we and Bally's Chicago OpCo entered into the Guarantee Agreement with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional obligations, including, without limitation, indebtedness and lease obligations that Bally's Corporation or its subsidiaries enter into at any time in the future. See "*Transactions with Related Persons — Guarantee of Bally's Corporation's Obligations.*"

------

[**TABLE OF CONTENTS**](#TOC)

#### SUMMARY HISTORICAL AND PRO FORMA CONDENSED CONSOLIDATED FINANCIAL AND OTHER DATA
The following tables present the summary historical and pro forma condensed consolidated financial and other data for Bally's Chicago, Inc. Bally's Chicago Operating Company, LLC is a consolidated subsidiary of Bally's Chicago, Inc. for financial reporting purposes. The summary statements of operations and statements of cash flows data for the year ended December 31, 2024 and 2023, and the summary balance sheet data as of December 31, 2024 and 2023, are derived from the audited consolidated financial statements of Bally's Chicago, Inc. included elsewhere in this prospectus. The summary statements of operations and statements of cash flows data for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), and the summary balance sheet data as of March 31, 2025 (Successor) are derived from the unaudited condensed consolidated financial statements of Bally's Chicago, Inc. included elsewhere in this prospectus. The unaudited condensed consolidated financial statements of Bally's Chicago, Inc. have been prepared on the same basis as the audited consolidated financial statements and, in our opinion, include all adjustments, consisting of normal recurring adjustments, necessary to present fairly in all material respects our financial position and results of operations. The results for any interim period are not necessarily indicative of the results that may be expected for the full year. Historical results of operations for the periods presented below are not necessarily indicative of the results to be expected for any future period. The information set forth below should be read together with "*Unaudited Pro Forma Condensed Consolidated Financial Information*," "*Use of Proceeds*," "*Capitalization*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," "*Our Organizational Structure*" and the audited financial statements and the accompanying notes included elsewhere in this prospectus.

The summary unaudited pro forma condensed consolidated financial information of Bally's Chicago, Inc. presented below has been derived from our unaudited pro forma condensed consolidated financial information included elsewhere in this prospectus. The following summary unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 and the unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2025 and the year ended December 31, 2024 give effect to the Initial Private Placements, the Transactions and the other events set forth in "*Our Organizational Structure*," including the consummation of this offering and the concurrent private placements, the use of the net proceeds therefrom and related transactions, as described in "*Use of Proceeds*" and "*Unaudited Pro Forma Condensed Consolidated Financial Information,*" as if they all had occurred on January 1, 2024 with respect to the statements of operations data, and December 31, 2024 with respect to the balance sheet data. The summary unaudited pro forma condensed consolidated financial information includes various estimates which are subject to material change and may not be indicative of what our operations or financial position would have been had this offering, the concurrent private placements and related transactions taken place on the dates indicated, or that may be expected to occur in the future. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for a complete description of the adjustments and assumptions underlying the summary unaudited pro forma condensed consolidated financial information. The presentation of the summary unaudited pro forma condensed consolidated financial information is prepared in conformity with Article 11 of Regulation S-X.

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Bally's Chicago, Inc. Pro <br> Forma**  | **Bally's Chicago, Inc. Pro <br> Forma**  | **Bally's Chicago, Inc. Historical**  | **Bally's Chicago, Inc. Historical**  | **Bally's Chicago, Inc. Historical**  | **Bally's Chicago, Inc. Historical**  | **Bally's Chicago, Inc. Historical**  |
| | | | **Successor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| **In thousands, except per share data**  | **Three <br> Months <br> Ended <br> March 31, <br> 2025**  | **Year Ended <br> December 31, <br> 2024**  | **Period from <br> February 8 <br> to March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three <br> Months <br> Ended <br> March 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  |
|  **Summary Statements of Operations**  |  |  |  |  |  |  |  |
| **Revenue:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | $26288 | $115844 | $15935 | $10353 | $28191 | $115844 | $28734 |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 2995 | 12849 | 1861 | 1134 | 3331 | 12849 | 3443 |
| Total revenue  | 29283 | 128693 | 17796 | 11487 | 31522 | 128693 | 32177 |
| **Operating costs and expenses:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | 14196 | 60268 | 8157 | 6039 | 14472 | 60268 | 13430 |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 2722 | 8134 | 1462 | 1260 | 1941 | 8134 | 2138 |
| &nbsp;&nbsp;&nbsp; General and <br> administrative  | 18522 | 80067 | 10196 | 8946 | 15241 | 64696 | 36441 |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's <br> Corporation  | 15000 | 60000 | 8871 | 6129 | 15000 | 60000 | 20680 |
| &nbsp;&nbsp;&nbsp; Loss on sale-leaseback  |  | 150000 |  |  |  | 150000 |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 8358 | 33399 | 4842 | 1985 | 4277 | 18300 | 5705 |
|  Total operating costs and expenses  | 58798 | 391868 | 33528 | 24359 | 50931 | 361398 | 78394 |
| **Loss from operations**  | (29515) | (263175) | (15732) | (12872) | (19409) | (232705) | (46217) |
| **Other income (expense):** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income  |  | 1466 |  |  | 693 | 1466 | 2778 |
| &nbsp;&nbsp;&nbsp; Interest expense, net of amounts capitalized  | (3062) | (11002) | (248) |  | (2833) | (6891) | (13819) |
| &nbsp;&nbsp;&nbsp; Other non-operating income <br> (expenses), net  |  |  |  |  |  |  | 893 |
|  Total other income (expense), net  | (3062) | (9536) | (248) |  | (2140) | (5425) | (10148) |
| Loss before income taxes  | (32577) | (272711) | (15980) | (12872) | (21549) | (238130) | (56365) |
| Benefit for income taxes  |  |  |  |  |  |  |  |
| **Net loss**  | $(32577) | $(272711) | $(15980) | $(12872) | $(21549) | $(238130) | $(56365) |
|  Net loss attributable to <br> Redeemable non-controlling <br> interest  | (15801) | (218682) | (5613) |  |  |  |  |
|  **Net loss attributable to Bally's <br> Chicago, Inc.**  | $(16776) | $(54029) | $(10367) | $(12872) | $(21549) | $(238130) | $(56365) |
|  Basic and diluted loss per share  |  |  |  | $(128720) | $(215490) | $(2381300) | $(563650) |
|  Weighted average common shares outstanding, basic and diluted  |  |  |  | 100 | 100 | 100 | 100 |
|  Class A-3, and Class A-4 Interests, basic and diluted loss per share  | $(4018) | $(12940) | $(9223) |  |  |  |  |
|  Weighted average Class A-3 and Class A-4 Interests outstanding, basic and diluted  | 4175 | 4175 | 1124 |  |  |  |  |

---

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | | |
|:---|:---|:---|:---|
| | **Bally's Chicago, <br> Inc. Pro Forma**  | **Bally's Chicago, Inc. Historical**  | **Bally's Chicago, Inc. Historical**  |
| **in thousands**  | **As of March 31, <br> 2025 <br> (Successor)**  | **As of December 31, <br> 2024 <br> (Predecessor)**  | **As of December 31, <br> 2023 <br> (Predecessor)**  |
| Cash  | $15597 | $14519 | $14027 |
| Total assets  | 802565 | 599905 | 737267 |
| Total current liabilities  | 52120 | 704227 | 600789 |
| Total liabilities  | 347832 | 910524 | 809756 |
| Redeemable non-controlling interest  | 471201 |  |  |
| Total stockholders' deficit  | (16467) | (310619) | (72489) |

---

#### Bally's Chicago, Inc. Historical

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three <br> Months <br> Ended <br> March 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  |
| **Summary Statements of Cash Flows Data:** |  |  |  |  |  |
| Net cash used in operating activities  | $(11031) | $(6136) | $(11765) | $(69518) | $(47927) |
| Net cash used in investing activities  | (22941) | (10969) | (18353) | (135280) | (326428) |
| Net cash provided by financing activities  | 30985 | 21170 | 31915 | 148012 | 444568 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| **in thousands**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three <br> Months <br> Ended <br> March 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  |
| **Other Data:** |  |  |  |  |  |
| Temporary Casino Adjusted EBITDAR  | $1634 | $(917) | $1838 | $11250 | $7721 |
| Permanent Casino Loss from Operations  | (5806) | (3536) | (1489) | (163757) | (2227) |

---

**Temporary Casino Adjusted EBITDAR:** We define Temporary Casino Adjusted EBITDAR as earnings, or loss, for the Temporary Casino before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, expansion costs, management fees to Bally's Corporation, rent expense from triple net operating leases, and certain other gains or losses.

**Permanent Casino Loss from Operations:** We define Permanent Casino Loss from Operations as revenue less operating expenses for our Permanent Casino reportable segment.

------

[**TABLE OF CONTENTS**](#TOC)

#### RISK FACTORS
 *Investing in our Class A Interests involves a high degree of risk. You should carefully consider the risks described below, together with the other information contained in this prospectus, including our financial statements and the related notes appearing at the end of this prospectus, and the sections in this prospectus entitled "Business" and "Description of Capital Stock," before making any decision to invest in our Class A Interests. If any of the events discussed in the risk factors below occur it could have a material and adverse impact on our business, results of operations, financial condition and cash flows. If that were to happen, the value of our Class A Interests could decline, and you could lose all or part of your investment.* 

#### Development and Construction Risks

#### We are subject to various construction and development risks in connection with our permanent casino and resort in Chicago.
Our proposed lines of business are dependent on the construction and development of our permanent casino and resort in Chicago, Illinois. Construction and development projects, particularly of the scale contemplated with our permanent casino and resort, are often developed in multiple stages involving commercial and governmental negotiations, site planning, due diligence, permit requests, environmental impact studies, permit applications and review, marine logistics planning and transportation and end-user delivery logistics, each of which requires significant effort and dedication to complete. Projects of this type are subject to a number of risks, including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • engineering, environmental or geological problems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • shortages or delays in the delivery of equipment and supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • government or regulatory approvals, permits or other authorizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • failure to meet technical specifications or adjustments being required based on testing or commissioning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • construction accidents that could result in personal injury or loss of life;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • lack of adequate and qualified personnel to execute the project for our permanent casino and resort;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • weather interference, particularly during the winter in Chicago;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • delays in removing current tenants from the proposed sites; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • potential labor shortages, work stoppages or labor union disputes.

Furthermore, because of the nature of our business, we are dependent on numerous third parties, including local, state and federal governmental entities that are required to certificate and license our facilities. Delays from such third parties or governmental entities could prevent us from successfully executing the construction and development of our permanent casino and resort. In addition, as a builder of gaming facilities, we expect to face an intense regulatory process and heightened political pressure to finalize our permanent casino and resort in a timely manner, which subjects us to risks associated with changes in the political views and structure, government representatives, new regulations, regulatory reviews, employment laws and diligence requirements. Each of these could make it more difficult, time-consuming and expensive to develop our permanent casino and resort.

The occurrence of any one of these factors, whatever the cause, could result in unforeseen delays or cost overruns to the construction and development of our permanent casino and resort. Delays in the development beyond our estimated timelines, or amendments or change orders to our construction contracts, could result in increases to our development costs beyond our original estimates, which could require us to obtain additional financing or funding and could make our permanent casino and resort less profitable than originally estimated or possibly not profitable at all. Further, any such delays could cause a delay in our anticipated receipt of revenues from operating our permanent casino and resort. Our inability to meet milestones or conditions precedent in our contracts with Chicago could also lead to delay penalties and potentially a termination of agreements, which could render our permanent casino and resort impossible to open and/or operate. Specifically, the Host Community Agreement with the City of Chicago provides for

------

[**TABLE OF CONTENTS**](#TOC)

significant liquidated damages in the event that we do not meet the milestones specified as to our temporary casino and our permanent casino and resort. Our parent, Bally's, has experienced time delays and cost overruns in the construction and development of casinos as a result of the occurrence of various of the above factors, and no assurance can be given that we will not experience in the future similar events, any of which could have a material adverse effect on our business, operating results, cash flows and liquidity.

 ***Any delay between the closing of our temporary casino and the opening of our permanent casino and resort could have a material adverse effect on our financial condition and results of operations.***

We may experience a gap between the closing of our temporary casino and the opening of our permanent casino and resort. While we work to construct our permanent casino and resort on the banks of the Chicago River, we have the ability to operate a temporary casino in downtown Chicago for a period up to 24 months. Our temporary casino began operations on September 9, 2023. At the end of the 24-month period, we may petition the Illinois Gaming Board to extend for a period of up to 12 additional months. In no case we will be permitted to operate our temporary casino for a period of greater than 36 months unless otherwise approved by the City of Chicago and the Illinois Gaming Board.

Additionally, there are a number of risks associated with the opening of our permanent casino and resort, including those described elsewhere in this section. For example, the opening of our permanent casino and resort is subject to various construction and development risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • engineering, environmental or geological problems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • shortages or delays in the delivery of equipment and supplies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • government or regulatory approvals, permits or other authorizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • failure to meet technical specifications or adjustments being required based on testing or commissioning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • construction accidents that could result in personal injury or loss of life;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • lack of adequate and qualified personnel to execute the project for our permanent casino and resort;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • weather interference, particularly during the winter in Chicago;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • delays in removing current tenants from the proposed sites; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • potential labor shortages, work stoppages or labor union disputes.

In addition, we have not yet entered into binding contracts for the construction and development of all of our planned facilities and assets for our permanent casino and resort, and may not be able to enter into the contracts required on commercially favorable terms, or at all, which could cause potential changes or delays to our planned development and construction schedule. Also, any failure to maintain working capital sufficient for the project, business disruptions due to pandemic, crime or civil unrest and potential legal proceedings could put our planned schedule at risk of delay.

If we are unable to commence the operation of our permanent casino and resort as expected, and thus a gap exists between the closing of our temporary casino and the opening of our permanent casino and resort, our business, operating results, cash flows and liquidity could be materially and adversely affected.

#### We will depend on third-party contractors, operators and suppliers to develop and construct our permanent casino and resort.
We will be heavily reliant on third-party contractors, equipment manufacturers, suppliers and operators for the development and construction of our permanent casino and resort. We have not yet entered into binding contracts for the construction and development of all of our planned facilities and assets in Chicago, and we cannot assure you that we will be able to enter into the contracts required on commercially favorable terms, or at all, which could expose us to fluctuations in pricing and potential changes or delays to our planned development and construction schedule. These agreements with third parties will be the result of arm's-length negotiations and subject to change. If we are unable to enter into favorable contracts, we may not be able to construct and operate these assets as expected, or at all.

------

[**TABLE OF CONTENTS**](#TOC)

Furthermore, there can be no assurance that contractors and suppliers will perform their obligations successfully under their agreements with us. If any contractor is unable or unwilling to perform according to the negotiated terms and timetable of its respective agreement with us for any reason or terminates its agreement with us for any reason, we would be required to engage a substitute contractor, which could be particularly difficult. Although some agreements may provide for liquidated damages if the contractor or subcontractor fails to perform in the manner required with respect to its obligations, the events that trigger such liquidated damages may delay or impair the opening or operation of our planned facilities, and any liquidated damages that we receive may be delayed or insufficient to cover the damages that we suffer as a result of any such delay or impairment, including, among others, any covenants or obligations by us to or penalties under our agreements with Chicago. Such liquidated damages may also be subject to caps on liability, and we may not have full protection to seek payment from our contractors to compensate us for such payments and other consequences. Furthermore, we may have disagreements with our contractors about different elements of the construction process, which could lead to the assertion of rights and remedies under their contracts and increase the cost of the applicable facility or result in a contractor's unwillingness to perform further work.

If we are unable to construct and commission our permanent casino and resort as expected, or, when and if constructed, our permanent casino and resort does not accomplish our or Chicago's goals, or if we experience delays or cost overruns in construction, our business, operating results, cash flows and liquidity could be materially and adversely affected.

 ***We expect to invest significant capital and resources to develop our permanent casino and resort, which means that we are subject to the risk that our permanent casino and resort is not successfully developed or that the City of Chicago does not fulfill its obligations to us following our capital investment in our permanent casino and resort.***

Our permanent casino and resort requires us to make significant upfront capital investments and devote significant internal time and resources to finalize our permanent casino and resort before we can start to generate revenue from the business. We do not expect to generate meaningful revenues until our permanent casino and resort has been opened to the public for some period of time, which may take a year or more to achieve from the opening of our permanent casino and resort.

If our permanent casino and resort is not successfully developed for any reason, we face the risk of not recovering some or all of our invested capital, which may be significant. If our permanent casino and resort is successfully developed, we face the risks that customers will not enjoy our permanent casino and resort or that Chicago will hinder our ability to operate our permanent casino and resort as intended, which could result in significantly lower revenues than what we currently anticipate. Our contracts and development agreements with Chicago do not fully protect us against this risk and, in some instances, may not provide any meaningful protection from this risk at all. This risk is heightened by the fact that our counterparty is a government or government-related entity because any attempt to enforce our contractual or other rights may involve long and costly litigation where the ultimate outcome is uncertain, and where the government or government-related entity may enjoy some form of immunity or popular support. Additionally, as a government or government-related entity, our counterparty is subject to political pressure and frequent administrative changes, which could result in different perspectives and treatment over the life of our commercial agreements to construct, develop and operate our permanent casino and resort.

If our capital investment does not generate the type of return on investment that we expect, we will have less capital to continue to develop and improve our permanent casino and resort, and our liquidity, results of operations and financial condition could be materially and adversely affected. This could result in our inability to comply with the terms of our existing debt or other agreements, which would exacerbate the aforementioned adverse effects.

 ***We may experience supply chain or procurement disruptions, or increased supply chain costs, which may lead to construction and development delays in our permanent casino and resort.***

The construction and development of our permanent casino and resort is planned for a relatively long-term construction schedule, with our permanent casino and resort expected to open to the public in

------

[**TABLE OF CONTENTS**](#TOC)

September 2026. The construction and development of our permanent casino and resort will require timely delivery of required equipment and materials in order to be open to the public by such date.

The global supply chain for the required equipment and materials could be impacted by disruptions that could lead to delays, reputational damage, interruptions of service and disruptions of our future plans and strategic initiatives, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • political events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • banking industry turmoil;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • international trade disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • acts of terrorism;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • hostilities or wars (such as the war in Ukraine and conflict in the Middle East);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • public health issues, such as the COVID-19 global pandemic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • industrial accidents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • inflation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • other business interruptions.

While we will obtain customary builder's risk insurance to provide coverage during the construction of our permanent casino and resort, such coverage may only cover some, but not all, of any losses or damages incurred during construction. If any such delay or disruption were to occur, it could have a material adverse effect on our ability to execute the construction and development of our permanent casino and resort, which could have an impact on our liquidity and financial condition.

Changes in the costs of procuring materials and equipment used in the construction and development of our permanent casino and resort, including vendor costs, or changes in our relationships with vendors, could also have an adverse effect on our results of operations. Further, during the COVID-19 pandemic, our affiliates observed increases in the prices for certain raw materials required to operate gaming establishments. In addition, as a result of the 2024 U.S. Presidential Election, Donald J. Trump was elected President of the United States. Mr. Trump has imposed tariffs, at times upward of 100%, and has threatened to impose additional tariffs, on goods imported from various countries, including Canada, China and Mexico. These tariffs could cause the costs of procuring materials and equipment used in the construction and development of our permanent casino and resort to significantly increase. To the extent we determine our costs to develop our permanent casino and resort are too high, we may suspend, reduce the scope of or permanently abandon the implementation of our plans with respect to our permanent casino and resort, which could have material and adverse effects on our plans and strategic initiatives.

Though we intend to undertake various proactive efforts to secure our global supply chain against the effects of COVID-19 and the impact of the war in Ukraine and conflict in the Middle East, their full extent and impact on our future supply chain and procurement process cannot be reasonably estimated at this time, and it could have a material adverse impact on our business and financial condition.

#### Failure to maintain sufficient working capital could limit our growth and harm our business, financial condition and results of operations.
During the first several years of development and construction of our permanent casino and resort, we will have significant working capital requirements as we work to make the facilities ready to admit potential customers. If we do not have sufficient working capital, we may not be able to pursue our growth strategy, respond to competitive pressures or fund key strategic initiatives, which may harm our business, financial condition and results of operations.

 ***The casino, hotel and hospitality industry is capital intensive and we may not be able to finance development, expansion and renovation projects, which could put us at a competitive disadvantage.***

Our permanent casino and resort will have an ongoing need for renovations and other capital improvements to remain competitive, including room refurbishments, amenity upgrades and replacement,

------

[**TABLE OF CONTENTS**](#TOC)

from time to time, of furniture, fixtures and equipment. We may also need to make capital expenditures to comply with applicable laws and regulations. Construction projects entail significant risks, which can substantially increase costs of or delay a project. Such risks include shortages of materials or skilled labor, unforeseen engineering, environmental or geological problems, work stoppages, weather interference and unanticipated cost increases. Most of these factors are beyond our control. In addition, difficulties or delays in obtaining any of the requisite licenses, permits or authorizations from regulatory authorities can increase the cost or delay of expansion or development. Significant budget overruns or delays with respect to expansion and development projects could adversely affect our business and results of operations.

Renovations and other capital improvements of casino properties, in particular, require significant capital expenditures. In addition, any such renovations and capital improvements usually generate little or no cash flow until the projects are operational. We may not be able to fund such projects solely from cash provided from operating activities. Consequently, we may have to rely upon the availability of debt or equity capital to fund renovations and capital improvements, and our ability to carry them out will be limited if we cannot obtain satisfactory debt or equity financing, which will depend on, among other things, market conditions. We cannot assure you that we will be able to obtain additional equity or debt financing on favorable terms, or at all. Our failure to renovate and maintain gaming and entertainment venues from time to time may put us at a competitive disadvantage to gaming and entertainment venues offering more modern and better maintained facilities, which could adversely affect our business, financial condition and results of operations.

#### Our investments in the construction and building industry are subject to unique risks relating to regulatory changes and global economic conditions.
Companies in the construction and building sector are subject to many risks, including the negative impact of regulation, changing real estate market, a competitive marketplace and difficulty in obtaining financing. Any of these factors could materially and adversely affect our operations, or the operations of third parties we have engaged, in connection with the construction and building of our permanent casino and resort, in turn, access to capital may be difficult or impossible for us to obtain.

 ***The renderings included in this prospectus are artistic representations of our current proposed design for the permanent casino and resort and are subject to change.***

The renderings included in this prospectus are artistic representations of our current proposed design for the permanent casino and resort, are subject to change and should not be unduly relied upon when deciding to purchase securities in this offering. These illustrations are intended solely for illustrative purposes and are subject to revision for a variety of reasons, including cosmetic, marketing, permitting, zoning and financing. They are provided to help investors visualize the current planned design, which may not be accurately depicted and is subject to modification at any time. The design, features, and amenities of the permanent casino and resort depicted in the renderings and described in this prospectus are also subject to change. We do not own or control the land outside of our permanent casino and resort, and therefore cannot guarantee its current or future use. Any views shown are for illustrative purposes only and do not depict the buildings and landscaping of neighboring properties. We cannot guarantee that neighboring properties or existing views will remain unchanged or unobstructed in the future. In light of the above, investors are advised to consider these renderings in context and not to place undue reliance on them.

#### Risks Related to our Leases
 ***Both our temporary casino site and permanent casino and resort site are leased and could experience risks associated with leased properties, including risks relating to lease termination, inability to obtain satisfactory lease extensions, consents and approvals, charges and our relationship with landlords, which could have a material adverse effect on our business, financial position or results of operations.***

Both our temporary casino site and permanent casino and resort site are leased and could experience risks associated with leased properties, including risks relating to lease termination, inability to obtain satisfactory lease extensions, consents and approvals, charges and our relationship with landlords, which could have a material adverse effect on our business, financial position or results of operations. In

------

[**TABLE OF CONTENTS**](#TOC)

November 2022, we entered into a ground lease with BACHIL001 LLC, as landlord (together with its successors and assigns in such capacity, the "Oak Street Landlord"), an affiliate of Oak Street Real Estate Capital, LLC (the "Oak Street Lease Agreement"), to lease the property on which we plan to develop our permanent casino and resort.

On July 11, 2024, Bally's entered into the GLP Term Sheet with GLP for a strategic construction and financing arrangement, including up to $940.0 million of funding for the construction of our permanent casino and resort. In connection therewith, GLP acquired the fee interest in the property on which we plan to develop our permanent casino and resort from the Oak Street Landlord and succeeded to the Oak Street Landlord's interest as landlord under the Oak Street Lease Agreement. On July 17, 2025, we entered into (x) an amended and restated ground lease with GLP (the "GLP Lease Agreement"), which amended and restated the Oak Street Lease Agreement, to lease such property and (y) a development agreement with GLP (the "GLP Development Agreement") pursuant to which GLP has committed to advance up to $940 million (the "GLP Development Advances") for the payment of hard costs used to construct our permanent casino and resort in exchange for increasing the amount of rent that we pay to GLP under the GLP Lease Agreement. The GLP Lease Agreement has a 15-year term and up to four renewal terms of five years each, if elected by Bally's Chicago OpCo, and rent payable under the GLP Lease Agreement is (a) $20.0 million annually, subject to annual escalations set forth therein, plus (b) an annual amount equal to 8.5% of the GLP Development Advances that GLP advances to us.

GLP has the right to terminate the GLP Lease Agreement upon any event of default under the GLP Lease Agreement. Such events of default include, without limitation, a failure to pay amounts due after applicable notice and cure periods, certain bankruptcy or insolvency events, a cross-default with the GLP Development Agreement and the failure to comply with a variety of covenants after applicable notice and cure periods, including those related to the development of our permanent casino and resort, repair and maintenance, alterations and insurance. In addition, from and after any refinancing, extension or majority amendment of Bally's existing credit facilities, the GLP Lease Agreement will include a cross-default to that certain Master Lease, dated June 3, 2021, as subsequently amended, between GLP and a wholly-owned subsidiary of Bally's and that certain Master Lease, dated December 16, 2024, as subsequently amended, between GLP and a wholly-owned subsidiary of Bally's.

There are also certain restrictions on our ability to assign our interest in the GLP Lease Agreement without having to obtain GLP's prior consent, including requirements for the transferee (or its parent company) to satisfy certain financial metrics and have a certain level of experience in operating or managing casinos.

GLP's obligation to make GLP Development Advances under the GLP Development Agreement is subject to certain conditions, including that we shall have unrestricted access to funds in an amount sufficient at the time of each GLP Development Advance to fund the construction of our permanent casino and resort. We are obligated to construct our permanent casino and resort in compliance with terms and conditions set forth in the GLP Development Agreement, which include the satisfaction of specified development and construction milestones.

The GLP Development Agreement contains customary representations and covenants by us and contains funding conditions, including, without limitation, (a) GLP's reasonable approval of plans and specifications, the project budget (including amendments thereto and reallocations therein except those permitted under the GLP Development Agreement), the project schedule, the underlying construction and architect contracts, and all change orders (subject to exceptions set forth in the GLP Development Agreement), (b) GLP's receipt of appropriate lien waivers, (c) budget balancing requirements, (d) retainage requirements, and (e) other customary conditions, all as set forth in the GLP Development Agreement. From and after the first GLP Development Advance, we are required to fund all hard costs of construction of the permanent casino and resort utilizing solely GLP Development Advances until GLP has funded its entire commitment or construction has been completed. The GLP Development Agreement also contains defaults and remedies, including, without limitation, a cross-default with the GLP Lease Agreement. We are not permitted to assign, finance, transfer, pledge or encumber our interest in the GLP Development Agreement without GLP's prior written consent, whether or not any such assignment, financing, transfer, pledge or encumbrance is permitted with respect to the GLP Lease Agreement, other than to a permitted leasehold mortgagee under the GLP Lease Agreement.

------

[**TABLE OF CONTENTS**](#TOC)

In addition to the GLP Lease Agreement, we also entered into a sublease agreement with Medinah Holdings, LLC and Medinah Building LLC (the "Medinah Lease Agreement" and, together with the GLP Lease Agreement, the "Casino Lease Agreements"), to lease the property on which we developed our temporary casino. The consent of the sublandlord under the Medinah Lease Agreement (the "Medinah Sublandlord") is generally required for any assignments of our interests thereunder, except with respect to transfers to affiliates or successors by merger or acquisition. The Medinah Sublandlord has the right to terminate the Medinah Lease Agreement upon any event of default under the Medinah Lease Agreement. Such events of default include: the failure to timely pay rent, carry (or provide evidence of) required insurance, or perform any other covenant under the Medinah Lease Agreement, in each case subject to the notice and cure periods provided therein, certain bankruptcy or insolvency events, and a failure to surrender the subleased premises on the last day of the term of the Medinah Lease Agreement. Further, the Medinah Lease Agreement is subordinate to a master lease, and certain defaults by the Medinah Sublandlord in its capacity as tenant under the master lease could result in a termination thereof, which could result in a termination of the Medinah Lease Agreement.

Termination of any or all of the Casino Lease Agreements (including as a result of a default under the GLP Development Agreement) would result in us losing some or all of our rights with respect to the applicable properties, could result in a default under the Host Community Agreement, and could have a material adverse effect on our business, financial position or results of operations. In the event of a termination of any of the Casino Lease Agreements (including as a result of a default under the GLP Development Agreement), we may be required to transfer all personal property located at the applicable property to a designated successor, and we may not be adequately compensated for that personal property. Moreover, since as a lessee we do not completely control the land and improvements underlying our operations, the lessors could take certain actions to disrupt our rights in the properties leased under the Casino Lease Agreements, which are beyond our control. If the lessors chose to disrupt our use either permanently or for a significant period of time, then the value of our assets could be impaired and our business and operations could be adversely affected. There can also be no assurance that we will be able to comply with our obligations under the Casino Lease Agreements (including our obligations under the GLP Development Agreement) in the future. In addition, if the lessors have financial, operational, regulatory or other challenges, there can be no assurance that the lessors will be able to comply with their obligations under the Casino Lease Agreements, including their obligations to provide us financing for the construction of our permanent casino and resort.

#### General Economic and Political Conditions

#### Our proposed lines of business are highly sensitive to reductions in discretionary consumer spending.
Our proposed lines of business are highly sensitive to reductions from time to time in discretionary consumer spending. Demand for entertainment and leisure activities, including gaming, can be affected by changes in the economy and consumer tastes, both of which are difficult to predict and beyond our control. Unfavorable changes in general economic conditions, including recessions, economic slowdowns, sustained high levels of unemployment and rising prices or the perception by consumers of weak or weakening economic conditions, may reduce our prospective customer's disposable income or result in fewer individuals engaging in entertainment and leisure activities, such as visiting casinos and casino hotel properties, sports betting, iCasino and online bingo, some of which are services we intend to offer. We will rely on the strength of the regional and local economy for the performance of our temporary casino and our permanent casino and resort. As a result, we cannot ensure that demand for our offerings will remain constant. Adverse developments affecting economies throughout the world, including a general tightening of the availability of credit, increasing energy costs, rising prices, acts of war or terrorism, natural disasters, declining consumer confidence, significant declines in the stock market or epidemics, pandemics or other health-related events or widespread illnesses, like the COVID-19 pandemic, could lead to a reduction in visitors to our temporary casino and our permanent casino and resort or discretionary spending by our customers on entertainment and leisure activities, which could adversely affect our business, financial condition and results of operations.

#### Inflation could adversely impact our business, financial condition and results of operations.
We have experienced, and may in the future experience, inflationary pressures in certain areas of our business, including with respect to employee wages, the cost of materials, transportation and energy, as well

------

[**TABLE OF CONTENTS**](#TOC)

as performance and brand marketing expenses, store rents and build-out costs and other various professional and technology expenses. We cannot predict any future trends in the rate of inflation or associated increases in our operating costs or potential weakening of consumer spending power and how that may impact our business. To the extent we are unable to recover higher operating costs and a potential weakening of consumer spending power resulting from inflation, or otherwise mitigate the impact of such costs on our business, our revenues and gross profit margins could decrease and our business, financial condition and results of operations could be adversely affected.

#### Business interruptions in Chicago due to crime or civil unrest could adversely affect us.
Our business and our assets are planned to be primarily located in Chicago, Illinois, which is a large city. Perceptions of high incidences of crime at or in the vicinity of any of the facilities that we operate and intend to operate, including our temporary casino and our permanent casino and resort, may give rise to concerns about lack of personal safety among our patrons, which could result in a decline in customer traffic and spending patterns, which would result in a decline in revenue. Our business interruption insurance and coverage for malicious attacks may only cover some, but not all, of these potential events, and even for those events that are covered, it may not be sufficient to compensate us fully for losses or damages that may occur as a result of such events, including, for example, loss of market share and diminution of our trademarks, reputation and consumer loyalty. Any one or more of these events could have a material adverse effect on our business, results of operation, financial condition and/or cash flow.

#### Political uncertainty could adversely affect our business.
U.S. and non-U.S. markets could experience political uncertainty and/or change that subjects investments to heightened risks, including, for instance, risks related to the elections in the United States, the war in Ukraine, the conflict in the Middle East, or the effect of the COVID-19 pandemic on world leaders and governments. These heightened risks could also include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • increased risk of default (by both government and private issuers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • greater social, trade, economic and political instability (including the risk of war or terrorist activity);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • greater governmental involvement in the economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • greater governmental supervision and regulation of the securities markets and market participants resulting in increased expenses related to compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • greater fluctuations in currency exchange rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • controls or restrictions on foreign investment and/or trade, capital controls and limitations on repatriation of invested capital and on the ability to exchange currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • inability to purchase and sell investments or otherwise settle security or derivative transactions (i.e., a market freeze);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • unavailability of currency hedging techniques; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • slower clearance.

During times of political uncertainty and/or change, global markets often become more volatile. There could also be a lower level of monitoring and regulation of markets while a country is experiencing political uncertainty and/or change, and the activities of investors in such markets and enforcement of existing regulations could become more limited. Markets experiencing political uncertainty and/or change could have substantial, and in some periods extremely high, rates of inflation for many years. Inflation and rapid fluctuations in inflation rates typically have negative effects on such countries' economies and markets. Tax laws could change materially, and any changes in tax laws could have an unpredictable effect on us, our investments and our investors. There can be no assurance that political changes will not cause us or our investors to suffer losses.

------

[**TABLE OF CONTENTS**](#TOC)

#### Risks Related to Competition

#### Chicago is still not known as a location for gaming tourism and, therefore, we face significant competition from both regional and national gaming centers.
The Illinois Gambling Act established the Illinois Gaming Board and authorized up to ten casino licenses. Currently, all ten original licenses are active. In July 2009, Public Act 96-0034 became law, creating the Illinois Video Gaming Act. Since 2009, Video Gaming has rapidly expanded across Illinois. On June 28, 2019, Illinois Governor J.B. Pritzker signed the gaming expansion bill into law which permits sports wagering, including online/mobile, a Chicago casino, five additional casinos, slots and table games at racetracks, possible slots at the Chicago airports, an additional video gaming terminal ("VGT") at each establishment and in some instances five additional VGTs, and the opportunity for existing casinos to move to land-based operations or purchase additional gaming positions. As of March 31, 2025, there were over 48,000 VGTs spread throughout 8,600 licensed establishments.

The market for gaming, hotel and other entertainment facilities in Chicago is rapidly evolving but remains in its infancy. While Illinois is undergoing expansion since various states started to liberalize gaming (including sports betting), Chicago is still not known as a location for gaming tourism and, therefore, subject to significant competition from both regional and national gaming centers. An underserved and untapped market, the City of Chicago is served by the Rivers Casino in a suburb of Chicago, the northwestern Indiana casinos, a retail sports book at the United Center, a retail sports book opening at Wrigley Field in 2023 and the Waukegan casino. In addition, Hawthorne Race Course has submitted an application for a gaming license to open a "racino."

 ***The gaming industry, including retail casinos, iGaming and sports wagering, is highly competitive and increased competition, including through legislative legalization or expansion of gaming by states in or near Illinois or through Native American gaming facilities, could adversely affect our financial results.***

Once our permanent casino and resort is open and operational, we will face significant competition in all of the areas in which we conduct our business. Currently, there are approximately 17 gaming centers located within a 100-mile radius of our location. Also, the Hawthorne Race Course has submitted an application for a gaming license to open a "racino" approximately 10 miles from our permanent casino and resort site. Increased competitive pressures may adversely affect our ability to continue to attract customers or affect our ability to compete efficiently.

Our temporary casino is, and our permanent casino and resort will be, located in a jurisdiction that restricts gaming to certain areas and/or may be affected by state laws that currently prohibit or restrict gaming operations. We also face the risk that existing casino licensees in Illinois and in nearby states will expand their operations and the risk that Native American gaming will continue to grow, both throughout Illinois and in nearby states. Budgetary and other political pressures faced by state governments could lead to intensified efforts directed at the legalization of gaming in jurisdictions where it is currently prohibited. The legalization of gaming in such jurisdictions could be an expansion opportunity for our business, or create competitive pressures, depending on where the legalization occurs and our ability to capitalize on it. Our ability to attract customers could be significantly and adversely affected by the legalization or expansion of gaming in certain jurisdictions and by the development or expansion of Native American casinos in areas where our customers may visit.

In addition, our competitors in Illinois and in nearby states may refurbish, rebrand or expand their casino offerings, which could result in increased competition. Furthermore, changes in ownership may result in improved quality of our competitors' facilities, which may make such facilities more competitive. Certain of our competitors are large gaming companies with greater name recognition and marketing and financial resources. In some instances, particularly in the case of Native American casinos, our competitors pay lower taxes or no taxes. These factors create additional challenges for us in competing for customers and accessing cash flow or financing to fund improvements for our casino and entertainment products that enable us to remain competitive.

We expect to experience strong competition in hiring and retaining qualified property and corporate management personnel, including competition from Native American gaming facilities that are not subject

------

[**TABLE OF CONTENTS**](#TOC)

to the same taxation regimes as we are and therefore may be willing and able to pay higher rates of compensation. From time to time, a number of vacancies in key corporate and property management positions can be expected. If we are unable to successfully recruit and retain qualified management personnel at our facilities or at the corporate level, our results of operations could be adversely affected.

We will also compete with other forms of legalized gaming and entertainment such as bingo, pull-tab games, card parlors, sportsbooks, pari-mutuel or simulcast betting on horse and dog racing, state-sponsored lotteries, instant racing machines, video lottery terminals ("VLT") (including racetracks that offer VLT) and video poker terminals. In the future, we may also compete with gaming or entertainment at other venues. Further competition from Internet lotteries and other Internet wagering gaming services, which allow their customers to wager on a wide variety of sporting events and play Las Vegas-style casino games from home, could divert customers from the facilities we own and thus adversely affect our business. Such Internet wagering services are likely to expand in future years and become more accessible to domestic gamblers as a result of U.S. Department of Justice positions related to the application of federal laws to intrastate Internet gaming and initiatives in some states to consider legislation to legalize intrastate Internet wagering. The law in this area has been rapidly evolving, and additional legislative developments may occur at the federal and state levels that would accelerate the proliferation of certain forms of Internet gaming in Illinois and in nearby states.

In addition, in May 2018, the U.S. Supreme Court struck down as unconstitutional the Professional and Amateur Sports Protection Act of 1992, a federal statute enacted to stop the spread of state-sponsored sports gambling. This decision lifted federal restrictions on sports wagering and allows each state to determine by itself the legality of sports wagering within its jurisdiction. While new federal online gaming legislation has been introduced in Congress from time to time, there has been no federal legislative response to the U.S. Supreme Court's decision. As a result, numerous states, including Illinois and states located near Illinois, have passed legislation authorizing fixed-odds sports betting online. This decreases our ability to serve as a hub for sports betting, as customers can access sports betting throughout Illinois and nearby states without needing to venture to our temporary casino or our permanent casino and resort, which results in decreased traffic and reduced potential revenue generation.

We may also face competition from other gaming facilities which are able to offer sports wagering services (including mobile sports wagering) following the enactment of applicable legislation. Numerous states that border Illinois have pending or proposed legislation which would allow for sports betting, each of which could have an adverse effect on our financial results by further reducing the foot traffic to our temporary casino or our permanent casino and resort.

The gaming industry is characterized by an increasingly high degree of competition among a large number of participants operating from physical locations and/or through online or mobile platforms, and other forms of gaming in the United States. Recently, there has been additional significant competition in our markets as a result of the upgrading or expansion of properties by existing market participants, the entrance of new gaming participants into a market or legislative changes permitting additional forms of gaming. As competing properties and new markets open, our results of operations may be negatively impacted. We expect each existing or future market in which we participate to be highly competitive.

Existing and new competitors may also increase marketing spending, including to unprofitable levels, in an attempt to distort the online gambling market to build market share quickly. Some of our competitors have or will have significantly greater financial, technical, marketing and sales resources and may be able to respond more quickly to changes in customer needs. Additionally, these competitors may be able to devote a greater number of resources to the enhancement, promotion and sale of their games and gaming systems. Our future success is or will be dependent upon its ability to retain its current customers and to acquire new customers. Failure to do so could result in a material adverse effect on our business, financial condition and results of operations.

#### Compliance, Regulatory and Legal Risks
 ***We are and will be subject to extensive state and local regulation and licensing, and gaming authorities have significant control over our operations, which could have an adverse effect on our business.***

Our ownership and operation of our temporary casino is, and our permanent casino and resort will be, subject to extensive state and local regulation, and regulatory authorities at the state and local levels have

------

[**TABLE OF CONTENTS**](#TOC)

broad powers with respect to the licensing of these businesses, and may reject, revoke, suspend, condition, fail to renew or limit our gaming or other licenses, impose substantial fines and take other actions, each of which poses a significant risk to our business, results of operations and financial condition. We have applied to hold all state and local licenses and related approvals necessary to conduct our intended operations in our temporary casino and our permanent casino and resort, and will be required to periodically apply to renew many of these licenses and registrations and have the suitability of certain of our directors, officers and employees renewed. On October 26, 2023, we obtained a four-year owners license from the Illinois Gaming Board. This license will expire on October 25, 2027 and may be renewed for subsequent four-year terms. The license issued to casino operators is referred to as an "owners license" and is issued by the Illinois Gaming Board for a period of up to four years. The owners license may then be renewed for subsequent four-year terms. On October 26, 2023, the Illinois Gaming Board also approved extending the operation of our temporary casino until September 9, 2026. If our permanent casino and resort is not opened by September 9, 2026, when the temporary casino's right to operate expires under current law, our public operations may need to be ceased until the permanent casino and resort is able to open unless the law is changed to permit a further extension of our temporary casino operations and that extension is approved by the Illinois Gaming Board (if required at that time). There can be no assurance that we will be able to obtain all necessary licenses, that we will be able to secure any required renewals or that we will be able to obtain future approvals that would allow us to continue to run our gaming operations in our temporary casino or our permanent casino and resort. Any failure to obtain, maintain or renew existing licenses, registrations, permits or approvals or difficulty or delay in doing so would have a material adverse effect on us. As we expand our gaming operations to offer new and improved options for customers, we may have to meet additional suitability requirements and obtain additional licenses, registrations, permits and approvals from gaming authorities in these jurisdictions. The approval process can be time-consuming and costly and we cannot be sure that we will be successful. Furthermore, if additional gaming laws or regulations are adopted in jurisdictions where we operate, these regulations could impose additional restrictions or costs that could have a significant adverse effect on us.

Gaming authorities in Illinois generally require that any beneficial owner of our securities file an application for a finding of suitability. If a gaming authority requires a record or beneficial owner of our securities to file a suitability application, the owner must generally apply for a finding of suitability within 30 days or at an earlier time prescribed by the gaming authority. The gaming authority has the power to investigate such an owner's suitability and the owner must pay all costs of the investigation. If the owner is found unsuitable, then the owner may be required by law to dispose of his or her shares in the Company.

Our officers, directors and key employees are also subject to a variety of regulatory requirements and various licensing and related approval procedures in Illinois. If the Illinois gaming authority were to find any of our officers, directors or key employees unsuitable for licensing or unsuitable to continue having a relationship with us, we would have to sever all relationships with that person. Furthermore, Illinois gaming authority may require us to terminate the employment of any person who refuses to file appropriate applications. Either result could adversely affect our gaming operations.

Applicable gaming laws and regulations may restrict our ability to issue certain securities, incur debt and undertake other financing activities. Such transactions would generally require notice and/or approval of applicable gaming authorities, and our financing counterparties, including lenders, might be subject to various licensing and related approval procedures in the various jurisdictions in which we manage gaming facilities. Applicable gaming laws further limit our ability to engage in certain competitive activities and impose requirements relating to the composition of our Board and senior management personnel. If state regulatory authorities were to find any person unsuitable with regard to his, her or its relationship to us or any of our subsidiaries, we would be required to sever our relationship with that person, which could materially adversely affect our business.

 ***We are subject to numerous federal, state and local laws that may expose us to liabilities or have a significant adverse impact on our operations. Changes to any such laws could have a material adverse effect on our operations and financial condition.***

Our business is subject to a variety of federal, state and local laws, rules, regulations and ordinances. These laws and regulations include, but are not limited to, restrictions and conditions concerning alcoholic

------

[**TABLE OF CONTENTS**](#TOC)

beverages, environmental matters, employees, currency transactions, taxation, zoning and building codes and marketing and advertising. Such laws and regulations could change or could be interpreted differently in the future, or new laws and regulations could be enacted. Material changes to any of the laws, rules, regulations or ordinances to which we are subject, new laws or regulations or material differences in interpretations by courts or governmental authorities could have an adverse effect on our business, financial condition and results of operations.

Our employees, especially those that interact with our customers, receive a base salary or wage that is established by applicable Illinois and federal laws that establish a minimum hourly wage that is, in turn, supplemented through tips and gratuities from customers. From time to time, Illinois and U.S. lawmakers have increased the minimum wage. It is difficult to predict when such increases may take place. Any such change to the minimum wage could have a material adverse effect on our business, financial condition and results of operations.

The sale of alcoholic beverages is a highly regulated and taxed business. Federal, state and local laws and regulations govern the production and distribution of alcoholic beverages, including permitting, licensing, trade practices, labeling, advertising, marketing, distributor relationships and related matters. Federal, state and local governmental entities also levy various taxes, license fees and other similar charges and may require bonds to ensure compliance with applicable laws and regulations. Failure to comply with applicable federal, state or local laws and regulations could result in higher taxes, penalties, fees and suspension or revocation of permits, licenses or approvals and could have a material adverse effect on our business, financial condition and results of operations. From time to time, local and state lawmakers, as well as special interest groups, have proposed legislation that would increase the federal and/or state excise tax on alcoholic beverages or certain types of alcoholic beverages. If federal or state excise taxes are increased, we may have to raise prices to maintain profit margins on the sales of any alcoholic beverages. Higher taxes may reduce overall demand for alcoholic beverages, thus negatively impacting sales of our alcoholic beverages at our temporary casino or our permanent casino and resort. Further federal or state regulation may be forthcoming that could further restrict the distribution and sale of alcohol products. Any material increases in taxes or fees or the adoption of additional taxes, fees or regulations could have a material adverse effect on our business, financial condition and results of operations.

In addition, each restaurant we operate must obtain a food service license from local authorities. Failure to comply with such regulations could cause our licenses to be revoked or our related restaurant business or businesses to be forced to cease operations. Moreover, Illinois liquor laws may prevent the expansion of restaurant operations or interfere with the manner in which we intend to operate our restaurants.

We handle significant amounts of cash in our operations and are subject to various reporting and anti-money laundering laws and regulations. Recently, U.S. governmental authorities have evidenced an increased focus on compliance with anti-money laundering laws and regulations in the gaming industry. Any violation of anti-money laundering laws or regulations could have a material adverse effect on our business, financial condition and results of operations. Internal control policies and procedures and employee training and compliance programs that we intend to implement will attempt to deter prohibited practices, but they may not be effective in prohibiting our future employees, contractors or agents from violating or circumventing our policies and the law. If we or our employees or agents fail to comply with applicable laws or our policies governing our operations, we may face investigations, prosecutions and other legal proceedings and actions which could result in civil penalties, administrative remedies and criminal sanctions. Any such government investigations, prosecutions or other legal proceedings or actions could have a material adverse effect on our business, financial condition and results of operations.

#### We may be subject to extensive environmental regulation, which creates uncertainty regarding future environmental expenditures and liabilities.
We may in the future be subject to various federal, state and local environmental laws and regulations that govern activities that may have adverse environmental effects, such as discharges to air and water, as well as the management and disposal of solid, animal and hazardous wastes and exposure to hazardous materials. These laws and regulations, which are complex and subject to change, include U.S. Environmental Protection Agency regulations. Compliance with these and other environmental laws can, in some circumstances, require significant capital expenditures.

------

[**TABLE OF CONTENTS**](#TOC)

We expect to also be subject to laws and regulations that create liability and cleanup responsibility for releases of regulated materials into the environment. Certain of these laws and regulations impose strict, and under certain circumstances joint and several, liability on a current or previous owner or operator of property for the costs of remediating regulated materials on or emanating from our property. The costs of investigation, remediation or removal of those substances may be substantial. The presence of, or failure to remediate properly, such materials may adversely affect our ability to operate our temporary casino or our permanent casino and resort or to borrow funds using such property as collateral. Additionally, as an owner or manager of real property, we could be subject to claims by third parties based on damages and costs resulting from environmental contamination at or emanating from third-party sites. These laws typically impose clean-up responsibility and liability without regard to whether the owner or manager knew of or caused the presence of the contaminants and the liability under those laws has been interpreted to be joint and several unless the harm is divisible and there is a reasonable basis for allocation of the responsibility.

The possibility exists that contamination, as yet unknown, may exist on our anticipated properties. There can be no assurance that we will not incur expenditures for environmental investigations or remediation in the future.

 ***We are currently involved in legal proceedings and may become involved in additional legal proceedings that, if adversely adjudicated or settled, could impact our business and financial condition.***

From time to time, we have been and may continue to be named in lawsuits or other legal proceedings relating to our businesses. In particular, the nature of our business subjects us to the risk of lawsuits filed by customers, past and present employees, holders of our stock, competitors, business partners and others in the ordinary course of business. As with all legal proceedings, no assurances can be given as to the outcome of these matters. Moreover, legal proceedings can be expensive and time consuming, and we may not be successful in defending or prosecuting these lawsuits, which could result in settlements or damages that could adversely affect our business, financial condition and results of operations. See "*— Risks Related to this Offering and Ownership of our Class A Interests — This offering has resulted in lawsuits and may in the future lead to additional lawsuits*" for more information.

#### The regulatory framework which governs our business, and its interpretation, may be subject to change which we may fail to anticipate and/or respond to.
In order to operate our temporary casino and our permanent casino and resort, we are required to hold licenses issued by the Illinois Gaming Board. The holders of such licenses are bound to meet stringent compliance requirements relating to matters such as anti-money laundering, safer gaming, data protection, advertising and consumer rights issues. Compliance with such requirements is incorporated into the relevant licenses as a licensing condition (or similar) with a corresponding requirement for us to comply with such onerous requirements.

In carrying out its functions, the Illinois Gaming Board is under a statutory duty to ensure that license holders are operating their businesses in ways that are reasonably consistent with the licensing objectives set out in the law, which include preventing gaming from being a source of (or associated with) crime or disorder, or being used to support crime; ensuring that gaming is conducted in a fair and open way and protecting children and other vulnerable people from being harmed or exploited by gaming.

While the objectives of regulation may remain largely stable, the methods that operators are required to employ to meet those objectives is in a state of constant evolution and development. We must respond adequately to the challenges this presents. If we are found to be in breach of our obligation to comply with such licensing requirements, then the Illinois Gaming Board may impose a financial penalty on us or impose other penalties, including removing or imposing conditions on the relevant gaming licenses. A breach of our Host Community Agreement with the City could also result in non-renewal of our owners license by the Illinois Gaming Board, particularly if the breach results in a termination of the Host Community Agreement. Maintaining the authorization from the City is a condition for any future renewal of the owners license. Such actions could have a material adverse effect on our financial performance.

------

[**TABLE OF CONTENTS**](#TOC)

 ***Our business is subject to a variety of laws in the United States and in Illinois, many of which are unsettled and still developing, and which could subject us to claims or otherwise harm our business. Any change in existing regulations or their interpretation, or the regulatory or prosecutorial climate applicable to the products and services we offer in our temporary casino and intend to offer in our permanent casino and resort, or changes in gaming tax rates, tax rules and regulations or interpretation thereof related to such products and services, could adversely impact our ability to operate our business as currently conducted or as we seek to operate in the future, which could have a material adverse effect on our financial condition and results of operations.***

We are generally subject to laws and regulations relating to gaming in Illinois, as well as the general laws and regulations that apply to all gaming and hospitality businesses, such as those related to privacy and personal information, tax and consumer protection. These laws and regulations vary, and future legislative and regulatory action, court decisions or other governmental action, which may be affected by, among other things, political pressures, attitudes and climates, as well as personal biases, may have a material impact on our operations and financial results. The regulatory environment in Chicago or on a federal level may change in the future and any such change could have a material adverse effect on our results of operations.

Future legislative and regulatory action, and court decisions or other governmental action, may have a material impact on our operations and financial results. Governmental authorities could view us as having violated local laws, despite our efforts to obtain all applicable licenses or approvals. There is also risk that civil and criminal proceedings, including class actions brought by or on behalf of prosecutors or public entities or incumbent monopoly providers, or private individuals, could be initiated against us, Internet service providers, credit card and other payment processors in the gaming industry. Such potential proceedings could involve substantial litigation expense, penalties, fines, seizure of assets, injunctions or other restrictions being imposed upon our licensees or other business partners, while diverting the attention of key executives. Such proceedings could have a material adverse effect on our business, financial condition and results of operations, as well as impact our reputation.

There can be no assurance that legally enforceable legislation will not be proposed and passed in Illinois to prohibit, legislate or regulate various aspects of our business (or that existing laws in those jurisdictions will not be interpreted negatively). Compliance with any such legislation may have a material adverse effect on our business, financial condition and results of operations because a local license or approval may be costly for us or our business partners to obtain and/or such licenses or approvals may contain other commercially undesirable conditions.

#### We may share part of the regulatory burdens of Bally's.
The majority of our voting power has been and, following this offering and the concurrent private placements will continue to be, held by Bally's. In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's entered into the Permanent Services Agreement with BMG, a subsidiary of Bally's and, in August 2023, Bally's Chicago OpCo entered into the Temporary Services Agreement with BMG. Pursuant to each of the Permanent Services Agreement and the Temporary Services Agreement, BMG agreed to provide us with general business support services. Bally's and its affiliates hold many privileged licenses in jurisdictions around the world, allowing them to operate gaming, hospitality and entertainment businesses. Regulators that issue such licenses have broad investigative powers and could ask for information from our majority stockholder, the entities from which we license intellectual property and their affiliates. Bally's and its affiliates, including us and Bally's Chicago OpCo, will be obligated to cooperate with the investigations of such regulators. Such licenses may also limit the operations and activities of subsidiaries and affiliates of Bally's, including us and Bally's Chicago OpCo.

#### Business Operational Risks

#### We rely on effective payment processing services from a limited number of providers.
The provision of convenient, trusted, fast and effective payment processing services to our customers and potential customers is critical to our business. If there is any deterioration in the quality of the payment processing services provided to these customers or any interruption to those services (including with respect to system intrusions, unauthorized access or manipulation), or if such services are only available at an increased cost to us or our customers or are terminated and no timely and comparable replacement services

------

[**TABLE OF CONTENTS**](#TOC)

are found, our customers and potential customers may be deterred from using our products and services. Any of these occurrences may have a material adverse effect on our business, financial condition and results of operations.

Furthermore, a limited number of banks and credit card companies process gambling related payments as a matter of internal policy and any capacity to accept such payments may be limited by the regulatory regime of a given jurisdiction. The introduction of legislation or regulations restricting financial transactions with gambling operators, other prohibitions or restrictions on the use of credit cards and other banking instruments for gambling transactions may restrict our ability to accept payments from our customers. These restrictions may be imposed as a result of concerns related to fraud, payment processing, AML or other issues related to the provision of gambling services. A number of issuing banks or credit card companies may from time to time reject payments to us that are attempted to be made by our customers. Should such restrictions and rejections become more prevalent, or any other restriction on payment processing be introduced, gambling activity by our customers could be adversely affected, which in turn could have a material adverse effect on our business, financial condition and results of operations.

In addition, we are subject to the risk of credit card chargebacks, which may also result in possible penalties. A chargeback is a credit card originated deposit transaction to a player account with an operator that is later reversed or repudiated. The risk of such chargeback transactions is greater in respect of certain markets and certain payment methods. We intend to recognize revenue upon the first loss of the player on amounts tendered, with any credit card chargebacks then deducted from revenues. Even though security measures are in place, high rates of credit card chargebacks could result in credit card associations levying additional costs and fines or withdrawing their service and could have a material adverse effect on our business, financial condition and results of operations.

#### Our electronic and table games and slot machines hold percentages may fluctuate.
The gaming industry is characterized by an element of chance and guests' winnings at our temporary casino depend, and at our permanent casino and resort will depend, on a variety of factors, some of which are beyond our control. In addition to the element of chance, hold percentages (the ratio of net win to total amount wagered) are affected by other factors, including players' skill and experience, the mix of games played, the financial resources of players, the volume of bets placed and the amount of time played. The variability of our hold percentages has the potential to adversely affect our business, financial condition and results of operations.

#### Our profitability is dependent, in part, on return to players.
The revenue we derive from certain of our proposed gaming products depends on the outcome of random number generators built into the gaming software running the games made available to our customers. Return to player is measured by dividing the amount of real money won by players on a particular game by the total real money wagers over a particular period on that game. An increasing return to player may negatively affect revenue as it represents a larger amount of money being won by players. Return to player is driven by the overall random number generator outcome, the mechanics of different games and jackpot winnings. Each game utilizes a random number generating engine; however, generally the return to player fluctuates in the short-term based on large wins or jackpots or a large share of wagers made for higher-payout games. To the extent we are unable to set, or fail to obtain, a favorable return to player in our (or a third-party supplier's) gambling software which maximizes revenue, it could have a material adverse effect on our business, financial condition and results of operations.

 ***The success, including win or hold rates, of future sports betting and gaming products depends on a variety of factors and is not completely controlled by us.***

The sports betting and gaming industries are characterized by an element of chance. Accordingly, we employ theoretical win rates to estimate what a certain type of sports bet or game, on average, will win or lose in the long run. These theoretical win rates may not always yield positive results for us, which could cause our revenue to decrease as players' winnings increase.

------

[**TABLE OF CONTENTS**](#TOC)

Our success depends in part on our ability to anticipate and satisfy user preferences in a timely manner. As we operate in a dynamic environment characterized by rapidly changing industry and legal standards, our products will be subject to changing consumer preferences that cannot be predicted with certainty. We will need to continually introduce new offerings and identify future product offerings that complement our existing platforms, respond to our customer's needs and improve and enhance our existing platforms to maintain or increase our customer engagement and growth of our business. We may not be able to compete effectively unless our product selection keeps up with trends in the digital sports entertainment and gaming industries in which we compete, or trends in new gaming products.

#### We extend credit to a portion of our customers, and we may not be able to collect gaming receivables from our credit customers.
We conduct our gaming activities on a credit and cash basis at our temporary casino and will conduct our gaming activities on a credit and cash basis at our permanent casino and resort. Any such credit we extend will be unsecured. Table game players typically are extended more credit than slot players, and high-stakes players typically are extended more credit than customers who tend to wager lower amounts. High-end gaming is more volatile than other forms of gaming, and variances in win-loss results attributable to high-end gaming may have a significant positive or negative impact on cash flow and earnings in a particular period. We will extend credit to those customers whose level of play and financial resources warrant, in the opinion of management, an extension of credit. These large receivables could have a significant impact on our results of operations if deemed uncollectible. Gaming debts evidenced by a credit instrument, including what is commonly referred to as a "marker," and judgments on gaming debts are enforceable under the current laws of Illinois, and judgments on gaming debts in such jurisdictions are enforceable in all U.S. states under the Full Faith and Credit Clause of the U.S. Constitution; however, other jurisdictions may determine that enforcement of gaming debts is against public policy. Although courts of some foreign nations will enforce gaming debts directly and the assets in the United States of foreign debtors may be reached to satisfy a judgment, judgments on gaming debts from U.S. courts are not binding on the courts of many foreign nations.

#### Declining popularity of games and changes in device preferences of players could have a negative effect on our business.
Revenue from games tends to decline over time after reaching a peak of popularity and player usage. The speed of this decline is referred to as the decay rate of a game. As a result of this natural decline in the life cycle of our products, our business depends on our ability and the ability of our third-party partners to consistently and timely launch new games across multiple platforms and devices that achieve significant popularity. Our ability to successfully launch, sustain and expand games as applicable, largely will depend on our ability to, amongst other things: (1) anticipate and effectively respond to changing game player interests and preferences; (2) anticipate or respond to changes in the competitive landscape; (3) develop, sustain and expand games that are fun, interesting and compelling to play; (4) minimize launch delays and cost overruns on new games; (5) minimize downtime and other technical difficulties; (6) acquire leading technology and high quality personnel; and (7) comply with constraints on game design and/or functionality imposed by regulators. There is a risk that we may not launch any new games according to schedule, or that those games do not attract and retain a significant number of players, which could have a negative effect on our business, financial condition and results of operations.

In addition to offering popular new games, we must extend the life of the existing games which we make available to future customers, in particular the most successful games. While it is difficult to predict when revenues from any such existing games will begin to decline, for a game to remain popular, we must constantly enhance, expand or upgrade the relevant game with new features that players find attractive. There is a risk that we may not be successful in enhancing, expanding or upgrading our current games or any new games in the future and, in addition, regulators may introduce new rules that limit functionality within existing games. Should we not succeed in sufficiently offsetting the effects of declining popularity in the games we make available, this may have a material adverse effect on our business, financial condition and results of operations.

------

[**TABLE OF CONTENTS**](#TOC)

 ***We may invest in or acquire other businesses, and our business may suffer if we are unable to successfully integrate acquired businesses into the Company or otherwise manage the growth associated with multiple acquisitions.***

We cannot assure you that we will be able to consummate any future acquisitions, or that any future acquisitions will enhance our financial performance. For example, while we are in discussion with the Illinois Gaming Board and Midway International Airport to install slot machines at Midway International Airport we cannot assure you that we will reach agreement on the terms of that installation, or such terms will ultimately be advantageous to us. Our ability to achieve the expected benefits of any acquisitions will depend on, among other things, our ability to effectively translate our strategies into revenue, our ability to retain and assimilate the acquired businesses' employees, our ability to retain existing customers and suppliers on terms similar to, or better than, those in place with the acquired businesses, our ability to attract new customers, the adequacy of our implementation plans, our ability to maintain our financial and internal controls and systems as we expand our operations, the ability of our management to oversee and operate effectively the combined operations and our ability to achieve desired operating efficiencies and revenue goals. The integration of the businesses that we acquire might also cause us to incur costs that are unforeseen or that exceed our estimates, which would lower our future earnings and would prevent us from realizing the expected benefits of such acquisitions. In some cases, the services provided by the sellers are critical to the ongoing efficient operation of the properties and may involve costly payments from us to the provider of the services. If the provision of these services by the sellers is disrupted or given insufficient attention by the sellers, our ability to operate the properties may be negatively impacted until such time as we are able to take full control over the services. Moreover, we must pay the sellers for these services and the costs to us for these services may exceed our estimates and these expenses will negatively impact the results of operations of these properties during these transition periods. Failure to achieve the anticipated benefits of these acquisitions could result in decreases in the amount of expected revenues and diversion of management's time and energy and could adversely affect our business, financial condition and operating results.

 ***Our growth will depend, in part, on the success of our strategic relationships with third parties. Overreliance on certain third parties or our inability to extend existing relationships or agree to new relationships may cause unanticipated costs for us and impact our financial performance in the future.***

We may enter into strategic relationships with advertisers, casinos and other third parties in order to attract customers to our temporary casino and our permanent casino and resort. We believe that these relationships, along with providers of online services, search engines, social media, directories and other websites and e-commerce businesses, will help direct consumers to our temporary casino and our permanent casino and resort. In addition, many of the parties with whom we may enter into advertising arrangements may provide advertising services to other companies, including fantasy sports and gaming platforms with whom we compete. While we believe there are other third parties that could drive users to our temporary casino and our permanent casino and resort, adding or transitioning to them may disrupt our business and increase our costs. In the event that any of our existing relationships or our future relationships fails to provide services to us in accordance with the terms of our arrangement, or at all, and we are not able to find suitable alternatives, this could impact our ability to attract consumers cost effectively and harm our business, financial condition and results of operations.

#### We conduct our business in an industry that is subject to high taxes and may be subject to higher taxes in the future.
In Illinois, state and local governments raise considerable revenues from taxes based on casino revenues and operations. We are also required to pay property taxes, occupancy taxes, sales and use taxes, payroll taxes, franchise taxes and income taxes. Our profitability will depend on generating enough revenues to cover variable expenses, such as payroll and marketing, as well as largely fixed expenses, such as property taxes and interest expense. From time to time, state and local governments have increased gaming taxes and such increases could significantly impact the profitability of our gaming operations.

Our operations are generally subject to significant revenue-based taxes and fees in addition to normal federal, state and local income taxes, and such taxes and fees are subject to increase at any time. In addition,

------

[**TABLE OF CONTENTS**](#TOC)

from time to time, federal, state and local legislators and officials have proposed changes in tax laws, or in the administration of such laws, affecting the gaming industry. Further, worsening economic conditions could intensify the efforts of applicable state and local governments to raise revenues through increases in gaming taxes and/or property taxes. It is not possible to determine with certainty the likelihood of changes in tax laws in these jurisdictions or in the administration of such laws. Such changes, if adopted, could adversely affect our business, financial condition and results of operations. Any material increase, or the adoption of additional taxes or fees, could adversely affect our future financial results.

There can be no assurance that governments in Illinois or Chicago, or the federal government, will not enact legislation that increases gaming tax rates. General economic pressures have the potential to reduce revenues of state and local governments from traditional tax sources, which may cause state legislatures or the federal government to be more inclined to increase gaming tax rates.

 ***If we fail to detect fraud, theft or cheating, including by our users and employees, our reputation may suffer which could harm our brand and reputation and negatively impact our business, financial condition and results of operations and can subject us to investigations and litigation.***

We may incur losses from various types of financial fraud, including use of stolen or fraudulent credit card data, claims of unauthorized payments by a customer and attempted payments by customer with insufficient funds. Bad actors use increasingly sophisticated methods to engage in illegal activities involving personal information, such as unauthorized use of another person's identity, account information or payment information and unauthorized acquisition or use of credit or debit card details, bank account information and mobile phone numbers and accounts. Under current credit card practices, we may be liable for use of funds at our temporary casino and our permanent casino and resort with fraudulent credit card data, even if the associated financial institution approved the credit card transaction.

Acts of fraud may involve various tactics, including collusion. Successful exploitation of our systems could have negative effects on our product offerings, services and customer experience and could harm our reputation. Failure to discover such acts or schemes in a timely manner could result in harm to our operations. In addition, negative publicity related to such schemes could have an adverse effect on our reputation, potentially causing a material adverse effect on our business, financial condition and results of operations. In the event of the occurrence of any such issues with our proposed product offerings, substantial engineering and marketing resources and management attention, may be diverted from other projects to correct these issues, which may delay other projects and the achievement of our strategic objectives.

In addition, any misappropriation of, or access to, customer's or other proprietary information or other breach of our information security could result in legal claims or legal proceedings, including regulatory investigations and actions, or liability for failure to comply with privacy and information security laws, including for failure to protect personal information or for misusing personal information, which could disrupt our operations, force us to modify our business practices, damage our reputation and expose us to claims from our customers, regulators, employees and other persons, any of which could have an adverse effect on our business, financial condition and results of operations.

Despite measures we will take to detect and reduce the occurrence of fraudulent or other malicious activity in our temporary casino and our permanent casino and resort, we cannot guarantee that any of our measures will be effective or will scale efficiently with our business. Our failure to adequately detect or prevent fraudulent transactions could harm our reputation or brand, result in litigation or regulatory action and lead to expenses that could adversely affect our business, financial condition and results of operations.

#### We have limited operating history.
We have limited operating history and there can be no assurance that our proposed plan of business can be realized in the manner contemplated and, if it cannot be, holders of our stock may lose all or a substantial part of their investment. There is no guarantee that it will ever realize any significant operating revenues or that its operations will ever be profitable. As we have limited operational history, it is extremely difficult to make accurate predictions and forecasts on our finances.

------

[**TABLE OF CONTENTS**](#TOC)

#### We are largely dependent on the skill and experience of management and key personnel.
Our officers, directors and key employees either are or will be required to file applications with the Illinois Gaming Board, and are required to be licensed or found suitable by such authority. If the Illinois Gaming Board were to find an officer, director or key employee unsuitable for licensing or unsuitable to continue having a relationship with us, we would have to sever all relationships with that person. Furthermore, the Illinois Gaming Board may require us to terminate the employment of any person who refuses to file appropriate applications. Either result could significantly impair our operations. The time and effort needed to successfully complete the application process could impact our ability to attract, hire and retain top talent.

#### We are subject to risks associated with labor relations, labor costs and labor disruptions.
We are subject to the costs and risks generally associated with labor disputes and organizing activities related to unionized labor. From time to time, our operations may be disrupted by strikes, public demonstrations or other coordinated actions and publicity. We may incur increased legal costs and indirect labor costs as a result of contractual disputes, negotiations or other labor-related disruptions.

#### We may incur impairments to indefinite-lived intangible assets or long-lived assets.
We will monitor the recoverability of our long-lived assets, such as buildings in our permanent casino and resort, and evaluate their carrying value for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. We intend to perform interim reviews whenever events or changes in circumstances indicate that impairment may have occurred. If the testing performed indicates that impairment has occurred, we will be required to record a non-cash impairment charge for the difference between the carrying value and fair value of the long-lived assets or the carrying value and fair value of the reporting unit, in the period the determination is made. The testing of long-lived assets for impairment will require us to make estimates that are subject to significant assumptions about our future revenue, profitability, cash flows, fair value of assets and liabilities, weighted average cost of capital, as well as other assumptions. Changes in these estimates, or changes in actual performance compared with these estimates, may affect the fair value of long-lived assets or reporting unit, which may result in an impairment charge.

We cannot accurately predict the amount or timing of any impairment of assets. Should the value of long-lived assets become impaired, our financial condition and results of operations may be adversely affected.

#### We anticipate that our operations will be subject to seasonal variations and quarterly fluctuations in operating results.
Casino and hotel operations are subject to seasonal variation. Seasonal weather conditions can frequently adversely affect transportation routes to Chicago and may cause snowfall, flooding and other effects that result in the closure of our temporary casino or our permanent casino and resort. In addition, any sports betting business we open in our casino and resort may experience seasonality based on the relative popularity of certain sports at different parts of the year. As a result, unfavorable seasonal conditions could have a material adverse effect on our business, financial condition and results of operations.

#### Our business is particularly sensitive to energy prices and a rise in energy prices could harm our operating results.
We are a large consumer of electricity and other energy in Chicago and, therefore, higher energy prices may have an adverse effect on our results of operations. Accordingly, increases in energy costs may have a negative impact on our operating results. Additionally, higher electricity and gasoline prices that affect our customers may result in reduced visitation to our temporary casino or our permanent casino and resort and a reduction in our revenues. We may be indirectly impacted by regulatory requirements aimed at reducing the impacts of climate change directed at up-stream utility providers, as we could experience potentially higher utility, fuel and transportation costs.

------

[**TABLE OF CONTENTS**](#TOC)

#### Our insurance and self-insurance programs, through Bally's Corporation, may not be adequate to cover future claims.
Although we maintain insurance that we believe is customary and appropriate for our business at this stage of our operations, we cannot assure you that insurance will be available or adequate to cover all losses and damage to which our business or our assets might be subjected in current or future periods. We use a combination of insurance and self-insurance, through Bally's Corporation, to provide for potential liabilities, including employee healthcare benefits, up to certain stop-loss amounts which limit our exposure above the amounts we have self-insured. We estimate the liabilities and required reserves associated with the risks we retain. Any such estimates and actuarial projection of losses is subject to a considerable degree of variability. A considerable increase in claims as a result of a pandemic, including as a result of the COVID-19 pandemic, could have a material adverse effect on our business, financial condition or results of operations. If actual losses incurred are greater than those anticipated, our reserves may be insufficient and additional costs could be recorded in our consolidated financial statements. If we suffer a substantial loss that exceeds our self-insurance reserves, and any excess insurance coverage, the loss and attendant expenses could harm our business, financial condition or results of operations. The lack of adequate insurance for certain types or levels of risk could expose us to significant losses in the event that a catastrophe occurred for which we are uninsured or underinsured. Any losses we incur that are not adequately covered by insurance may decrease our future operating income, require us to find replacements or repairs for destroyed property and reduce the funds available for payments of our obligations. We renew our insurance policies on an annual basis. The cost of coverage may become so high that we may need to further reduce our policy limits, further increase our deductibles or agree to certain exclusions from our coverage.

 ***Our results of operations and financial condition could be adversely affected by the occurrence of natural disasters, such as blizzards, floods, tornadoes, fires, or other catastrophic events, including war, terrorism and public health crises such as the COVID-19 pandemic.***

Natural disasters, such as major hurricanes, typhoons, tornados, floods, fires and earthquakes, could adversely affect our business and operating results.

Catastrophic events, such as terrorist attacks and global and regional conflicts (e.g., the war in Ukraine and conflict in the Middle East), have had a negative effect on travel and leisure expenditures, including lodging, gaming (in some jurisdictions) and tourism. We cannot accurately predict the extent to which such events may affect us, directly or indirectly, in the future.

Public health crises may also significantly impact our business. For example, the global spread of the COVID-19 pandemic, which began in early 2020, resulted in governments, public institutions and other organizations imposing or recommending, and businesses and individuals implementing, restrictions on various activities or other actions to combat its spread, such as restrictions and bans on travel or transportation, stay-at-home directives, requirements that individuals wear masks or other face coverings, limitations on the size of gatherings, closures of work facilities, schools, public buildings and businesses, cancellation of events, including sporting events, concerts, conferences and meetings and quarantines and lock-downs. The pandemic and its consequences dramatically reduced travel and demand for hotel rooms and other casino resort amenities. There are no assurances that a resurgence of future COVID-19 variants or future pandemics will not cause similar disruptions.

There can be no assurance that we will be able to obtain or choose to purchase any insurance coverage with respect to occurrences of catastrophic events, such as those described above. If there is a prolonged disruption at our facilities due to natural disasters, terrorist attacks, wars, public health crises or other catastrophic events, our results of operations and financial condition would be adversely affected.

We may be unable to obtain business interruption coverage for casualties resulting from severe weather such as hurricanes, and there can be no assurance that we will be able to obtain casualty insurance coverage at affordable rates, if at all, for casualties resulting from severe weather.

 ***Failure to comply with the community investment program obligations specified in the Host Community Agreement could have a material adverse effect on our financial condition and results of operations.***

The Host Community Agreement with the City of Chicago provides for certain community investment obligations, with which the failure to comply could have a material adverse effect on our financial condition

------

[**TABLE OF CONTENTS**](#TOC)

and results of operations. We have agreed to meet or exceed the goals, as specified in the agreement, for contracting with city-based businesses for the design and construction of our permanent casino and resort and the provision of goods and services to our permanent casino and resort; meet or exceed the hiring of the minimum number of employees as specified in the agreement; meet or exceed the goals, as specified in the agreement, for work hours for construction work by city residents and residents of the area surrounding our permanent casino and resort; meet or exceed the goals for hiring specific percentages of city residents, women, Minorities, veterans and persons with a disability; satisfy the requirements for business utilization and building wealth and increasing employment in disadvantaged communities, prioritize hiring of city residents and achieve a diverse workforce; and satisfy the requirements for locally sourcing goods and services as specified in the agreement. In addition, we have also agreed to establish, fund and maintain human resource hiring and training practices and comply with certain workforce development plans. Any failure to comply with these obligations may result in an event of default under the agreement, and the City of Chicago will have the right, among others, to exercise any and all remedies available at law or in equity, terminate the agreement, and institute and prosecute proceedings to enforce in whole or in part the specific performance of the agreement by us.

In addition, the Illinois Gambling Act requires the IGB, in determining whether or not to issue the casino owners license, to have considered whether applicants have provided evidence of their best efforts to attain certain ownership goals (25% ownership representation by minority persons and 5% ownership representation by women) (the "Best Efforts Ownership Standards"). The IGB approved the issuance of the license to us on October 26, 2023. The IGB may decide to revoke or not renew our owners license if we fail to adhere to the standards and requirements set forth in the Illinois Gambling Act and the Illinois Gaming Board Rules, including the Best Efforts Ownership Standards. If our license is revoked, we may lose our ability to operate our temporary casino and/or our permanent casino and resort in the City of Chicago, which could lead to the value of our Class A Interests declining, and you could lose all or part of your investment. Further, recent public scrutiny of business diversity initiatives, particularly in governmental contracting and other programs, may result in challenges to the community investment obligations required by the City under the Host Community Agreement. See "*Business —Our Relationship with Chicago — Community Investment Program*" for additional information.

#### Risks Related to Our Relationship with Bally's
 ***Bally's Chicago HoldCo controls the direction of our business, and the concentrated ownership of our stock will prevent you and other stockholders from influencing significant decisions.***

Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, Bally's Chicago HoldCo, a wholly-owned subsidiary of Bally's Corporation, will hold 89.3% of the voting power and 45.8% of the economic power of our stock, in addition to its interests under the Subordinated Loans and its LLC Interests in Bally's Chicago OpCo. As long as Bally's Chicago HoldCo continues to control stock representing a majority of our combined voting power, it will generally be able to determine the outcome of all corporate actions requiring stockholders' approval. Even if Bally's Chicago HoldCo were to control less than a majority of our combined voting power, it may be able to influence the outcome of corporate actions so long as it owns a significant portion of our combined voting power. If Bally's Chicago HoldCo does not sell or otherwise dispose of its Class B Interests and Class A-4 Interests, Bally's Chicago HoldCo could retain control over us for an extended period of time or indefinitely.

Investors in this offering may not be able to affect the outcome of any stockholders' vote while Bally's Chicago HoldCo controls the majority of our combined voting power. Bally's Chicago HoldCo thus will be able to elect a majority or more of the members of our Board, which in turn will be able to influence all matters affecting us, including, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any determination with respect to our business direction and policies, including the appointment and removal of officers and, in the event of a vacancy on our Board, additional or replacement directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any determinations with respect to mergers, business combinations or disposition of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • determination of our management policies;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • determination of the composition of the committees on our Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our financing policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our compensation and benefit programs and other human resources policy decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • termination of, changes to or determinations under our agreements with Bally's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes to any other agreements that may adversely affect us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the payment of dividends.

See "*Description of Capital Stock*." Moreover, pursuant to the Stockholders Agreement, Bally's Chicago HoldCo has veto rights over any transactions involving: (i) change in control transactions of our company or any of our subsidiaries, including Bally's Chicago OpCo, (ii) acquiring or disposing of assets or any business enterprise or division thereof for consideration in excess of $50.0 million in any single transaction or series of transactions, (iii) increasing or decreasing the size of our board of directors, (iv) initiating any liquidation, dissolution, bankruptcy, or other insolvency proceeding involving us or any of our subsidiaries, including Bally's Chicago OpCo, and (v) any transfer, issue, sale, or disposition by us of any shares of stock, other equity securities, equity-linked securities, or securities that are convertible into equity securities of us or our subsidiaries to any person or entity that is a non-strategic financial investor in a private placement transaction or series of transactions. Because Bally's Chicago HoldCo has interests in and obligations to us and Bally's Chicago OpCo that differ from those of other constituencies, and its interests may differ from ours or from those of our other stockholders, actions that Bally's Chicago HoldCo takes with respect to us, as our controlling stockholder, may not be favorable to us or our stockholders.

 ***If Bally's Chicago HoldCo sells a controlling interest in our Company to a third party in a private transaction, you may not realize any change-of-control premium on our Class A Interests, and we may become subject to the control of a presently unknown third party.***

Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, a wholly-owned subsidiary of Bally's, will hold 89.3% of the voting power and 45.8% of the economic power of our stock. Bally's Chicago HoldCo's will have the ability, should it choose to do so, to sell some or all of these Class B Interests and Class A-4 Interests in a privately negotiated transaction, which, if sufficient in size, could result in a change of control of our Company.

The ability of Bally's Chicago HoldCo to privately sell the Class B Interests and Class A-4 Interests, with no requirement for a concurrent offer to be made to acquire all of our Class A Interests, could prevent you from realizing any change-of-control premium on your Class A Interests that may otherwise accrue to Bally's Chicago HoldCo on its private sale of Class B Interests and Class A-4 Interests. Additionally, if Bally's Chicago HoldCo's sells Class B Interests and Class A-4 Interests representing a significant portion of our stock, we may become subject to the control of a presently unknown third party. Such third party may have conflicts of interest with those of other stockholders. In addition, if Bally's Chicago HoldCo sells a controlling interest in our Company to a third party, any debt financing we secure in the future may be subject to acceleration, Bally's subsidiary, BMG, may terminate the Permanent Services Agreement, the Temporary Services Agreement and other arrangements, and our other relationships and agreements could be impacted, all of which may adversely affect our ability to run our business as described herein and may have a material adverse effect on our results of operations, cash flows and financial condition.

 ***Bally's Chicago HoldCo's interests may conflict with our interests and the interests of the other holders of our stock. Conflicts of interest between Bally's Chicago HoldCo's and us could be resolved in a manner unfavorable to us and the other holders of our stock.***

Various conflicts of interest between us and Bally's Chicago HoldCo's could arise. Stock of our directors and officers in the stock of Bally's, or a person's service either as a director or officer of both companies, could create or appear to create potential conflicts of interest when those directors and officers are faced with decisions relating to our Company. These decisions could include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • corporate opportunities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the impact that operating decisions for our business may have on Bally's consolidated financial statements;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • differences in tax positions between Bally's and us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the impact that operating or capital decisions (including the incurrence of indebtedness) for our business may have on Bally's current or future indebtedness or the covenants under that indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • future, potential commercial arrangements between Bally's and us or between Bally's and third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • business combinations involving us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our dividend policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's exercising its right under the Guarantee Agreement to cause Bally's Chicago OpCo and its subsidiaries to guarantee Bally's indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally Chicago HoldCo's exercising its rights under the Stockholders Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • management interest ownership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • intercompany agreements between Bally's and us.

Furthermore, disputes may arise between Bally's and us relating to our past and ongoing relationship and these potential conflicts of interest may make it more difficult for us to favorably resolve such disputes, including those related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • tax, employee benefits, indemnification and other matters arising from this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the nature, quality and pricing of services Bally's agrees to provide to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • sales or other disposals by Bally's Chicago HoldCo of all or a portion of Bally's Chicago HoldCo's Class B Interests and Class A-4 Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • business combinations involving us.

We may not be able to resolve any potential conflicts, and even if we do, the resolution may be less favorable to us than if we were dealing with an unaffiliated party. While we are controlled by Bally's Chicago HoldCo, we may not have the leverage to negotiate amendments to our agreements with Bally's, if required, on terms as favorable to us as those we would negotiate with an unaffiliated third party.

#### The interests of Bally's major shareholders may differ from your interests.
As of March 31, 2025 (Successor), Standard RI Ltd ("Standard") and SG CG Gaming LLC ("Standard Gaming") together owned 73.0% of Bally's shares of common stock and Noel Hayden owned 10.1% of Bally's shares of common stock. Standard General L.P. serves as investment manager to both Standard and Standard Gaming and, in that capacity, exercises voting and investment control over the shares held by both entities. Soohyung Kim, Chairman of Bally's, is the managing partner and chief investment officer of Standard General L.P. As a result, Standard, Standard Gaming, Standard General L.P., Soohyung Kim and Noel Hayden (the "Bally's majority shareholders") have the ability to directly or indirectly exert significant influence over certain aspects of Bally's business and affairs through the election of directors and vote on corporate actions requiring shareholder approval.

This concentration of ownership could also deter a change in control of our Company and make the approval of some transactions difficult without the support of the Bally's majority shareholders. The relationship between the Bally's majority shareholders and Bally's may give rise to conflicts of interest with respect to, among other things, transactions and agreements among other entities controlled by the Bally's majority shareholders and us, issuances of additional securities and the election of directors. To the extent the interests of the Bally's majority stockholders diverge from our interests, they may exercise their influence over us in favor of their own interests over our interests. Similarly, the interests of the Bally's majority stockholders may differ from or conflict with your interests as a holder of the Class A Interests.

#### Certain of our directors and officers may have actual or potential conflicts of interest because of their positions with Bally's.
Following the closing of this offering, certain of our directors and officers will retain their positions with Bally's. In addition, they may own Bally's stock, options to purchase Bally's stock or other Bally's

------

[**TABLE OF CONTENTS**](#TOC)

equity awards. These individuals' holdings of Bally's stock, options to purchase Bally's stock or other equity awards may be significant compared to their total assets. Their positions at Bally's and the ownership of any Bally's equity or equity awards creates, or may create the appearance of, conflicts of interest when they are faced with decisions that could have different implications for Bally's than the decisions have for us.

 ***Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will limit Bally's Chicago HoldCo liability to us or you for certain breaches of fiduciary duty and could also prevent us from benefiting from corporate opportunities that might otherwise have been available to us.***

Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, which will become effective immediately prior to the closing of this offering, will provide that, to the fullest extent permitted by the laws of the State of Delaware, Bally's Chicago HoldCo will have no obligation to refrain from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • engaging in the same or similar business activities or lines of business as we do; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • competing, directly or indirectly, with us or any of our subsidiaries.

Under our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, to the fullest extent permitted by law, Bally's Chicago HoldCo will not be liable to us, our subsidiaries or to our stockholders for certain breaches of any fiduciary duty solely by reason of any of these activities.

Additionally, our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will include a "corporate opportunity" waiver provision in which we renounce any interests or expectancy in corporate opportunities which become known to any of our directors or stockholders who are not employed by the Company or its subsidiaries. Generally, to the fullest extent permitted by law, neither Bally's Chicago HoldCo nor our directors will be liable to us or our stockholders for breach of any fiduciary duty by reason of the fact that any such person (i) pursues or acquires any corporate opportunity for the account of Bally's Chicago HoldCo or its affiliates, (ii) directs, recommends, sells, assigns or otherwise transfers such corporate opportunity to Bally's Chicago HoldCo or its affiliates, or (iii) does not communicate information regarding such corporate opportunity to us unless the potential transaction or corporate opportunity is expressly offered to our director in his or her capacity as a director of the Company. The corporate opportunity provision may exacerbate conflicts of interest between Bally's and us because the provision may permit one of our directors who also serves as a director, officer, employee or other affiliate of Bally's to choose to direct a corporate opportunity to Bally's instead of us.

Bally's will not be restricted from competing with us in our casino and resort business, including as a result of acquiring a company that operates a casino and resort business. Due to the significant resources of Bally's, including financial resources, name recognition and know-how resulting from the management of our business, Bally's could have a significant competitive advantage over us should it decide to utilize these resources to engage in the type of business we conduct, which may cause our operating results and financial condition to be materially adversely affected.

#### Third parties may seek to hold us responsible for liabilities of Bally's, which could result in a decrease in our income.
Third parties may seek to hold us responsible for Bally's liabilities. If those liabilities are significant and we are ultimately held liable for them, we cannot assure that we will be able to recover the full amount of our losses from Bally's.

#### We may not achieve some or all of the anticipated benefits of being a standalone public company.
We may not be able to achieve all of the anticipated strategic and financial benefits expected as a result of being a standalone public company, or such benefits may be delayed or not occur at all. These anticipated benefits include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • allowing investors to evaluate the distinct merits, performance and future prospects of our business, independent of Bally's other businesses;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • improving our strategic and operational flexibility and increasing management focus as we continue to implement our strategic plan and allowing us to respond more effectively to different player needs and the competitive environment for our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • allowing us to adopt a capital structure better suited to our financial profile and business needs, without competing for capital with Bally's other businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • creating an independent equity structure that will facilitate our ability to effect future acquisitions utilizing our stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • facilitating incentive compensation arrangements for employees more directly tied to the performance of our business, and enhancing employee hiring and retention by, among other things, improving the alignment of management and employee incentives with performance and growth objectives of our business.

We may not achieve the anticipated benefits of being a standalone public company for a variety of reasons, and it could adversely affect our operating results and financial condition.

#### We rely on our access to Bally's brands and reputation and some of Bally's relationships.
We believe the association with Bally's will contribute to our building relationships with our players due to its recognized brands and products. Any perceived loss of Bally's scale, capital base and financial strength may prompt our business partners to reprice, modify or terminate their relationships with us. In addition, any future reduction of Bally's ownership of our Company may affect our then current and future business relationships. We cannot predict with certainty the effect any of these perceived loss and ownership reductions will have on our business.

 ***The services that we receive from Bally's subsidiary, BMG, may not be sufficient for us to operate our business, and we would likely incur significant incremental costs if we lost access to BMG's services.***

In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into the Permanent Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Permanent Services Agreement, BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing upon the opening of our permanent casino and resort. Pursuant to the Permanent Services Agreement, we agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is one year, beginning upon the opening of our permanent casino and resort, and will be automatically renewed for successive one-year terms, unless either party serves on the other a written notice of termination. See "*Transactions with Related Persons —Permanent Services Agreement.*"

In addition, in August 2023, Bally's Chicago OpCo entered into the Temporary Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing related to our temporary casino. Pursuant to the Temporary Services Agreement, we agreed to pay BMG a monthly fee equal to $5.0 million, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is two years, beginning August 30, 2023, and will be automatically renewed for successive one-year terms for as long as our temporary casino is licensed to continue operations, unless BMG serves on Bally's Chicago OpCo a written notice of termination. The Temporary Services Agreement shall automatically terminate when our temporary casino permanently closes and our permanent casino and resort opens to the public. See "*Transactions with Related Persons — Temporary Services Agreement*."

------

[**TABLE OF CONTENTS**](#TOC)

If we lost access to the services provided to us by BMG under these agreements, we would need to replicate or replace certain functions, systems and infrastructure. We may also need to make investments or hire additional employees to operate without the same access to Bally's existing operational and administrative infrastructure. These initiatives may be costly to implement. The amount of total costs could be materially higher than our estimate, and the timing of the incurrence of these costs could be subject to change.

We may not be able to replace the services or enter into appropriate third-party agreements on terms and conditions, including cost, comparable to those that we will receive from BMG under the Permanent Services Agreement and the Temporary Services Agreement. Additionally, if such agreements are terminated, we may be unable to sustain the services at the same levels or obtain the same benefits as when we were receiving such services and benefits from BMG. If we have to operate these functions separately, if we do not have our own adequate systems and business functions in place or if we are unable to obtain them from other providers, we may not be able to operate our business effectively or at comparable costs, and our profitability may decline. In addition, we have historically received informal support from Bally's and BMG, which might not be addressed in our services agreement. The level of this informal support could diminish or be eliminated following this offering.

While we are controlled by Bally's, we may not have the leverage to negotiate amendments to our agreement with BMG and any agreements with Bally's, if required, on terms as favorable to us as those we would negotiate with an unaffiliated third party.

 ***We may have received better terms from unaffiliated third parties than the terms we have received and will receive in our agreements with Bally's and its affiliates.***

The agreements that we have entered and will enter into with Bally's and its affiliates in connection with this offering, including the Permanent Services Agreement and the Temporary Services Agreement, have been and will have been prepared while we were still a wholly-owned subsidiary of Bally's. As a result, the terms of those agreements may not reflect terms that would have resulted if we had negotiated such terms with an unaffiliated third party.

#### We currently are dependent on Bally's for various support services.
We are dependent on the services of Bally's to provide us with various support services, including legal, accounting, finance, operational support and oversight, marketing, employee management and customer support services. See "*Transactions with Related Persons — Permanent Services Agreement*" and "*Transactions with Related Persons — Temporary Services Agreement*."

Our ability to successfully develop our permanent casino and resort on time and on budget is dependent to a large degree on the skills and efforts of employees of Bally's. However, these individuals will not be our employees and they will not be devoting all of their time and attention to the development of our permanent casino and resort. If we or Bally's are unable to retain the services of our or its employees or if those employees do not devote sufficient time and attention to the development of our permanent casino and resort, we may be unable to open our permanent casino and resort on time and within our estimated budget, or at all.

#### Bally's involvement with other projects may adversely affect our permanent casino and resort.
As of March 31, 2025, Bally's Corporation owns and manages 19 casinos in 11 states across the United States, one golf course in New York, one horse racetrack in Colorado, and Aspers Casino in the United Kingdom. As numerous regulatory approvals, licenses and permits are required for the development and management of these other properties, Bally's must devote significant funds, in addition to human and other resources, to meet its obligations with respect to these properties. As resources are expended for these other properties, the resources available for the development and management of our permanent casino and resort may be diverted, which may have a material adverse effect on the development and construction of our permanent casino and resort and our business, financial condition, results of operations and ability to make payments on the notes.

#### Various subsidiaries of Bally's operate in the same industries and may in certain instances compete against each other and us for customers and business.
In addition to our Company, as of March 31, 2025, Bally's owns and manages 19 casinos in 11 states across the United States, one golf course in New York, one horse racetrack in Colorado, and Aspers Casino

------

[**TABLE OF CONTENTS**](#TOC)

in the United Kingdom. Its land-based casino operations include approximately 17,300 slot machines, 600 table games and 4,165 hotel rooms, along with various restaurants, entertainment venues and other amenities. To the extent there is an overlap regarding the customers which Bally's targets and the markets in which it operates, the subsidiaries of Bally's may compete against each other for customers and business.

#### The interests of Bally's Chicago HoldCo as the owner of the Subordinated Loans may differ from our and your interests.
In connection with this offering, we intend to enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo pursuant to which Bally's Chicago HoldCo, as lender, will make the Subordinated Loans to us, as borrower, in various tranches and at varying amounts based on the total number of shares sold in this offering, the concurrent private placement, and the initial Class A Interest issuance. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly. Principal and interest payments on the Subordinated Loans will be paid by us by withholding discretionary distributions that would otherwise be made by us to the investors with the corresponding Class A Interests, and applying such distributions to reduce amounts outstanding under the applicable Subordinated Loans. In connection with the consummation of the Transactions. See "*Subordinated Loans*."

The Subordinated Loans and Bally's Chicago HoldCo's ability to influence our business may give rise to conflicts of interest with respect to, among other things, the timing and amount of payments on the Subordinated Loans. To the extent the interests of Bally's Chicago HoldCo's diverge from our interests, Bally's Chicago HoldCo may exercise their influence over us in favor of its own interests over our interests. Similarly, the interests of Bally's Chicago HoldCo may differ from or conflict with your interests as a holder of Class A Interests.

 ***We do not own Bally's brands and expect to license the brands from an affiliate; if this license were to be terminated, it could negatively impact our business.***

We expect to enter into a license agreement with BMG, another subsidiary of Bally's, granting us the right to use certain trademarks and service marks, including the Bally's marks. We expect that the license will be terminable in the event of an uncured material breach or in the event we are no longer an affiliate of BMG. If this license were to be terminated, we would be forced to rebrand, which could be costly, result in the loss of customers, and have a material adverse effect on the results of our operations.

#### Our business depends on the quality and reputation of the Bally's brands.
All of our products and services are offered under the Bally's brand names, and we intend to continue to develop and offer products and services under the Bally's brands. The concentration of our products and services under these brands may expose us to risks of brand deterioration or reputational decline, that are greater than if our portfolio were more diverse. Furthermore, as we are not the owner of the Bally's brands, any failure by Bally's to protect the Bally's brands could reduce their value and also harm our business.

#### If third parties claim that we infringe upon their intellectual property rights, our operating results could be adversely affected.
We face the risk of claims that we have infringed third parties' intellectual property rights. Any claims of trademark or other intellectual property infringement, even those without merit, could (i) be expensive and time consuming to defend; (ii) require us to rebrand or otherwise modify our operations; (iii) divert management's attention and resources or (iv) require us to enter into royalty or licensing agreements in order to obtain the right to use a third party's intellectual property. Any royalty or licensing agreements, if required, may not be available to us on acceptable terms or at all. A successful claim of infringement against us of third party intellectual property infringement could result in our being required to pay significant damages, enter into costly license or royalty agreements, or cease the infringing activity, any of which could have a material adverse effect on the results of our operations.

------

[**TABLE OF CONTENTS**](#TOC)

#### Cybersecurity and Technology Risks
 ***We rely on information technology and other systems and platforms, and any failures, errors, defects or disruptions in our systems or platforms could diminish our brand and reputation, subject us to liability, disrupt our business, affect our ability to scale our technical infrastructure and adversely affect our operating results and growth prospects.***

We currently engage, and intend to continue to engage, a number of third parties to provide gaming operating systems for our temporary casino and our permanent casino and resort. As a result, we currently rely, and will continue to rely, on such third parties to provide uninterrupted services in order to run our business efficiently and effectively. In the event one of these third parties experiences a disruption in its ability to provide such services (whether due to technological or financial difficulties or power problems), this may result in a material disruption to the wagering activity at our temporary casino and our permanent casino and resort, which could have a material adverse effect on our business, operating results and financial condition.

As we finalize construction and commence operating our permanent casino and resort, we expect the amount and types of product and services offerings to continue to grow and evolve, which will require an increasing amount of technical infrastructure, including network capacity and computing power, to continue to satisfy our customer's needs. Such infrastructure expansion may be complex, and unanticipated delays or limited availability of components may lead to increased project costs, operational inefficiencies or interruptions in the delivery or degradation of the quality of our offerings. In addition, there may be issues related to this infrastructure that are not identified during the testing phases of design and implementation, which may only become evident after we have started to fully use the underlying equipment or software, that could further degrade the customer experience or increase our costs. As such, we could fail to continue to effectively scale and grow our technical infrastructure to accommodate increased customer demands. Any unscheduled interruption in our technology services is likely to result in an immediate, and possibly substantial, loss of revenues due to a shutdown of our gaming operations, cloud computing and lottery systems.

We believe that if our users have a negative experience with our offerings, or if our brand or reputation is negatively affected, users may be less inclined to continue or resume utilizing our products or recommend our platform to other potential users. As such, a failure or significant interruption in our service would harm our reputation, business and operating results.

 ***We are reliant on the reliability and viability of Internet infrastructure, which is out of our control, and the proper functioning of our own network systems.***

The growth of Internet usage has caused interruptions and delays in processing and transmitting data over the Internet. There can be no assurance that Internet infrastructure or our own network systems will continue to be able to support the demands placed on them by the continued growth of the Internet, the overall gambling industry or that of our customers. The Internet's viability could be affected by delays in the development or adoption of new standards and protocols to handle increased levels of Internet activity or by increased government regulation. The introduction of legislation or regulations requiring Internet service providers in any jurisdiction to block access to our websites and products may restrict the ability of our customers to access products and services offered by us. Such restrictions, should they be imposed, could have a material adverse effect on our business, financial condition and results of operations.

If critical issues concerning the commercial use of the Internet are not favorably resolved (including security, reliability, cost, ease of use, accessibility and quality of service), if the necessary infrastructure is not sufficient or if other technologies and technological devices eclipse the Internet as a viable channel, this may negatively affect Internet usage, and our business, financial condition and results of operations will be materially adversely affected. Additionally, the increasing presence of viruses and cyber-attacks may affect the viability and infrastructure of the Internet and/or the proper functioning of our network systems and could materially adversely affect our business, financial condition and results of operations.

------

[**TABLE OF CONTENTS**](#TOC)

 ***Our business may be harmed from cybersecurity incidents, and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers', business partners' or our own information or other breaches of information security.***

We intend to make extensive use of online services and centralized data processing, including through third-party service providers. The secure maintenance and transmission of customer information will be a critical element of our operations. Our information technology and other systems, or those of service providers and business partners, that maintain and transmit customer or employee information may be compromised by a malicious third-party penetration of our network security, or that of a third-party service provider or business partner, or impacted by intentional or unintentional actions or inactions by our employees, or those of a third-party service provider or business partner. As a result, our customers' or employee's information may be lost, disclosed, accessed or taken without our customers' or employees' consent.

In addition, we expect that third-party service providers and other business partners will process and maintain proprietary business information and data related to our employees, customers, suppliers and other business partners. The information technology and other systems that we design and implement to maintain and transmit this information, or those of service providers or business partners, may also be compromised by a malicious third-party penetration of our network security or that of a third-party service provider or business partner, or impacted by intentional or unintentional actions or inactions by our employees or those of a third-party service provider or business partner. As a result, our business information or customer, supplier and other business partner data may be lost, disclosed, accessed or taken without consent.

Any such loss, disclosure or misappropriation of, or access to, customers' or business partners' information or other breach of our information security can result in legal claims or legal proceedings, including regulatory investigations and actions, may have a serious impact on our reputation and may adversely affect our business, operating results and financial condition. Furthermore, the loss, disclosure or misappropriation of our business information may adversely affect our reputation, business, operating results and financial condition.

#### Risks Related to Our Indebtedness

#### Our existing and future indebtedness may limit our operating and financial flexibility.
In connection with the closing of this offering, we expect to incur up to $79.2 million of Subordinated Loans in connection with the issuance of the Class A Interests. Our current and future indebtedness may have important negative consequences for us, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • limiting our ability to satisfy obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • increasing vulnerability to general adverse economic and industry conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • limiting flexibility in planning for, or reacting to, changes in our businesses and the markets in which we conduct business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • increasing vulnerability to, and limiting our ability to react to, changing market conditions, changes in industry and economic downturns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • limiting our ability to obtain additional financing to fund working capital requirements, capital expenditures, debt service, general corporate or other obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • subjecting us to a number of restrictive covenants that, among other things, limit our ability to pay dividends and distributions, pay principal or interest on junior indebtedness, including the Subordinated Loans, make acquisitions and dispositions, borrow additional funds and make capital expenditures and other investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • limiting our ability to use operating cash flow in other areas of our business because we must dedicate a significant portion of these funds to make principal and/or interest payments on outstanding debt;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • causing our failure to comply with the financial and restrictive covenants contained in our current or future indebtedness could cause a default under such indebtedness (or our other indebtedness) and which, if not cured or waived, could adversely affect us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • affecting our ability to renew gaming and other licenses necessary to conduct our business.

Though we have significant amounts of indebtedness outstanding, we may issue or incur additional indebtedness to fund our operations, including as necessary to execute on our growth strategy. Further, we may incur other liabilities that do not constitute indebtedness. The risks that we face based on our outstanding indebtedness may intensify if we incur additional indebtedness or financing obligations in the future.

 ***Servicing our indebtedness and funding our other obligations requires a significant amount of cash, and our ability to generate sufficient cash depends on many factors, some of which will be beyond our control.***

Our ability to make payments on and refinance our indebtedness and to fund our operations and capital expenditures will depend upon our ability to generate cash flow and secure financing in the future. Our ability to generate future cash flow depends, among other things, upon:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the timing of finalizing construction and development of our permanent casino and resort;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain regulatory licenses to operate our temporary casino and our permanent casino and resort;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our temporary casino's operating performance and our permanent casino and resort's future operating performance once it begins operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • general economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • competition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • legislative and regulatory factors affecting our operations and businesses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our future operating performance.

While we believe our current capital commitments are sufficient until the opening of our permanent casino and resort, unforeseen events could impact our capital needs, and some of these factors will be beyond our control. There can be no assurance that our temporary casino or our permanent casino and resort will generate cash flow from operations or that future debt or equity financings will be available to us to enable us to pay our indebtedness or to fund other needs. If our operating results and available cash are insufficient to meet our debt service obligations, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our debt service and other obligations. We may not be able to consummate those dispositions or to obtain the proceeds that we could realize from them, and these proceeds may not be adequate to meet any debt service obligations then due. The inability to generate cash flow could result in us needing to refinance all or a portion of our indebtedness on or before maturity, including through the issuance of additional debt or equity securities. If needed, there can be no assurance that we will be able to refinance any of our indebtedness on favorable terms, or at all. Any inability to generate sufficient cash flow or refinance our indebtedness on favorable terms could adversely affect our financial condition.

#### We and Bally's Chicago OpCo will guarantee Bally's Corporation's indebtedness, the amount of which will be significant.
In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all of Bally's Corporation's indebtedness upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; *provided* that, at any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's

------

[**TABLE OF CONTENTS**](#TOC)

Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's Corporation's revolving credit facilities outstanding at such time). Furthermore, in March 2025, we and Bally's Chicago OpCo entered into the Guarantee Agreement with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional indebtedness that Bally's Corporation enters into at any time in the future. The amount of Bally's Corporation's indebtedness guaranteed by us and Bally's Chicago OpCo is significant, and the failure of Bally's to service its indebtedness and comply with the covenants thereunder, or refinance such indebtedness on favorable terms, could adversely affect our financial condition.

 ***If Bally's Corporation or its subsidiaries are unable to generate sufficient cash to service all of its obligations, including, without limitation, indebtedness and lease obligations, they may default, and we, as guarantors of its obligations, may be forced to take other actions to fund the satisfaction of our obligations as guarantors, which may not be successful.***

If the cash flow of Bally's Corporation or its subsidiaries is insufficient to fund its obligations, including, without limitation, indebtedness and lease obligations, then Bally's Corporation and/or its subsidiaries will be in default and holders of those obligations could declare all outstanding principal and interest to be due and payable. As guarantors, we would be required to repay such obligations. As a result, we could face substantial liquidity problems and could be forced to reduce or delay investments and capital expenditures or to dispose of material assets or operations, raise additional debt or equity capital or restructure or refinance our indebtedness. However, we may not be able to implement any such alternative measures on commercially reasonable terms or at all and, even if successful, those alternative actions may not allow us to meet our scheduled debt service obligations. Even if new financing were available, it may be on terms that are less attractive to us than our then existing indebtedness or it may not be on terms that are acceptable to us. In addition, the new agreements may restrict our ability to dispose of assets and use the proceeds from those dispositions and may also restrict our ability to raise debt or equity capital to be used to repay other indebtedness when it becomes due. Thus, we may not be able to consummate those dispositions or to obtain proceeds in an amount sufficient to meet any debt service obligations then due. Moreover, pursuant to our and Bally's Chicago OpCo guarantee of the obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation and its subsidiaries, we will pledge our LLC Interests in Bally's Chicago OpCo as collateral and Bally's Chicago OpCo will mortgage the Chicago casino project to secure Bally's Corporation's obligations. If we are unable to generate enough cash to repay the obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation or its subsidiaries, in the event of a default, the lenders under such obligations could foreclose against our assets securing such obligations and we could be forced into bankruptcy or liquidation.

#### Risks Related to Our Organizational Structure
 ***Our principal asset after the completion of this offering and the concurrent private placements will be our interest in Bally's Chicago OpCo, and, as a result, we will depend on distributions from Bally's Chicago OpCo to pay our taxes and expenses. Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions.***

We are a holding company and have no material assets other than our ownership of LLC Interests. As such, we will have no independent means of generating revenue or cash flow, and our ability to pay our taxes and operating expenses or declare and pay dividends in the future, if any, will be dependent upon the financial results and cash flows of Bally's Chicago OpCo and distributions we receive from Bally's Chicago OpCo. There can be no assurance that Bally's Chicago OpCo will generate sufficient cash from operations, which, among other things, may be impacted by debt service payments on our or Bally's Chicago OpCo's senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. In addition, any debt we or Bally's Chicago OpCo may incur in the future is likely to restrict our and Bally's Chicago OpCo ability to pay dividends or distributions, and such restriction may prohibit us and Bally's Chicago OpCo from making distributions.

------

[**TABLE OF CONTENTS**](#TOC)

Bally's Chicago OpCo will report as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Bally's Chicago OpCo will be allocated to holders of LLC Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of Bally's Chicago OpCo. Under the terms of the Bally's Chicago OpCo LLC Agreement, Bally's Chicago OpCo will be obligated to make tax distributions to holders of LLC Interests, including us, to the extent it has distributable cash. In addition to tax expenses, we will also incur expenses related to our operations, which we expect could be significant. We intend, as its managing member, to cause Bally's Chicago OpCo to make cash distributions to the owners of LLC Interests in an amount sufficient to (1) fund all or part of their tax obligations in respect of taxable income allocated to them and (2) cover our operating expenses. However, Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions, such as restrictions on distributions that would either violate any contract or agreement to which Bally's Chicago OpCo is then a party, including any debt or financing agreements, or any applicable law, or that would have the effect of rendering Bally's Chicago OpCo insolvent. If we do not have sufficient funds to pay tax or other liabilities or to fund our operations, we may have to borrow funds, including potentially from Bally's and its affiliates if available, which could materially adversely affect our liquidity and financial condition and subject us to various restrictions imposed by any such lenders. In addition, if Bally's Chicago OpCo does not have sufficient funds to make distributions, our ability to declare and pay cash dividends will also be restricted or impaired. See *"— Risks related to the offering and ownership of our Class A Interests*" and "*Dividend Policy*."

 ***Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our results of operations and financial condition.***

We are subject to taxes by the U.S. federal, state and local tax authorities. Our future effective tax rates could be subject to volatility or adversely affected by a number of factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in the valuation of our deferred tax assets and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • expected timing and amount of the release of any tax valuation allowances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • tax effects of stock-based compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • costs related to intercompany restructurings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in tax laws, tax treaties, regulations or interpretations thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates.

In addition, we may be subject to audits of our income, sales and other taxes by U.S. federal, state and local taxing authorities. Outcomes from these audits could have an adverse effect on our operating results and financial condition.

 ***If we were deemed to be an investment company under the Investment Company Act of 1940, as amended, or the 1940 Act, including as a result of our ownership of Bally's Chicago OpCo, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.***

Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally will be deemed to be an "investment company" for purposes of the 1940 Act if (1) it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities or (2) it engages, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities and it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. We do not believe that we are an "investment company," as such term is defined in either of those sections of the 1940 Act.

We and Bally's Chicago OpCo intend to conduct our operations so that we will not be deemed an investment company. As the sole managing member of Bally's Chicago OpCo, we will control and operate

------

[**TABLE OF CONTENTS**](#TOC)

Bally's Chicago OpCo. On that basis, we believe that our interest in Bally's Chicago OpCo is not an "investment security" as that term is used in the 1940 Act. However, if we were to cease participation in the management of Bally's Chicago OpCo, or if Bally's Chicago OpCo itself becomes an investment company, our interest in Bally's Chicago OpCo could be deemed an "investment security" for purposes of the 1940 Act.

We and Bally's Chicago OpCo intend to conduct our operations so that we will not be deemed an investment company. If it were established that we were an unregistered investment company, there would be a risk that we would be subject to monetary penalties and injunctive relief in an action brought by the SEC, that we would be unable to enforce contracts with third parties and that third parties could seek to obtain rescission of transactions undertaken during the period it was established that we were an unregistered investment company. If we were required to register as an investment company, restrictions imposed by the 1940 Act, including limitations on our capital structure and our ability to transact with affiliates, could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.

#### Risks Related to this Offering and Ownership of our Class A Interests

#### The structure of this offering may have an adverse effect on our business plan.
The placement agents are offering the Class A Interests in this offering on a best efforts basis. The placement agents are not required to purchase any securities, but will use their best efforts to sell the securities offered. As a "best efforts" and "limited" offering, there can be no assurance that the offering contemplated hereby will ultimately be consummated or will result in any proceeds being made available to us. The success of this offering will impact our ability to use the proceeds to execute our business plan.

 ***Our Class A Interests will not have an active trading market and are subject to restrictions on transferability and redemption provisions, and you may find it difficult to sell your Class A Interests.***

The Class A Interests are a new issue of securities, and we do not plan to list or display the Class A Interests on any securities exchange or interdealer market quotation system. There is no trading market for our Class A Interests and, due to transferability restrictions, an active market for our Class A Interests will not likely develop in the future. As such, our Class A Interests will have limited liquidity and holders of our Class A Interests may not be able to monetize their full investment in our Class A Interests, if at all.

In addition, our Class A Interests are also subject to restrictions on transferability and redemption provisions, each of which will individually and in the aggregate materially impact the ability of holders of our Class A Interests to transfer their Class A Interests following the closing of this offering. Our Class A Interests can only be transferred without our consent to Permitted Transferees. Additionally, our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests can be transferred with our consent only after the Subordinated Loan attributable to such class of Interests has been paid in full and such Interests are converted to Class A-4 Interests. All Class A-1 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-1 Subordinated Loans, all Class A-2 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-2 Subordinated Loans and all Class A-3 Interests will be converted into Class A-4 Interests upon the full repayment of the Class A-3 Subordinated Loans. If a holder of Class A-1 Interests, Class A-2 Interests and/or Class A-3 Interests would like to transfer their Interests before the Subordinated Loans attributable to such class of Interests are paid off, such holder or the transferee may repay in full the pro rata amount of the remaining balance of the Subordinated Loans then outstanding attributable to such Interests before or substantially concurrently with such transfer and conversion. See "*Shares Eligible for Future Sale*" beginning on page [187](#tIEFF). Class A Interests also cannot be transferred to employee benefit plans, IRAs and other Plans (as defined herein). See "*Certain ERISA Considerations*" beginning on page [198](#tCEC). These transfer and redemption provisions could materially and adversely impact the value of your Class A Interests.

#### This offering has resulted in lawsuits and may in the future lead to additional lawsuits.
The Host Community Agreement requires that 25% of Bally's Chicago OpCo's equity be owned by individuals that are women or Minorities or woman- or Minority-owned and controlled entities (the "Criteria"). As a result, this offering and the concurrent private placements were previously intended to be

------

[**TABLE OF CONTENTS**](#TOC)

made only to individuals and entities that attest to satisfying such Criteria. This resulted in lawsuits against us and the City of Chicago by persons that do not meet, and who would be excluded from this offering based on, such Criteria. For example, on January 29, 2025, the American Alliance for Equal Rights, Richard Fisher, and Phillip Aronoff filed a complaint against the City of Chicago, certain members of the Illinois Gaming Board, Bally's Chicago OpCo and us, alleging that the Criteria violate federal laws and seeking, among other remedies, permanent injunctions to prevent the Illinois Gaming Board members from enforcing 230 ILCS 10/6(a- 5)(9), to allow shareholders to sell their Class A Interests to white males, to mandate the rescission of the Host Community Agreement, and to require the rescission of shares sold under the Criteria. In addition, on January 30, 2025, Mark Glennon filed a complaint against the City of Chicago (including the Mayor and Treasurer in their official capacities), certain members of the Illinois Gaming Board, Bally's Corporation, Bally's Chicago OpCo and us, also alleging that the Criteria violate federal laws and seeking, among other remedies, permanent injunctions to prevent the implementation of the HCA's requirements for minority and woman ownership in Bally's Chicago Opco, and to prevent the exclusion of "otherwise qualified individuals" from participating in Bally's ownership, Board, or employment. In response to the filing of our amended S-1 on April 22, 2025, which removed the Criteria, plaintiffs in both lawsuits voluntarily dismissed their claims against all defendants (the former with prejudice on June 6, 2025 and the latter without prejudice on April 30, 2025).

We incurred substantial costs defending these lawsuits, and if any person were to bring such a lawsuit against us in the future, we could incur additional substantial costs defending against any additional lawsuits. In addition, the time and attention of our management could be diverted from our business and operations in defense of these lawsuits. We acknowledge that there is a range of potential outcomes from the existing litigation, and while we cannot predict which outcome will occur, we are preparing to appropriately address all possible scenarios. The Host Community Agreement could be modified or terminated, which could adversely affect our ability to operate our casinos and could materially adversely affect our business, financial condition and results of operations. Additionally, if the Host Community Agreement is modified or terminated, our license may be revoked, and we may lose our ability to operate our temporary casino and/or our permanent casino and resort in the City of Chicago, which could lead to the value of our Class A Interests declining, and you could lose all or part of your investment. While we are committed to navigating these challenges, the ultimate outcome of such litigation remains uncertain, and we are focused on preparing for a range of possibilities.

 ***Our Class A Interests are not a "covered security," or otherwise exempt from the "blue sky" securities laws governing sales and purchases of Class A Interests in each of the fifty states, and therefore we must register in each state in which offers and sales will be made.***

Our Class A Interests are not a "covered security" for purposes of the Securities Act. The term "covered security" applies to securities preempted under federal law from state securities registration requirements due to their oversight by federal authorities and self-regulatory authorities, such as national securities exchanges. Because our Class A Interests are not a "covered security," the sale of our Class A Interests are subject to securities registration in the various states that we plan to conduct this offering.

 ***State securities laws may limit secondary trading, which may restrict the states in which and conditions under which you can sell our Class A Interests.***

Secondary trading in our Class A Interests sold in the offering will not be possible in any state until our Class A Interests are qualified for sale under the applicable securities laws of such state or there is confirmation that an exemption is available for secondary trading in the state. If we fail to register or qualify, or to obtain or verify an exemption for the secondary trading of our Class A Interests in any particular state, our Class A Interests may not be offered or sold to, or purchased by, a resident of that state. In the event that a significant number of states or the states that we plan to conduct this offering in refuse to permit secondary trading in our Class A Interests, the liquidity for our Class A Interests could be significantly further affected, resulting in a potential loss on your investment.

#### An investment in the Class A Interests is not an FDIC insured deposit.
The Class A Interests are not savings accounts, deposits or other obligations of any bank or non-bank entities and are not insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any

------

[**TABLE OF CONTENTS**](#TOC)

other governmental agency or instrumentality. Your investment will be subject to investment risk and you may experience loss with respect to your investment.

#### The Class A Interests are equity and are subordinate to our existing and future indebtedness.
The Class A Interests are shares of stock in Bally's Chicago, Inc. and do not constitute indebtedness. As such, the Class A Interests will rank junior to all indebtedness and other non-equity claims on our business with respect to assets available to satisfy claims, including in a liquidation of the Company. Additionally, unlike indebtedness, where principal and interest would customarily be payable on specified due dates, in the case of our Class A Interests:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • as a corporation, we are subject to restrictions on payments of dividends and redemption price out of lawfully available funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • as a regulated gaming company, our ability to declare and pay dividends is subject to additional restrictions imposed by law.

#### You may not receive dividends or other distributions on the Class A Interests.
Any debt we may incur in the future is likely to restrict our ability to pay dividends, and such restriction may prohibit us from making payments on the Subordinated Loans or distributions, or reduce the amount of cash available for distribution. In addition, Delaware law imposes requirements that may restrict our ability to pay dividends to holders of our shares. Dividends on the Class A Interests are discretionary and non-cumulative. Consequently, if our Board (or a duly authorized committee of our Board) does not authorize and declare a dividend, holders of our Class A Interests will not be entitled to receive any such dividend.

We will have no obligation to pay dividends with respect to the Class A Interests or any other shares we may issue. In addition, if and to the extent such act would cause us to fail to comply with applicable contractual restrictions (including our indebtedness), laws, rules and regulations (including applicable gaming rules in Illinois), we may not declare, pay or set aside for payment dividends on our Class A Interests.

 ***Even if we pay dividends on our Class A Interests, pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us until such time as such Subordinated Loans are fully paid and discharged, which means you may never directly receive a cash dividend on your Class A-1 Interests, Class A-2 Interests and Class A-3 Interests.***

Given the capital intensity of developing, constructing, opening and operating a casino resort project of this scale, we currently expect that Bally's Chicago OpCo will not have any OpCo cash available for distribution until approximately three to five years after our permanent casino and resort begins operations. However, this may fluctuate depending on Bally's Chicago OpCo's ability to generate cash from operations and its cash flow needs, which, among other things, may be impacted by debt service payments on its senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2

------

[**TABLE OF CONTENTS**](#TOC)

Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. Therefore, even if our Board (or a duly authorized committee of our Board) authorizes and declares a dividend on our shares of stock, holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests will not be entitled to receive any such dividend until such time as the corresponding Subordinated Loans associated with such Class A Interests are paid in full, which may take a prolonged period of time to occur, if at all.

Our Subordinated Loans will accrue interest at a rate of 11.0% per annum, compounding quarterly, and accrued and unpaid interest will be added to the outstanding principal amount thereof on a quarterly basis. As a result, the amount of Subordinated Loans that are to be paid with a percentage of the amounts that would otherwise be paid on account of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests will increase during the period between the closing date of this offering and the date, if any, on which dividends are to be paid on the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests.

In addition, given the Class A-3 Subordinated Loans attributable to each Class A-3 Interest will be lower than the Class A-1 Subordinated Loans and Class A-2 Subordinated Loans attributable to the Class A-1 Interests and Class A-2 Interests, respectively, the Class A-3 Subordinated Loans are expected to be fully repaid prior to the Class A-1 Subordinated Loans and the Class A-2 Subordinated Loans, to the extent they are fully repaid. Similarly, the Class A-2 Subordinated Loans are expected to be fully repaid prior to the Class A-1 Subordinated Loans, to the extent they are fully repaid. However, due to the significant amount of indebtedness (including both principal and interest) owed on the Subordinated Loans, we do not expect to fully repay the Subordinated Loans for an extended period of time following the closing of this offering, if at all. As such, holders of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests may not directly receive the cash dividends or other distributions that otherwise would have been payable on such Class A-1 Interests, Class A-2 Interests and Class A-3 Interests for an equivalently long period of time, if at all, or realize any accretion in value above the initial amount invested. Moreover, the value of the principal and accrued interest on the Subordinated Loans could exceed the value of the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests otherwise payable upon a sale of the business, resulting in holders of the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests receiving nothing upon such a sale.

 ***Our second amended and restated bylaws to be in effect prior to the closing of this offering will provide that, subject to limited exceptions, the state and federal courts (as appropriate) located within the State of Delaware will be the sole and exclusive forum for certain stockholder litigation matters, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or stockholders.***

The choice of forum provision may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits against us and our directors, officers and other employees, although our stockholders will not be deemed to have waived our compliance with federal securities laws and the rules and regulations thereunder. Alternatively, if a court were to find the choice of forum provision contained in our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering to be

------

[**TABLE OF CONTENTS**](#TOC)

inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, results of operations and financial condition. Any person or entity purchasing or otherwise acquiring or holding any interest in our equity securities shall be deemed to have notice of and consented to the forum provisions in our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering. Our exclusive forum provision shall not relieve the Company of its duties to comply with the federal securities laws and the rules and regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules, and regulations.

 ***Holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests may be subject to taxes as the Subordinated Loans corresponding to such shares of stock are repaid, even though such holders do not receive a corresponding cash distribution.***

Section 305 of the Internal Revenue Code provides that if a corporation distributes property to some shareholders and other shareholders have an increase in their proportionate interests in the assets or earnings and profits of the corporation, such other shareholders may be deemed to receive a distribution that could be a taxable dividend. In this case, because we and Bally's expect to treat the Subordinated Loans as "stock" for U.S. federal income tax purposes, "property" distributions will likely be considered to be made to "some shareholders" of Bally's Chicago, Inc. as payments are made on the Subordinated Loans, and equivalent cash ("property") distributions will be made with respect to the Class A-4 Interests. In addition, as payments are made on the Subordinated Loans, particularly those that repay the original principal amount of such Subordinated Loans, the proportionate interests of holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests in the assets or earnings and profits of Bally's Chicago, Inc. may be viewed as increasing. Accordingly, it is possible that such increase could be treated as a deemed distribution under Section 305 of the Code or otherwise as taxable income to such holders under other theories. However, under the Treasury Regulations relating to Section 305 of the Code and other IRS administrative guidance, certain financing arrangements in the form of preferred stock investments that fund a corporation and then are systematically eliminated through property distributions until they are fully retired, and are designed to facilitate the ownership of a business with an effect of increasing another stockholder's proportionate interests in the assets or earnings and profits of a corporation over such period, do not result in a deemed distribution to such other stockholder. The applicability of these authorities to the holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests in this situation is uncertain.

Although the matter is not free from doubt, we intend to take the position that holders of applicable series of Class A Interests would not be treated as receiving a deemed distribution from us or otherwise realizing income as a result of repayment of the Subordinated Loans corresponding to such shares. However, there can be no assurance that the U.S. Internal Revenue Service will not take a contrary position, for example, treating the proportionate interest in our earnings and profits owned by holders of the applicable series of Class A Interests as having increased upon repayment of the Subordinated Loans corresponding to such shares, and treating such holders as having received a distribution. In that case, such deemed distribution may be treated as a dividend subject to U.S. federal income tax, without the receipt by holders of any cash. In addition, for any holder that is a "Non-U.S. Holder" (as defined in "Material U.S. Federal Income Tax Consequences"), any deemed distribution could be subject to U.S. federal withholding tax at a 30% rate, or such lower rate as may be specified by an applicable treaty, subject to proposed changes to US tax laws described immediately below. Because deemed distributions received by a holder would not give rise to any cash from which any applicable withholding tax could be satisfied, if we (or an applicable withholding agent) pay withholding (including backup withholding) on behalf of a holder, we (or an applicable withholding agent) may set off any such payment against, or withhold such taxes from, payments of cash payable to such holder or sales proceeds received by, or other funds or assets of, such holder, or require alternative arrangements with respect to such withholding taxes.

Investors should consult their own tax advisors about the application of Code Section 305 and any other potential deemed receipt of income risk with respect to our Class A Interests. See "*Material U.S. Federal Income Tax Consequences*."

------

[**TABLE OF CONTENTS**](#TOC)

 ***If non-U.S. persons acquire our Class A Interests, such non-U.S. persons may be subject to material adverse U.S. federal income and/or withholding tax consequences, including if we are considered a United States real property holding corporation. Such adverse tax consequences may limit transferability and impact the value of our Class A Interests.***

If a non-U.S. person acquires our Class A Interests and we are considered a "United States real property holding corporation" (a "USRPHC") for U.S. federal income tax purposes, such non-U.S. person may be subject to material adverse U.S. federal income or withholding tax consequences, or both, in respect of certain distributions on, and payments in connection with a sale, exchange, redemption, repurchase or other disposition of, our Class A Interests. See "*Material U.S. Federal Income Tax Consequences.*"

In addition, the U.S. House of Representatives recently passed the One Big Beautiful Bill Act of 2025 (the "Bill"), which provides, among other things, for increased rates of U.S. federal income tax and withholding tax for "applicable persons" (generally, non-U.S. persons that are tax residents of or organized in a "discriminatory foreign country"). Discriminatory foreign countries are countries that have one or more "unfair foreign taxes," defined to include an undertaxed profits rule, digital services tax, diverted profits tax, as well as certain other taxes provided by the Secretary of the Treasury. The U.S. Senate Committee on Finance also released its relevant portion of the reconciliation bill, which provides for certain substantively similar provisions.

Under complex effective date rules, payments of dividends on our Class A Interests to applicable persons could be subject to increased rates of U.S. federal income tax and withholding tax, starting with an increase of five percentage points and increasing by an additional five percentage points for each subsequent annual period (subject to a cap). It is uncertain whether the above provision will be included (in its current form or at all) in any tax legislation that may be enacted.

If the Bill were to be enacted in its current form, applicable persons under the Bill may be subject to increased withholding tax on dividends on our Class A Interests. Non-U.S. persons considering an investment in our Class A Interests should consult their own tax advisors regarding the proposed changes in applicable U.S. federal income tax laws and the potential consequences of such changes to their particular circumstances.

The adverse U.S. federal income and/or withholding tax consequences described above may limit transferability of our Class A Interests and have a negative impact on the value of our Class A Interests.

#### General Risk Factors

#### Our ability to continue as a going concern depends upon the funding by Bally's Corporation.
We have incurred losses and negative cash flows from operations, excluding funds from Bally's Corporation, since our inception. Our ability to continue as a going concern depends upon the funding by Bally's Corporation. Our temporary casino began operations on September 9, 2023 and there can be no assurance that we will be able to be successful in the planned operations therein. If we are unable to obtain sufficient funding, we could be forced to change or delay our planned operating activities, and our liquidity, results of operations and financial condition could be materially and adversely affected and we may be unable to continue as a going concern. If we seek additional financing to fund our business activities in the future and there is substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding to us on commercially reasonable terms or at all.

 ***While we expect to have sufficient capital to sustain our business until our permanent casino and resort is open, it is possible that the amount of capital we have raised and will raise in this offering and the concurrent private placements may not be enough to sustain our current business plan.***

Based on Bally's equity commitments to Bally's Chicago OpCo and the financing we have received from GLPI, we believe that we are sufficiently capitalized until the opening of our permanent casino and resort. However, unforeseen events could necessitate us to raise additional capital. In order to achieve our near and long-term goals, it is possible that we may need to procure funds in addition to the amount raised in

------

[**TABLE OF CONTENTS**](#TOC)

this offering and the concurrent private placements. There is no guarantee we will be able to raise such funds on acceptable terms or at all. If we are not able to raise sufficient capital in the future, we will not be able to execute our business plan, our continued operations will be in jeopardy and we may be forced to cease operations and sell or otherwise transfer all or substantially all of our remaining assets, which could cause you to lose all or a portion of your investment.

 ***Our management team has limited experience managing a public company, and the requirements of being a public company may strain our resources, divert management's attention, and affect our ability to attract and retain qualified board members.***

As a public company listed in the United States, we will incur significant additional legal, accounting and other expenses. In addition, changing laws, regulations and standards relating to corporate governance and public disclosure, including regulations implemented by the SEC and the State of Illinois, may increase legal and financial compliance costs, and make some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies.

Most members of our management team have limited or no experience managing a publicly traded company, interacting with public company investors and complying with the increasingly complex laws pertaining to public companies. Our management team may not successfully or efficiently manage our transition to being a public company that is subject to significant regulatory oversight and reporting obligations under the federal securities laws and the continuous scrutiny of securities analysts and investors. Furthermore, we are committed to maintaining high standards of corporate governance and public disclosure, and our efforts to establish the corporate infrastructure required of a public company and to comply with evolving laws, regulations and standards are likely to divert management's time and attention away from revenue-generating activities to compliance activities, which may prevent us from implementing our business strategy and growing our business. Moreover, we may not be successful in implementing these requirements. If we do not effectively and efficiently manage our transition into a public company and continue to develop and implement the right processes and tools to manage our changing enterprise and maintain our culture, our ability to compete successfully and achieve our business objectives could be impaired, which could negatively impact our business, financial condition and results of operations.

Additionally, as a public company, we may from time to time be subject to proposals by stockholders urging us to take certain corporate actions. If activist stockholder activity ensues, we may be required to incur additional costs to retain the services of professional advisors, management time and attention will be diverted from our core business operations, and perceived uncertainties as to our future direction, strategy or leadership may cause us to lose potential business opportunities and impair our brand and reputation, any of which could materially and adversely affect our business, financial condition and results of operations.

In addition to increasing our legal and financial compliance costs, the additional rules and regulations described above might also make it more difficult for us to obtain certain types of insurance, including director and officer liability insurance, and we might be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons to serve on our Board, on committees of our Board or as members of our senior management team.

 ***If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our results of operations could fall below the expectations of our investors and securities analysts, resulting in a decline in the value of our Class A Interests.***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. We base our estimates on many factors, including historical experience and various other assumptions that we believe to be reasonable under the circumstances, as discussed in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus, the results of which form the basis for making judgments about the carrying values of assets, liabilities, equity and expenses that are not readily apparent from other sources. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from

------

[**TABLE OF CONTENTS**](#TOC)

those in our assumptions, which could cause our results of operations to fall below our publicly announced guidance or the expectations of securities analysts and investors, resulting in a decline in the value of our Class A Interests.

#### Our reported financial results may be negatively impacted by changes in GAAP and financial reporting requirements.
GAAP and related financial reporting requirements are complex, continually evolving and may be subject to varied interpretation by the relevant authoritative bodies, including the Financial Accounting Standards Board ("FASB"), the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. FASB has in the past issued new or revised accounting standards that superseded existing guidance and significantly impacted the reporting of financial results. Any future change in GAAP and financial reporting requirements or interpretations could also have a significant effect on our reported financial results, and may even affect the reporting of past transactions completed before the announcement or effectiveness of a change if retrospective adoption is required. It is difficult to predict the impact of future changes to accounting principles or our accounting policies, any of which could negatively affect our reported results of operations.

 ***The estimates of market opportunity and forecasts of market growth included in this prospectus may prove to be inaccurate, and even if the markets in which we compete achieve the forecasted growth, our business could fail to grow at similar rates, or at all.***

The estimates of market opportunity and forecasts of market growth included in this prospectus may prove to be inaccurate. Market opportunity estimates and growth forecasts are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate, including as a result of any of the risks described in this prospectus.

The variables that go into the calculation of our market opportunity are subject to change over time, and there is no guarantee that any particular number or percentage of addressable customers covered by our market opportunity estimates will purchase our products at all or generate any particular level of revenue for us. In addition, our ability to expand in any of our target markets depends on a number of factors, including the cost, performance and perceived value associated with our products. Even if the markets in which we compete meet the size estimates and growth forecasted in this prospectus, our business could fail to grow at similar rates, or at all. Our growth is subject to many factors, including our success in implementing our business strategy, which is subject to many risks and uncertainties. Accordingly, the forecasts of market growth included in this prospectus should not be taken as indicative of our future growth.

 ***We are an emerging growth company and a smaller reporting company, and the reduced disclosure requirements applicable to emerging growth companies and smaller reporting companies may make our Class A Interests less attractive to investors.***

We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), and may remain an emerging growth company until the last day of the fiscal year following the fifth anniversary of the completion of this offering. However, if certain events occur prior to the end of such five-year period, including if we become a "large accelerated filer," as defined under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), our annual gross revenue exceeds $1.235 billion or we issue more than $1.0 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period. For so long as we remain an emerging growth company, we are permitted and intend to rely on exemptions from certain disclosure requirements that are applicable to other public companies that are not emerging growth companies. These exemptions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure in connection with initial public offerings;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, unless the SEC determines the new rules are necessary for protecting the public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reduced disclosure obligations regarding executive compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We have taken advantage of reduced reporting burdens in this prospectus. In particular, in this prospectus, we have not included all of the executive compensation-related information that would be required if we were not an emerging growth company. We cannot predict whether investors will find our Class A Interests less attractive if we rely on these exemptions.

Emerging growth companies can also take advantage of the extended transition period provided in Section 13(a) of the Exchange Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have irrevocably elected not to use this extended transition period. As a result, our consolidated financial statements are comparable to the financial statements of companies that comply with new or revised accounting pronouncements as of public company effective dates.

We are also a smaller reporting company as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting shares of stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting shares of stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

#### We will incur significant additional costs as a result of being a public company.
Upon the closing of this offering, we expect to incur increased costs associated with corporate governance requirements that will become applicable to us as a public company, including rules and regulations of the SEC, under the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Customer Protection Act of 2010 and the Exchange Act, as well as the rules of the Nasdaq. These rules and regulations are expected to significantly increase our accounting, legal and financial compliance costs and make some activities more time consuming. We expect such expenses to further increase after we are no longer an "emerging growth company" or a "smaller reporting company." We also expect these rules and regulations to make it more expensive for us to maintain directors' and officers' liability insurance. If we fail to maintain sufficient levels of such insurance, it may be more difficult for us to attract and retain qualified persons to serve on our Board or as executive officers. We cannot predict or estimate the amount of additional costs we will incur as a public company or the timing of such costs.

------

[**TABLE OF CONTENTS**](#TOC)

#### SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA
This prospectus contains forward-looking statements that relate to our current expectations and views of future events. These forward-looking statements are contained principally in the sections entitled "Prospectus Summary," "Risk Factors," "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business." These statements relate to events that involve known and unknown risks, uncertainties and other factors, including those listed under "Risk Factors," which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, these forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions.

These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, without limitation, the risk factors set forth in "Risk Factors" and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are subject to various construction and development risks in connection with our permanent casino and resort in Chicago;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Any delay between the closing of our temporary casino and the opening of our permanent casino and resort could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The casino, hotel and hospitality industry is capital intensive and we may not be able to finance development, expansion and renovation projects, which could put us at a competitive disadvantage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Both our temporary casino site and permanent casino and resort site are leased and could experience risks associated with leased properties, including risks relating to lease termination, inability to obtain satisfactory lease extensions, consents and approvals, charges and our relationship with landlords, which could have a material adverse effect on our business, financial position or results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our proposed lines of business are highly sensitive to reductions in discretionary consumer spending;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The gaming industry, including retail casinos, iGaming and sports wagering, is highly competitive and increased competition, including through legislative legalization or expansion of gaming by states in or near Illinois or through Native American gaming facilities, could adversely affect our financial results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will be subject to extensive state and local regulation and licensing, and gaming authorities have significant control over our operations, which could have an adverse effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our business will be subject to a variety of laws in the United States and in Illinois, many of which are unsettled and still developing, and which could subject us to claims or otherwise harm our business. Any change in existing regulations or their interpretation, or the regulatory or prosecutorial climate applicable to the products and services we offer in our temporary casino, and intend to offer in our permanent casino and resort, or changes in gaming tax rates, tax rules and regulations or interpretation thereof related to such products and services, could adversely impact our ability to operate our business as currently conducted or as we seek to operate in the future, which could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will be reliant on effective payment processing services from a limited number of providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our profitability will be dependent, in part, on return to players;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will extend credit to a portion of our customers, and we may not be able to collect gaming receivables from our credit customers;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Declining popularity of games and changes in device preferences of players could have a negative effect on our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may invest in or acquire other businesses, and our business may suffer if we are unable to successfully integrate acquired businesses into the Company or otherwise manage the growth associated with multiple acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our results of operations and financial condition could be adversely affected by the occurrence of natural disasters, such as blizzards, floods, tornadoes, fires, or other catastrophic events, including war, terrorism and public health crises such as the COVID-19 pandemic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Failure to comply with the community investment program obligations specified in the Host Community Agreement could have a material adverse effect on our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's interests may conflict with our interests and the interests of the other holders of our stock. Conflicts of interest between Bally's and us could be resolved in a manner unfavorable to us and the other holders of our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We rely on information technology and other systems and platforms, and any failures, errors, defects or disruptions in our systems or platforms could diminish our brand and reputation, subject us to liability, disrupt our business, affect our ability to scale our technical infrastructure and adversely affect our operating results and growth prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our business may be harmed from cybersecurity incidents and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers', business partners' or our own information or other breaches of information security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Servicing our indebtedness and funding our other obligations requires a significant amount of cash, and our ability to generate sufficient cash depends on many factors, some of which will be beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our Class A Interests will not have an active trading market, and you may find it difficult to sell your Class A Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • You may not receive dividends or other distributions on the Class A Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us until such time as such Subordinated Loans are fully paid and discharged, which means you may never directly receive a cash dividend on your Class A-1 Interests, Class A-2 Interests and Class A-3 Interests.

The forward-looking statements made in this prospectus relate only to events or information as of the date on which the statements are made in this prospectus. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that our actual future results or performance may be materially different from what we expect.

We obtained the industry, market and competitive position data in this prospectus from publicly available information, industry and general publications and research, surveys and studies conducted by third parties. In addition, certain statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data pertaining to our business and markets in this prospectus are not based on published data obtained from independent third parties or extrapolations

------

[**TABLE OF CONTENTS**](#TOC)

therefrom, but rather are based upon our own internal estimates and research, which are in turn based upon multiple third-party sources.

Industry publications and forecasts generally state that the information they contain has been obtained from sources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this prospectus.

------

[**TABLE OF CONTENTS**](#TOC)

#### OUR ORGANIZATIONAL STRUCTURE
Bally's Chicago, Inc., a Delaware corporation, was formed on May 24, 2022 and is the issuer of the Class A Interests offered by this prospectus. Prior to this offering, all of our business operations have been conducted through Bally's Chicago OpCo. We will consummate the Transactions, as defined below, excluding this offering, on or prior to the consummation of this offering.

#### Transactions
We will consummate the following organizational transactions in connection with this offering (collectively, the "Transactions"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago HoldCo will assign to us $62,741,250 of Pre-IPO Intercompany Notes owed to it by Bally's Chicago OpCo as the Pre-IPO Capital Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we will amend and restate Bally's Chicago, Inc.'s current certificate of incorporation to, among other things, increase the authorized Class A Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we, as borrower, will enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo, as lender, governing the Subordinated Loans in the following amounts (which, in the aggregate, equal the Pre-IPO Capital Contribution plus the subordinated loans incurred in connection with the initial Class A Interest issuance):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $62,790,750 of Class A-1 Subordinated Loans, based on $551,750 of Class A-1 Interests sold in this offering, $14,500 Class A-1 Interests sold in the concurrent private placements, and $68,000 Class A-1 Interests sold in the initial Class A Interest issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $9,585,000 of Class A-2 Subordinated Loans, based on $352,500 of Class A-2 Interests sold in this offering, $10,000 Class A-2 Interests sold in the concurrent private placements, and $702,500 Class A-2 Interests sold in the initial Class A Interest issuance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $6,840,000 of Class A-3 Subordinated Loans, based on $825,000 of Class A-3 Interests sold in this offering, $30,000 Class A-3 Interests sold in the concurrent private placements, and $855,000 Class A-3 Interests sold in the initial Class A Interest issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we will issue 2,207 Class A-1 Interests, 141 Class A-2 Interests, 165 Class A-3 Interests and 228 Class A-4 Interests to the purchasers in this offering in exchange for proceeds of $7,429,250 based upon the assumed initial public offering prices set forth on the cover page of this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we will issue 58 Class A-1 Interests, 4 Class A-2 Interests, 6 Class A-3 Interests and 1,277 Class A-4 Interests to the private placement investors in exchange for proceeds of $31,979,500 based upon the assumed initial public offering prices set forth on the cover page of this prospectus;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we will pay approximately $17,500,000 in placement agent fees and offering and private placement expenses with the proceeds we receive from Class A investors in this offering and the concurrent private placements and will issue the IPO Expenses Note to Bally's Chicago OpCo in an amount equal to approximately $17,500,000, to cover the difference in the amount we will owe to Bally's Chicago OpCo in connection with the purchase of the LLC Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago OpCo intends to assign the IPO Expenses Note to Bally's Chicago HoldCo in exchange for the cancellation of approximately $17,500,000 of indebtedness owed by Bally's Chicago OpCo to Bally's Chicago HoldCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we will use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 newly issued LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to us to repay $102.2 million outstanding aggregated amount under the Pre-IPO Intercompany Notes.

------

[**TABLE OF CONTENTS**](#TOC)

#### Organizational Structure Following this Offering
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago, Inc. is a holding company and its principal assets consist of LLC Interests it purchases from Bally's Chicago OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago, Inc. will be the sole managing member of Bally's Chicago OpCo and will control the business and affairs of Bally's Chicago OpCo and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago, Inc. will own, directly or indirectly, 7,412 LLC Interests of Bally's Chicago OpCo, representing a 19.8% of the economic interest in Bally's Chicago OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago HoldCo will own 30,000 LLC Interests of Bally's Chicago OpCo, representing 80.2% of the economic interest in Bally's Chicago OpCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Chicago HoldCo, as the sole holder of 30,000 Class B Interests and the holder of 3,391 Class A-4 Interests of Bally's Chicago, Inc., will hold 89.3% of the voting power and 45.8% of the economic power in Bally's Chicago, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the public holders of Class-A Interests of Bally's Chicago, Inc. will, together, own (1) 4,021 Class A Interests of Bally's Chicago, Inc., representing 10.7% of the voting power of all of Bally's Chicago, Inc.'s stock and 54.2% of the economic interest in Bally's Chicago, Inc., and (2) through Bally's Chicago, Inc.'s ownership of 7,412 LLC Interests, indirectly will hold 19.8% of the economic interest in Bally's Chicago OpCo; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • as the sole managing member of Bally's Chicago OpCo, we will conduct the business.

Following the Transactions, including this offering and the concurrent private placements, Bally's Chicago, Inc. will control the management of Bally's Chicago OpCo as the sole managing member. As a result, Bally's Chicago, Inc. will consolidate Bally's Chicago OpCo and record a significant noncontrolling interest in consolidated entity for the economic interest in Bally's Chicago OpCo held by Bally's Corporation.

The below depicts our organizational structure after giving effect to the Transactions, including this offering and the concurrent private placements.

![[MISSING IMAGE: fc_corporatestruc-bw.jpg]](fc_corporatestruc-bw.jpg)

As the sole managing member of Bally's Chicago OpCo, we will conduct the business. Following the Transactions, including this offering and the concurrent private placements, Bally's Chicago, Inc. will control the management of Bally's Chicago OpCo as the sole managing member. As a result, Bally's Chicago, Inc. will consolidate Bally's Chicago OpCo and record a significant noncontrolling interest in consolidated entity for the economic interest in Bally's Chicago OpCo held by Bally's Corporation.

------

[**TABLE OF CONTENTS**](#TOC)

#### USE OF PROCEEDS
We estimate that the net proceeds we will receive from the sale of Class A Interests in this offering will be approximately $7.4 million and, together with the net proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, will total $102.2 million, in each case assuming the sale of Class A Interests at the offering prices set forth on the cover of this prospectus, after deducting placement agent fees and offering and private placement expenses payable by us. See "*Plan of Distribution*" for additional detail regarding the placement agent fees.

We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest.

On March 10, 2025, we sold a total of 1,185 Class A Interests to certain Accredited Investors for an aggregate purchase price of $13.2 million in the Initial Private Placements. We also sold an additional 2,800 shares of Class A-4 Interests to Bally's Chicago HoldCo, LLC at $25,000 per share, and the consideration for this transaction included $63.7 million in cash and $6.3 million in shares issued in lieu of payment on promissory notes. In total, we received $76.9 million in cash and $6.3 million in shares issued in lieu of payment on promissory notes in connection with the initial Class A Interest issuances.

We are currently dependent on Bally's for a majority of our working capital and financing requirements. As of March 31, 2025 (Successor), we and Bally's Chicago OpCo owe $642.4 million in Pre-IPO Intercompany Notes to Bally's and various of its subsidiaries.

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to Bally's Chicago, Inc. to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes, which bear an interest rate of 0% and mature on December 31, 2025.

------

[**TABLE OF CONTENTS**](#TOC)

#### DIVIDEND POLICY
To date, we have never declared or paid any cash dividends on our stock.

We are a holding company, and our principal assets are the LLC Interests that we currently hold plus those that we intend to purchase from Bally's Chicago OpCo. If we decide to make a distribution in the future, we would need to cause Bally's Chicago OpCo to make distributions to us in an amount sufficient to cover the repayment of the IPO Expenses Note, future borrowings plus such distribution. If Bally's Chicago OpCo makes such distributions to us, the other holders of LLC Interests will be entitled to receive pro rata distributions.

In addition, Bally's Chicago OpCo will report as a partnership for U.S. federal income tax purposes and, as such, generally will not be subject to any entity-level U.S. federal income tax. Instead, any taxable income of Bally's Chicago OpCo will be allocated to holders of LLC Interests, including us. Accordingly, we will incur income taxes on our allocable share of any net taxable income of Bally's Chicago OpCo. Under the terms of the Bally's Chicago OpCo LLC Agreement, Bally's Chicago OpCo will be obligated to make tax distributions to holders of LLC Interests, including us, to the extent it has distributable cash. In addition to tax expenses, we will also incur expenses related to our operations, which we expect could be significant. We intend, as its managing member, to cause Bally's Chicago OpCo to make cash distributions to the owners of LLC Interests in an amount sufficient to (1) fund all or part of their tax obligations in respect of taxable income allocated to them and (2) cover our operating expenses. However, Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions, such as restrictions on distributions that would either violate any contract or agreement to which Bally's Chicago OpCo is then a party, including any debt or financing agreements, or any applicable law, or that would have the effect of rendering Bally's Chicago OpCo insolvent. If we do not have sufficient funds to pay tax or other liabilities or to fund our operations, we may have to borrow funds, including potentially from Bally's and its affiliates if available, which could materially adversely affect our liquidity and financial condition and subject us to various restrictions imposed by any such lenders. See "*Risk Factors — Risks related to our organizational structure — Our principal asset after the completion of this offering and the concurrent private placements will be our interest in Bally's Chicago OpCo, and, as a result, we will depend on distributions from Bally's Chicago OpCo to pay our taxes and expenses. Bally's Chicago OpCo's ability to make such distributions may be subject to various limitations and restrictions*."

Furthermore, we intend to, as its managing member, cause Bally's Chicago OpCo to make distributions of OpCo cash available for distribution on a quarterly basis. We define *OpCo cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, less payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. We do not expect any such distributions until after the permanent casino and resort is fully operational and generates cash flow.

In turn, we intend to distribute cash available for distribution to the holders of our Class A Interests (subject to certain requirements discussed below). Holders of our Class B Interests will not be entitled to participate in distributions declared by our Board. We define *cash available for distribution* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable, *less* payments made on senior indebtedness, capital expenditures, cash taxes, rent without duplication and changes in working capital and cash used for acquisitions and dispositions. Cash that is distributed to holders of our Class A Interests will be distributed pro rata according to the number of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests outstanding at the time of such distribution. Given the capital intensity of developing, constructing, opening and operating a casino resort project of this scale, we currently expect that Bally's Chicago OpCo will not have any OpCo cash available for distribution until approximately three to five years after our permanent casino and resort begins operations. However, this may fluctuate depending on Bally's Chicago OpCo's ability to generate cash from operations and its cash flow needs, which, among other things, may be impacted by debt service payments on its senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago.

Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable

------

[**TABLE OF CONTENTS**](#TOC)

to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly, will be pre-payable at any time without a premium or penalty at a prepayment price equal to the principal amount thereof plus accrued interest, and will have no maturity date. See "*Subordinated Loans*" for more information on the Subordinated Loans.

If the principal and interest of any of the Subordinated Loans have been paid in full, by distributions from Bally's Chicago OpCo or any other means, we intend to distribute to holders of the corresponding Class A Interests with respect to any such Subordinated Loan an amount equal to 100% of the applicable distribution specified above in the form of a direct cash dividend.

While we intend, as its managing member, to cause Bally's Chicago OpCo to make distributions on a quarterly basis once it is able to generate OpCo cash available for distribution approximately three to five years after our permanent casino and resort begins operations, we and Bally's Chicago OpCo have not adopted a formal written dividend or distribution policy to pay a fixed amount of cash regularly or to pay any particular amount based on the achievement of, or derivable from, any specific financial metrics, including OpCo cash available for distribution. Further, we and Bally's Chicago OpCo are not contractually obligated to pay any dividends or make any distributions and do not have any required minimum quarterly dividend or distribution, except for tax-related distributions described above. Our and Bally's Chicago OpCo's distributions may vary from quarter to quarter, may be significantly reduced or may be eliminated entirely. While we and Bally's Chicago OpCo intend to make distributions equal to 100% of the cash available for distribution and OpCo cash available for distribution, respectively, on a quarterly basis, the actual amount of any distributions may fluctuate depending on our and Bally's Chicago OpCo's ability to generate cash from operations and our and Bally's Chicago OpCo's cash flow needs, which, among other things, may be impacted by debt service payments on our or Bally's Chicago OpCo's senior indebtedness, capital expenditures, potential expansion opportunities and the availability of financing alternatives, the need to service any future indebtedness or other liquidity needs and general industry and business conditions, including the pace of the construction and development of our permanent casino and resort in Chicago. Our Board will have full discretion on how to deploy cash available for distribution, including the payment of dividends. Any debt we or Bally's Chicago OpCo may incur in the future is likely to restrict our and Bally's Chicago OpCo ability to pay dividends or distributions, and such restriction may prohibit us and Bally's Chicago OpCo from making distributions, or reduce the amount of cash available for distribution and OpCo cash available for distribution. See "*Risk Factors — Risks Related to this Offering and Ownership of our Class A Interests — You may not receive dividends or other distributions on the Class A Interests.*" In addition, Delaware law imposes requirements that may restrict our ability to pay dividends to holders of our shares. Certain distributions paid may be considered a return of capital for U.S. federal income tax purposes. See "*Material U.S. Federal Income Tax Consequences*" for a description of the U.S. federal income tax treatment of the dividends and other distributions of cash or property to holders of the Class A Interests.

------

[**TABLE OF CONTENTS**](#TOC)

#### CAPITALIZATION
The following table sets forth our cash and cash equivalents and our capitalization as of March 31, 2025 on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a pro forma as adjusted basis after giving effect to the GLP Development Agreement and the organizational transactions described under "*Unaudited Pro Forma Condensed Consolidated Financial Information,*" including the sale by us of 2,265 Class A-1 Interests, 145 Class A-2 Interests, 171 Class A-3 Interests, and 1,505 Class A-4 Interests offered in this offering and concurrent private placements at the initial public offering prices set forth on the front cover of this prospectus and the application of the proceeds therefrom as described in "*Use of Proceeds*." The net proceeds from this offering and concurrent private placements are based on our current assumption of the mix of Class A Interests to be sold. The amounts reflected in the Pro Forma column are based on currently available information and assumptions that the Company's management believes are reasonable. See Note 2 in the "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for a sensitivity analysis related to the expected proceeds of the offering and concurrent private placements.

The information in this table is illustrative only and our capitalization following the Initial Private Placements and the closing of this offering and the concurrent private placements will be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing. You should read this table in conjunction with the information contained in "*Use of Proceeds*" and "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," as well as the financial statements and the notes thereto included elsewhere in this prospectus:

---

| | | |
|:---|:---|:---|
| | **As of March 31, 2025**  | **As of March 31, 2025**  |
| | **Actual**  | **Pro Forma <br> As Adjusted**  |
|  | **(in thousands, except share data)**  | **(in thousands, except share data)**  |
| Cash and cash equivalents  | $15597 | $15597 |
| Debt: |  |  |
| &nbsp;&nbsp;&nbsp; Pre-IPO Intercompany Notes  | 642399 |  |
| &nbsp;&nbsp;&nbsp; Promissory notes to related party (Bally's Chicago HoldCo)  |  | 17477 |
| &nbsp;&nbsp;&nbsp; Class A-1 Subordinated Loans  | 6732 | 62791 |
| &nbsp;&nbsp;&nbsp; Class A-2 Subordinated Loans  | 6323 | 9585 |
| &nbsp;&nbsp;&nbsp; Class A-3 Subordinated Loans  | 3420 | 6840 |
| &nbsp;&nbsp;&nbsp; Total debt  | 658874 | 96693 |
| Redeemable Noncontrolling interest  | 744387 | 471201 |
| Equity: |  |  |
| &nbsp;&nbsp;&nbsp; Class A-1 Interests; 300 interests designated, 272 interests issued and outstanding, actual; 3,000 interests authorized, 2,537 interests issued and outstanding, pro forma, as adjusted  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A-2 Interests; 300 interests designated, 281 interests issued and outstanding, actual; 500 interests authorized, 426 interests issued and outstanding, pro forma, as adjusted  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A-3 Interests; 200 interests designated, 171 interests issued and outstanding, actual; 500 interests authorized, 342 interests issued and outstanding, pro forma, as adjusted  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class A-4 Interests; 3,500 interests designated, 2,602 interests issued and outstanding, actual; 8,500 interests authorized, 4,107 interests issued and outstanding, pro forma, as adjusted  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Class B Interests; 30,000 interests designated, issued and outstanding, actual; 30,000 interests authorized, issued and outstanding, pro forma, as adjusted  |  |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital  | 66861 | 88793 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit  | (852049) | (105260) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity  | (40801) | (16467) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total capitalization  | $1362460 | $551426 |

---

------

[**TABLE OF CONTENTS**](#TOC)

The total number of shares of stock to be outstanding immediately following this offering set forth above is based on 2,265 Class A-1 Interests, 145 Class A-2 Interests, 171 Class A-3 Interests and 1,505 Class A-4 Interests to be issued in connection with this offering. While the Class A-1 Interests and Class A-2 Interests are legally outstanding, they are not considered to be outstanding for accounting purposes as they are treated as equity classified warrants. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for more information.

------

[**TABLE OF CONTENTS**](#TOC)

#### DILUTION
If you purchase our Class A Interests in this offering, your shares will be diluted to the extent of the difference between the Initial Private Placements and public offering price per share of our Class A Interests and the pro forma as adjusted net tangible book value per share of our stock.

Net tangible book value per share is determined by dividing our total tangible assets less our total liabilities by the number of outstanding shares. Our historical net tangible book value (deficit) as of March 31, 2025 was $(356,879) million or $(107,299.76) per share.

Our pro forma, as adjusted, net tangible book value (deficit) as of March 31, 2025 was $454,733 million or $61,350.94 per share, after giving effect to the sale by us of Class A Interests in this offering at the initial public offering prices set forth on the front cover of this prospectus and of Class A Interests in the concurrent private placements at the initial public offering prices set forth on the front cover of this prospectus, and the proceeds from the Subordinated Loans and IPO Expenses Note.

The pro forma, as adjusted, net tangible book value (deficit) set forth above represents an immediate increase in net tangible book value of $24,050.71 per share to the existing holders of our stock in, and an immediate dilution in net tangible book value of approximately $20,402.50 per share to the Initial Private Placements investors and new investors purchasing the Class A Interests in this offering. The following table illustrates this dilution on a per share basis based on the various aggregate offering proceeds listed on the following table:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class A-1 <br> Interest**  | **Class A-2 <br> Interest**  | **Class A-3 <br> Interest**  | **Class A-4 <br> Interest**  |
| Assumed initial public offering price per share  | $250 | $2500 | $5000 | $25000 |
| &nbsp;&nbsp;&nbsp; Pro forma net tangible book value (deficit)<sup>(1)</sup> per share <br> as of March 31, 2025  |  |  |  | (11895.97)<sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp; Increase in pro forma net tangible book value (deficit) <br> per share attributable to this offering and the <br> concurrent private placements  | 824.24 | 138.40 | 303.87 | 22976.95 |
|  Pro forma as adjusted net tangible book value per share after this offering and the concurrent private placements<sup>(2)</sup>  | 824.24 | 138.40 | 303.87 | 11080.98 |
|  Dilution per share to investors in this offering and the concurrent private placements  | $(574.24) | $2361.60 | $4696.13 | $13919.02 |

---

(1) The pro forma net tangible book value (deficit) was calculated using our historical net tangible book value (deficit) as of March 31, 2025 divided by 30,000 Class B Interests, assuming that all the Class B Interests outstanding prior to this offering were exchanged for Class A-4 Interests to reflect the economics of the transaction.

(2) Pro forma as adjusted net tangible book value per share was calculated including the 4,086 Class A Interests to be issued in this offering and concurrent private placements. While the Class A-1 Interests and Class A-2 Interests are legally outstanding, they are not considered to be outstanding for accounting purposes as they are treated as equity classified warrants. See "*Unaudited Pro Forma Condensed Consolidated Financial Information*" for more information.

Based on Bally's equity commitments to Bally's Chicago OpCo and the financing we have received from GLPI, we believe that we are sufficiently capitalized until the opening of our permanent casino and resort. However, unforeseen events could necessitate us to raise additional capital in the future to fund our ongoing operations. We may in the future sell substantial amounts of stock or securities convertible into or exchangeable for our stock. We may also choose to raise additional capital due to market conditions or other strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our stockholders.

------

[**TABLE OF CONTENTS**](#TOC)

#### UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

#### Introduction
The following unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 and the unaudited pro forma condensed consolidated statement of operations for the three months ended March 31, 2025 and the year ended December 31, 2024 present our consolidated financial position and results of operations after giving effect to the Merger (defined below), initial private placement (the "Initial Private Placement"), the 2024 Lease Modification (defined below), the 2025 Lease Modification and Development Agreement (defined below), in addition to the offering and concurrent private placement (the "Transactions").

The Company was formed on May 24, 2022 and is a consolidated subsidiary of Bally's Chicago Holding Company, LLC, a wholly owned subsidiary of Bally's Corporation. On February 7, 2025, Bally's Corporation completed its previously announced transactions under the Agreement and Plan of Merger (as amended, the "Merger Agreement"), pursuant to which The Casino Queen & Entertainment Inc. ("Casino Queen"), a corporation majority-owned by funds managed by Standard General L.P., Bally's Corporation's largest common stockholder, merged with Bally's Corporation (the "Merger"). The Merger was accounted for by Bally's Corporation as a transaction between entities under common control in accordance with ASC Topic 805 Business Combinations ("ASC 805"), in which the accounting acquirer (Parent and its affiliates) obtained control of Bally's Corporation. Bally's Corporation has elected to push down its Parent's basis in its net assets into the Company, and as a result, the Company will record pushdown accounting adjustments to reflect the step up in basis of accounting as a result of the Merger. The unaudited pro forma condensed consolidated statements of operations include pro forma adjustments to reflect the impacts to certain expenses related to the step up in basis to the preliminary valuations of certain tangible and intangible assets by Parent as of the acquisition date of February 7, 2025. These adjustments are subject to further revision upon finalization of the purchase price allocation and the related tangible and intangible asset valuations and fair value determinations.

Following the Merger, the historical consolidated statements of operations for the period from January 1, 2025 through February 7, 2025 and the year ended December 31, 2024 reflect the historical cost basis of accounting for the Company. These periods are referred to as the "Predecessor" periods. The unaudited pro forma condensed consolidated statement of operations for the period February 8, 2025 through March 31, 2025, and unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 reflects the costs, activities, and recognition of the Company's assets and liabilities at their fair values due to pushdown accounting applied at the time of the Merger. These periods are referred to as the "Successor" periods. As such, the historical Predecessor periods do not reflect the incremental expenses related to the step-up in the Company's assets and liabilities as a result of the pushdown.

On March 10, 2025 (Successor) the Company completed the Initial Private Placement pursuant to which we sold a total of 1,185 Class A Interests, including 272 Class A-1 Interests, 281 Class A-2 Interests, 171 Class A-3 Interests, and 461 Class A-4 Interests for total consideration of $12.4 million, net of $0.8 million of issuance costs. In connection with the issuance of these Class A Interests in the Initial Private Placement, the Company entered into a subordinated loan agreement with Bally's Chicago HoldCo, pursuant to which Bally's Chicago HoldCo made subordinated term loans (the "Subordinated Loans") to the Company totaling $16.5 million at an annual interest rate of 11%, compounded quarterly, with no maturity date. The Subordinated Loans were funded through the Holding Company's transfer of 659 Class A-4 shares to the Company. In connection with the Initial Private Placement, the Company sold an additional 2,800 shares of Class A-4 Interests to the Bally's Chicago HoldCo at a purchase price of $25,000 per share, which was reduced by 659 Class A-4 shares transferred to the Company. Consideration received included cash of $63.7 million and $6.3 million of shares in lieu of payment on its outstanding promissory notes payable by the Company to the Holding Company. The sale of the Class A-4 Interests to Bally's Chicago HoldCo was not subject to issuance fees.

In connection with the Initial Private Placement, in March 2025, the Company also consummated the organizational transactions, and as a result, Bally's Chicago HoldCo is the sole holder of Class B Interests and also holds 2,141 Class A-4 Interests in the Company. As part of the organizational transactions, Bally's Chicago HoldCo also received 30,000 LLC Interests in OpCo as consideration for the cancellation of their prior equity ownership in the Company and in exchange for a capital commitment. Following this

------

[**TABLE OF CONTENTS**](#TOC)

offering and concurrent private placement, Bally's Chicago OpCo will use the gross proceeds of the private placement and the offering to repay $102.2 million of the $642.4 million of outstanding Pre-IPO Intercompany Notes due to Bally's Chicago HoldCo. Bally's Chicago OpCo will also use $53.0 million from cash reimbursements received from GLP Capital, L.P. ("GLP"), further discussed below, to repay the Pre-IPO Intercompany Notes. Of the remaining $487.2 million Pre-IPO Intercompany Notes, $476.8 million will be forgiven as a result of the capital commitment between Chicago HoldCo and Bally's Chicago OpCo and $10.4 million will be reclassified to Long-term promissory notes to related party (Bally's Corporation) as part of the IPO Expenses Note.

On July 17, 2025, Bally's Chicago OpCo entered into (i) an amended and restated ground lease (the "GLP Lease Agreement") with GLP that amended the existing ground lease for the property on which Bally's Chicago OpCo plans to develop the Bally's Chicago casino and resort (the "2025 Lease Modification") and (ii) a development agreement with GLP (the "GLP Development Agreement") pursuant to which GLP has committed to advance up to $940 million for the payment of hard costs used to construct the permanent casino and resort in exchange for increasing the amount of rent that Bally's Chicago OpCo pays to GLP under the GLP Lease Agreement. The 2025 Lease Modification was accounted for as a modification in accordance with ASC 842, Leases. The GLP Lease Agreement has a 15-year term and up to four renewal terms of five years each, if elected by Bally's Chicago OpCo. The Company determined that it currently is not reasonably certain that it will exercise any of the four renewal terms and as such, the Company concluded that the amended lease term is 15 years. The Company also determined that the ground lease will continue to be accounted for as an operating lease. The Company's remeasurement of the right-of-use-asset and corresponding lease liability is preliminary and are subject to further revision upon finalization. The financial statement impact of the 2025 Lease Modification has been reflected as of March 31, 2025 in the unaudited pro forma condensed consolidate balance sheet as of March 31, 2025 and as of January 1, 2024 in the pro forma unaudited condensed consolidated statement of operations for the three months ended March 31, 2025 and the year ended December 31, 2024. During the third quarter of 2024, a previous lease modification event occurred related to the ground lease (the "2024 Lease Modification"). Prior to the 2024 Lease Modification, the lease was accounted for as a financing obligation, with all lease payments recorded as interest expense. As a result of the 2024 Lease Modification related to the ground lease, the land components previously classified as a financing obligation were reassessed and were determined to be classified as an operating lease, and a $150.0 million loss was recorded in "Loss on sale-leaseback" within the historical consolidated statements of operations for the year ended December 31, 2024. As a result of the 2025 Lease Modification, the 2024 Lease Modification is reflected as if had occurred on January 1, 2024 in the pro forma unaudited condensed consolidated statement of operations for year ended December 31, 2024.

As a result of executing the GLP Development Agreement, the Company reasonably expects to receive $53 million cash as reimbursement for certain costs that were previously incurred and capitalized, as mutually agreed upon between the Company and GLP. The Company will use the $53 million in cash received to repay a portion of its $642.4 million outstanding borrowings from Bally's Chicago HoldCo. As such, the Company reflected the financial statement impact in the unaudited pro forma condensed consolidated balance sheet as of March 31, 2025. Future draws on of the $940 million commitment will be related to future costs to be incurred over a period exceeding one year. The Company has not yet established a lease commencement date associated with the permanent facility, and therefore has not reflected the incremental rent expense related to the $53 million draw.

The unaudited pro forma condensed consolidated financial information is based on the assumption that, following the initial private placements, public stockholders and the private placement investors will elect to purchase Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, and Class A-4 Interests in this offering and concurrent private placements. The unaudited pro forma condensed consolidated financial information has been prepared using the assumption that following the Initial Private Placement, we will issue an additional 4,086 Class-A Interests, including 2,265 shares of Class A-1 Interests, 145 shares of Class A-2 Interests, 171 shares of Class A-3 Interests, and 1,505 shares of Class A-4 Interests through this offering and concurrent private placements, with a corresponding impact to the amount of Subordinated Loans. For accounting purposes, the Class A-1 Interests and Class A-2 Interests are accounted for as warrants that meet the criteria for equity classification and thus these shares are not considered to be outstanding in the computation of pro forma basic and diluted loss per share. The Class A-3 Interests are accounted for as partially paid Class A-4 Interests and thus included in the pro forma basic and diluted loss per share based on

------

[**TABLE OF CONTENTS**](#TOC)

the Class A-4 share equivalent number. See Note 2, "Offering and Transaction Accounting Adjustments" to the unaudited pro forma condensed consolidated financial statements for additional sensitivity analysis information regarding the impact of the amount of each Class A Interest tranche to be sold in this offering.

The unaudited pro forma condensed consolidated financial information was prepared in accordance with Article 11 of Regulation S-X, using the assumptions set forth in the notes to the unaudited pro forma condensed consolidated financial information. As the historical balance sheet as of March 31, 2025 (Successor) already reflects the effects of the pushdown, the Initial Private Placement and the organizational transactions, the following unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 (Successor) gives effect to the 2025 Lease Modification, the 2024 Lease Modification, the GLP Development Agreement, and the Transactions as if they had occurred on March 31, 2025 (Successor). The following unaudited pro forma condensed consolidated statement of operations for the three months ended March 31, 2025 (Successor) and the year ended December 31, 2024 (Predecessor) gives effect to the Merger, the organizational transactions, the initial private placement, the 2025 Lease Modification, the 2024 Lease Modification and the Transactions as if they had occurred on January 1, 2024.

We have derived the unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 (Successor), and the unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 2025 (Successor) and the year ended December 31, 2024, from the financial statements of Bally's Chicago, Inc., included elsewhere in this prospectus. The unaudited pro forma condensed consolidated financial information reflects adjustments that are described in the accompanying notes and are based on available information and certain assumptions we believe are reasonable but are subject to change.

As a public company, we will be implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies. We expect to incur additional annual expenses related to these steps and, among other things, additional directors' and officers' liability insurance, director fees, costs for reporting requirements of the SEC, transfer agent fees, costs for hiring additional accounting, legal, and administrative personnel, increased auditing and legal expenses, and other related costs. Due to the scope and complexity of these activities, the amount of these costs would be based on subjective estimates and assumptions that could increase or decrease materially. We have not included any pro forma adjustments related to these costs.

The unaudited pro forma condensed consolidated financial information is provided for informational purposes only and is not necessarily indicative of the operating results that would have occurred if the Transactions had been completed as of the dates set forth above, nor is it indicative of our future results. The unaudited pro forma condensed consolidated financial information should be read together with "*Our Organizational Structure*," "*Use of Proceeds*," "*Capitalization*," "*Summary Historical and Unaudited Pro Forma Condensed Consolidated Financial and Other Data*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations*," "*Subordinated Loans*," "*Concurrent Private Placements*," and our historical financial statements and related notes of Bally's Chicago, Inc., each included elsewhere in this prospectus.

------

[**TABLE OF CONTENTS**](#TOC)

#### BALLY'S CHICAGO, INC. AND SUBSIDIARIES

#### UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

#### As of March 31, 2025

#### (In thousands, except share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **In thousands, except share data**  | **As Reported <br> (Successor)**  | **Lease <br> Modification & <br> Development <br> Agreement <br> Adjustments**  | **Offering <br> Adjustments**  | **Pro Forma as of <br> March 31, 2025**  |
| **Current assets** |  |  |  |  |
| Cash  | $15597 | $— | $— (b)(e)  | $15597 |
| Accounts receivable, net  | 1818 |  |  | 1818 |
| Inventory  | 2391 |  |  | 2391 |
| Due from related party (Bally's Corporation)  | 3584 |  |  | 974 |
| Prepaid expenses and other assets  | 974 |  |  | 3584 |
| **Total current assets**  | 24364 |  |  | 24364 |
| Property and equipment, net  | 210472 | (56228) (e)  |  | 154244 |
| Right of use assets, net  | 267319 | (64945) (e)  |  | 202374 |
| Goodwill  | 105506 |  |  | 105506 |
| Intangible assets  | 316078 |  |  | 316078 |
| Other assets  | 10418 |  | (10418) (d)  |  |
| **Total assets**  | $934157 | $(121174) | $(10418) | $802565 |
|  **<u>Liabilities, Redeemable Non-controlling Interest, and Stockholder's</u> <br> <u>Deficit</u>**  |  |  |  |  |
| Current portion of lease liabilities  | $4544 | $6278 (e)  |  | $10822 |
| Accounts payable  | 7517 |  |  | 7517 |
| Accrued and other current liabilities  | 28991 |  |  | 28991 |
| Promissory notes to related party (Bally's Corporation)  | 642399 | (53017) (e)  | (589382) (a)(b)(c)  |  |
| Due to related party (Bally's Corporation)  | 4790 |  |  | 4790 |
| **Total current liabilities**  | 688241 | (46739) | (589382) | 52120 |
| Long-term portion of lease liabilities  | 264318 | (71224) (e)  |  | 193094 |
| Subordinated loans due to related party (Bally's Corporation)  | 16475 |  | 62471 (c)  | 79216 |
|  Long-term promissory notes to related party (Bally's Corporation)  |  |  | 17477 (c)  | 17477 |
| Deferred tax liability  | 5924 |  |  | 5924 |
| **Total liabilities**  | 974958 | (117963) | (509163) | 347832 |
| **Commitments and contingencies** |  |  |  |  |
| **Redeemable non-controlling interest**  | 744387 |  | (273186) (a)  | 471201 |
| **Stockholders' deficit:** |  |  |  |  |
|  Class B common stock, $0.001 par value, and 30,000 shares authorized, issued and outstanding as of March 31, 2025 (Successor)  |  |  |  |  |
|  Class A-1 Interest common stock, $0.001 par value, 2,537 shares authorized and outstanding as of March 31, 2025 <br> (Successor)  |  |  |  |  |
|  Class A-2 Interest common stock, $0.001 par value, 426 shares authorized and outstanding as of March 31, 2025 <br> (Successor)  |  |  |  |  |
|  Class A-3 Interest common stock, $0.001 par value, 342 shares authorized and outstanding as of March 31, 2025 <br> (Successor)  |  |  |  |  |
|  Class A-4 Interest common stock, $0.001 par value, 4,107 shares authorized and outstanding as of March 31, 2025 <br> (Successor)  |  |  |  |  |
| Additional paid-in-capital  | 66861 |  | 21932 (b)(d)  | 88793 |
| Accumulated deficit  | (852049) | (3211) | 750000 (a)  | (105260) |
| **Total stockholders' deficit**  | (785188) | (3211) | 771932 | (16467) |
|  **Total liabilities, redeemable non-controlling interest, and stockholders' deficit**  | $934157 | $(121174) | $(10418) | $802565 |

---

------

[**TABLE OF CONTENTS**](#TOC)

#### BALLY'S CHICAGO, INC. AND SUBSIDIARIES

#### UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

#### For The Period Ended March 31, 2025

#### (In thousands, except share and per share data)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Predecessor**  | **Successor**  | **Pushdown <br> Accounting <br> Adjustments**  | **Transaction <br> Accounting <br> Adjustments**  | **Lease <br> Modification & <br> Development <br> Agreement <br> Adjustments**  | **Offering <br> Adjustments**  | **Pro forma <br> Three <br> Months <br> Ended <br> March 31, <br> 2025**  | **Notes**  |
| **In thousands, except per share data**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Period from <br> February 8 <br> to March 31, <br> 2025**  | **Pushdown <br> Accounting <br> Adjustments**  | **Transaction <br> Accounting <br> Adjustments**  | **Lease <br> Modification & <br> Development <br> Agreement <br> Adjustments**  | **Offering <br> Adjustments**  | **Pro forma <br> Three <br> Months <br> Ended <br> March 31, <br> 2025**  | **Notes**  |
| **Revenue:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Gaming  | $10353 | $15935 | $— | $— | $— | $— | $26288 |  |
| &nbsp;&nbsp; Non-gaming  | 1134 | 1861 |  |  |  |  | 2995 |  |
| Total revenue  | 11487 | 17796 |  |  |  |  | 29283 |  |
| **Operating costs and expenses:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Gaming  | 6039 | 8157 |  |  |  |  | 14196 |  |
| &nbsp;&nbsp; Non-gaming  | 1260 | 1462 |  |  |  |  | 2722 |  |
| &nbsp;&nbsp; General and administrative  | 8946 | 10196 |  |  | (620) (k)  |  | 18522 |  |
| &nbsp;&nbsp; Management fees to Bally's Corporation  | 6129 | 8871 |  |  |  |  | 15000 |  |
| &nbsp;&nbsp; Loss on sale-leaseback  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Depreciation and <br> amortization  | 1985 | 4842 | 1531 (f)  |  |  |  | 8358 |  |
|  Total operating costs and <br> expenses  | 24359 | 33528 | 1531 |  | (620) |  | 58798 |  |
| **Loss from operations**  | (12872) | (15732) | (1531) |  | 620 |  | (29515) |  |
| **Other income (expense):** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Interest income  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp; Interest expense, net of amounts <br> capitalized  |  | (248) |  | (386) (i)  |  | (2428) (i)  | (3062) |  |
|  Total other income (expense), <br> net  |  | (248) |  | (386) |  | (2428) | (3062) |  |
| Loss before income taxes  | (12872) | (15980) | (1531) | (386) | 620 | (2428) | (32557) |  |
| Benefit for income taxes  |  |  | — (j)  | — (j)  | — (j)  | — (j)  |  |  |
| **Net loss**  | $(12872) | $(15980) | $(1531) | $(386) | $620 | $(2428) | $(32557) |  |
|  Net loss attributable to Redeemable <br> non-controlling interest  |  | (5613) | (8428) (g)  | (309) (g)  | 497 (g)  | (1947) (g)  | (15801) |  |
|  **Net loss attributable to Bally's Chicago, Inc.**  | $(12872) | $(10367) | $6898 | $(76) | $123 | $(481) | $(16776) |  |
| Basic and diluted loss per share  | $(128720) |  |  |  |  |  |  |  |
|  Weighted average common shares outstanding, basic and diluted  | 100 |  |  |  |  |  |  |  |
|  Class A-3, and Class A-4 Interests, <br> basic and diluted loss per <br> share  |  | $(9223) |  |  |  |  | $(4018) | &nbsp;&nbsp; (h) |
|  Weighted average Class A-3 and <br> Class A-4 Interests outstanding, <br> basic and diluted  |  | 1124 |  |  |  |  | 4175 | &nbsp;&nbsp; (h) |

---

------

[**TABLE OF CONTENTS**](#TOC)

#### BALLY'S CHICAGO, INC. AND SUBSIDIARIES

#### UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

#### For The Year Ended December 31, 2024

#### (In thousands, except share and per share data)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **In thousands, except per share <br> data** | **As Reported <br> (Predecessor)**  | **Pushdown <br> Accounting <br> Adjustments**  | **Transaction <br> Accounting <br> Adjustments**  | **Lease <br> Modification & <br> Development <br> Agreement <br> Adjustments**  | **Offering <br> Adjustments**  | **Pro forma <br> Year Ended <br> December 31, <br> 2024**  | **Notes**  |
| **Revenue:** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | $115844 | $— | $— | $— | $— | $115844 |  |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 12849 |  |  |  |  | 12849 |  |
| Total revenue  | 128693 |  |  |  |  | 128693 |  |
|  **Operating costs and expenses:**  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | 60268 |  |  |  |  | 60268 |  |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 8134 |  |  |  |  | 8134 |  |
| &nbsp;&nbsp;&nbsp; General and administrative  | 64696 |  |  | 15371 (k)  |  | 80067 |  |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | 60000 |  |  |  |  | 60000 |  |
| &nbsp;&nbsp;&nbsp; Loss on sale-leaseback  | 150000 |  |  |  |  | 150000 |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 18300 | 15099 (f)  |  |  |  | 33399 |  |
|  Total operating costs and expenses  | 361398 | 15099 |  | 15371 |  | 391868 |  |
| **Loss from operations**  | (232705) | (15099) |  | (15371) |  | (263175) |  |
| **Other income (expense):** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income  | 1466 |  |  |  |  | 1466 |  |
| &nbsp;&nbsp;&nbsp; Interest expense, net of amounts capitalized  | (6891) |  | (1888) (i)  | 6891 (k)  | (9114) (i)  | (11002) |  |
|  Total other income (expense), net  | (5425) |  | (1888) | 6891 | (9114) | (9536) |  |
| Loss before income taxes  | (238130) | (15099) | (1888) | (8480) | (9114) | (272711) |  |
| Benefit for income taxes  |  | — (j)  | — (j)  | — (j)  | — (j)  |  |  |
| **Net loss**  | $(238130) | $(15099) | $(1888) | $(8480) | $(9114) | $(272711) |  |
|  Net loss attributable to Redeemable non-controlling interest  |  | (203060) (g)  | (1514) (g)  | (6800) (g)  | (7308) (g)  | (218682) |  |
|  **Net loss attributable to Bally's Chicago, <br> Inc.**  | $(238130) | $187961 | $(374) | $(1680) | $(1806) | $(54029) |  |
|  Basic and diluted loss per share  | $(2381300) |  |  |  |  |  |  |
|  Weighted average common <br> shares outstanding, basic <br> and diluted  | 100 |  |  |  |  |  |  |
|  Class A-3, and Class A-4 Interests, basic and diluted loss per share  |  |  |  |  |  | $(12940) | &nbsp;&nbsp; (h) |
|  Weighted average Class A-3 <br> and Class A-4 Interests <br> outstanding, basic and <br> diluted  |  |  |  |  |  | 4175 | &nbsp;&nbsp; (h) |

---

------

[**TABLE OF CONTENTS**](#TOC)

#### NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. #### Description of the Merger, the Initial Private Placements, the Transactions, the Lease Modification, and Basis of Presentation
The unaudited pro forma condensed consolidated financial information was prepared in accordance with Article 11 of Regulation S-X, as amended by the final rule, Release No. 33-10786 "Amendments to Financial Disclosures about Acquired and Disposed Businesses," and presents the pro forma financial condition and results of operations of the Company based upon the historical financial information after giving effect to the Transactions and related adjustments set forth in the notes to the unaudited pro forma condensed consolidated financial information.

As a result of the Merger, the unaudited pro forma condensed consolidated financial information reflects the pushdown in Bally's Corporation's basis in its net assets into the Company's financial statements. As a result, the net assets of the Company were measured and recognized at fair values as of the acquisition date, February 7, 2025, to show the effect of the Merger. The Merger was accounted for pursuant to ASC 805 which uses the fair value concepts defined in ASC Topic 820, Fair Value Measurements ("ASC 820"). Fair value measurements for a non-financial asset assume the highest and best use by these market participants. Many of these fair value measurements can be highly subjective, and it is possible that other professionals applying reasonable judgment to the same facts and circumstances, could develop and support a range of alternative estimated amounts. In addition, these fair value measurements are subject to change and could differ from amounts actually recorded. The effects of the pushdown are reflected in the Pushdown Accounting Adjustments column in the unaudited pro forma condensed statement of operations for the three months ended March 31, 2025 and the year ended December 31, 2024. The historical balance sheet as sheet as of March 31, 2025 (Successor) already reflects the recognition of the Company's assets and liabilities at their fair values due to pushdown accounting applied at the time of the Merger. As such, no Pushdown Accounting Adjustment column is required.

As a result of the 2025 Lease Modification, the unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 reflects the remeasurement of the right-of-use-asset and corresponding current portion of lease liabilities and long-term portion of lease liabilities in accordance with ASC 842, Leases. The unaudited pro forma condensed consolidated financial information reflects the removal of capitalized interest expense recorded in the historical balance sheet as of March 31, 2025 that was recorded when the ground lease was accounted for as a financing obligation. The unaudited pro forma condensed statements of operations for the three months ended March 31, 2025 and the year ended December 31, 2024, reflect the removal of the historical expense related to the ground lease reflected in the historical statements of operations for the three months ended March 31, 2025 and the year ended December 31, 2024, and reflects the new rent expense associated with the 2025 Lease Modification. The effects of the 2025 Lease Modification and the 2024 Lease Modification are reflected in the Lease Modification & Development Agreement Adjustments column.

As a result of the GLP Development Agreement, the Company reasonably expects to receive $53 million of cash as reimbursement for certain costs that were previously incurred and capitalized, as mutually agreed upon between the Company and GLP. The Company will use the $53 million in cash received to repay a portion of its outstanding borrowings from Bally's Chicago HoldCo. As such, the Company reflected the financial statement impact in the unaudited pro forma condensed consolidated balance sheet as of March 31, 2025. Future draws on of the $940 million commitment will be related to future costs to be incurred over a period exceeding one year. The Company has not yet established a lease commencement date associated with the permanent facility, and therefore has not reflected the incremental rent expense related to the $53 million draw. The effects of the GLP Development Agreement are reflected in the Lease Modification & Development Agreement Adjustments column.

For purposes of the unaudited pro forma condensed statement of operations for the three months ended March 31, 205 and the year ended December 31, 2024, we have reflected the activity related to the issuance and sale of 272 Class A-1 Interests, 281 Class A-2 Interests, 171 Class A-3 Interests, and 2,602 Class A-4 Interests (net of 659 Class A-4 Interests repurchased) in the Initial Private Placement that occurred on March 10, 2025 and organizational transactions within the Transaction Accounting Adjustments

------

[**TABLE OF CONTENTS**](#TOC)

column. Note, the unaudited pro forma condensed statement of operations for the three months ended March 31, 2025 (Successor) reflects the incremental expense for the period January 1, 2025 through March 9, 2025, the day before the Initial Private Placement.

The anticipated issuance of an additional 2,265 shares of Class A-1 Interests,145 shares of Class A-2 Interests,171 shares of Class A-3 Interests, and 1,505 shares of Class A-4 Interests through this offering and the concurrent private placements at a price per share equal to public offering prices as set forth on the cover of this prospectus is reflected in the Offering Adjustments column in the unaudited pro forma condensed financial statements.

Following the closing of the offering and the concurrent private placements and the applications of proceeds there from, we will continue to operate as a holding company. Our principal asset is LLC interests in Bally's Chicago OpCo (the "LLC Interests") which following this offering, represent a 19.8% economic interest. Following this offering and concurrent private placement, Bally's Chicago OpCo will use the gross proceeds of the private placement and the offering to repay $102.2 million of the $642.4 million of outstanding Pre-IPO Intercompany Notes due to Bally's Chicago HoldCo. Bally's Chicago OpCo will also use $53.0 million from cash reimbursements received from GLP to repay the Pre-IPO Intercompany Notes. Of the remaining $487.2 million Pre-IPO Intercompany Notes, $476.8 million will be forgiven as a result of the capital commitment between Chicago HoldCo and Bally's Chicago OpCo and $10.4 million will be reclassified to Long-term promissory notes to related party (Bally's Corporation) as part of the IPO Expenses Note. Following this offering, Bally's Chicago HoldCo will hold 80.2% economic interest in Bally's Chicago OpCo through its ownership of LLC interests. The Company will continue to consolidate Bally's Chicago OpCo as the sole managing member in accordance with Accounting Standards Codification ("ASC") 810, *Consolidation*, and consequently, Bally's Chicago HoldCo's stake in Bally's Chicago OpCo will be represented as noncontrolling interest in Bally's Chicago, Inc's consolidated financial statements.

In connection with the issuance of the Class A Interests in the Initial Private Placement, the Company entered into a subordinated loan agreement with Bally's Chicago HoldCo, pursuant to which Bally's Chicago HoldCo made subordinated term loans to the Company totaling $16.5 million at an annual interest rate of 11%, compounded quarterly, with no maturity date. In connection with the closing of this offering and the concurrent private placement, we intend to enter into a subordinated loan agreement with Bally's Chicago HoldCo pursuant to which Bally's Chicago HoldCo, as lender, will make subordinated loans to us, as borrower, in various tranches and in varying amounts based on the total number of Class A-1, A-2, and A-3 Interests sold in this offering. None of the new investors purchasing Class A Interests in this offering and concurrent private placements will be a party to the Subordinated Loans agreement. For each Class A-1, A-2, and A-3 Interest sold in this offering and the private placements, we will incur $24,750, $22,500 and $20,000 per interest of subordinated loans, respectively.

Following the completion of the Initial Private Placement and the closing of this offering and concurrent private placements, total Subordinated Loans will be issued for $79.2 million at an interest rate of 11.0% per annum, compounded quarterly, with no maturity date. The $79.2 million of Subordinated Loans expected to be issued is comprised of $16.5 million issued in connection with the Initial Private Placement and $62.7 million to be issued in connection with this offering and concurrent private placement. Principal and interest payments on the Subordinated Loans will be paid by us by withholding discretionary distributions that would otherwise be made by us to the investors with the corresponding Class A Interests and applying such distributions to reduce amounts outstanding under the applicable Subordinated Loans. Further, Subordinated Loans may be repaid at the Company's option at a redemption price equal to the principal amount, plus accrued and unpaid interest thereon.

#### Pushdown Accounting, Transaction Accounting, Lease Modification & Development Agreement, and Offering Adjustments
The adjustments included in the unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(a)**

This adjustment reflects the settlement of the $642.4 million of Pre-IPO Intercompany Notes using $102.2 million of proceeds from this offering and concurrent private placement. Bally's Chicago OpCo will also use $53.0 million from cash reimbursements received from GLP to repay

------

[**TABLE OF CONTENTS**](#TOC)

the Pre-IPO Intercompany Notes, further described below in note (e). Of the remaining $487.2 million Pre-IPO Intercompany Notes, $476.8 million will be forgiven as a result of the capital commitment between Chicago HoldCo and Bally's Chicago OpCo and $10.4 million will be reclassified to Long-term promissory notes to related party (Bally's Corporation) as part of the IPO Expenses Note. The funding of the capital commitment is contingent on the occurrence of the Transactions. As such, as a result of the Transactions, the capital commitment of $750 million is reflected as a receivable and presented as contra-mezzanine equity. The receivable is then immediately reduced by the repayment of $476.8 million of Pre-IPO Intercompany Notes, for an ending net pro forma balance of Redeemable noncontrolling interest of $471.2 million. The $102.2 million of proceeds from this offering and concurrent private placement is comprised of $39.4 million of gross proceeds from the offering (see note (b) below) and $62.7 million of proceeds related to the issuance of the subordinated loans (see note (c) below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(b)**

Reflects our estimate of the net proceeds of $32.3 million to be raised from this offering and the concurrent private placements based on the stated value of $25,000 per Class A Interest, and an expected total issuance of 2,265, 145, 171 and 1,505 shares of Class A-1, A-2, A-3, and A-4 Interests respectively, after deducting $7.0 million of estimated additional offering costs not yet accrued as of March 31, 2025.

This adjustment also relates to the application of $32.3 million net proceeds from this offering and concurrent private placements, to pay down part of the outstanding Pre-IPO Intercompany Notes owed to Bally's Chicago HoldCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(c)**

Reflects the adjustment to account for the repurchase of Class A Interests of the Company from Bally's Chicago HoldCo in exchange for the issuance of a total of $62.7 million of Subordinated Loans issued by the Company and attributable to each Class A Interest in this offering and the concurrent private placements. This adjustment also relates to the issuance of the IPO Expenses Note to Bally's Chicago HoldCo in the amount of $17.5 million which is equal to the transaction expenses incurred to effect this offering and the concurrent private placements. The associated interest will be recognized as an expense within the Statement of Operations as an adjustment. The IPO Expenses Note to related party (Bally's Chicago HoldCo) will bear interest at a rate equal to 11.0% per annum and will mature on December 31, 2034.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(d)**

Reflects deferred costs associated with this offering, including certain legal, accounting and other related costs, which have been recorded in Other assets in the historical consolidated balance sheet. Upon completion of this offering, these deferred costs will be charged against the proceeds from this offering with a corresponding reduction to additional paid-in capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(e)**

Reflects the impacts of the remeasurement resulting from the 2025 Lease Modification, including a decrease of $64.9 million of our right of use assets, a net, with a corresponding increase to current portion of lease liabilities of $6.3 million and a decrease to long-term portion of lease liabilities of $71.2 million. This adjustment also reflects the removal of $3.2 million of historically capitalized interest expense related to the period where the ground lease was accounted for as a financing obligation, which was reflected in Property and equipment, net.

This adjustment also reflects the receipt of a $53.0 million cash reimbursement from GLP with an offsetting reduction of Property and equipment, net resulting from the GLP Lease Agreement. The $53.0 million of cash is reflected as a reduction in the Promissory notes to related party (Bally's Corporation) financial statement line item.

The adjustments included in the unaudited pro forma condensed consolidated Statement of Operations for the three months ended March 31, 2025 and the year ended December 31, 2024 are as follows:

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(f)**

Reflects changes in depreciation and amortization expense associated with the pushdown accounting adjustments related to the Meger. As a result of the application of pushdown accounting there was a decrease in depreciation expense of $1.0 million and $2.6 million for the period January 1 to February 7, 2025, and the year ended December 31, 2024, respectively, which is due to a longer estimated useful life. The following table summarizes the preliminary fair values of property and equipment, their estimated useful lives and the resulting depreciation expense as if the transaction had occurred on January 1, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Identifiable Assets**  | **Preliminary <br> Fair Value**  | **Estimated <br> Use Life <br> (Years)**  | **Depreciation <br> Expense For the <br> year ended <br> December 31, <br> 2024**  | **Depreciation <br> Expense For the <br> period ended <br> February 7, <br> 2025**  |
| Leasehold Improvements  | $24295 | 2.0 | $12148 | $1231 |
| Equipment  | 20095 | 6.3 | 3197 | 324 |
| Furniture and fixtures  | 2484 | 7.0 | 355 | 36 |
| Construction in Progress  | 136247 |  |  |  |
| **Total**  | 183121 |  | 15699 | 1591 |
| Less: Historical Bally's Chicago  | 172747 |  | 18300 | 2555 |
| **Pro Forma Pushdown Accounting**  | $**10374** |  | $**(2601)** | $**(964)** |

---

Adjustment also reflects an increase in amortization expense of intangible assets of $2.5 million and $17.7 million for the period January 1 to February 7, 2025, and the year ended December 31, 2024, respectively, related to gaming licenses based on an estimated useful life of 18 years as if the Merger had occurred on January 1, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(g)**

Following the Initial Private Placement, the consummation of this offering and concurrent private placement, we will own a 19.8% of the economic interest in Bally's Chicago OpCo but will have 100.0% of the voting power and control the management of Bally's Chicago OpCo. The ownership percentage held by the noncontrolling interest will be approximately 80.2%. Net income attributable to the noncontrolling interest will represent approximately 80.2% of net income (loss).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(h)**

The unaudited pro forma weighted average basic and diluted shares outstanding for the three months ended March 31, 2025 and the year ended December 31, 2024 are calculated using Bally's Chicago, Inc.'s historical weighted average shares outstanding for the respective period plus the issuance of additional shares in connection with the Initial Private Placement, this offering and concurrent private placement. As the Initial Private Placement, the offering and concurrent private placement are reflected as if they had occurred at the beginning of the earliest period presented, the calculation of weighted average shares outstanding assumes that the historical shares of Bally's Chicago, Inc. and the shares issued relating to the Initial Private Placement and the offering and concurrent private placement were outstanding since January 1, 2024. The table below presents the computation of pro forma basic and diluted earnings per share:

---

| | | |
|:---|:---|:---|
| **($ in thousands, except share and per share data)**  | **Twelve Months Ended <br> December 31, 2024**  | **Three Months Ended <br> March 31, 2025**  |
| Net loss attributable to Bally's Chicago Inc.  | $(54029) | $(16776) |
|  Weighted average Class A Interests outstanding, basic and diluted  | 4175 | 4175 |
| Net income per Class A Interest, basic and diluted  | $(12940) | $(4018) |

---

As the unaudited pro forma condensed consolidated statement of operations is in a net loss position, any potentially dilutive instruments would be anti-dilutive and thus these instruments have been excluded from the computation. Each respective class of Class A-3 Interests and A-4 Interests represent different classes of common stock for purposes of earnings per share ("EPS") computation. The number of Class A-3 Interests included in the denominator of the pro forma basic and diluted loss per share computation are the share equivalent number of partially paid

------

[**TABLE OF CONTENTS**](#TOC)

Class A-4 shares. Furthermore, while the Class A-1 Interests and Class A-2 Interests are legally outstanding, they are not outstanding for accounting and pro forma purposes as they are treated as equity classified warrants and are excluded from the basic EPS computation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(i)**

In connection with the Subordinated Loans, Bally's Chicago Inc., is required to pay 11.0% interest per annum, compounded quarterly on each tranche of Class A-1, Class A-2, and A-3 Subordinated Loans. The adjustment reflects the compounded interest for the 12 months ending December 31, 2024, as well as the compounded interest for the period January 1, 2025 through March 9, 2025, the date prior to the initial private placement, for the three months ending March 31, 2025. This adjustment also reflects the interest expense resulting from 11.0% interest per annum on the Promissory Notes to related party (Bally's Corporation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(j)**

Represents the tax effect of the pro forma adjustments. No expense or benefit has been recognized as the Company has established a full valuation allowance against the net deferred tax asset position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **(k)**

Represents the removal of $5.0 million of rent expense related to the ground lease in the historical statement of operations for the three months ended March 31, 2025, as well as $6.9 million of interest expense recorded when the ground lease was accounted for as a financing obligation, and $6.1 million of rent expense from when the ground lease was accounted for as an operating lease in the historical statement of operations for the year ended December 31, 2024. This adjustment also reflects $4.4 million and $21.4 million in rent expense for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, based on the remeasurement associated with the Lease Modification.

------

[**TABLE OF CONTENTS**](#TOC)

#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 *The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this prospectus. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the section entitled "Risk Factors" included elsewhere in this prospectus.* 

#### Overview
We are a gaming, hospitality and entertainment company with the singular focus of building and operating a world-class entertainment destination resort in Chicago, Illinois. We intend to provide both Chicago residents and business and leisure travelers visiting Chicago with physical and interactive entertainment and gaming experiences.

We intend to build a destination casino, hotel and entertainment venue that will showcase "The Best of Chicago" arts and culture, food and sports, and curated dining and entertainment experiences. Our permanent casino and resort in Chicago will be located on the 30-acre property which previously hosted the Chicago Tribune Publishing Center, at the intersection of Chicago Avenue and Halsted Street in downtown Chicago, and will look to transform this currently underutilized site into a major economic driver for the city. Our permanent casino and resort will be in close proximity to a wide range of hotels, theaters, bars, restaurants, major shopping districts and the McCormick Place Convention Center, the proximity to which will help drive traffic to our permanent casino and resort, primarily due to our differentiated gaming attractions in comparison to other offerings in this geographic location.

In developing the entertainment destination resort, we intend to adhere to Bally's community-first policy, which is a fundamental and defining element of who we are as a company. We believe that in every community in which Bally's operates, it has built strong, lasting partnerships with local residents and businesses. Chicago will be no different. With this project, we are committed to ensuring that our permanent casino and resort generates significant economic stimulus and creates a wealth of employment opportunities for the greater Chicago community.

On May 5, 2022, the City of Chicago selected us as the preferred bidder in Chicago's RFP process to construct and operate a world-class casino resort in downtown Chicago. We worked cooperatively with city officials and community leaders throughout the RFP process to develop a project that embraced Chicago as a global gateway city, incorporating its vibrant cultural scene and highly diversified economy. Chicago selected us on the basis that they believe our plan provides the most economic value to Chicago and its taxpayers, including an upfront payment of $40.0 million and annual payments to Chicago totaling $4.0 million. On June 9, 2022, we signed the Host Community Agreement with the City of Chicago formalizing our arrangement with Chicago to develop our casino and resort, and granting us the exclusive right upon receiving the appropriate approvals from the Illinois Gaming Board to operate a temporary casino for up to three years while our permanent casino and resort is constructed. Our temporary casino began operations on September 9, 2023.

The gaming taxes on our gaming revenue will be paid to the state of Illinois and the City of Chicago, with the City of Chicago taxes applied to pay a portion of the City's obligations toward its fire and police union pensions. Additionally, our permanent casino and resort is projected to create approximately 12,250 design, development and construction jobs and approximately 3,000 permanent jobs upon the opening of our permanent casino and resort.

#### Recent Developments

#### The Merger & Pushdown Accounting
The Bally's Corporation Merger with Casino Queen was completed on February 7, 2025 and was accounted for as a transaction between entities under common control and resulted in a change in control.

------

[**TABLE OF CONTENTS**](#TOC)

Bally's Corporation elected to push down their parent's basis in its net assets into its financial statements. To better align the accounting and presentation with our public company parent, the Company has also determined that it will elect to apply pushdown accounting in these standalone financial statements. As a result of the application of pushdown accounting, these financial statements reflect the Company's basis in the assets and liabilities of Bally's Corporation, which were remeasured to fair value as of February 7, 2025. The purchase consideration in the Merger has been allocated to the Company's tangible and identifiable intangible assets and liabilities based upon their estimated fair values as of February 7, 2025, with the excess of the purchase consideration over the aggregate net fair values recorded as goodwill. Refer to Note 6 "Business Combinations" to our condensed consolidated financial statements included elsewhere in this prospectus for additional information.

#### Issuance of Class A Interests
On March 10, 2025, pursuant to Rule 506(c), we sold a total of 1,185 Class A Interests, including 272 Class A-1 Interests at $250 per share, 281 Class A-2 Interests at $2,500 per share, 171 Class A-3 Interests at $5,000 per share and 461 Class A-4 Interests at $25,000 per share, to certain Accredited Investors for an aggregate purchase price of $13.2 million.

We also sold an additional 2,800 shares of Class A-4 Interests to Bally's Chicago HoldCo, LLC at a purchase price of $25,000 per share. Consideration received included cash of $63.7 million and $6.3 million of shares issued in lieu of payment on the promissory notes payable by us to Bally's Chicago HoldCo.

#### Subordinated Loan Agreement
In connection with the issuance of these shares, we entered into a subordinated loan agreement with Bally's Chicago HoldCo, pursuant to which Bally's Chicago HoldCo made subordinated term loans (the "Existing Subordinated Loans") to us totaling $16.5 million at an annual interest rate of 11.0%, compounded quarterly, with no maturity date. The Existing Subordinated Loans were funded through the Bally's Chicago HoldCo's transfer of 659 Class A-4 shares to us.

#### Limited Liability Company Agreement and Purchase of Additional LLC Interests
On March 10, 2025, Bally's Chicago OpCo amended and restated its limited liability company agreement issuing 30,000 LLC Units to Bally's Chicago HoldCo and appointing us as the sole managing member of Bally's Chicago OpCo.

Concurrently with the entry into the amended and restated limited liability agreement, we purchased 3,326 LLC Interests from Bally's Chicago OpCo for total purchase price of $83.2 million. We will continue to consolidate Bally's Chicago OpCo as the sole managing member in accordance with ASC 810, and consequently, the Bally's Chicago HoldCo's ownership interest in Bally's Chicago OpCo will be represented as a non-controlling interest in our consolidated financial statements.

#### Factors Affecting Our Results of Operations
Our operating results are not indicative of future operating results because we intend to dedicate the first several years of our corporate existence to the design, development and construction of our permanent casino and resort. Our temporary casino began operations on September 9, 2023 and did not generate any revenues prior to such date. Once our permanent casino and resort is operational, we expect our revenues will be primarily generated by gaming and entertainment offerings in connection with the operation of our casino and resort with remaining revenues from other non-gaming operations, which include hotel, food and beverage, and other.

As our business develops, we expect our revenues derived from the provision of non-gaming operations at our permanent casino and resort to increase in proportion to our revenues from gaming sources and expect the expenses we incur to be primarily related to the operation of our permanent casino and resort, including the servicing of our substantial debt.

Our results of operations will be directly affected by certain factors specific to us, including the following:

------

[**TABLE OF CONTENTS**](#TOC)

#### Overall economic environment and growth in the gaming and tourism market in Chicago
The performance of the gaming and tourism industries in Chicago is impacted by a range of factors, including the overall U.S. economic climate, credit markets and consumer spending trends. Our future success will be largely dependent on the continued growth of Chicago as a tourist destination and hub for business travel, and by the overall popularity of the gaming market in Chicago.

According to Forbes and Business Insider, tourism to the City of Chicago reached approximately 55 million visitors prior to the COVID-19 pandemic and is expected to fully rebound by the end of 2024. Additionally, the local gaming market is highly fragmented, with approximately 17 gaming centers located within a 100-mile radius of our location. In order for our business model to be successful, we will need to capture a substantial portion of our total addressable market while simultaneously expanding the total addressable market by both increasing the amount of funds spent by residents of Cook County on gaming activities and by increasing the amount of funds spent by tourists that visit Chicago.

Income and spending levels of visitors from various neighboring states to Illinois and from national and international tourists are key factors in the development of a casino industry in Chicago. We believe that visitation and gaming revenue in Chicago will be largely driven by improved economic conditions throughout the Midwest, particularly as the United States recovers from the current downturn. Our operations can also be impacted by the ability of foreign citizens to access foreign currency and visa policies, particularly as we look to capitalize on the increased popularity of Chicago as an international tourist destination.

#### Our ability to successfully ramp-up our operations and develop a popular casino and resort
Our temporary casino began operations on September 9, 2023 and did not generate any revenues prior to such date. As such, we do not have any material financial results prior to September 9, 2023. We expect our operating costs, including staffing costs and marketing expenses, to continue to increase in line with our continued ramp-up.

As part of our business development initiatives, we intend to launch marketing campaigns and incentive programs to drive up visitation and increase awareness of our plans to build a new casino and resort. We believe these programs, along with the improving transportation infrastructure in Chicago, and introducing the city's first physical gaming facility and increasing food and beverage selections, entertainment options and retail offerings will enable us to attract Chicago residents and more visitors to Chicago and, in doing so, increase our exposure and revenue. However, notwithstanding our management's efforts to increase demand for our services and optimize the operations of our casino and resort, we have not yet commenced operations, and factors affecting our operations, including factors not currently known to us, may present challenges to further develop our businesses in a manner that is consistent with our current plans and expectations. If the ramp-up is not as successful as we expect, there may be a significant impact on our results of operations and financial condition.

Development of our permanent casino and resort remains in its early stages. We expect to have significant capital expenditures in the future as we create our existing operations and develop the proposed project. As we continue to develop our permanent casino and resort, we may need to incur additional indebtedness, beyond our substantial existing indebtedness, which could affect our interest expenses and financing costs and result in an increase in depreciation and amortization expenses.

#### Our ability to capitalize on our relationship with Bally's in order to successfully construct and develop our permanent casino and resort
In the short term, our success will be largely dependent on our ability to continue to obtain benefits from our relationship with Bally's, upon which we will rely for all of our operations. For example, Bally's Chicago OpCo entered into arrangements with Bally's subsidiary, BMG, to conduct corporate shared support services related to our operations under the Permanent Services Agreement and the Temporary Services Agreement. See "*Business — Our Relationship with Bally's Corporation*."

In addition, there are various other related party transactions between Bally's and its subsidiaries and us, which we expect will comprise a significant part of our financial results for our first few years as an operating company as we construct and develop our permanent casino and resort. Under the Permanent

------

[**TABLE OF CONTENTS**](#TOC)

Services Agreement and the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing. We believe that these shared services are beneficial to both us and Bally's in comparison to the cost and terms for similar services that we could negotiate on a stand-alone basis and, therefore, do not intend on obtaining competing services from other service providers at this time.

#### Our ability to excel in a highly competitive national and regional landscape
The market for gaming, hotel and other entertainment facilities in Chicago is rapidly evolving but remains in its infancy. While the Midwest is undergoing expansion since various states started to liberalize gaming (including sports betting), including with the potential arrival of several world-class integrated resorts opening in the Midwest with a significant increase in the number of hotel rooms and other non-gaming amenities which enhances the appeal of the Midwest as a tourism destination, Chicago is still not known as a location for gaming tourism and, therefore, we expect to face significant competition from more established regional and national gaming centers, including Las Vegas and Atlantic City.

Regionally, states such as Wisconsin, Missouri, Indiana, Ohio, Michigan and Iowa currently offer, or are considering expanding, gaming and non-gaming entertainment facilities, which has increased, and will continue to increase, the overall level of competition we face in the Midwest. We compete to some extent with these destinations because a portion of our revenue will be dependent on visitors from neighboring states to Illinois. Nationally, we face intense competition from international gaming centers such as Las Vegas and Atlantic City, which attract a high volume of international tourists by offering gaming and non-gaming activities.

Competition affects our ability to attract more patrons to our gaming and non-gaming facilities, and affects the price of our services, the level of our promotional activities, our operational and marketing costs and results of operations in general.

#### Our ability to manage our high level of indebtedness
Upon the closing of this offering, we will have a significant amount of indebtedness, including $ in Subordinated Loans. Our continued need to service our significant outstanding indebtedness will materially impact our finance costs and our cash flow. Moreover, since we are still in the early stages of operations of our temporary casino, we may need to access additional financing in order to continue to fund our capital expenditures in the further development of our permanent casino and resort, particularly to the extent our initial funding is insufficient to finalize our permanent casino and resort. In addition, our indebtedness will include covenants that restrict our ability to incur additional indebtedness. As such, our success will be highly dependent on our ability to manage our indebtedness while continuing to reinvest in our business in order to remain competitive in future periods.

#### State and local taxes, including gaming-related taxes
In Illinois, state and local governments raise considerable revenues from license fees and taxes based on gaming, entertainment, hotel, food and beverage, and retail operations. We are also required to pay such taxes, including but not limited to property taxes, sales and use taxes, payroll taxes, franchise taxes, income taxes, hotel taxes, privilege taxes, gaming taxes, admissions taxes and amusement taxes, related to our operations. Our profitability generally should depend on generating enough revenues to cover variable expenses, including but not limited to payroll and marketing, as well as largely fixed expenses, including but not limited to rent, utilities and interest expense. From time to time, state and local governments generally have increased gaming-related taxes, and such increases could significantly impact the profitability of our operations.

We are generally subject to gaming-related taxes, including, but not limited to, Illinois admission and privilege taxes and Cook County gambling machine tax. We anticipate offsetting these taxes with potential offsets as permitted by law.

------

[**TABLE OF CONTENTS**](#TOC)

Our operations generally are subject to significant state and local gaming-related receipts-based taxes and fees, in addition to state and local taxes applicable to non-gaming operations, and such taxes and fees generally are subject to increase at any time. We generally anticipate being subject to gaming-related receipts-based taxes imposed by Illinois, with Illinois and Chicago rates generally currently varying between approximately 8.1% – 40%, depending on certain factors, including but not limited to the amount of receipts received and the type of game.

In addition, from time to time, federal, state and local legislators and officials have proposed changes in tax laws, or in the administration of such laws, affecting the gaming industry. Further, worsening economic conditions could intensify the efforts of applicable state and local governments to raise revenues through increases in gaming taxes and/or non-gaming taxes. It is not possible to determine with certainty the likelihood of changes in tax laws in these jurisdictions or in the administration of such laws. Such changes, if adopted, could adversely affect our business, financial condition and results of operations. Any material increase, or the adoption of additional taxes or fees, could adversely affect our future financial results.

#### Operating Structure
Our business is organized into two reportable segments: (i) Temporary Casino and (ii) Permanent Casino. The ''Other adjustments" include certain unallocated corporate operating expenses and other adjustments to reconcile to the Company's consolidated results including, among other expenses, compensation for certain executives and other transaction costs. Refer to Note 13 "Segment Reporting" to our condensed consolidated financial statements included elsewhere in this prospectus for additional information on our segment reporting structure.

#### Key Performance Indicators
Temporary Casino Adjusted EBITDAR was $1.6 million for the Successor period from February 8 to March 31, 2025 and was $(0.9) million for the Predecessor period from January 1, 2025 to February 7, 2025, and $1.8 million for the Predecessor three months ended March 31, 2024.

Permanent Casino loss from operations was $5.8 million, $3.5 million and $1.5 million for the Successor period from February 8 to March 31, 2025, the Predecessor period from January 1, 2025 to February 7, 2025, and for the Predecessor three months ended March 31, 2024, respectively.

The following table sets forth the measures of segment performance for the Company's two reportable segments, reconciled to net loss on a consolidated basis. The Other adjustments category is included in the following table in order to reconcile the segment information to the Company's unaudited condensed consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1, <br> 2025 to <br> February 7, <br> 2025**  | **Three Months <br> Ended <br> March 31, <br> 2024**  |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | $17796 | $11487 | $31522 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue  | $17796 | $11487 | $31522 |
| **Permanent Casino Loss from Operations**  | $(5806) | $(3536) | $(1489) |
| **Temporary Casino Adjusted EBITDAR<sup>(1)</sup>**  | $1634 | $(917) | $1838 |
| **Reconciliation of segment performance measures to net loss:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino Operating costs and expenses:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization  | (2320) | (1976) | (4277) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expansion costs<sup>(2)</sup>  |  |  | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | (8871) | (6129) | (15000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Temporary Casino operating costs and expenses**  | (9557) | (9022) | (17490) |
| **Total other expense, net<sup>(3)</sup>**  | (248) |  | (2140) |
| **Other adjustments**  | (369) | (314) | (430) |
| **Total Net loss**  | $(15980) | $(12872) | $(21549) |

---

(1) Adjusted EBITDAR is defined as total earnings, or loss, for the Temporary Casino before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, expansion costs, management fees to Bally's Corporation, rent expense from triple net operating leases, and certain other gains or losses.

(2) The Company defines expansion expenses as costs incurred in connection with the opening of a new facility or significant expansion of an existing property. Costs classified as expansion consist primarily of marketing, master planning, conceptual design fees and legal and professional fees that are not eligible for capitalization and are included in "General and administrative" on the unaudited condensed consolidated statements of operations.

(3) Total other expense, net includes primarily interest expense.

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | |
|:---|:---|:---|
| **Predecessor**  | **Predecessor**  | **Predecessor**  |
| | **Year Ended <br> December 31**  | **Year Ended <br> December 31**  |
| **(in thousands)**  | **2024**  | **2023**  |
| **Revenue** |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | $128693 | $32177 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue  | $128693 | $32177 |
| **Permanent Casino Loss from Operations**  | $(163757) | $(2227) |
| **Temporary Casino Adjusted EBITDAR<sup>(1)</sup>**  | $11250 | $7721 |
| **Reconciliation of segment performance measures to net loss:** |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino Operating costs and expenses:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization  | 18300 | 5705 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expansion costs<sup>(2)</sup>  | 112 | 22865 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | 60000 | 20000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Temporary Casino operating costs and expenses**  | 361398 | 78394 |
| **Total other expense, net<sup>(3)</sup>**  | 5425 | 10148 |
| **Other adjustments**  | 1786 | 3141 |
| **Total Net loss**  | $(238130) | $(56365) |

---

(1) Adjusted EBITDAR is defined as earnings, or loss, for the Temporary Casino before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, expansion costs, management fees to Bally's Corporation, rent expense from triple net operating leases, and certain other gains or losses.

(2) The Company defines expansion expenses as costs incurred in connection with the opening of a new facility or significant expansion of an existing property. Costs classified as expansion consist primarily of marketing, master planning, conceptual design fees and legal and professional fees that are not eligible for capitalization and are included in "General and administrative" on the consolidated statements of operations.

(3) All Total other expense, net for the years ended December 31, 2024 and 2023 was included within the Permanent Casino reportable segment, and includes primarily interest expense.

#### Results of Operations
Our operating results for the period from February 8 to March 31, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor) are not indicative of future operating results because we intend to dedicate the first several years of our corporate existence to the design, development and construction of our resort and casino in Chicago. Our temporary casino began operations on September 9, 2023 and did not generate any revenues prior to such date. Once our permanent casino and resort is operational, we expect our revenues will be primarily generated by gaming and entertainment offerings in connection with the operation of our casino and resort in Chicago, with remaining revenues from other non-gaming operations, which include hotel, food and beverage, and other.

------

[**TABLE OF CONTENTS**](#TOC)

 **The Successor Period from February 8 to March 31, 2025 and the Predecessor Period from January 1, 2025 to February 7, 2025 Compared to the Three Months Ended March 31, 2024 (Predecessor)** 

The following table presents, for the periods indicated, condensed consolidated statements of operations data:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **in thousands**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1, <br> 2025 to <br> February 7, <br> 2025**  | **Three Months <br> Ended <br> March 31, <br> 2024**  |
| **Revenue:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | $15935 | $10353 | $28191 |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 1861 | 1134 | 3331 |
| Total revenue  | 17796 | 11487 | 31522 |
| **Operating costs and expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | 8157 | 6039 | 14472 |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 1462 | 1260 | 1941 |
| &nbsp;&nbsp;&nbsp; General and administrative  | 10196 | 8946 | 15241 |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | 8871 | 6129 | 15000 |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 4842 | 1985 | 4277 |
| Total operating costs and expenses  | 33528 | 24359 | 50931 |
| **Loss from operations**  | (15732) | (12872) | (19409) |
| **Other income (expense):** |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income  |  |  | 693 |
| &nbsp;&nbsp;&nbsp; Interest expense, net of amounts capitalized  | (248) |  | (2833) |
| Total other income (expense), net  | (248) |  | (2140) |
| Loss before income taxes  | (15980) | (12872) | (21549) |
| Benefit for income taxes  |  |  |  |
| **Net loss**  | $(15980) | $(12872) | $(21549) |
| Net loss attributable to Redeemable non-controlling interest  | (5613) |  |  |
| **Net loss attributable to Bally's Chicago, Inc.**  | $(10367) | $(12872) | $(21549) |

---

#### Segment Performance
The following table presents, for the periods indicated, condensed consolidated statements of operations data:

The following table sets forth certain financial information associated with results of operations for the period from February 8 to March 31, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor):

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1, <br> 2025 to <br> February 7, <br> 2025**  | **Three Months <br> Ended <br> March 31, <br> 2024**  |
| **Revenue:** |  |  |  |
| Gaming revenue |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | $15935 | $10353 | $28191 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
|  | 15935 | 10353 | 28191 |
| Non-gaming revenue |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | 1861 | 1134 | 3331 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
|  | 1861 | 1134 | 3331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue  | $17796 | $11487 | $31522 |
| **Operating costs and expenses:** |  |  |  |
| Gaming expenses |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | $8157 | $6039 | $14472 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
|  | 8157 | 6039 | 14472 |
| Non-gaming expenses |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | 1462 | 1260 | 1941 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
|  | 1462 | 1260 | 1941 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total gaming and non-gaming expenses  | $9619 | $7299 | $16413 |
| General and administrative |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | 6543 | 5105 | 13322 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  | 3284 | 3527 | 1489 |
| &nbsp;&nbsp;&nbsp; Other  | 369 | 314 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total general and administrative  | $10196 | $8946 | $15241 |

---

#### Revenue
Total revenue for the Successor period from February 8 to March 31, 2025 and the Predecessor period from January 1, 2025 to February 7, 2025 decreased 2.2 million when compared to the three months ended March 31, 2024 (Predecessor), primarily due to increased gaming holds. Once our permanent resort and casino in Chicago is operational, we expect revenues will primarily be generated by gaming and entertainment offerings in connection with the operation of our resort and casino in Chicago with remaining revenues from other non-gaming operations which include hotel, food and beverage, and retail, entertainment and other.

#### Gaming and non-gaming expenses
Gaming and non-gaming expenses for the Successor period from February 8 to March 31, 2025 and the Predecessor period from January 1, 2025 to February 7, 2025 increased 3% when compared to the three months ended March 31, 2024 (Predecessor). The increases in gaming and non-gaming expenses is primarily attributable to increased costs associated with the ramp up of employment at our temporary casino.

------

[**TABLE OF CONTENTS**](#TOC)

#### General and administrative
General and administrative expenses for the Successor period from February 8 to March 31, 2025 and the Predecessor period from January 1, 2025 to February 7, 2025 increased 3.9 million when compared to the three months ended March 31, 2024, primarily attributable to the increase in expansion costs associated with the opening of our permanent casino.We have dedicated significant resources to commencing operations, including but not limited to company formation and compliance with various legal and regulatory requirements. We believe that some of these costs are primarily associated with the start-up phase of the company and may decrease as our operations mature. However, we will incur additional professional services expenses as a result of becoming a public company and expanding the business. As a result, we anticipate overall increased professional services expenses in the future to support our operations.

#### Depreciation and Amortization
Depreciation and amortization expense for the Successor period from February 8 to March 31, 2025 and the Predecessor period from January 1, 2025 to February 7, 2025 increased 60% from 4.3 million in the three months ended March 31, 2024 (Predecessor), driven by the amortization of the Company's gaming license during the Successor period from February 8 to March 31, 2025, which was determined to be finite-lived, with an estimated useful life of 18 years in connection with the Merger.

#### Other expense, net
Total other expense, net was $(0.2) million during the Successor period from February 8 to March 31, 2025, related to the Company interest expense attributable to its Subordinated loans, and $(2.1) million for the three months ended March 31, 2024 (Predecessor), which consisted primarily of interest expense related to the Company's previous long-term financing obligation for the Company's ground lease.

#### Provision for income taxes
During the Successor period from February 8 to March 31, 2025 and the Predecessor period from January 1, 2025 to February 7, 2025 and the three months ended March 31, 2024 (Predecessor), there was no provision expense recorded in the consolidated statement of operations as the Company has established a full valuation allowance against the net deferred tax asset position.

#### Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
The following table presents, for the periods indicated, consolidated statements of operations data:

---

| | | | |
|:---|:---|:---|:---|
| **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| | **2024**  | **2023**  | **% Change**  |
| **Revenue:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | $115844 | $28734 | 303% |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 12849 | 3443 | 273% |
| Total revenue  | 128693 | 32177 | 300% |
| **Operating costs and expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | 60268 | 13430 | 349% |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 8134 | 2138 | 281% |
| &nbsp;&nbsp;&nbsp; General and administrative  | 64696 | 36441 | 78% |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | 60000 | 20680 | 190% |
| &nbsp;&nbsp;&nbsp; Loss on sale-leaseback  | 150000 |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 18300 | 5705 | 221% |
| Total operating costs and expenses  | 361398 | 78394 | 361% |

---

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | | |
|:---|:---|:---|:---|
| **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Year Ended December 31,**  |
| | **2024**  | **2023**  | **% Change**  |
| **Loss from operations**  | (232705) | (46217) | 403% |
| **Other income (expense):** |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income  | 1466 | 2778 | (47)% |
| &nbsp;&nbsp;&nbsp; Interest expense, net of amounts <br> capitalized  | (6891) | (13819) | (50)% |
| &nbsp;&nbsp;&nbsp; Other non-operating income, net  |  | 893 | (100)% |
| Total other expense, net  | (5425) | (10148) | (47)% |
| Loss before provision for income taxes  | (238130) | (56365) | 323% |
| Benefit for income taxes  |  |  |  |
| **Net loss**  | $(238130) | $(56365) | 323% |

---

 *Revenue* 

Total revenue for the year ended December 31, 2024 was $128.7 million, an increase of $96.5 million compared to $32.2 million for the year ended December 31, 2023. Once our permanent casino and resort in Chicago is operational, we expect revenues will primarily be generated by gaming and entertainment offerings in connection with the operation of our casino and resort in Chicago with remaining revenues from other non-gaming operations which include hotel, food and beverage, and other.

 *Gaming and non-gaming expenses* 

Gaming and non-gaming expenses for the years ended December 31, 2024 and 2023 were $68.4 million and $15.6 million, respectively. The increase in gaming and non-gaming expenses is directly attributable to the temporary casino having a full year of operations in fiscal 2024, compared to only operating from September 9, 2023 through the end of fiscal 2023.

 *General and administrative* 

General and administrative expenses for the years ended December 31, 2024 and 2023 were $64.7 million and $36.4 million, respectively. General and administrative expenses for both years consisted primarily of professional fees, salaries, bonuses and benefits for employees, rent expense attributable to our temporary casino and other general and administrative expenses, all of which increased from the prior year due to the temporary casino having a full year of operations in fiscal 2024.

We have dedicated significant resources to commencing operations, including but not limited to company formation and compliance with various legal and regulatory requirements. We believe that some of these costs are primarily associated with the start-up phase of the company and may decrease as our operations mature. However, we will incur additional professional services expenses as a result of becoming a public company and expanding the business. As a result, we anticipate overall increased professional services expenses in the future to support our operations.

 *Loss on Sale-Leaseback* 

During the year ended December 31, 2024, GLP Capital, L.P. ("GLP") acquired the real estate underlying the permanent casino and resort, for which the Company was subject to the financing obligation, assuming the existing lease, for which the Company was subject to a $200.0 million financing obligation. Reclassifying the lease as an operating lease due to the transfer of control of the land asset from the Company to the lessor, permitted sale recognition, resulting in the Company derecognizing the $350.0 million land asset and the $200.0 million the long-term financing obligation, and recording a $150.0 million loss on sale-leaseback.

------

[**TABLE OF CONTENTS**](#TOC)

 *Depreciation and amortization* 

Depreciation and amortization expense for the years ended December 31, 2024 and 2023 was $18.3 million and $5.7 million, respectively. Depreciation and amortization expense began to be incurred when the assets purchased for our temporary casino were placed into service on the facility's opening date of September 9, 2023.

 *Management fees from Bally's Corporation* 

Management fees from Bally's Corporation during the years ended December 31, 2024 and 2023 were $60.0 million and $20.7 million, respectively, an increase of $39.3 million. The increase in management fees is due to the addition of the corporate services agreement with Bally's Corporation put into place during the year, requiring a fixed monthly payment of $5.0 million, beginning in September 2023 with the commencement of operations at our temporary casino. The corporate services agreement provides us with certain administrative and corporate services from Bally's Management Group, LLC, a wholly owned subsidiary of Bally's Corporation. Additional management fees incurred during the year ended December 31, 2023 included approximately $0.6 million of personnel and administrative costs allocated to us from our parent prior to the commencement of operations at our temporary casino, based on an estimated percentage of time spent on our activities by corporate employees.

 *Other (income) expense* 

Total other expense during the year ended December 31, 2024 was $5.4 million, compared to $10.1 million during the year ended December 31, 2023. The decrease in expense in the current year was primarily driven by the $6.9 million decrease in interest expense related the Company's ground lease being reassessed and reclassified as an operating lease in the third quarter of 2024.

 *Provision for income taxes* 

During the years ended December 31, 2024 and 2023, there was no provision expense recorded in the consolidated statement of operations as the Company has established a full valuation allowance against its net deferred tax asset position.

#### Liquidity and Capital Resources
 *Overview* 

To date, we have relied mostly on Bally's Corporation for liquidity and capital resources. The consolidated financial statements include fees paid in accordance with the Temporary Services Agreement, as described below, providing us with certain administrative and corporate services, beginning in September 2023 with the commencement of operations at our temporary casino. Additionally, the consolidated financial statements include allocations of certain general, administrative, sales and marketing expenses from our parent, which management believes is commensurate with services provided at fair value of $8.9 million, $6.1 million and $15.0 million for the period from February 8 to March 31, 2025 (Successor), the period from January 1, 2025 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), respectively, and $60.0 million and $20.7 million for the years ended December 31, 2024 (Predecessor) and 2023 (Predecessor), respectively.

As of December 31, 2022 (Predecessor), additional paid in capital from our parent was $63.5 million, primarily attributable to the $51.0 million gaming license and other miscellaneous funding. During the year ended December 31, 2023 (Predecessor), we returned $62.5 million of capital to Bally's Corporation through the issuance of Pre-IPO Intercompany Notes. Additionally, expenses paid by Bally's Corporation on the Company's behalf totaling $642.4 million have been converted into the Pre-IPO Intercompany Notes, all of which are payable on December 31, 2025.

In January 2025, we obtained a letter of support from Bally's Corporation, pursuant to which Bally's Corporation commits to fund all of our operating, investing, and financing activities through at least

------

[**TABLE OF CONTENTS**](#TOC)

December 31, 2026 and further commits not to make any decision or action that would reasonably be expected to negatively affect our ability to continue as a going concern through at least December 31, 2026.

In the event that less than $250 million in aggregate amount of gross proceeds from Class A Interests and corresponding Subordinated Loans are received in this offering and the concurrent private placement transactions, Bally's Corporation intends to cause Bally's Chicago HoldCo to provide additional funding to us in an amount equal to such shortfall. The funding may be provided through the purchase by Bally's Chicago HoldCo of Class A Interests in this offering or the concurrent private placements or through the issuance by us of additional debt, equity, equity-linked securities or intercompany notes to Bally's Corporation, Bally's Chicago HoldCo or their affiliates, or other methods.

Based on Bally's equity commitments to Bally's Chicago OpCo and the financing we have received from GLPI, we believe that we are sufficiently capitalized until the opening of our permanent casino and resort. However, unforeseen events could necessitate us to raise additional capital. If we do need to raise additional capital, we may seek to do so through various sources, including equity offerings, debt financings, collaborations, strategic alliances and/or licensing arrangements. We cannot assure you that we will be able to obtain additional funds on acceptable terms, or at all. If we raise additional funds by issuing equity or equity-linked securities, our stockholders may experience dilution. Debt financing, if available, may involve restrictive covenants, which may limit our ability to operate moving forward. If we raise funds through collaborations, strategic alliances or licensing arrangements with third parties, we may have to relinquish valuable rights to our intellectual property and/or future revenue streams, or grant licenses on terms that may not be favorable to us. Furthermore, if Bally's Chicago HoldCo purchases Class A Interests in this offering or the concurrent private placements, we may pursue a secondary public offering of such Class A Interests in the future.

Following the closing of this offering, we expect to begin reimbursing our parent for certain additional costs directly associated with operating our business. These costs include personnel and related costs for employees wholly dedicated to the Company, legal and other professional services directly related to the Company's operations as well as any travel expenses incurred by wholly dedicated employees. Prior to the consummation of our public offering, our parent has funded, and intends to continue to fund, our operations through direct cash contributions and non-cash contributions.

Our capital expenditures are primarily related to the leases for our temporary casino and permanent casino and resort sites, as well as our design and development agreements for our permanent casino and resort and our guaranteed maximum price agreement to develop our temporary casino. In addition, we expect that our operations will continue to consume substantial amounts of cash as we aggressively build our permanent casino and resort and our internal marketing, compliance and other administrative functions. Following the consummation of our initial public offering we will continue to operate under the services agreement with BMG, a subsidiary of our parent, pursuant to which BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing. We agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code.

We will begin to assume management and administrative tasks at such time in the future as the actual cost of these services is less than our service fee to BMG, which we do not anticipate will occur until we begin to generate significant cash flows from our operations. However, if BMG is unable to perform any of the services that they are required to perform under the services agreement, due to financial difficulty or otherwise, then we may be forced to assume management and administrative tasks, and incur additional expenses, sooner than we anticipate. Until such time, we will continue to rely on BMG to conduct our operations in accordance with the services agreement. We are dependent on the continued support of our parent and have obtained a letter of support whereby our parent has committed to fund all of our operating, investing, and financing activities through at least December 31, 2026.

------

[**TABLE OF CONTENTS**](#TOC)

We estimate that the net proceeds we will receive from the sale of Class A Interests in this offering will be approximately $7.4 million and, together with the net proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, will total $102.2 million, in each case assuming the sale of Class A Interests at the offering prices set forth on the cover of this prospectus, after deducting placement agent fees and offering and private placement expenses payable by us. See "*Plan of Distribution*" for additional detail regarding the placement agent fees.

We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interest directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest.

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to Bally's Chicago, Inc. to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes.

On July 11, 2024, Bally's entered into the GLP Term Sheet with GLP for a strategic construction and financing arrangement, including up to $940.0 million of funding for the construction of our permanent casino and resort. In connection therewith, GLP acquired the fee interest in the property on which we plan to develop our permanent casino and resort from the Oak Street Landlord and succeeded to the Oak Street Landlord's interest as landlord under the Oak Street Lease Agreement. On July 17, 2025, we entered into (x) the GLP Lease Agreement, which amended and restated the Oak Street Lease Agreement, to lease such property and (y) the GLP Development Agreement pursuant to which GLP has committed to advance up to $940 million of GLP Development Advances for the payment of hard costs used to construct our permanent casino and resort in exchange for increasing the amount of rent that we pay to GLP under the GLP Lease Agreement. The GLP Lease Agreement has a 15-year term and up to four renewal terms of five years each, if elected by Bally's Chicago OpCo, and rent payable under the GLP Lease Agreement is (a) $20.0 million annually, subject to annual escalations to be set forth therein, plus (b) an annual amount equal to 8.5% of the GLP Development Advances that GLP advances to us.

GLP's obligation to make GLP Development Advances under the GLP Development Agreement is subject to certain conditions, including that we shall have unrestricted access to funds in an amount sufficient at the time of each GLP Development Advance to fund the construction of our permanent casino and resort. We are obligated to construct our permanent casino and resort in compliance with terms and conditions set forth in the GLP Development Agreement, which include the satisfaction of specified development and construction milestones.

We believe the net proceeds from this offering, together with the net proceeds from the concurrent private placements, the Subordinated Loans, the IPO Expenses Note, the Post-IPO Capital Commitment and existing cash and cash equivalents and interest thereon, will be sufficient to fund our projected operating expenses until the opening of our permanent casino and resort. However if and until we begin generating a sufficient amount of cash from our operations, if our operating and other expenses are higher than we expect, or if or our ability to generate positive cash flow from our casino and resort is lower than we expect, then we may also need to raise additional funds, including from public or private equity or debt offerings or additional debt and/or equity or equity-linked security issuances made to Bally's and/or its affiliates. Additional capital may not be available on reasonable terms, if at all. If we are unable to raise additional capital in sufficient amounts or on terms acceptable to us we may not be able to continue to operate and we may have to significantly delay, scale back or discontinue our operations. If we raise additional funds through the issuance of additional debt or equity securities it could result in dilution to our existing stockholders, and/or fixed payment obligations that could reduce our ability to pay dividends or otherwise fund our other operations. Furthermore, these securities may have rights senior to those of our stock and could contain covenants that would restrict our operations and potentially impair our competitiveness, such as limitations on our ability to incur additional debt, limitations on our ability to operate our casino and resort without consent and other operating restrictions that could adversely impact our ability to conduct our business.

------

[**TABLE OF CONTENTS**](#TOC)

 *Cash Flows Summary* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 <br> to March 31, <br> 2025**  | **Period from <br> January 1, <br> 2025 to <br> February 7, <br> 2025**  | **Three <br> Months <br> Ended <br> March 31, <br> 2024**  | **December 31, <br> 2024**  | **December 31, <br> 2023**  |
| Net cash used in operating activities  | $(11031) | $(6136) | $(11765) | $(69518) | $(47927) |
| Net cash used in investing activities  | (22941) | (10969) | (18353) | (135280) | (326428) |
| Net cash provided by financing activities  | 30985 | 21170 | 31915 | 148012 | 444568 |
| Net change in cash and restricted cash  | (2987) | 4065 | 1797 | (56786) | 70213 |
|  Cash and restricted cash, beginning of <br> period  | 18584 | 14519 | 71305 | 71305 | 1092 |
| Cash and restricted cash, end of period  | $15597 | $18584 | $73102 | $14519 | $71305 |

---

 *Operating Activities* 

Net cash used in operating activities for the Successor period from February 8 to March 31, 2025 was $11.0 million and net cash used in operating activities for the Predecessor period from January 1 to February 7, 2025 and the three months ended March 31, 2024 were $6.1 million and $11.8 million. Net cash used in operating activities for the year ended December 31, 2024 (Predecessor) was $69.5 million, compared to $47.9 million for the year ended December 31, 2023 (Predecessor). All periods presented were impacted by net loss positions and changes in working capital associated with the Company's expansion.

 *Investing Activities* 

Net cash used in investing activities for the Successor period from February 8 to March 31, 2025 was $22.9 million and net cash used in investing activities for the Predecessor period from January 1 to February 7, 2025 and the three months ended March 31, 2024 were $11.0 million and $18.4 million, respectively. Net cash used in investing activities for the year ended December 31, 2024 (Predecessor) was $135.3 million, compared to $326.4 million for the year ended December 31, 2023 (Predecessor). The Company's cash used in investing activities during the presented periods was mainly attributable to payments of $135.3 million made in 2023 related to the Company's gaming license, coupled with the Company's capital expenditures, which included $100.0 million of payments made towards gaining possession of the land underlying the future permanent casino and resort during the year ended December 31, 2024 (Predecessor) and increased capital expenditures related to the design and development of our permanent casino during the 2025 periods.

 *Financing Activities* 

Net cash provided by financing activities for the Successor period from February 8 to March 31, 2025 was $31.0 million and net cash provided by financing activities for the Predecessor period from January 1 to February 7, 2025 and the three months ended March 31, 2024 were $21.2 million and $31.9 million, respectively. Net cash provided by financing activities for the year ended December 31, 2024 (Predecessor) was $148.0 million, compared to $444.6 million for the year ended December 31, 2023 (Predecessor). Cash provided by financing activities during the periods presented is primarily attributable to the financing provided by Bally's Corporation, combined with the Private Placement proceeds during the Successor period from February 8 to March 31, 2025.

#### Contractual Obligations and Commitments
Our principal contractual obligations are limited to our obligations under our services agreement with BMG and the Host Community Agreement. Additionally, under the Illinois Gambling Act, we will be responsible to pay various gaming license fees to the Illinois Gaming Board in connection with our casino operations. We are not committed to any future capital expenditures, including rental commitments, which are

------

[**TABLE OF CONTENTS**](#TOC)

solely in the name of Bally's Corporation. See "— *Results of Operations*" for additional information on the allocation of rent expenses from our parent to us from inception to date.

#### Permanent Services Agreement
In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into the Permanent Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Permanent Services Agreement, BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing upon the opening of our permanent casino and resort. Pursuant to the Permanent Services Agreement, we agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is one year, beginning upon the opening of our permanent casino and resort, and will be automatically renewed for successive one-year terms, unless either party serves on the other a written notice of termination. See "*Transactions with Related Persons — Permanent Services Agreement*."

#### Temporary Services Agreement
In August 2023, Bally's Chicago OpCo entered into the Temporary Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing related to our temporary casino. Pursuant to the Temporary Services Agreement, we agreed to pay BMG a monthly fee equal to $5.0 million, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is two years, beginning August 30, 2023, and will be automatically renewed for successive one-year terms for as long as our temporary casino is licensed to continue operations, unless BMG serves on Bally's Chicago OpCo a written notice of termination. The Temporary Services Agreement shall automatically terminate when our temporary casino permanently closes and our permanent casino and resort opens to the public. See "*Transactions with Related Persons — Temporary Services Agreement*."

#### Host Community Agreement
In connection with the entry into the Host Community Agreement with the City of Chicago, we were required to make a one-time payment to the City of Chicago equal to $40.0 million, and are required to make ongoing payments of $4.0 million per year beginning on September 9, 2023, the date that our temporary casino opened to the general public. Additionally, in connection with the Host Community Agreement, Bally's Corporation was required to provide the City of Chicago with a guaranty whereby the Company is required to have and maintain available financial resources in an amount reasonably sufficient to fund all amounts necessary to allow us to meet our obligations under the Host Community Agreement and, to the extent we fail to perform any obligations thereunder, assume full responsibility for and perform our obligations in accordance with the terms, covenants and conditions set forth in the Host Community Agreement. The guaranty also required that we indemnify and hold the City of Chicago harmless from and against any and all loss, cost, damage, injury, liability, claim or reasonable and documented expense the City of Chicago may suffer or incur by reason of any nonpayment or nonperformance of any of our obligations.

Further, the Host Community Agreement establishes a minimum capital investment of $1.34 billion on the design, construction and equipping of our temporary casino and our permanent casino and resort. As of March 31, 2025 (Successor), approximately $1.0 billion of this commitment remains. The actual cost of the development may exceed this minimum capital investment amount. In addition, land acquisition costs and financing costs, among other types of costs, are not counted toward meeting this minimum capital investment amount.

------

[**TABLE OF CONTENTS**](#TOC)

Our temporary casino, situated in the former location of the Medinah Temple at 600 N. Wabash Ave, opened on September 9, 2023, and includes approximately 800 gaming positions and six food and beverage venues. As of March 31, 2025 (Successor), we have incurred approximately $70.0 million in costs in connection with the design and development of our temporary casino and have incurred approximately $295.8 million in costs related to the construction and development of our permanent casino and resort. Our permanent casino and resort is expected to be open to the public in September 2026, however, there can be no assurances that the Company will be successful in so doing. Any increased construction costs could materially and adversely affect the return on the Company's investments.

#### Lease Modification Agreement
In connection with the Lease Modification Agreement with Chicago Tribune Company, LLC ("Tribune"), Tribune was contractually required to surrender and vacate the proposed site of our permanent casino and resort no later than July 5, 2024, subject to the $150 million Lease Modification Payment by us to Tribune. The Lease Modification Payment was paid in three installments, $10 million which was paid on April 3, 2023, $90 million which was paid on July 5, 2023 and $50 million which was paid on July 9, 2024, subsequent to Tribune vacating the site.

We are in the process of demolishing the current building located in the proposed site of our permanent casino and resort in order to build our permanent casino and resort. Accordingly, prior rental revenues and operating costs of the proposed site of our permanent casino and resort as it currently exists are in no way representative nor indicative of the anticipated sales revenues and operating costs of our permanent casino and resort, and thus disclosure of such financial measures would be misleading. In reliance on paragraph 2330.9 of the Financial Reporting Manual of the Division of Corporation Finance of the Securities and Exchange Commission and Rule 11-01(c) of Regulation S-X, we have determined that the reporting of historical financial statements and pro forma financial information for the proposed site of our permanent casino and resort under Rule 3-14 of Regulation S-X is not required.

#### GLP Lease Agreement and GLP Development Agreement
On July 11, 2024, Bally's entered into the GLP Term Sheet with GLP for a strategic construction and financing arrangement, including up to $940.0 million of funding for the construction of our permanent casino and resort. In connection therewith, GLP acquired the fee interest in the property on which we plan to develop our permanent casino and resort from the Oak Street Landlord and succeeded to the Oak Street Landlord's interest as landlord under the Oak Street Lease Agreement. On July 17, 2025, we entered into (x) the GLP Lease Agreement, which amended and restated the Oak Street Lease Agreement, to lease such property and (y) the GLP Development Agreement pursuant to which GLP has committed to advance up to $940 million of GLP Development Advances for the payment of hard costs used to construct our permanent casino and resort in exchange for increasing the amount of rent that we pay to GLP under the GLP Lease Agreement. The GLP Lease Agreement has a 15-year term and up to four renewal terms of five years each, if elected by Bally's Chicago OpCo, and rent payable under the GLP Lease Agreement is (a) $20.0 million annually, subject to annual escalations to be set forth therein, plus (b) an annual amount equal to 8.5% of the GLP Development Advances that GLP advances to us.

GLP has the right to terminate the GLP Lease Agreement upon any event of default under the GLP Lease Agreement. Such events of default include, without limitation, a failure to pay amounts due after applicable notice and cure periods, certain bankruptcy or insolvency events, a cross-default with the GLP Development Agreement and the failure to comply with a variety of covenants after applicable notice and cure periods, including those related to the development of our permanent casino and resort, repair and maintenance, alterations and insurance. In addition, from and after any refinancing, extension or majority amendment of Bally's existing credit facilities, the GLP Lease Agreement will include a cross-default to that certain Master Lease, dated June 3, 2021, as subsequently amended, between GLP and a wholly-owned subsidiary of Bally's and that certain Master Lease, dated December 16, 2024, as subsequently amended, between GLP and a wholly-owned subsidiary of Bally's.

There are also certain restrictions on our ability to assign our interest in the GLP Lease Agreement without having to obtain GLP's prior consent, including requirements for the transferee (or its parent company) to satisfy certain financial metrics and have a certain level of experience in operating or managing casinos.

------

[**TABLE OF CONTENTS**](#TOC)

GLP's obligation to make GLP Development Advances under the GLP Development Agreement is subject to certain conditions, including that we shall have unrestricted access to funds in an amount sufficient at the time of each GLP Development Advance to fund the construction of our permanent casino and resort. We are obligated to construct our permanent casino and resort in compliance with terms and conditions set forth in the GLP Development Agreement, which include the satisfaction of specified development and construction milestones.

The GLP Development Agreement contains customary representations and covenants by us and contains funding conditions, including, without limitation, (a) GLP's reasonable approval of plans and specifications, the project budget (including amendments thereto and reallocations therein except those permitted under the GLP Development Agreement), the project schedule, the underlying construction and architect contracts, and all change orders (subject to exceptions set forth in the GLP Development Agreement), (b) GLP's receipt of appropriate lien waivers, (c) budget balancing requirements, (d) retainage requirements, and (e) other customary conditions, all as set forth in the GLP Development Agreement. From and after the first GLP Development Advance, we are required to fund all hard costs of construction of the permanent casino and resort utilizing solely GLP Development Advances until GLP has funded its entire commitment or construction has been completed. The GLP Development Agreement also contains defaults and remedies, including, without limitation, a cross-default with the GLP Lease Agreement. We are not permitted to assign, finance, transfer, pledge or encumber our interest in the GLP Development Agreement without GLP's prior written consent, whether or not any such assignment, financing, transfer, pledge or encumbrance is permitted with respect to the GLP Lease Agreement, other than to a permitted leasehold mortgagee under the GLP Lease Agreement.

#### Casino Fees
Under the Illinois Gambling Act, the Company will be responsible to pay 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.

#### Off-Balance Sheet Arrangements
We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

#### Critical Accounting Estimates
The preparation of our consolidated financial statements in accordance with US GAAP requires us to make estimates and apply judgments that affect reported amounts. These estimates and judgements are based on past events and/or expectations of future outcomes. Actual results may differ from our estimates. We discuss our significant accounting policies used in preparing the financial statements in Note 2 of our consolidated financial statements. The following is a summary of our critical accounting estimates and how they are applied in the preparation of our consolidated financial statements.

 *Valuation of Intangible Assets* 

Intangible assets consist primarily of a gaming license, which has been valued through application of push down accounting in connection with the Merger.

The gaming license is valued using the Greenfield Method under the income approach. This method estimates isolated income that properly attributable to a license based on modeling a hypothetical start-up company going into business without any other assets than the gaming license being valued and building a new casino with similar utility to the existing casino. Using this method, the valuation of the gaming license is dependent upon significant estimates such as projected revenues and cash flows, estimated construction costs, duration of that construction, expansion expenses and appropriate discounting. Gaming licenses accounted for as asset acquisitions are valued at cost.

For our finite-lived intangible asset, we establish a useful life upon initial recognition based on the period over which the asset is expected to contribute to the future cash flows of the Company and periodically

------

[**TABLE OF CONTENTS**](#TOC)

evaluates the remaining useful lives to determine whether events and circumstances warrant a revision to the remaining amortization period. Finite-lived intangible assets are amortized over their remaining useful lives in a pattern in which the economic benefits of the intangible asset are consumed, which is generally on a straight-line basis.

 *Income Taxes* 

We prepare our income tax provision in accordance with Accounting Standards Codification ("ASC") 740, *Income Taxes.* Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the rate change is enacted. A valuation allowance is required when it is "more likely than not" that all or a portion of the deferred taxes will not be realized. We assessed our deferred tax liabilities arising from taxable temporary differences and 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 carryovers. Accordingly, the Company's valuation allowance of $94.2 million reflects an increase of $72.4 million recorded during the year ended December 31, 2024 (Predecessor).

#### Qualitative and Quantitative Disclosures about Market Risk
We did not have during the periods presented, and we do not currently have, any market risk sensitive instruments, as defined in the rules and regulations of the SEC.

#### JOBS Act and Smaller Reporting Company Status
The Jumpstart Our Business Startups Act of 2012, or JOBS, permits an "emerging growth company" such as us to take advantage of an extended transition to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies. We have irrevocably elected not to use this extended transition period. As a result, our consolidated financial statements are comparable to the financial statements of companies that comply with new or revised accounting pronouncements as of public company effective dates.

We intend to rely on other exemptions provided by the JOBS Act, including without limitation, not being required to comply with the auditor attestation requirements of Section 404(b) of Sarbanes-Oxley.

We will remain an emerging growth company until the earliest of (i) the last day of the fiscal year following the fifth anniversary of the consummation of this offering, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if, among other factors, the market value of our stock held by non-affiliates exceeded $700.0 million as of the last business day of the second fiscal quarter of such year (subject to certain conditions), or (iv) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

We are also a smaller reporting company as defined in the Exchange Act. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. We may take advantage of certain of the scaled disclosures available to smaller reporting companies and will be able to take advantage of these scaled disclosures for so long as our voting and non-voting shares of stock held by non-affiliates is less than $250.0 million measured on the last business day of our second fiscal quarter, or our annual revenue is less than $100.0 million during the most recently completed fiscal year and our voting and non-voting shares of stock held by non-affiliates is less than $700.0 million measured on the last business day of our second fiscal quarter.

------

[**TABLE OF CONTENTS**](#TOC)

#### BUSINESS

#### Our Mission
Our mission is to design, build and operate a world-class entertainment destination resort, befitting Chicago's status as a world-class city.

#### Our Company
We are a gaming, hospitality and entertainment company with the singular focus of building and operating a world-class entertainment destination resort in Chicago, Illinois. We intend to provide both Chicago residents and business and leisure travelers visiting Chicago with physical and interactive entertainment and gaming experiences.

We intend to build a destination casino, hotel and entertainment venue that will showcase "The Best of Chicago" arts and culture, food and sports, and curated dining and entertainment experiences. Our permanent casino and resort in Chicago will be located on the 30-acre property which previously hosted the Chicago Tribune Publishing Center, at the intersection of Chicago Avenue and Halsted Street in downtown Chicago, and will look to transform this currently underutilized site into a major economic driver for the city. Our permanent casino and resort will be in close proximity to a wide range of hotels, theaters, bars, restaurants, major shopping districts and the McCormick Place Convention Center, the proximity to which will help drive traffic to our permanent casino and resort, primarily due to our differentiated gaming attractions in comparison to other offerings in this geographic location.

In developing the entertainment destination resort, we intend to adhere to Bally's community-first policy, which is a fundamental and defining element of who we are as a company. We believe that in every community in which Bally's operates, it has built strong, lasting partnerships with local residents and businesses. Chicago will be no different. With this project, we are committed to ensuring that our permanent casino and resort generates significant economic stimulus and creates a wealth of employment opportunities for the greater Chicago community.

Among other features and amenities, once finalized, our permanent casino and resort is being designed to include approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,400 slot machines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 173 table games;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 10 F&B venues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a hotel tower with 500 rooms and a rooftop bar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a 3,000-person mixed use entertainment and event center;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,300 parking spaces; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • outdoor green space, including an expansive public riverwalk with a water taxi stop.

On May 5, 2022, the City of Chicago selected us as the preferred bidder in Chicago's RFP process to construct and operate a world-class casino resort in downtown Chicago. We worked cooperatively with city officials and community leaders throughout the RFP process to develop a project that embraced Chicago as a global gateway city, incorporating its vibrant cultural scene and highly diversified economy. Chicago selected us on the basis that they believe our plan provides the most economic value to Chicago and its taxpayers, including an upfront payment of $40.0 million and annual payments to the City totaling $4.0 million.

The gaming taxes on our gaming revenue will be paid to the state of Illinois and the City of Chicago, with the City of Chicago taxes applied to pay a portion of the City's obligations toward its fire and police union pensions. Additionally, our permanent casino and resort is projected to create approximately 12,250 design, development and construction jobs and approximately 3,000 permanent jobs upon the opening of our permanent casino and resort.

------

[**TABLE OF CONTENTS**](#TOC)

#### Bally's Corporation
Our ultimate parent, Bally's Corporation, is a global gaming, hospitality and entertainment company with a portfolio of casinos and resorts and online gaming businesses. Bally's Corporation provides its customers with physical and interactive entertainment and gaming experiences, including traditional casino offerings, iGaming, online bingo, sportsbook and free to play games ("F2P").

As of March 31, 2025, Bally's Corporation owns and manages 19 casinos in 11 states across the United States, one golf course in New York, one horse racetrack in Colorado, and Aspers Casino in the United Kingdom. Its land-based casino operations include approximately 17,300 slot machines, 600 table games and 4,165 hotel rooms, along with various restaurants, entertainment venues and other amenities. Certain of its properties are leased under multiple lease and master lease arrangements with GLP Capital, L.P. ("GLP"), a subsidiary of Gaming and Leisure Properties, Inc. ("GLPI"), a publicly traded gaming-focused real estate investment trust ("REIT"). It also owns Bally Bet, a first-in-class sports betting platform, Bally Casino, a growing iCasino platform, Bally's Interactive International division (formerly Gamesys Group), a leading global interactive gaming operator, and a significant economic stake in Intralot S.A. (ATSE: INLOT), a global lottery management and services business. Its revenues are primarily generated by these gaming and entertainment offerings. Bally's Corporation owns and operates its proprietary software and technology stack designed to allow it to provide consumers with differentiated offerings and exclusive content.

On February 7, 2025, Bally's Corporation completed its previously announced transactions under the Agreement and Plan of Merger (as amended, the "Merger Agreement"), pursuant to which The Casino Queen & Entertainment Inc. ("Casino Queen"), a corporation majority-owned by funds managed by Standard General L.P., Bally's Corporation's largest common stockholder, merged with Bally's Corporation (the "Merger"). Pursuant to the agreement, Bally's stockholders received cash merger consideration of $18.25 per share, unless such stockholders elected the rollover election to forego the cash consideration in order to remain invested in the combined company. In connection with the foregoing transactions, Bally's combined with Casino Queen, a regional casino operator and owner of a significant minority stake in global lottery operator Intralot S.A.

The Bally's Corporation Merger with Casino Queen was accounted for as a transaction between entities under common control. The Company has elected to push down their parent's basis in its net assets into its unaudited condensed consolidated financial statements, and as a result, unless the context otherwise requires, the "Company," for periods prior to the Closing, refers to Bally's (or the "Predecessor"), and for the periods after the Closing, refers to the combined company of Bally's and Casino Queen (or the "Successor").

#### Our Location
We have leased a 30-acre property on the banks of the Chicago River, which previously hosted the Chicago Tribune Publishing Center. The proposed site for our permanent casino and resort is at the intersection of Chicago Avenue and Halsted Street in downtown Chicago, which we believe will be an optimal location for our permanent casino and resort. We will look to transform this currently underutilized site into a major economic driver for the city. The proposed site for our permanent casino and resort is also near major shopping and cultural attractions along Michigan Avenue, as well as a wide selection of hotels and restaurants at various price points and that are popular among local residents and tourists.

The proposed site is less than five minutes away from a major highway exit, making it easily accessible by car. We also intend to build a new water taxi stop and a new pedestrian bridge across the Chicago River to make the proposed site even more accessible to Chicago residents and tourists in the downtown area. Our permanent casino and resort will be the only casino in the City of Chicago. The next closest casino is 16 miles outside of the city and not easily accessible via public transportation.

Once fully developed and operational, it will take a commuter approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 15 minutes on average to reach our permanent casino and resort from Chicago Loop via public transportation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 10 minutes on average to reach our permanent casino and resort from Magnificent Mile via public transportation;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 45 minutes on average to reach our permanent casino and resort from Chicago O'Hare International Airport via public transportation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 50 minutes on average to reach our permanent casino and resort from Midway Airport via public transportation.

In addition, our permanent casino and resort will have approximately 2,000 feet of contiguous river walk, public parks and docks. Additionally, it will include riverfront restaurants and other amenities, including locations for scenic views.

![[MISSING IMAGE: mp_permresort-4clr.jpg]](mp_permresort-4clr.jpg)

 *For illustrative purposes, subject to change, see "Risk Factors — Development and Construction Risks"* 

#### Design & Construction
Demolition for construction of our permanent casino, performance center, resort, F&B offerings and hotel began on July 5, 2024, and our permanent casino and resort is expected to open to the public in September 2026. Our plan is to build in phases with demolition, site prep, parking and access to be followed

------

[**TABLE OF CONTENTS**](#TOC)

by the construction of the permanent casino, performance center, and hotel tower, and would target that key elements of the project to be ready and prepared to serve patrons by the third quarter of 2026. However, there can be no assurances that we will be successful in doing so. Additionally, based upon our joint assessment with GLPI at the time that we entered into the GLP Term Sheet (as defined herein), we expect to incur expenses amounting to at least approximately $1.4 billion in the design, development and construction of our permanent casino and resort. However, this estimate is subject to change based on numerous factors outside of our control, which could cause the actual construction costs to increase. Any increased construction costs could materially and adversely affect the return on our investments. For additional discussion of these factors, please see "*Risk Factors — Development and Construction Risks.*"

![[MISSING IMAGE: pht_resort1-4c.jpg]](pht_resort1-4c.jpg)

![[MISSING IMAGE: pht_resort2-4c.jpg]](pht_resort2-4c.jpg)

 *Permanent casino and resort renderings (November 2024) Illustrative design, subject to change, see "Risk Factors — Development and Construction Risks"* 

In connection with the development and construction of our permanent casino and resort, we intend to contract or achieve:

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 46% or more of the funds earmarked for construction and development will be disbursed to businesses with a certification as Minority or women-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 50% or more total hours spent on construction and development by City of Chicago residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • LEED Gold certification from Green Building Council; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 125 points under the Chicago Sustainable Development Policy.

In addition, we are in discussion with the Illinois Gaming Board and Midway International Airport to install slot machines at Midway International Airport.

In November 2022, we entered into the Oak Street Lease Agreement to lease the proposed site on which we plan to develop our permanent casino and resort. The Oak Street Lease Agreement commenced on November 18, 2022 and had a 99-year term.

On July 11, 2024, Bally's entered into the GLP Term Sheet with GLP for a strategic construction and financing arrangement, including up to $940.0 million of funding for the construction of our permanent casino and resort. In connection therewith, GLP acquired the fee interest in the proposed site on which we plan to develop our permanent casino and resort from the Oak Street Landlord and succeeded to the Oak Street Landlord's interest as landlord under the Oak Street Lease Agreement. On July 17, 2025, we entered into (x) the GLP Lease Agreement, which amended and restated the Oak Street Lease Agreement, to lease such property and (y) the GLP Development Agreement pursuant to which GLP has committed to advance up to $940 million of GLP Development Advances for the payment of hard costs used to construct our permanent casino and resort in exchange for increasing the amount of rent that we pay to GLP under the GLP Lease Agreement. The GLP Lease Agreement has a 15-year term and up to four renewal terms of five years each, if elected by Bally's Chicago OpCo, and rent payable under the GLP Lease Agreement is (a) $20.0 million annually, subject to annual escalations set forth therein, plus (b) an annual amount equal to 8.5% of the GLP Development Advances that GLP advances to us.

GLP has the right to terminate the GLP Lease Agreement upon any event of default under the GLP Lease Agreement. Such events of default include, without limitation, a failure to pay amounts due after applicable notice and cure periods, certain bankruptcy or insolvency events, a cross-default with the GLP Development Agreement and the failure to comply with a variety of covenants after applicable notice and cure periods, including those related to the development of our permanent casino and resort, repair and maintenance, alterations and insurance. In addition, from and after any refinancing, extension or majority amendment of Bally's existing credit facilities, the GLP Lease Agreement will include a cross-default to that certain Master Lease, dated June 3, 2021, as subsequently amended, between GLP and a wholly-owned subsidiary of Bally's and that certain Master Lease, dated December 16, 2024, as subsequently amended, between GLP and a wholly-owned subsidiary of Bally's.

There are also certain restrictions on our ability to assign our interest in the GLP Lease Agreement without having to obtain GLP's prior consent, including requirements for the transferee (or its parent company) to satisfy certain financial metrics and have a certain level of experience in operating or managing casinos.

GLP's obligation to make GLP Development Advances under the GLP Development Agreement is subject to certain conditions, including that we shall have unrestricted access to funds in an amount sufficient at the time of each GLP Development Advance to fund the construction of our permanent casino and resort. We are obligated to construct our permanent casino and resort in compliance with terms and conditions set forth in the GLP Development Agreement, which include the satisfaction of specified development and construction milestones.

The GLP Development Agreement contains customary representations and covenants by us and contains funding conditions, including, without limitation, (a) GLP's reasonable approval of plans and specifications, the project budget (including amendments thereto and reallocations therein except those permitted under the GLP Development Agreement), the project schedule, the underlying construction and architect contracts, and all change orders (subject to exceptions set forth in the GLP Development Agreement), (b) GLP's receipt of appropriate lien waivers, (c) budget balancing requirements, (d) retainage requirements,

------

[**TABLE OF CONTENTS**](#TOC)

and (e) other customary conditions, all as set forth in the GLP Development Agreement. From and after the first GLP Development Advance, we are required to fund all hard costs of construction of the permanent casino and resort utilizing solely GLP Development Advances until GLP has funded its entire commitment or construction has been completed. The GLP Development Agreement also contains defaults and remedies, including, without limitation, a cross-default with the GLP Lease Agreement. We are not permitted to assign, finance, transfer, pledge or encumber our interest in the GLP Development Agreement without GLP's prior written consent, whether or not any such assignment, financing, transfer, pledge or encumbrance is permitted with respect to the GLP Lease Agreement, other than to a permitted leasehold mortgagee under the GLP Lease Agreement.

#### Performance of Comparable Casinos
For comparative context, we have included WPUPD and AGR data, slot machine counts, and table game counts as of and for the year ended December 31, 2024 for select gaming properties. This information has been derived from public filings of the respective casino operators. The properties included are the MGM National Harbor Casino and Encore Boston Harbor Casino, which are casino resorts in a campus environment that operate in or near similar major metropolitan areas, as well as Hard Rock Northern Indiana Casino, Rivers Casino, Ameristar East Chicago, Grand Victoria Casino, Harrah's Joliet Casino & Hotel, Hollywood Casino Aurora, Hollywood Casino Joliet, and Horseshoe Hammond, which are casinos located near the Chicago metropolitan area and in Northern Indiana. We have identified these properties as potentially comparable to our proposed permanent casino and resort based on certain factors, including location in metropolitan areas with similar demographic profiles, comparable economic characteristics of the surrounding regions, and proximity to the City of Chicago.

Investors should be aware that these comparisons have limitations and may not be directly applicable to our proposed operations due to various factors, including but not limited to differences in local market conditions, variations in regulatory environments, property-specific operational strategies, and unique competitive landscapes in each market. The information provided is intended solely to offer context and does not constitute a projection or forecast of our future performance.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Comparable Properties for 2024<sup>(1)</sup>**  | **Comparable Properties for 2024<sup>(1)</sup>**  | **Comparable Properties for 2024<sup>(1)</sup>**  | **Comparable Properties for 2024<sup>(1)</sup>**  |
| **($ in MM, except WPUPD metrics)**  | **MGM <br> National <br> Harbor**  | **Encore <br> Boston**  | **Hard Rock <br> Northern <br> Indiana**  | **Rivers <br> Casino <br> Illinois**  |
| Slot Machines  | 2293 | 2633 | 1750 | 1516 |
| Slots WPUPD  | $610 | $440 | $494 | $580 |
| Table Games  | 161 | 180 | 77 | 120 |
| Table Games WPUPD  | $5582 | $4519 | $4277 | $4457 |
| **Total Gaming AGR<sup>(2)</sup>**  | $**839** | $**720** | $**436** | $**516** |

---

(2) Gaming AGR does not include retail sportsbook.

#### Illinois and Northern Indiana Slots

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  |
| | **# Slots**  | **Admissions**  | **AGR**  | **WPU**  |
| Ameristar East Chicago  | 1075 | N/A | $142 | $363 |
| Grand Victoria Casino  | 746 | 934 | $111 | $408 |
|  ***Hard Rock Northern Indiana***  | **1750** | **N/A** | $**316** | $**494** |
| Harrah's Joliet Casino & Hotel  | 754 | 687 | $106 | $387 |
| Hollywood Casino Aurora  | 837 | 853 | $78 | $255 |
| Hollywood Casino Joliet  | 918 | 662 | $79 | $237 |
| Horseshoe Hammond  | 1594 | N/A | $203 | $349 |
|  ***Rivers Casino Des Plaines***  | **1516** | **3069** | $**321** | $**580** |
| **Average** | **1149** | **1241** | $**170** | $**384** |

---

------

[**TABLE OF CONTENTS**](#TOC)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  |
| | **# Slots**  | **Admissions**  | **AGR**  | **WPU**  |
| **Median** | **997** | **853** | $**127** | $**375** |
|  ***<u>Top Performers – Averages</u>*** |  |  |  |  |
| Top Performer Average  | **1633** | **3069** | $**319** | $**537** |

---

#### Illinois and Northern Indiana Table Games

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |  | | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  | **2024<sup>(1)</sup>**  |
| | **# Tables**  | **# Tables**  | **Admissions**  | **AGR**  | **WPU**  |
| Ameristar East Chicago  |  | 39 | N/A | $29 | $2052 |
| Grand Victoria Casino  |  | 45 | 934 | $28 | $1682 |
|  ***Hard Rock Northern Indiana***  |  | **77** | **N/A** | $**120** | $**4277** |
| Harrah's Joliet Casino & Hotel  |  | 21 | 687 | $18 | $2394 |
| Hollywood Casino Aurora  |  | 41 | 853 | $21 | $1431 |
| Hollywood Casino Joliet  |  | 14 | 662 | $11 | $2190 |
| Horseshoe Hammond  |  | 85 | N/A | $49 | $1567 |
|  ***Rivers Casino Des Plaines***  |  | **120** | **3069** | $**195** | $**4457** |
| **Average** |  | **55** | **1241** | $**59** | $**2506** |
| **Median** |  | **43** | **853** | $**29** | $**2121** |
|  ***<u>Top Performers – Averages</u>*** |  |  |  |  |  |
| Top Performer Average  |  | **98** | **3069** | $**158** | $**4367** |

---

(1) Based on publicly available information. All figures are as of and for the year ended December 31, 2024.

These illustrative comparisons are only for purposes of illustrating the publicly reported WPUPD per slot machine and table game, and the associated AGR for nearby casino properties in Illinois and Northern Indiana. These illustrative comparisons are not projections, goals or targets but reflect the actual reported results of these casino properties as reported by the Illinois and Indiana state gaming commissions for the relevant periods.

The illustrative comparisons set forth above were not prepared with a view toward compliance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation or presentation of prospective financial information. Such illustrative examples have been prepared by, and is the responsibility of, our management. Neither the Company's independent auditors, nor any other independent accountants, have compiled, examined, or performed any procedures with respect to the illustrative example information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and assume no responsibility for, and disclaim any association with, the prospective financial information.

This prospectus does not include a reconciliation of estimated Total AGR to estimated GAAP revenue because we are unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to our results.

#### Hospitality Industry in Chicago
The hospitality industry in Chicago is showing strong signs of recovery and growth, driven by a combination of increasing tourism, business travel and a dynamic local culture. Occupancy rates are steadily climbing as travelers return to the city for its world-class dining, vibrant arts scene and high-profile events like conventions and festivals. Hotels are adapting to evolving guest expectations by modernizing amenities, prioritizing sustainability, and enhancing the overall guest experience. The city's strong marketing efforts and investment in infrastructure, such as O'Hare's expansion, have also boosted its appeal as a global destination. With these improvements, Chicago's hospitality sector has positioned itself as a leader in urban tourism and accommodation.

------

[**TABLE OF CONTENTS**](#TOC)

In 2024, the Chicago hospitality industry exceeded the expectations, booking over 2,005 total meetings and events, representing 2.65 million hotel room nights, delivering an economic impact of over $4.8 billion for Chicago. This was driven primarily by a steady influx of visitors exploring Chicago's vibrant neighborhoods, iconic landmarks and world-class cultural offerings. The City saw 55 million visitors — over 3 million more than 2023 — and filled 11.6 million hotel rooms.

 *2024 Hotel Occupancy Rates*![[MISSING IMAGE: tb_hottelaccu-bw.jpg]](tb_hottelaccu-bw.jpg)

 *2024 Hotel Rooms Occupied (Millions)*![[MISSING IMAGE: tb_hottelrooms-bw.jpg]](tb_hottelrooms-bw.jpg)

 *2024 Hotel Revenue and Taxes*![[MISSING IMAGE: tb_hottelrevenue-bw.jpg]](tb_hottelrevenue-bw.jpg)

#### Temporary Casino
While we work to construct our permanent casino and resort on the banks of the Chicago River, we built a temporary casino in downtown Chicago. However, as the name implies, our temporary casino is expected to close once we open our permanent casino and resort, as our license to operate our temporary casino would cease in order to open our permanent casino and resort in the third quarter of 2026.

Our temporary casino is situated in the former location of the Medinah Temple, which acted as a community and social center in Chicago from its construction in 1912. Our temporary casino began operations on September 9, 2023. Our temporary casino includes approximately 1,000 gaming positions and two F&B venues.

------

[**TABLE OF CONTENTS**](#TOC)

![[MISSING IMAGE: mp_ballysmedihah-4c.jpg]](mp_ballysmedihah-4c.jpg)

Our new work for our temporary casino respects and maintains the existing landmarked items identified by the City of Chicago in the Medinah Temple, including the exterior façade. While we performed minor improvements on the façade, such work was focused on the replacement of signage in the same locations utilized by previous tenants. Within the Medinah Temple, we preserved the stained glass windows, stage proscenium, column capitals and third floor ceiling, including the four domes. As of March 31, 2025 (Successor), we have incurred approximately $70.0 million in costs in connection with the design and development of our temporary casino.

#### Timeline of Key Milestones <sup>(1)</sup>

---

| | |
|:---|:---|
| **Date**  | **Key Milestone**  |
| **September 9, 2023**  | **Grand opening of our temporary casino** |
| July 5, 2024  | Tribune surrenders and vacates proposed site of our permanent casino and resort |
| July 5, 2024  | Decommission and demolition of building on site of our permanent casino and resort |
| Q1 2025  | Commencement of construction of our permanent casino and resort |
| **Q3 2026**  | **Grand opening of our permanent casino and resort<sup>(2)</sup>** |

---

(1) This timeline reflects our current business strategy. However, our ability to implement our business strategy is subject to numerous risks and uncertainties. We face many risks inherent in our business generally. You should carefully consider all of the information set forth in this prospectus and, in particular, the information under the heading "*Risk Factors.*" These risks include various construction and development risks in connection with our permanent casino and resort. See "*Risk Factors — Development and Construction Risks*."

(2) The Host Community Agreement with the City of Chicago provides for significant liquidated damages in the event that we do not meet the milestones specified as to our temporary casino and our permanent casino and resort. See "— *Our Relationship with Chicago — Host Community Agreement with the City of Chicago*" for more information on these milestones. Also see "*Risk Factors — Development and Construction Risks*" for more information on various construction and development risks in connection with our permanent casino and resort.

------

[**TABLE OF CONTENTS**](#TOC)

#### Competitive Strengths

#### Fully integrated destination resort focused on the attractive mainstream market segment
Our permanent casino and resort is focused on the mainstream market segment. We believe this segment provides attractive long-term growth opportunities and the mainstream market gaming segment has relatively high margins in comparison to other gaming segments.

Our permanent casino and resort is being designed to feature a hotel tower including 500 rooms and a rooftop bar. Our dining and beverage options are also designed for broad market appeal and include a range of restaurants, cafes, bars and lounges. Our location, in the heart of the City of Chicago, offers an immersive entertainment environment in street and riverscape surroundings inspired by iconic shopping in the Magnificent Mile district. Our permanent casino and resort will also feature a new landscaped riverwalk with activation elements such as artwork, walking paths and a dog park. It will also include a new park along the river, terraced steps and outdoor seating for restaurants, cafes, bars and lounges. The park will be accessible to the public during the hours typical of Chicago public parks. We believe that our combination of entertainment and leisure activities, differentiated gaming attractions in comparison to other offerings in this geographic location and outdoor space, including being the only casino in the City of Chicago, delivered in an easily accessible location, will provide a customer experience that is hard to replicate without having to visit multiple destinations.

#### Strategic location with strong and improving accessibility
The following map illustrates the centralized location of our permanent casino and resort in Chicago:

![[MISSING IMAGE: mp_permanresort-4clr.jpg]](mp_permanresort-4clr.jpg)

Our permanent casino and resort will be strategically located in the heart of the City of Chicago, as the only casino located directly adjacent to the Chicago River, with easy access to the blue transit line as

------

[**TABLE OF CONTENTS**](#TOC)

well as to multiple bus stops. The City of Chicago is the third most populous city in the United States, with 2.7 million residents in 2023 according to the United States Census Bureau. According to Forbes and Business Insider, tourism to the City of Chicago reached approximately 55 million visitors prior to the COVID-19 pandemic and is expected to fully rebound by the end of 2024.

We believe we can also leverage the traffic flow from nearby hotels, theaters, bars, restaurants, shopping districts and McCormick Place Convention Center to drive significant traffic to our permanent casino and resort, primarily due to our differentiated gaming and entertainment attractions in comparison to other offerings in this geographic location. Our close proximity to the Chicago River, which is a top tourist attraction in Chicago, will allow us to drive marketing promotions to tourists and drive further traffic to our permanent casino and resort. We intend to build a new water taxi stop and a new pedestrian bridge across the Chicago River to capitalize on traffic flow and make the proposed site even more accessible to Chicago residents and tourists in the downtown area. We also expect to be a natural and popular first stop for a large number of visitors to Chicago due to our close proximity to the River West, Fulton River District, River North and West Loop entertainment districts.

#### Backed by an established operator with a leading and diversified national gaming footprint
We are backed by Bally's Corporation, an established operator in our casino and resort industry that is capable of providing expertise, know-how and support across the entire gaming spectrum, ranging from generation and advertising technology to the collection, processing and extrapolation of data and odds, to visualization solutions, risk management and platform services.

The deep understanding of our public company parent of the gaming industry, customer needs and preferences, regulatory processes and the evolving competitive landscape offers us a significant competitive advantage over our competitors. Upon the closing of this offering, we will continue to benefit from our relationship with Bally's Corporation through the scale of Bally's operations, including the centralization of shared services and support functions such as legal, information technology, human resources, supply chain logistics, warehousing, strategic sourcing and transportation. We will also continue to benefit from Bally's Corporation's extensive customer and sales network, as well as its well-developed and recognized customer loyalty programs, which we will continue to leverage to further drive visitation.

After its merger with Casino Queen, Bally's Corporation's casino offerings stretch across eleven states across the United States. We believe the breadth of their offerings and reach gives us a competitive advantage in launching operations in a new city or state, as we are able to leverage their considerable resources and know-how to deliver the best offerings to potential customers.

#### Powerful network effects accelerate our value proposition
Under the Bally's brand, we are able to benefit from powerful network effects, which further accelerate our value proposition. As a national participant in the gaming industry, Bally's Corporation has casinos resorts spread across numerous major cities and has hosted tens of millions of customers since all of its casino resorts and online gaming operations commenced operations. We believe that, by operating under the Bally's brand, we will be able to attract existing and new customers to our new casino and resort, as we will not be required to gain their trust upon launching our operation.

#### Experienced and Dedicated Management Team
Our management team has extensive experience in the gaming and hospitality industries. Management team members have prior tenures at other large-scale casino and entertainment companies, such as PENN Entertainment, Delaware North Companies, International Game Technology and Northstar Lottery Group. Our management team has an average of more than 11 years of experience in the gaming and hospitality industries. In addition, as of March 31, 2025 (Successor), Bally's had approximately 10,000 employees who are dedicated to Bally's national and international operations to ensure exceptional customer experiences. We will also receive certain centralized corporate and management services from Bally's Corporation, including shared service staff who will devote a portion of their time to our operations. We intend to continue to capitalize on the deep industry expertise, management skills and strong execution capabilities of our

------

[**TABLE OF CONTENTS**](#TOC)

management team to successfully formulate and implement our strategies, and continue to streamline our operations by utilizing the services provided by our affiliates.

#### Our Business and Growth Strategies

#### Continue to focus on the mainstream market segment
We intend to focus on mainstream market gaming due to its attractive growth opportunities and higher margin profile. We are designing our non-gaming attractions to complement the mainstream market focus of our permanent casino and resort by delivering experiences that appeal to mainstream market players. We aim to leverage our differentiated entertainment, retail, F&B and hotel amenities to drive visitation, longer stays and greater spending by our patrons. Under our current plan, our permanent casino and resort is being designed to include approximately 3,400 slot machines and 173 table games. In addition, we currently envision outdoor green space, including an expansive public riverwalk with a water taxi stop. Other non-gaming attractions expected to be part of our permanent casino and resort include a hotel tower with 500 rooms, a rooftop bar, a 3,000-person mixed use entertainment and event center, as well as retail and F&B outlets. We expect our current plan for our permanent casino and resort to diversify our offerings and create long-term shareholder value.

#### Continue to drive visitation and revenue growth through innovative non-gaming attractions
We intend to enhance and diversify our differentiated non-gaming amenities and service offerings with the goal to drive further visitation to our casino and resort by both residents of Chicago and tourists visiting Chicago, and deliver long-term growth and high margins. We believe our permanent casino and resort will be different from existing resorts and casinos in Illinois and neighboring states because of our strategic location along the Chicago River, as well as our innovative and interactive entertainment attractions, which are intended to appeal to both individuals and groups interested in gaming and those not interested in gaming alike. We intend to leverage Bally's Corporation's existing attractions to provide superior entertainment experiences. For example, we intend to host premier concerts and events over time to increase our brand recognition locally, which we believe we can do using our nationwide access to premier talent. We also intend to enhance existing attractions and update them over time, and to optimize our mix of retail and F&B offerings that appeal to our target customers.

#### Continue to pursue strategic marketing initiatives and differentiate the "Bally's" brand
We plan to continue to build the "Bally's" brand to increase awareness among potential customers, particularly in Chicago and the Midwest. We intend to continue to pursue innovative promotions, including engaging influencers and celebrities to promote our casino and report's themes and entertainment facilities, and to host special events. We also plan to enhance our advertising activities, including through a variety of social media, print, television, online, outdoor, onsite and other means. In addition, we intend to leverage our relationship with Bally's Corporation to promote our casino and resort through complementary and cost-effective cross-marketing and sales campaigns.

#### Prudently manage our capital structure
We commenced operations in June 2022, and we intend to develop a capital structure to match and support the on-going ramp-up of our operations. We intend to strengthen our balance sheet by focusing on optimizing our leverage, maintaining a competitive cost of capital and improving balance sheet flexibility. We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest.

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to Bally's Chicago, Inc. to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes.

------

[**TABLE OF CONTENTS**](#TOC)

In turn, we believe we will be sufficiently capitalized through the opening of our permanent casino and resort, and intend to prudently manage our capital structure as we continue to grow our operations.

#### Our Relationship with Bally's Corporation
We intend to benefit from Bally's Corporation's significant experience and knowledge in the U.S. gaming market. In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into the Permanent Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Permanent Services Agreement, BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing upon the opening of our permanent casino and resort. Pursuant to the Permanent Services Agreement, we agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is one year, beginning upon the opening of our permanent casino and resort, and will be automatically renewed for successive one-year terms, unless either party serves on the other a written notice of termination. We believe the support provided by Bally's Corporation increases our competitive advantage and will contribute to the success of our business. See "*Transactions with Related Persons — Permanent Services Agreement.*"

In addition, in August 2023, Bally's Chicago OpCo entered into the Temporary Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing related to our temporary casino. Pursuant to the Temporary Services Agreement, we agreed to pay BMG a monthly fee equal to $5.0 million, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is two years, beginning August 30, 2023, and will be automatically renewed for successive one-year terms for as long as our temporary casino is licensed to continue operations, unless BMG serves on Bally's Chicago OpCo a written notice of termination. The Temporary Services Agreement shall automatically terminate when our temporary casino permanently closes and our permanent casino and resort opens to the public. See "*Transactions with Related Persons — Temporary Services Agreement*."

We and Bally's Chicago HoldCo, our direct parent and the entity that holds 2,141 of our Class A-4 Interests and all of our Class B Interests, as well as certain other current and future unrestricted subsidiaries of Bally's Corporation under its credit facilities and bond indentures, have guaranteed Bally's Chicago OpCo's obligations under the GLP Lease Agreement and GLP Development Agreement; *provided*, however, that at such time as Bally's Chicago OpCo becomes a restricted subsidiary under Bally's Corporation's credit facilities and bond indentures, (i) Bally's Corporation will be required to guarantee the GLP Lease Agreement and GLP Development Agreement and (ii) following the delivery of such guarantee, the guarantees of the GLP Lease Agreement and GLP Development Agreement provided by Bally's Chicago HoldCo and such other unrestricted subsidiaries of Bally's Corporation shall terminate.

In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation and its subsidiaries upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; *provided* that, at any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's

------

[**TABLE OF CONTENTS**](#TOC)

Corporation's revolving credit facilities outstanding at such time). Furthermore, in March 2025, we and Bally's Chicago OpCo entered into the Guarantee Agreement with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional obligations, including, without limitation, indebtedness and lease obligations that Bally's Corporation or its subsidiaries enter into at any time in the future. See "*Transactions with Related Persons — Guarantee of Bally's Corporation's Obligations*."

In March 2025, we and Bally's Chicago HoldCo entered into the Stockholders Agreement, pursuant to which for so long as Bally's Chicago HoldCo beneficially owns at least 50% of the aggregate number of our stock outstanding, certain actions by us or any of our subsidiaries, including Bally's Chicago OpCo, will require the prior written consent of Bally's Chicago HoldCo. The actions that will require prior written consent include: (i) change in control transactions of our company or any of our subsidiaries, including Bally's Chicago OpCo, (ii) acquiring or disposing of assets or any business enterprise or division thereof for consideration in excess of $50.0 million in any single transaction or series of transactions, (iii) increasing or decreasing the size of our board of directors, (iv) initiating any liquidation, dissolution, bankruptcy, or other insolvency proceeding involving us or any of our subsidiaries, including Bally's Chicago OpCo, and (v) any transfer, issue, sale, or disposition by us of any shares of stock, other equity securities, equity-linked securities, or securities that are convertible into equity securities of us or our subsidiaries to any person or entity that is a non-strategic financial investor in a private placement transaction or series of transactions.

#### Our Relationship with Chicago
We are designing, developing and constructing a world-class entertainment destination resort in partnership with the City of Chicago. In connection with this partnership, we have entered into various agreements and development programs as set forth below.

#### Host Community Agreement with the City of Chicago
On June 9, 2022, we signed the Host Community Agreement with the City of Chicago to develop our destination casino and resort in downtown Chicago. The Host Community Agreement provides us with the exclusive right to operate a permanent casino and a temporary casino for up to three years while our permanent casino and resort is constructed.

Pursuant to the Host Community Agreement, our permanent casino and resort is being designed to feature:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 150 permanent gaming tables, including 20 poker tables;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in-person and mobile sports wagering facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a 5-star quality high-end luxury hotel with 100 rooms initially, as well as amenities such as a rooftop bar, a fitness center, subject to expansion to up to 500 rooms within approximately five years of the opening of our permanent casino and resort;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 65,000 square feet of entertainment and event space, including a flexible theater space with approximately 2.4 acres of greenspace that can be used to host outdoor events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • six restaurants/cafes and a food hall, including a three-meal diner with capacity for approximately 150 seats, a Bally's Sports Bar with capacity for approximately 200 seats, a food hall with capacity for approximately 175 seats, an Asian restaurant with capacity for approximately 50 seats, a steakhouse with capacity for approximately 150 seats, an Italian restaurant with capacity for approximately 200 seats and a grab-and-go coffee bar with capacity for approximately 20 seats;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • four bars and lounges, including a casino bar, a cocktail lounge with capacity for over 50 seats, a VIP lounge with capacity for over 60 seats and a rooftop bar with capacity for over 100 seats (including two hidden speakeasies that patrons can visit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 3,000 square feet of ancillary retail space, including sundries and souvenir shops;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a garage or parking facility with approximately 3,300 parking spaces, including approximately 2,200 patron spaces, approximately 600 employee spaces and approximately 500 valet spaces;

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a visitor center for tourists and business travelers visiting Chicago, including a concierge service operated in coordination with Choose Chicago, a nonprofit organization that specializes in Chicago travel options; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an approximately 23,000 square foot museum, with exhibits presenting Chicago sports and history and other rotating exhibitions.

In furtherance of these obligations, the Host Community Agreement establishes a minimum capital investment of $1.34 billion on the design, construction and equipping of our temporary casino and our permanent casino and resort. As of March 31, 2025 (Successor), approximately $1.0 billion of this commitment remains. The actual cost of the development may exceed this minimum capital investment amount. In addition, land acquisition costs and financing costs, among other types of costs, are not counted toward meeting this minimum capital investment amount.

Additionally, as part of the design, development and construction of our temporary casino and our permanent casino and resort, the Host Community Agreement requires us to employ approximately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 2,900 individuals in the construction of our temporary casino;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,000 individuals in the construction of our permanent casino and resort; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 2,500 individuals in the construction of the hotel tower.

Once operational, the Host Community Agreement requires us to employ:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 550 individuals in our temporary casino; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approximately 3,000 individuals in our permanent casino and resort.

In connection with the entry into the Host Community Agreement with the City of Chicago, we were required to make a one-time payment to the City of Chicago equal to $40.0 million, and are required to make ongoing payments of $4.0 million per year beginning on September 9, 2023, the date that our temporary casino opened to the general public. Additionally, in connection with the Host Community Agreement, Bally's Corporation was required to provide the City of Chicago with a guaranty whereby the Company is required to have and maintain available financial resources in an amount reasonably sufficient to fund all amounts necessary to allow us to meet our obligations under the Host Community Agreement and, to the extent we fail to perform any obligations thereunder, assume full responsibility for and perform our obligations in accordance with the terms, covenants and conditions set forth in the Host Community Agreement. The guaranty also required that we indemnify and hold the City of Chicago harmless from and against any and all loss, cost, damage, injury, liability, claim or reasonable and documented expense the City of Chicago may suffer or incur by reason of any nonpayment or nonperformance of any of our obligations.

The Illinois Gambling Act requires the IGB, in determining whether or not to issue the casino owners license, to have considered diverse ownership goals. The IGB approved the issuance of the license to us on October 26, 2023.

In addition, the Host Community Agreement requires that 40% of seats on our Board be reserved for Minorities or women.

The Host Community Agreement provides that in the event that 75% of the gaming area of our permanent casino and resort is not open to the general public by September 10, 2026 (the "Completion Deadline"), subject to any extensions as a result of Force Majeure Periods (as defined in the Host Community Agreement), we must pay the City of Chicago an amount, calculated on a daily basis, equal to the product of (i) 85% of the projected local tax revenue multiplied by (ii) the number of days since the Completion Deadline, until 75% of the gaming area of our permanent casino and resort opens to the general public; *provided* that any local tax revenue actually received for such period shall not subtracted from any amounts due to the City of Chicago.

In addition, the Host Community Agreement also provides that in the event that 90%, taken as a whole, of our permanent casino and resort is not completed (as evidenced by the issuance of a temporary certificate of occupancy by the City of Chicago's Department of Buildings) by the Completion Deadline,

------

[**TABLE OF CONTENTS**](#TOC)

subject to any extensions as a result of Force Majeure Periods (as defined in the Host Community Agreement), we must pay the City of Chicago an amount, calculated on a daily basis, equal to the product of (i) 10% of the projected local tax revenue multiplied by (ii) the number of days since the Completion Deadline, until 90%, taken as a whole, of our permanent casino and resort is completed (as evidenced by the issuance of a temporary certificate of occupancy by the City of Chicago's Department of Buildings).

If we show we timely commenced and have been diligently pursuing the construction of our permanent casino and resort, the City of Chicago may consent up to two three-month extensions of the Completion Deadline, followed by one two-month extension of the Completion Deadline, for a possible total extension of eight months. The first extension shall be consented to automatically by the City of Chicago and any subsequent consent shall not be unreasonably withheld, conditioned or delayed.

#### Gaming License
In order to operate our casino and resort, we will be required to obtain and hold licenses issued by the Illinois Gaming Board. The license issued by the Illinois Gaming Board to casino operators is referred to as an "owners license" and is issued by the Illinois Gaming Board for a period of up to four years. The owners license may then be renewed for subsequent four-year terms. The Illinois Gambling Act requires, among other things, that every applicant for an owners license provide evidence of their best efforts to attain certain ownership goals (25% ownership representation by minority persons and 5% ownership representation by women) (the "Best Efforts Ownership Standards"), which the Illinois Gaming Board considers when determining whether to grant the license.

On October 26, 2023, we obtained a four-year owners license from the Illinois Gaming Board. This license will expire on October 25, 2027, and may be renewed for subsequent four-year terms. On October 26, 2023, the Illinois Gaming Board also approved extending the operation of our temporary casino until September 9, 2026. The fee for the issuance or renewal of the owners license is $250,000. The license obligates the recipient to adhere to the standards and requirements set forth in the Illinois Gambling Act and the Illinois Gaming Board Rules, including the Best Efforts Ownership Standards. The Illinois Gaming Board has the authority to limit the term of the license at issuance or any renewal and may dictate additional restrictions upon the license. Based on its understanding of the licensing criteria applicable to gaming entities in Illinois and receipt of the owners license, Bally's believes it has satisfied its obligations to use its best efforts to attain the ownership goals set forth under the Illinois Gambling Act and has not received any notification to the contrary from the Illinois Gaming Board.

#### Community Investment Program
We have agreed with the City of Chicago that we will commit to hiring residents of Chicago with various workforce development organizations in both the construction of our temporary casino and our permanent casino and resort, but also with respect to employment once our casinos are operational.

We are committed to the following hiring targets:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • we are required to provide preference to Chicago-based businesses, if possible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the hiring of contractors for the construction of our temporary casino and our permanent casino and resort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 36% of funds need to go towards Minority-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 10% of funds need to go towards women-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the hiring of workers to build our temporary casino and our permanent casino and resort:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 50% of total hours on our permanent casino and resort must be performed by Chicago residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 15.5% of construction work must be performed by residents of socially and economically disadvantaged areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • in the sourcing of goods and services and other vendor spending in connection with our temporary casino and our permanent casino and resort:

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 26% of funds need to go towards Minority-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 10% of funds need to go towards women-owned businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 2% of funds need to go towards disadvantaged businesses, including businesses by owners that have historically been disadvantaged; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a minimum of 3% of funds need to go towards veteran- or service-disabled veteran-owned businesses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a target goal of 60% Minority hiring in the operation of our casino.

Under the community investment program, we intend on reducing the disparities that exist in the initial procurement process of goods and services by requiring that all contracts and bids in excess of $10,000 be issued via a competitive bidding process. Additionally, we intend to list all employment and procurement opportunities on our website. We intend on hosting an annual diversity vendor fair on the premises of our permanent casino and resort, and intend on hiring a third-party expert in sourcing and contracting vendors to leverage their network of vendors, suppliers and individuals seeking jobs to push notifications, recruit bidders and support us in the process.

We have also agreed with the City of Chicago that we will commit to providing training opportunities for various roles in our casino and resort, including for table game dealers and F&B workers, and work to set up job fairs in order to attract potential applicants to employment opportunities in our casino and resort.

#### Our Community First Programs
As a member of the Bally's organization, we intend to adhere to the Bally's community-first policy, which is a fundamental and defining element of who we are as a company. We intend to build strong, lasting partnerships with local residents and businesses in Chicago.

As part of our community-first policy, we intend to implement programs to provide individuals with gaming addiction with support services, both offsite and onsite, including treatment of compulsive behavior disorders. We also intend to take extraordinary precautions to ensure that minors are prohibited from participating in any of the gaming activities at our casino and resort. Additionally, we intend to take precautions to ensure that our marketing practices do not disproportionately target disadvantaged communities, and will work to provide best-in-class social programs geared towards addressing gambling addiction throughout the Chicago area.

#### Corporate Structure
The below depicts our organizational structure upon the closing of this offering and the concurrent private placements and the consummation of the Transactions, taking into account the initial Class A Interest issuances and both the anticipated purchase of 4,086 LLC Interests and prior issuances of 3,326 LLC

------

[**TABLE OF CONTENTS**](#TOC)

 *Interests. See "Management's Discussion and Analysis of Financial Condition and Results of Operations — Recent Developments" for more information.*![[MISSING IMAGE: fc_corporatestruc-bw.jpg]](fc_corporatestruc-bw.jpg)

#### Marketing
In order to be competitive, we and Bally's Corporation intend on holding various promotions and special events at our casino and resort, including operating a loyalty program for gaming patrons. In addition, we anticipate participating in cross marketing and sales campaigns developed by Bally's Corporation, including across geographic zones and countries. We believe this arrangement will significantly enhance our casino and report's ramp-up period, reduce marketing costs through scale synergies and enhances cross-revenue opportunities.

Additionally, we intend to devote considerable resources to attracting non-gaming customers to our casinos and resort in order to grow our customer base over time by undertaking a variety of advertising and marketing activities.

Bally's Corporation employs a public relations and advertising team that is partially dedicated to our casino and resort and that intends on cultivating media relationships, promoting the Bally's brand and directly liaising with customers within select geographies in the Midwest in order to explore media opportunities in various markets. We plan our advertising activities to be rolled out through a variety of local and regional media platforms, including digital, social media, print, television, online, outdoor, on property (as permitted under Illinois law and any other applicable local laws) as well as collateral and direct mail pieces. We also intend to engage celebrities for marketing activities. We believe that these marketing and incentive programs will increase our brand awareness and drive further visitation to our casino and resort.

#### Competition
The gaming industry is characterized by a high degree of competition among a large number of operators, including land-based casinos, riverboat casinos, dockside casinos, video lotteries, traditional lotteries, VGTs at taverns in certain states, sweepstakes and poker machines not located in casinos, Native American gaming, emerging varieties of iGaming and daily fantasy sports gaming, increased sports betting and other forms of gaming in the United States. In a broader sense, our gaming operations face competition

------

[**TABLE OF CONTENTS**](#TOC)

from many leisure and entertainment activities, including, for example: shopping, athletic events, television and movies, concerts and travel. Legalized gaming is currently permitted in various forms in different parts of the United States, in several Canadian provinces and on many lands taken into trust for the benefit of certain Native Americans in the United States and First Nations in Canada. We face significant competition in the Chicago market. Such competition may intensify if new gaming operations open or existing competitors expand their operations. For example, Hawthorne Race Course has submitted an application for a gaming license to open a "racino" approximately 10 miles from our permanent casino and resort site. Our Chicago casino and resort will compete directly with other gaming properties in Illinois, as well as in adjacent states such as Indiana and Wisconsin. In some instances, particularly with Native American casinos, our competitors pay substantially lower taxes or no taxes at all. We believe that increased legalized gaming in other states, particularly in areas close to our Chicago casino and resort and the development or expansion of Native American gaming in Illinois, could create additional competition for us and could adversely affect our operations or future development projects. See "*Risk Factors*" for more information on competition.

We consider the following operators our current direct competitors:

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property**  | **Operator**  | **Location**  | **Year of <br> Opening**  | **Existing /<br>Development**  | **# <br> Slots**  | **# <br> Tables**  | **Poker <br> Tables**  | **S.F. <br> Gaming <br> Area**  | **# <br> Hotel <br> Keys**  | **~Miles <br> to <br> Bally's <br> Chicago**  |
| American Place  | Full House Resorts | Waukegan, IL | 2023  | Development | 937 | 43 | No  | 70000 |  | 41 |
| Ameristar Casino East Chicago  | Penn Entertainment / Gaming & Leisure Properties | East Chicago, IN | 1997  | Existing | 1000 | 60 | No  | 56000 | 288 | 25 |
| Blue Chip Casino Hotel Spa  | Boyd Gaming | Michigan City, IN | 1997  | Existing | 1668 | 64 | Yes  | 65000 | 486 | 60 |
| Four Winds New Buffalo  | Four Winds Casinos | New Buffalo, MI | 2007  | Existing | 2477 | 47 | No  | 130000 | 415 | 71 |
| Four Winds Casino South Bend  | Four Winds Casinos | South Bend, IN | 2018  | Existing | 1425 | 12 | Yes  | 175000 |  | 90 |
| Grand Victoria Casino Elgin  | Caesars Entertainment | Elgin, IL | 1994  | Existing | 745 | 45 | Yes  | 29850 |  | 39 |
| Hard Rock Casino Rockford  | Hard Rock International | Rockford, IL | 2021  | Development | 582 | 10 | No  | 20000 |  | 77 |
|  Hard Rock Casino Northern Indiana  | Hard Rock International | Gary, IN | 2021  | Existing | 2000 | 127 | No  | N/A |  | 34 |
| Hard Rock Casino Kenosha  | Hard Rock International | Kenosha, WI | TBD  | Development | 1500 | 50 | TBD  | TBD | 150 | 64 |
| Harrah's Joliet  | Caesars Entertainment | Joliet, IL | 1993  | Existing | 760 | 20 | Yes  | 39000 | 200 | 41 |
| Ho-Chunk Casino Beloit  | Ho-Chunk Nation of Wisconsin | Beloit, IL | ~2024  | Development | 1650 | 44 | TBD  | TBD | 312 | 95 |
| Hollywood Casino Aurora  | Penn Entertainment | Aurora, IL | 1993  | Existing | 836 | 41 | Yes  | 41384 | 100 | 40 |
| Hollywood Casino & Hotel Joliet  | Penn Entertainment | Joliet, IL | 2010  | Existing | 921 | 14 | No  | 50000 |  | 49 |
| Horseshoe Hammond  | Caesars Entertainment | Hammond, IN | 1996  | Existing | 1800 | 60 | Yes  | 350000 |  | 18 |
| Potawatomi Hotel & Casino  | Forest County Potawatomi <br> Community | Milwaukee, WI | 1991  | Existing | 2000 | 118 | Yes  | 150000 | 500 | 89 |
| Rivers Casino Des Plaines  | Churchill Downs <br> Incorporated / Rush Street <br> Gaming  | Des Plaines, IL | 2011  | Existing | 1517 | 120 | Yes  | 78500 |  | 15 |
| Wind Creek Chicago Southland  | Wind Creek Hospitality | East Hazel Crest, IL  | ~2024  | Development | 1400 | 56 | Yes  | 73000 | 252 | 27 |
|  Illinois Distributed Gaming Video Gaming Terminals "VGTs"  | N/A | N/A | N/A  | N/A | 48176 |  | —  |  |  |  |

---

Based on publicly available information, including reports of the Illinois Gaming Board and the Indiana Gaming Commission, properties' websites, third-parties' websites and SEC filings.

#### Government Gaming Regulation
The Illinois Gambling Act established the Illinois Gaming Board and authorized up to ten casino licenses. Currently, all ten original licenses are active. In July 2009, Public Act 96-0034 became law, creating the Illinois Video Gaming Act. Since 2009, Video Gaming has rapidly expanded across Illinois. On June 28, 2019, Illinois Governor J.B. Pritzker signed the gaming expansion bill into law which permits sports wagering, including online/mobile, a Chicago casino, five additional casinos, slots and table games at

------

[**TABLE OF CONTENTS**](#TOC)

racetracks, possible slots at the Chicago airports, an additional VGT at each establishment and in some instances five additional VGTs, and the opportunity for existing casinos to move to land-based operations or purchase additional gaming positions. As of March 31, 2025, there were over 48,000 VGTs spread throughout 8,600 licensed establishments.

The market for gaming, hotel and other entertainment facilities in Chicago is rapidly evolving but remains in its infancy. While Illinois is undergoing expansion since various states started to liberalize gaming (including sports betting), Chicago is still not known as a location for gaming tourism and, therefore, subject to significant competition from both regional and national gaming centers. An underserved and untapped market, the City of Chicago is served by the Rivers Casino in a suburb of Chicago, the northwestern Indiana casinos, a retail sports book at the United Center, a retail sports book opening at Wrigley Field in 2023 and the Waukegan casino.

#### Other Laws and Regulations
Our businesses are subject to various laws, rules, and regulations in addition to gaming regulations. These laws, rules and regulations include restrictions and conditions concerning alcoholic beverages, food service, smoking, environmental matters, employees and employment practices, currency transactions, taxation, zoning and building codes and marketing and advertising. Such laws and regulations could change or could be interpreted differently in the future, or new laws and regulations could be enacted. Material changes to any of the laws, rules, regulations or ordinances to which we are subject, new laws or regulations or material differences in interpretations by courts or governmental authorities could adversely affect our operating results.

The sale of alcoholic beverages is subject to licensing by the Liquor Control Commission and regulation by applicable local regulatory agencies. All licenses are revocable and are not transferable. The agencies involved have full power to limit, condition, suspend or revoke any license, and any disciplinary action could, and revocation would, have a material adverse effect upon our operations.

#### Employees and Human Capital Resources

#### Labor Relations
As of March 31, 2025, we had approximately 670 employees. Most of our employees are based in Illinois. Approximately 430 of our employees are represented by a labor union and are subject to collective bargaining agreements that generally have three-or-five-year terms. We consider our relationships with our employees to be good and have not experienced any interruptions of operations due to labor disagreements.

#### Seasonality
Casino and hotel operations in our markets are subject to seasonal variation. Seasonal weather conditions can frequently adversely affect transportation routes to our properties and may cause flooding and other effects that result in the closure of our properties. As a result, unfavorable seasonal conditions could have a material adverse effect on our operations.

#### Environmental, Social and Corporate Governance
Our approach to sustainability is underpinned by three pillars: (i) player well-being, (ii) people engagement and (iii) building a brighter future.

#### Player Well-Being
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Corporation is a member of the American Gaming Association's "Have A Game Plan" campaign

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 100% of team members undertake Responsible Gambling training annually

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's donated $600,000 to the International Center for Problem Gambling for research into the effectiveness and adaptation of Responsible Gambling tools and Gambling by younger adults

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Corporation is a founding member of the Responsible Gaming Operators group, committed to 12 principles of Responsible Gambling

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Parent company is rolling out a Responsible Gambling Ambassador program in 2023

#### People Engagement
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Advance a distinct culture where capabilities, genders, ethnicity, and ages are respected, and cultivated as a strength

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Create an accessible, diverse, and inclusive work environment with policies, procedures, and systems that support and encourage the principles of diversity, equity, and inclusion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Engage and include business partners that reflect diversity within the ecosystems in which we operate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Drive community engagement with the educational entities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Collaborate with local membership and affinity groups, ethnic chambers and diverse business and civic organizations and their DEI initiatives

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Ensure partnerships exist with organizations that promote "accessibility" and volunteerism or civic responsibility and transition

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Commit to charitable giving that stimulates social and impact investment

#### Building a Brighter Future
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Creation of the Bally's Foundation in North America with $1.8 million to be donated in 2023 to help support local communities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Bally's Corporation is committed to a near-term science-based target reaffirming its intent to achieve zero net carbon status

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Dedicated to reducing its direct and non-renewable energy usage

#### Facilities
Our principal office is located at 640 N LaSalle, Suite 460, Chicago, Illinois 60654 where we lease approximately 18,233 square feet of office space under a lease agreement that terminates on February 28, 2027. We believe that our facilities are sufficient to meet our current needs and that suitable additional space will be available as and when needed.

In November 2022, we entered into a sublease agreement for approximately 132,600 square feet of space in Chicago, Illinois for the development of our temporary casino. The current term of this lease expires November 30, 2026, with an option to extend for two separate renewal terms of 12 months each.

In July 2025, we also entered into an amended and restated lease agreement for approximately 30-acres in Chicago, Illinois for the development of our permanent casino and resort. The current term of this lease expires 15 years after the lease commencement date and can be extended for four separate renewal terms of five years each.

#### Legal Proceedings
On January 29, 2025, the American Alliance for Equal Rights, Richard Fisher and Phillip Aronoff filed a complaint against the City of Chicago, certain members of the Illinois Gaming Board, Bally's Chicago OpCo and us, alleging that the Criteria violate federal laws and seeking, among other remedies, permanent injunctions to prevent the Illinois Gaming Board members from enforcing 230 ILCS 10/6(a-5)(9), to allow shareholders to sell their Class A Interests to white males, to mandate the rescission of the Host Community Agreement, and to require the rescission of shares sold under the Criteria. In addition, on January 30, 2025, Mark Glennon filed a complaint against the City of Chicago (including the Mayor and Treasurer in their official capacities), certain members of the Illinois Gaming Board, Bally's Corporation, Bally's Chicago OpCo and us, also alleging that the Criteria violate federal laws and seeking, among other

------

[**TABLE OF CONTENTS**](#TOC)

remedies, permanent injunctions to prevent the implementation of the HCA's requirements for minority and woman ownership in Bally's Chicago Opco, and to prevent the exclusion of "otherwise qualified individuals" from participating in Bally's ownership, Board, or employment. On January 31, 2025, Glennon filed an emergency motion for preliminary injunction and temporary restraining order, seeking to preclude the closing of the offering while his case proceeds on the merits. On February 6, 2025, the court denied the plaintiffs' request for a temporary restraining order to enjoin this offering. In response to the filing of our amended S-1 on April 22, 2025, which removed the Criteria, plaintiffs in both lawsuits voluntarily dismissed their claims against all defendants (the former with prejudice on June 6, 2025 and the latter without prejudice on April 30, 2025).

We incurred substantial costs defending these lawsuits, and if any person were to bring such a lawsuit against us in the future, we could incur additional substantial costs defending against any additional lawsuits. In addition, the time and attention of our management could be diverted from our business and operations in defense of these lawsuits.

We are not currently a party to any other material legal proceedings.

------

[**TABLE OF CONTENTS**](#TOC)

#### MANAGEMENT

#### Executive Officers, Directors and Director Nominees
The following table sets forth information regarding our executive officers, directors and director nominees as of the date of this prospectus:

---

| | | |
|:---|:---|:---|
| **Name**  | **Age**  | **Position(s)**  |
|  ***Executive Officers*** |  |  |
| Ameet Patel<sup>(1)</sup> | 58  | President and Director |
| H. C. Charles Diao | 68  | Chief Financial Officer |
| Christopher Jewett | 37  | Chief Development Officer |
| Kim M. Barker<sup>(1)</sup> | 57  | Secretary and Director |
|  ***Non-Employee Board Members*** |  |  |
| Wanda Y. Wilson | 75  | Chairperson of the Board |
| Renee Bradford<sup>(2)</sup> | 75  | Director Nominee |
| Blanton Canady<sup>(2)</sup> | 76  | Director Nominee |
| Ezequiel (Zeke) Flores<sup>(2)</sup> | 46  | Director Nominee |
| Edward Lou<sup>(2)</sup> | 54  | Director Nominee |
| Sharon Thomas Parrott<sup>(2)</sup> | 75  | Director Nominee |

---

(1) Individual has given notice of intention to resign from position as member of our Board effective upon the closing of this offering

(2) Individual has been appointed to serve as a member of our Board effective upon the closing of this offering

#### Executive Officers
***Ameet Patel*** has served as our President since May 2022 and as a member of our Board since November 2024. Mr. Patel has over 20 years of leadership and operating experience in the casino and gaming industry. He has also served as Senior Vice President & Regional General Manager — West of our parent company, Bally's Corporation (NYSE: BALY), since October 2021. From July 2019 to October 2021, he was an independent consultant, focusing on operations of gaming companies. Prior to that, from September 2001 to June 2019, Mr. Patel held various leadership positions at Penn National Gaming, Inc. (NASDAQ: PENN) and its subsidiaries, serving most recently as Senior Vice President Regional Operations. Mr. Patel holds a Bachelor of Commerce from Maharaja Sayajirao University, India, and a Master of Business Administration from Thomas Jefferson University. He is also a certified public accountant. We believe Mr. Patel is qualified to serve on our Board because of his business and leadership experience in the casino and entertainment industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ***H. C. Charles Diao*** has served as our Chief Financial Officer since November 2024. Mr. Diao has also served as Senior Vice President, Finance and Corporate Treasurer of our parent company, Bally's Corporation (NYSE: BALY), since June 2023. From April 2017 to June 2021, Mr. Diao served as Senior Vice President of Finance, Corporate Development and Corporate Treasurer of DXC Technology Co (NYSE: DXC), and previously as Vice President and Corporate Treasurer of its predecessor, Computer Sciences Corp., from 2012 to 2017. From 2008 to 2012 and from 2021 to 2023, Mr. Diao was Founder and Managing Director of Diao & Co., LLC, which provides strategic and mergers and acquisition advisory services to corporate clients, and from 2008 to 2012, was Chief Investment Officer of Diao Capital Management LLC, an investment management affiliate that managed alternative investments on behalf of institutional family offices. Until 2008, Mr. Diao was a Senior Managing Director at Bear Stearns & Co. Mr. Diao has served as a member of the board of directors at Synechron Holdings Ltd., a global provider of digital transformation, outsourced software development, and technology consulting services, since April 2022, at Griffon Corporation (NYSE: GFF) since February 2022, and at Turning Point Brands, Inc. (NYSE: TPB) since

------

[**TABLE OF CONTENTS**](#TOC)

November 2012. He was also previously a member of the board of directors of Media General Inc.(NYSE: MEG) from May 2012 to January 2017. He holds a Bachelor of Science in Engineering from Princeton University and a Master of Business Administration from Harvard Business School.

***Christopher Jewett*** has served as our Chief Development Officer since November 2024. Mr. Jewett has over 12 years of experience in corporate finance, mergers and acquisitions, and business development in the gaming sector. He has also served as Senior Vice President of Corporate Development at our parent company, Bally's Corporation (NYSE: BALY), since December 2020. Prior to joining Bally's, he advanced through roles of increasing responsibility at Delaware North Companies, Inc., a multinational food service and hospitality company, from May 2011 to December 2020, most recently as Director of Finance (Gaming) from October 2020 to December 2020 and previously as Director, Corporate Development (Gaming) from March 2018 to October 2020. Mr. Jewett holds a Bachelor of Science in Business Management and a Master of Business Administration in Finance from Canisius University.

***Kim M. Barker*** has served as our Secretary and as a member of our Board since November 2024. Ms. Barker has also served as Executive Vice President and Chief Legal Officer of our parent company, Bally's Corporation (NYSE:BALY), since December 2022. Prior to joining Bally's, she served as Vice President, Diversity & Inclusion of International Game Technology (NYSE: IGT) from January 2018 to December 2022. Prior to that, Ms. Barker was General Counsel and Vice President, Legal and Regulatory Compliance of Northstar Lottery Group, LLC from February 2011 to January 2018 and General Counsel of the Illinois Student Assistance Commission from February 2007 to February 2011. She currently serves on the board of directors of The Providence Mutual Fire Insurance Company, the American Gaming Association, the International Association of Gaming Advisors and the Community College of Rhode Island Foundation. She is also co-chair of African Americans in Gaming. Ms. Barker holds a Bachelor of Arts in American Studies from Yale University and a Juris Doctor from New York University School of Law. We believe Ms. Barker is qualified to serve on our board of directors because of her business and leadership experience in the casino and entertainment industry.

#### Non-Executive Directors
***Wanda Y. Wilson*** has served as Chairperson of our Board since November 2024. She has also served as an independent director at Bally's Corporation (NYSE: BALY) since May 2019. She presently serves as the Chairman of Bally's Compliance Committee and is a member of the Audit, Compensation and Nominating and Governance Committees. Additionally, she has served on boards of non-public companies as well as several non-profit boards and currently serves on the Board of Advisors at the University of Minnesota Walter Mondale School of Law. Ms. Wilson has nearly 30 years of executive management experience in the public gaming industry. In 2019, Ms. Wilson retired from her role as the Chief Operating Officer, General Counsel and Secretary of the Tennessee Education Lottery Corporation ("TEL"). Ms. Wilson joined the TEL in 2003 as Executive Vice President and General Counsel and was promoted to Chief Operating Officer in 2013. Prior to joining TEL, Ms. Wilson was employed at the Georgia Lottery Corporation, where she served as the Senior Vice President and General Counsel for ten years. Prior to practicing law in the gaming industry, Ms. Wilson served in the legal departments of several federal and local government entities including the Chicago Housing Authority, where she specialized in the management of the authority's FHA bond portfolio. Ms. Wilson has also worked in public finance as an investment banker with EF Hutton and the Northern Trust Bank. Ms. Wilson has received several awards for her contributions to the legal profession and the public gaming industry, including the *Lifetime Achievement Award* from the Public Gaming Research Institute, the *Powers Award for Performance Excellence* from the North American Association of State and Provincial Lotteries and the *Individual Star Diversity Award of Excellence* from Corporate Counsel Women of Color. She was also named one of the 50 most powerful African Americans in Tennessee by Business Tennessee. Ms. Wilson holds a Bachelor of Science from University of Illinois at Urbana-Champaign and a Juris Doctor from the University of Minnesota Law School. We believe Ms. Wilson is qualified to serve on our Board due to her extensive leadership, executive, managerial, and business experience in the casino and entertainment industry.

#### Director Nominees
***Renee Bradford*** is currently a director nominee and will become a member of our Board at the closing of this offering. Ms. Bradford is the founder and president of C'est Si Bon Catering Ltd., a boutique catering

------

[**TABLE OF CONTENTS**](#TOC)

and event firm which opened in Hyde Park near the University of Chicago campus almost 35 years ago. Ms. Bradford has also been instrumental in assisting other small business owners in developing financial and business plans, enabling them to successfully navigate commercial loan and government grant processes. Prior to entering the world of entrepreneurship, Ms. Bradford worked in sales, marketing, and product management at Quaker Oats, Illinois Bell, Schering Plough, and Interstate Material Corporation. Ms. Bradford is a longtime resident of the Bronzeville neighborhood and is active in civic and community organizations. Ms. Bradford holds a Bachelor of Science in Psychology from the University of Wisconsin, a Master of Arts in Community Mental Health from Northeastern Illinois University, a Master of Business Administration in Marketing and Finance from Columbia University, and a Certificate in Entrepreneurship from Goldman Sachs 10,000 Small Business Program. We believe Ms. Bradford is qualified to serve on our Board due to her operational background and her knowledge of strategy, finance, and management.

***Blanton Canady*** is currently a director nominee and will become a member of our Board at the closing of this offering. Mr. Canady is a Joint Venture partner with the Hudson Group at O'Hare International Airport. He was the owner-operator of several highly successful McDonalds restaurants until retirement in 2020. During his tenure as a McDonald's franchisee, Mr. Canady became the first African American President of the McDonald's Owners of Chicago and Northwest Indiana Prior to his association with McDonalds, Mr. Canady enjoyed a successful marketing and financial management career with several corporations including Illinois Bell, Xerox, and American Hospital Corporation. Mr. Canady is a Joint Venture Partner at Chicago's O'Hare and Midway International Airports, and also has an ownership interest with Concessions at Los Angeles and Seattle International Airports with Concord Collective Partners. Mr. Canady is active in civic and charitable ventures and has served on several boards, including the Midwest Association of Sickle Cell Anemia, Northern Trust Advisory Board, Near South Side Planning Board, and the Mayor's Committee for a Clean Chicago. He was named one of ten Outstanding Business and Professional Honorees by Blackbook's Edwin C. Berry National Business and Awards and is currently listed as a History Maker for Business. Mr. Canady holds a Bachelor of Science in Marketing and Finance from the University of Illinois and a Master of Business Administration in Marketing and Finance from the University of Chicago. We believe Mr. Canady is qualified to serve on our Board due to his operational background and his knowledge of strategy, finance, and management.

***Ezequiel (Zeke) Flores*** is currently a director nominee and will become a member of our Board at the closing of this offering. Mr. Flores is Founder and CEO of Flying Concessions, an industry leading airport retail, food, and beverage concessionaire. Mr. Flores served on gubernatorial transition teams for Illinois Governor Pritzker in 2019 and Illinois Governor Rauner in 2015. Mr. Flores began his career at the accounting firm Arthur Andersen. He later joined Sara Lee and was a key manager in the successful spin-off of Hanesbrand, Inc. He later founded Flores Retail Corporation which focused on public-private partnerships. Mr. Flores is an operating partner of Centre Partners and a board member for Sabrosura, a portfolio company focused on the large and growing Latino foods category. He has also served on Boards of the Archdiocese of Chicago Catholic Schools, Museum of Science and Industry, DePaul University, and the Illinois State Board of Investment. Mr. Flores has been recognized by numerous institutes and publications and received the 2016 Latino Leaders Maestro Award for Entrepreneurship. He is currently a member of the Latino Corporate Directors Association and the Economic Club of Chicago. Mr. Flores holds a Bachelor of Science in Accounting from DePaul University and a Certificate in Corporate Governance from Northwestern University and completed the Stanford University Latino Entrepreneurship Initiative's Scaling Program. We believe Mr. Flores is qualified to serve on our Board due to his knowledge of accounting and finance and extensive business experience.

***Edward Lou*** is currently a director nominee and will become a member of our Board at the closing of this offering. Mr. Lou has over 30 years of experience as an internet entrepreneur and software investor. He is a Venture Partner at Mercury Fund and Corazon Capital. He is also co-founder of CodaPet, a network of veterinarians that provide end-of-life veterinary care at home. He is a co-founder of Shiftgig, the mobile app that connects hourly labor with business shifts. Mr. Lou is also co-founder and board director of One Goal, a non-profit that improves college acceptance and persistence by empowering urban high school students through a teacher-led three-year fellowship. Mr. Lou has received numerous awards for his business and philanthropic endeavors. He was recognized as one of Crain's Chicago Business' 40 Under 40 in 2010, as Chicago United's Business Leader of Color in 2011, as a Forbes Up and Comer in 2012, as Techweek100 in 2015, as Crain's Chicago Business' Tech 50 in 2016, as E&Y's Entrepreneur of the Year Midwest finalist

------

[**TABLE OF CONTENTS**](#TOC)

in 2016, and as an Edmund Hillary Fellow in 2022. Mr. Lou holds a Bachelor of Science in Mechanical Engineering and a Master of Business Administration in Finance from Washington University in Saint Louis. We believe Mr. Lou is qualified to serve on our Board due to his extensive business and leadership experience.

***Sharon Thomas Parrott*** is currently a director nominee and will become a member of our Board at the closing of this offering. Ms. Parrott is a retired Senior Vice President of External Relations and Global Responsibility for Chicago-based Adtalem Global Education (formerly DeVry Education Group) where she directed government and international relations, internal audit, corporate compliance, global communications, investor relations, and community outreach. She began her career as a Chicago Public Schools teacher and held faculty and administrative positions at several Chicago area colleges and universities. Ms. Parrott currently serves on the Boards of Trustees for Rasmussen University and Ross University Schools of Medicine and Veterinary Medicine. She formerly served on the boards of One Goal, a college access and success network and The College Board. She was named as 100 Women Making A Difference in Chicago by Crain's Chicago Business. Ms. Parrott holds a Bachelor of Arts and a Master of Arts in History from the University of Illinois. We believe Ms. Parrott is qualified to serve on our Board due to her understanding of the demographics in which we operate and the diversity in background and experience she provides to our Board.

#### Board Composition and Election of Directors
Upon the closing of this offering, our Board will consist of six directors. Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering also provides that our directors will be elected at each annual meeting of the stockholders to serve one-year terms. In addition, the Host Community Agreement requires that 40% of seats on our Board be reserved for Minorities or women.

The number of directors constituting our Board is permitted to be established only by a resolution adopted by a majority of our whole Board, and only our Board is authorized to fill vacant directorships, including newly created directorships. When considering whether directors have the experience, qualifications, attributes or skills, taken as a whole, to enable our Board to satisfy its oversight responsibilities effectively in light of our business and structure, the Board focuses primarily on each person's background and experience as reflected in the information discussed in each of the directors' individual biographies set forth above. We believe that our directors provide an appropriate mix of experience and skills relevant to the size and nature of our business.

#### Director Independence
Because our shares of stock are not, and following this offering will not be, listed on a national securities exchange, we are not required to maintain a board consisting of a majority of independent directors.

There are no family relationships among any of our directors, director nominees or executive officers.

#### Compensation committee interlocks and insider participation
None of our executive officers currently serve, or in the past fiscal year have served, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on our board of directors.

#### Code of business conduct and ethics
Bally's Corporation's Code of Business Conduct and Ethics applies to our directors, officers, and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

#### Limitations on Officers' and Directors' Liability and Indemnification Agreements
Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering limits our directors' and officers' liability to the fullest extent permitted under the Delaware General

------

[**TABLE OF CONTENTS**](#TOC)

Corporation Law. Consequently, our directors and officers will not be personally liable to us or holders of our stock for monetary damages for any breach of their respective fiduciary duties, except liability for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any breach of the director's or officer's duty of loyalty to us or holders of our stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any act or omission by a director or officer not in good faith or that involves intentional misconduct or a knowing violation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • with respect to a director, unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • any transaction from which the director or officer derived an improper personal benefit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an officer in any action by or in the right of the Company.

If Delaware law is amended to authorize corporate action further eliminating or limiting the personal liability of directors or officers, then the liability of our directors and officers will be eliminated or limited to the fullest extent permitted by Delaware law, as so amended. Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering does not eliminate a director's or officer's duty of care and, in appropriate circumstances, equitable remedies, such as injunctive or other forms of non-monetary relief, remain available under Delaware law. This provision also does not affect a director's or officer's responsibilities under any other laws, such as the federal securities laws or other state or federal laws. Under our second amended and restated certificate of incorporation and second amended and restated bylaws, we will also be empowered to enter into indemnification agreements with our directors, officers, employees and other agents and to purchase insurance on behalf of any person whom we are required or permitted to indemnify.

In addition, our second amended and restated bylaws to be in effect prior to the closing of this offering, require us to indemnify and hold harmless (except in limited circumstances), to the fullest extent permitted by the DGCL as it presently exists or may hereafter be amended, any director or officer of the Company (a "covered person") who was or is made or is threatened to be made a party to or is otherwise involved in any action, suit or proceeding, whether civil, criminal, administrative or investigative (a "Proceeding") by reason of the fact that he or she, or a person for whom he or she is the legal representative, is or was a director or officer of the Company or, while serving as a director or officer of the Company, is or was serving at the request of the Company as a director, officer, employee, trustee, member, manager or agent of another corporation or of a partnership, limited liability company, joint venture, trust, enterprise or non-profit entity, including service with respect to employee benefit plans, against all liability and loss suffered and expenses (including, without limitation, attorneys' fees, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) actually and reasonably incurred by such person in connection with any such Proceeding. Furthermore, our second amended and restated bylaws require us to the fullest extent not prohibited by applicable law pay the expenses (including attorneys' fees) incurred by any covered person, in defending any Proceeding in advance of its final disposition; provided, however, that such payment of expenses in advance of the final disposition of the Proceeding shall be made only upon receipt of an undertaking by the person to repay all amounts advanced if it should be ultimately determined by a final judicial decision of a court of competent jurisdiction from which there is no further right to appeal that the person is not entitled to be indemnified. In addition, we will enter into indemnification agreements with each of our current directors, officers and certain employees before the closing of this offering. These agreements provide for the indemnification and advancement of expenses of our directors, officers and certain employees for all reasonable expenses and liabilities incurred in connection with any action or proceeding brought against them by reason of the fact that they are or were our agents. We believe that these provisions in our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering and second amended and restated bylaws to be in effect prior to the closing of this offering and indemnification agreements are necessary to attract and retain qualified persons as directors and officers. Furthermore, we have obtained director and officer liability insurance to cover liabilities our directors and officers may incur in connection with their services to us. This description of the limitation of liability and indemnification provisions of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, our second amended and restated bylaws to be in effect prior to the closing of this offering and our indemnification agreements is qualified in its entirety by reference to these documents, each of which is attached as an exhibit to this registration statement.

------

[**TABLE OF CONTENTS**](#TOC)

The limitation of liability and indemnification and advancement of expenses provisions in our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering and second amended and restated bylaws to be in effect prior to the closing of this offering may discourage holders of our stock from bringing a lawsuit against directors for breach of their fiduciary duties. They may also reduce the likelihood of derivative litigation against directors and officers, even though an action, if successful, might benefit us and our stockholders. Holders of our stock may be harmed to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. There is no pending litigation or proceeding naming any of our directors or officers as to which indemnification is being sought, nor are we aware of any pending or threatened litigation that may result in claims for indemnification by any director or officer.

------

[**TABLE OF CONTENTS**](#TOC)

#### SUBORDINATED LOANS
In connection with this offering and the private placement, we intend to enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo pursuant to which Bally's Chicago HoldCo, as lender, will make Subordinated Loans to us, as borrower, in various tranches and in varying amounts based on the total number of shares sold in this offering and the private placement. None of the new investors purchasing Class A Interests in this offering and the private placement will be a party to the amended and restated subordinated loan agreement, or a borrower or lender under the Subordinated Loans. We intend to enter into such amended and restated subordinated loan agreement for the purpose of providing funding to support an investment in our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests by prospective public shareholders by reducing the purchase price required to be funded by such prospective investors. The following is a summary of the material terms of such subordinated debt. The summary is qualified in its entirety by reference to the full text of the amended and restated subordinated loan agreement pursuant to which the debt is being incurred.

***General***. In connection with this offering and the private placement, we intend to enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo pursuant to which we intend to incur $79.2 million aggregate amount of Subordinated Loans. For each Class A-1 Interest sold in this offering and the private placement, we will incur $24,750 of Subordinated Loans from Bally's Chicago HoldCo. For each Class A-2 Interest sold in this offering and the private placement, we will incur $22,500 of Subordinated Loans from Bally's Chicago HoldCo. For each Class A-3 Interest sold in this offering and the private placement, we will incur $20,000 of Subordinated Loans from Bally's Chicago HoldCo. We will not incur any Subordinated Loans or other debt in connection with the issuance of the Class A-4 Interests or the Class B Interests. The Subordinated Loans will be non-recourse to the holders of our Class A Interests; however, the value of the Class A Interests (other than the Class A-4 Interests) at any given time will be linked to the portion of the Subordinated Loans as of such time.

Based upon an aggregate offering size of $7.4 million, which is the amount set forth on the cover page of this prospectus, and an aggregate size of $32.0 million of the private placement, we expect to enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo, governing the Subordinated Loans in the following amounts (which, in the aggregate, equal the Pre-IPO Capital Contribution plus the subordinated loans incurred in connection with the initial Class A Interest issuance):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $62,790,750 of Class A-1 Subordinated Loans, based on $551,750 of Class A-1 Interests sold in this offering, $14,500 Class A-1 Interests sold in the concurrent private placement, and $68,000 Class A-1 Interests sold in the initial Class A Interest issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $9,585,000 of Class A-2 Subordinated Loans, based on $352,500 of Class A-2 Interests sold in this offering, $10,000 Class A-2 Interests sold in the concurrent private placement, and $702,500 Class A-2 Interests sold in the initial Class A Interest issuance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • $6,840,000 of Class A-3 Subordinated Loans, based on $825,000 of Class A-3 Interests sold in this offering, $30,000 Class A-3 Interests sold in the concurrent private placement, and $855,000 Class A-3 Interests sold in the initial Class A Interest issuance.

Our obligation to make payments of principal and interest on the Subordinated Loans is subordinate and junior in right of payment to all of our senior indebtedness and other general creditors and certain other types of indebtedness specified in the amended and restated subordinated loan agreement.

The Subordinated Loans will have no maturity date. In the event of a sale or dissolution of Bally's Chicago OpCo's, after payment or provision for payment of Bally's Chicago OpCo's debt and liabilities, including any amounts due under Bally's Chicago OpCo's senior indebtedness, each LLC Interest will be entitled to receive a proportionate interest in the net assets of Bally's Chicago OpCo. In turn, the interests in the net assets of Bally's Chicago OpCo received by Bally's Chicago, Inc. will be used to pay Bally's Chicago, Inc.'s debts and liabilities, including any amounts under any senior indebtedness and the Subordinated Loans owed by us at the time of such sale. Each Class A Interest will be entitled to receive a proportionate interest in the net assets remaining for distribution to holders of Class A Interests. Class B Interests hold no economic interest in Bally's Chicago, Inc.

------

[**TABLE OF CONTENTS**](#TOC)

***Interest.*** The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly. Principal and interest payments on the Subordinated Loans will be paid by us by withholding discretionary distributions that would otherwise be made by us to the investors with the corresponding Class A Interests, and applying such distributions to reduce amounts outstanding under the applicable Subordinated Loans. In connection with each such distribution until the Subordinated Loans are repaid in full, we will withhold an amount equal to 100.0% of each such future distribution, which will be applied first to any outstanding and unpaid interest remaining on the Subordinated Loans and thereafter to any outstanding and unpaid principal remaining on the Subordinated Loans. Any interest payments that are not able to be paid in cash on a quarterly basis will be added to the principal balance of the Subordinated Loans. Upon full repayment of the corresponding Subordinated Loans, holders of our Class A Interests will receive 100% of any discretionary distributions payable to such holders with respect to their Class A Interests.

In the event discretionary distributions are not sufficient to repay the balance on the Subordinated Loans prior to a sale or dissolution of the Company and/or our wholly-owned subsidiary, Bally's Chicago OpCo, any proceeds received on account of the sale of the investor's shares will be applied first to any outstanding and unpaid interest remaining on the Subordinated Loans and thereafter to any outstanding and unpaid principal remaining on the Subordinated Loans.

***Repayment.*** We may, at our option, repay the Subordinated Loans, in whole or in part, upon ten days' notice to Bally's at a redemption price equal to the principal amount thereof, plus accrued and unpaid interest thereon.

***Covenants.*** The amended and restated subordinated loan agreement will contain customary covenants that, among other things, will limit our ability to merge, consolidate or sell all or any substantial part of our consolidated assets and, subject to certain conditions, pay dividends. In addition, the Subordinated Loans will provide that we may not consolidate with or merge into any other person or entity, or convey or transfer our properties and assets substantially as an entirety to any person or entity, unless certain conditions specified in the amended and restated subordinated loan agreement are satisfied.

***Events of Default.*** An event of default under the subordinated loan agreements will occur, and the payment of principal of the subordinated debt may be accelerated, only upon the occurrence and continuation of certain events of insolvency of the Company that are specified in the subordinated loan agreements (a "Subordinated Debt Event of Default"). In the case of a Subordinated Debt Event of Default, unless the principal of the subordinated debt already shall have become due and payable, Bally's may declare the principal amount of the subordinated debt to be due and payable immediately.

------

[**TABLE OF CONTENTS**](#TOC)

#### EXECUTIVE COMPENSATION
Our named executive officers for fiscal year 2024 are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Ameet Patel, President and Director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • H.C. Charles Diao, Chief Financial Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Kim M. Barker, Secretary and Director.

We were incorporated in May 2022 to operate as a subsidiary of Bally's Corporation for purposes of building and operating an entertainment destination resort in Chicago, Illinois. As described in "Management — Executive Officers, Directors and Director Nominees," Mr. Patel also serves as Senior Vice President & Regional General Manager — West of Bally's Corporation, Mr. Diao also serves as Senior Vice President, Finance and Corporate Treasurer of Bally's Corporation and Ms. Barker serves as Executive Vice President and Chief Legal Officer of Bally's Corporation, each of whom respectively received compensation during fiscal 2024 in that capacity. Although each named executive officer's services to us comprises only a portion of the total services such executive provides to Bally's Corporation and its subsidiaries, we have included all compensation paid by Bally's Corporation and its subsidiaries to our named executive officers during the applicable fiscal year(s) in the following table rather than that portion attributable to such executive's services to us during such year(s).

#### Summary Compensation Table
The following table sets forth information concerning the compensation of our named executive officers for the years ended December 31, 2024 and December 31, 2023, as applicable.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position**  | **Year**  | **Salary <br> ($)<sup>(1)</sup>**  | **Stock <br> Awards <br> ($)<sup>(2)</sup>**  | **Non-Equity <br> Incentive Plan <br> Compensation <br> ($)<sup>(3)</sup>**  | **All Other <br> Compensation <br> ($)<sup>(4)</sup>**  | **Total**  |
|  Ameet Patel <br> *President and Director*  | 2024 | 500000 | 32344 |  | 62033 | 594377 |
|  Ameet Patel <br> *President and Director*  | 2023 | 462740 | 60239 | 312627 | 33214 | 868820 |
|  H.C. Charles Diao <br> *Chief Financial Officer*  | 2024 | 500000 | 118356 |  | 23720 | 642076 |
|  Kim M. Barker <br> *Secretary and Director*  | 2024 | 550000 | 87661 |  | 19004 | 656665 |

---

(1) Amount reflects the actual base salary paid to the executive in respect of the applicable fiscal year, taking into account any base salary increases.

(2) Amount reflects the grant date fair value of performance stock units ("PSUs"), granted during the applicable fiscal year with respect to Bally's Corporation common stock as computed under ASC 718. With respect to the PSUs, the grant date fair value is calculated based on the probable outcome of the performance result (i.e., target level of performance) for the applicable performance period. The fair value of the PSUs was determined using the share price of Bally's Corporation common stock on the date that the applicable performance targets were set for the applicable performance period. The amount does not necessarily reflect the actual amount that was paid to, or may be realized by, the NEO for the fiscal year reflected. Share-based compensation expense is recognized based on the target number of shares of common stock that may be earned pursuant to the PSU award and Bally's Corporation stock price on the date of grant, and expense is subsequently adjusted based on actual and forecasted performance compared to planned targets.

(3) Amount reflects the annual performance bonus earned with respect to the applicable fiscal year under the Bally's Corporation annual bonus program, as described below. The annual performance bonus earned with respect to fiscal year 2024 has not yet been determined but is expected to be determined in March 2025.

------

[**TABLE OF CONTENTS**](#TOC)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(4) For 2024, amounts reflect: (i) For Mr. Patel, (A) contributions for the group term life insurance premiums and AD&D policy in the amount of $930, (B) supplemental executive disability benefits in the amount of $810, (C) a Bally's Corporation-paid matching contribution to Mr. Patel's 401(k) plan account of $11,500, (D) a tax gross-up in the amount of $11,070 associated with the provision to Mr. Patel of certain health benefits by Bally's Corporation, and (E) a retroactive salary payment to Mr. Patel of $37,723 to reflect his retroactive salary increase to $500,000 effective as of September 2023; (ii) For Mr. Diao, (A) contributions for the group term life insurance premiums and AD&D policy in the amount of $907, (B) supplemental executive disability benefits in the amount of $810, (C) a Bally's Corporation-paid matching contribution to Mr. Diao's 401(k) plan account of $11,500, and (D) a tax gross-up in the amount of $10,503 associated with the provision to Mr. Diao of certain health benefits by Bally's Corporation; and (iii) for Ms. Barker, (A) contributions for the group term life insurance premiums and AD&D policy in the amount of $1,395, (B) supplemental executive disability benefits in the amount of $810, (C) a Bally's Corporation-paid matching contribution to Ms. Barker's 401(k) plan account of $10,085, and (D) a tax gross-up in the amount of $6,714 associated with the provision to Ms. Barker of certain health benefits by Bally's Corporation.

#### Base Salary
Our named executive officers receive a base salary from Bally's Management Group, LLC to compensate them for services rendered to Bally's Corporation and its subsidiaries, including Bally's Chicago. The base salary payable to our named executive officers is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role and responsibilities.

For 2024, Messrs. Patel and Diao each received a base salary of $500,000 and Ms. Barker received a base salary of $550,000.

The actual salaries paid to our named executive officers for 2024 is set forth above in the Summary Compensation Table in the column entitled "Salary," and have not been prorated to reflect the applicable portion of the executives' services attributable to Bally's Chicago.

#### 2024 Bonus
Our named executive officers are eligible to earn an annual performance-based bonus in respect of 2024, with Messrs. Patel and Diao having a target bonus opportunity equal to 75% of his annual base salary and Ms. Barker having a target bonus opportunity of 100% of her base salary.

Payouts under the Bally's Corporation annual bonus program for 2024 were based on pre-determined adjusted EBITDAR goals. Bally's Corporation has not yet determined actual achievement of the EBITDAR goals for 2024, though it is expected to determine performance achievement as well as annual cash bonus payouts in March 2025.

#### Equity Compensation
In connection with Mr. Patel's appointment by Bally's Corporation as Senior Vice President and General Manager — West, on October 25, 2021, Bally's Corporation granted Mr. Patel 9,062 target PSUs with respect to its common stock under the Bally's Corporation 2021 Equity Incentive Plan. The PSUs are eligible to be earned and vest based on the achievement of certain performance goals over three separate one-year performance periods ending December 31, 2022, December 31, 2023 and December 31, 2024, in each case subject to Mr. Patel's continued service with Bally's Corporation through the January 1 following the end of the applicable performance period, and are settled in Bally's Corporation common stock.

In addition, Mr. Patel received a grant of time-based restricted stock units, or RSUs, from Bally's Corporation on October 25, 2021, which award vests in three equal annual installments on each of the first three anniversaries of the vesting commencement date of December 31, 2021, subject to continued service through the applicable vesting dates, and which are settled in Bally's Corporation common stock.

In 2023, Mr. Diao was granted 28,125 RSUs with respect to Bally's Corporation common stock vesting in three installments on each on each March 1, of 2024, 2025 and 2026, subject to continued service through the applicable vesting dates, subject to continued employment, as well as PSUs with respect to Bally's

------

[**TABLE OF CONTENTS**](#TOC)

Corporation common stock eligible to be earned and vest based on the achievement of certain performance goals over three separate one-year performance periods. For 2024, Mr. Diao was granted PSUs with respect to a target of 11,051 PSUs eligible to be earned for the 2024 performance period.

In 2023, Ms. Barker was granted 24,554 time-vesting RSUs with respect to Bally's Corporation common stock which are scheduled to vest in three equal installments on each March 1, of 2024, 2025 and 2026, subject to continued service through the applicable vesting dates, as well as PSUs with respect to Bally's Corporation common stock eligible to be earned and vest based on the achievement of certain performance goals over three separate one-year performance periods. In 2024, Ms. Barker was granted PSUs with respect to a target of 8,185 PSUs eligible to be earned for the 2024 performance period.

With respect to the RSUs granted to our named executive officers, upon termination of employment due to death or disability, the portion of the executive's RSUs that would have vested on the next applicable vesting date will accelerate and vest. In the event of a "change in control" and the acquiring or surviving entity provides a replacement award in connection with a change in control, the vesting of the executive's RSUs will only accelerate upon the "involuntary termination" of employment (each as defined in the applicable Bally's Corporation equity plan or award agreement) within two years following the change in control. RSUs will automatically vest in full upon a change in control if the acquiring or surviving entity does not provide a replacement award.

Upon a termination of employment due to death, any PSUs earned for previously completed performance periods will vest at the "target" performance levels, unvested PSUs attributable to the current performance period will vest at the target level on a pro-rata basis (based upon the number of days of service during the applicable performance period), and any unvested PSUs for future performance periods will be forfeited. In the event of a termination of employment by the Company without "cause" or due to the executive's disability, or a termination for "good reason," all PSUs (including for prior, current and future performance periods) will vest based on actual performance. In the event of a change in control, the PSUs will vest based on actual performance.

The PSUs attributable to each performance period will have their own grant date (determined each year based on the date on which the Bally's Corporation Compensation Committee establishes the applicable performance goals for such period, which serves as the date on which such PSUs will be effectively granted for accounting purposes). As a result, the values of the PSUs reflected in the "Stock awards" column of the Summary Compensation Table for 2024 reflects the grant date fair value for only fiscal year 2024 and were not prorated to reflect solely the portion of the executive's services attributable to Bally's Chicago.

#### Employee Benefits
Our named executive officers are eligible to participate in Bally's Corporation's health and welfare plans, including medical, dental and vision benefits, long-term disability insurance and life insurance. Bally's Corporation also sponsors a 401(k) retirement plan for its employees, including our named executive officers, who satisfy certain eligibility requirements. For the 2024 fiscal year, Bally's Corporation made matching contributions of $11,500 in respect of Messrs. Patel's and Diao's 401(k) plan accounts and $10,085 in respect of Ms. Barker's 401(k) plan account.

In addition, certain key employees of Bally's Corporation (including our named executive officers) are eligible to receive supplemental executive welfare plan benefits. Our named executive officers are also eligible to receive tax-gross ups in respect of health benefits provided to the executive by Bally's Corporation.

In addition, Mr. Patel received a retroactive salary payment of $37,723 in 2024 to reflect his retroactive salary increase to $500,000 effective as of September 2023, which was pursuant to the Patel Employment Agreement (as described below).

The amount of such benefits paid by Bally's Corporation on behalf of our named executive officers is set forth above in the Summary Compensation Table in the column entitled "All Other Compensation."

------

[**TABLE OF CONTENTS**](#TOC)

#### Outstanding Equity Awards at Fiscal Year-End
The following table summarizes the number of shares of Bally's Corporation common stock underlying outstanding equity incentive plan awards for each named executive officer as of December 31, 2024. Although our named executive officers received a portion of his or her awards in connection with his or her service with Bally's Corporation, all such awards are included in the table below rather than the portion attributable to the executive's service with us. All awards reflected in the table below are with respect to Bally's Corporation common stock.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Stock Awards**  | **Stock Awards**  | **Stock Awards**  | **Stock Awards**  | **Stock Awards**  |
| **Name**  | **Number of <br> Shares or <br> Units of <br> Stock That <br> Have Not <br> Vested (#)**  | **Market <br> Value of <br> Shares or <br> Units of <br> Stock That <br> Have Not <br> Vested <br> ($)<sup>(1)</sup>**  | **Equity <br> Incentive <br> Plan <br> Awards: <br> Number of <br> Unearned <br> Shares, Units <br> or Other <br> Rights That <br> Have Not <br> Vested (#)**  | **Equity <br> Incentive Plan <br> Awards: <br> Market or <br> Payout Value of <br> Unearned <br> Shares, Units or <br> Other Rights <br> That Have Not <br> Vested <br> ($)<sup>(1)</sup>**  |
| Ameet Patel  |  |  | &nbsp;&nbsp;3020<sup>(2</sup>) | 54028 |
| H.C. Charles Diao  | 22070<sup>(3</sup>) | 394832 | &nbsp;&nbsp;11051<sup>(2</sup>) | 197702 |
| Kim M. Barker  | 16369<sup>(3</sup>) | 292842 | &nbsp;&nbsp;8185<sup>(2</sup>) | 146430 |

---

(1) The value shown was calculated by multiplying the number of shares shown in the table by the closing price of Bally's Corporation common stock on December 31, 2024, or $17.89.

(2) Represents target PSUs granted to the executive which are attributable to the 2024 performance period.

(3) The RSUs vest in three equal installments on each March 1, of 2024, 2025 and 2026, subject to continued employment through the applicable vesting dates.

#### Employment Agreements

#### Patel Employment Agreement
Effective as of October 1, 2023, Mr. Patel entered into an employment agreement with Bally's Management Group, LLC providing for his continued employment as Senior Vice President & Regional General Manager — West (the "Patel Employment Agreement"). The Patel Employment Agreement provides for a term through December 31, 2024.

Pursuant to the Patel Employment Agreement, Mr. Patel is entitled to an annual base salary of $500,000 and is eligible to earn an annual cash performance-based bonus with a target bonus opportunity of 75% of his annual base salary.

In the event Mr. Patel's employment is terminated by his employer without "justifiable cause" (as defined in the Patel Employment Agreement), he will be entitled to receive, subject to his execution and non-revocation of a separation and general release agreement, (i) any earned but unpaid annual bonus for the year prior to the year of termination, (ii) six months continued base salary, payable in accordance with ordinary payroll practices, and (iii) an annual bonus with respect to the fiscal year in which his termination occurs, based on actual achievement of any applicable performance goals and prorated for the number of days the executive was employed during that fiscal year, payable at the same time bonuses are payable to other senior executives generally (a "Pro-Rata Bonus"); provided, that if such termination occurs within six months of a change-in-control (as defined in the Patel Employment Agreement), Mr. Patel will receive the foregoing benefits other than he will instead receive continued base salary payments for the greater of (a) twelve months and (b) the amount of time remaining during the term.

In the event Mr. Patel's employment terminates by reason of his death or disability, he or his estate will be entitled to receive a Pro-Rata Bonus.

------

[**TABLE OF CONTENTS**](#TOC)

The Patel Employment Agreement provides that Mr. Patel will be subject to perpetual non-disparagement obligations.

We expect to enter into an amendment to the Patel Employment Agreement with Mr. Patel including, among other things, an extension of the term of the Patel Employment Agreement.

#### Diao Employment Agreement
Effective as of May 8, 2023, Mr. Diao entered into an employment agreement with Bally's Management Group, LLC providing for his employment as Senior Vice President, Finance and Treasurer (the "Diao Employment Agreement"). The Diao Employment Agreement provides for a term through December 31, 2026, subject to automatic successive one-year renewals unless either party provides at least 60 days' written notice of non-extension to the other party.

Pursuant to the Diao Employment Agreement, Mr. Diao is entitled to an annual base salary of $500,000 and is eligible to earn an annual cash performance-based bonus with a target bonus opportunity of 75% of his annual base salary.

In the event Mr. Diao's employment is terminated by his employer without "justifiable cause" (as defined in the Diao Employment Agreement), he will be entitled to receive, subject to his execution and non-revocation of a separation and general release agreement, (i) any earned but unpaid annual bonus for the year prior to the year of termination, (ii) twelve months continued base salary, payable in accordance with ordinary payroll practices, (iii) a Pro-Rata Bonus and (iv) a monthly payment equivalent to the approximate monthly COBRA premium which may be used to purchase continuation coverage benefits; provided, that if such termination occurs within twelve months of a change-in-control (as defined in the Diao Employment Agreement), Mr. Diao will receive the foregoing benefits other than he will instead receive continued base salary payments for the greater of (a) twenty-four months and (b) the amount of time remaining during the term.

In the event Mr. Diao's employment terminates by reason of his death or disability, he or his estate will be entitled to receive a Pro-Rata Bonus.

The Diao Employment Agreement provides that Mr. Diao will be subject to perpetual non-disparagement obligations.

#### Barker Employment Agreement
The employment agreement entered into with Ms. Barker by Bally's Management Group, LLC (f/k/a Twin River Management Group, Inc.**)** was effective as of December 7, 2022 and provides for a term that runs until December 31, 2024, an annual base salary equal to $550,000, which will be reviewed annually, and eligibility to receive a target annual cash bonus equal to 100% of her base salary.

Upon a termination of employment by her employer without "justifiable cause" or by Ms. Barker for "good reason," (each as defined in the Barker Employment Agreement), Ms. Barker will be entitled to receive: (i) any earned but unpaid annual bonus for the year prior to the year of termination, (ii) a Pro-Rata Bonus, and (iii) continued payment of annual base salary for a period of 12 months In addition, during the applicable severance period, Ms. Barker will receive a monthly payment equivalent to the approximate monthly COBRA premium which may be used to purchase continuation coverage benefits.

In the event Ms. Barker's employment terminates by reason of her death or disability, she or her estate will be entitled to receive a Pro-Rata Bonus.

The Barker Employment Agreement provides that Ms. Barker will be subject to 12-month post-termination non-compete and non-solicit of customers and employees covenants.

We expect to enter into an amendment to the Barker Employment Agreement with Ms. Barker including, among other things, an extension of the term of the Barker Employment Agreement.

------

[**TABLE OF CONTENTS**](#TOC)

#### Director Compensation

#### 2024 Director Compensation Table

---

| | | |
|:---|:---|:---|
| **Name**  | **Fees Earned or <br> Paid in Cash ($)**  | **Total ($)**  |
| Wanda Wilson<sup>(1)</sup>  | 26667 | 26667 |

---

(1) Ms. Wilson commenced serving on our board of directors effective November 1, 2024. Ms. Wilson, who also serves as a director of Bally's Corporation, holds 7,686 shares of restricted stock with respect to Bally's Corporation.

Effective as of this offering, each of our non-employee directors will be eligible to receive an annual cash retainer for their service of $80,000 (other than Ms. Wilson, who became eligible to receive an annual cash retainer of $160,000 in connection with the commencement of her service in 2024).

------

[**TABLE OF CONTENTS**](#TOC)

#### TRANSACTIONS WITH RELATED PERSONS
The following is a description of transactions since our incorporation in May 2022, to which we have been a party, in which the amount involved exceeds $120,000, and in which any of our directors, executive officers or holders of more than 5% of our capital stock, or an affiliate or immediate family member thereof, had or will have a direct or indirect material interest, other than compensation, termination and change in control agreements, which are described under "*Executive Compensation*." We believe that all of the transactions described below were made on terms no less favorable to us than could have been obtained from unaffiliated third parties.

#### Permanent Services Agreement
In January 2023, Bally's Chicago OpCo and certain subsidiaries of Bally's Corporation entered into the Permanent Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Permanent Services Agreement, BMG agreed to provide us and certain subsidiaries of Bally's Corporation with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing upon the opening of our permanent casino and resort. Pursuant to the Permanent Services Agreement, we agreed to pay BMG an annual fee equal to the salaries, burden, overhead and other operating costs for providing such services based on our share of those costs calculated by reference to an appropriate common-size metric plus 6%, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is one year, beginning upon the opening of our permanent casino and resort, and will be automatically renewed for successive one-year terms, unless either party serves on the other a written notice of termination.

#### Temporary Services Agreement
In August 2023, Bally's Chicago OpCo entered into the Temporary Services Agreement with BMG, a subsidiary of Bally's Corporation. Pursuant to the Temporary Services Agreement, BMG agreed to provide us with general business support services, including services relating to external reporting obligations, internal audit, regulatory filings, design and construction, business development, human resources, tax, accounting, treasury and capital related, risk management, legal, finance and marketing related to our temporary casino. Pursuant to the Temporary Services Agreement, we agreed to pay BMG a monthly fee equal to $5.0 million, which fee may be reviewed and adjusted by the parties from time to time to reflect current market rates for such services and as required by the Code. The initial term of the agreement is two years, beginning August 30, 2023, and will be automatically renewed for successive one-year terms for as long as our temporary casino is licensed to continue operations, unless BMG serves on Bally's Chicago OpCo a written notice of termination. The Temporary Services Agreement shall automatically terminate when our temporary casino permanently closes and our permanent casino and resort opens to the public. For the Successor period from February 8 to March 31, 2025, the Predecessor period from January 1 to February 7, 2025, and the year ended December 31, 2024 (Predecessor), the fee paid to BMG in accordance with the Temporary Services Agreement was $8.9 million, $6.1 million, and $60.0 million, respectively.

#### Guarantee of Bally's Corporation's Obligations
We and Bally's Chicago HoldCo, our direct parent and the entity that holds 2,141 of our Class A-4 Interests and all of our Class B Interests, as well as certain other current and future unrestricted subsidiaries of Bally's Corporation under its credit facilities and bond indentures, have guaranteed Bally's Chicago OpCo's obligations under the GLP Lease Agreement and GLP Development Agreement; provided, however, that at such time as Bally's Chicago OpCo becomes a restricted subsidiary under Bally's Corporation's credit facilities and bond indentures, (i) Bally's Corporation will be required to guarantee the GLP Lease Agreement and GLP Development Agreement and (ii) following the delivery of such guarantee, the guarantees of the GLP Lease Agreement and GLP Development Agreement provided by Bally's Chicago HoldCo and such other unrestricted subsidiaries of Bally's Corporation shall terminate.

In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation

------

[**TABLE OF CONTENTS**](#TOC)

and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation and its subsidiaries upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; provided that, at any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's Corporation's revolving credit facilities outstanding at such time).

Furthermore, in March 2025, we and Bally's Chicago OpCo entered into the Guarantee Agreement with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional obligations, including, without limitation, indebtedness and lease obligations that Bally's Corporation or its subsidiaries enter into at any time in the future.

#### Pre-IPO Intercompany Notes
We are currently dependent on Bally's for a majority of our working capital and financing requirements. As of March 31, 2025 (Successor), we and Bally's Chicago OpCo owe $642.4 million in Pre-IPO Intercompany Notes to Bally's and various of its subsidiaries. The Pre-IPO Intercompany Notes have borne and bear interest at a rate equal to 0.0% per annum and are scheduled to mature on December 31, 2025, but all portions that remain outstanding are expected to be extinguished upon the closing of this offering.

#### Pre-IPO Capital Contribution
Prior to the closing of this offering, Bally's Chicago HoldCo will assign to Bally's Chicago Inc. $62.7 million of Pre-IPO Intercompany Notes owed to it by Bally's Chicago OpCo as the Pre-IPO Capital Contribution. The amount of the Pre-IPO Capital Contribution will equal the aggregate amount of Subordinated Loans that we will enter into based on the amount of the various classes of Class A Interests sold in this offering and the concurrent private placements.

#### IPO Expenses Note
In connection with the closing of this offering, we intend to pay the placement agent fees and offering and private placement expenses payable by us with the proceeds we receive from Class A investors in this offering and the concurrent private placements. In turn, we intend to issue Bally's Chicago OpCo the IPO Expenses Notes in an amount equal to approximately $17.5 million, which is equal to the placement agent fees and offering and private placement expenses payable by us, to cover the difference in the amount we will owe Bally's Chicago OpCo in connection with the purchase of the LLC Interests. Bally's Chicago OpCo intends to assign the IPO Expenses Note to Bally's Chicago HoldCo in exchange for the cancellation of certain indebtedness owed by Bally's Chicago OpCo to Bally's Chicago HoldCo. The IPO Expenses Note will bear interest at a rate equal to 11.0% per annum and will mature on December 31, 2034.

#### Intercompany Notes Cancellation
We intend to use all of the net proceeds from this offering, together with the proceeds from the concurrent private placements, the Subordinated Loans and the IPO Expenses Note, to purchase 4,086 LLC Interests directly from Bally's Chicago OpCo at a price per unit equal to the stated value of $25,000 per Class A Interest, which is equal to the amount paid by investors in this offering plus the corresponding amount of Subordinated Loans attributable to each Class A Interest. The 4,086 LLC Interests we purchase, together with the 3,326 LLC Interests we currently hold, will represent 19.8% of the economic interest in Bally's Chicago OpCo and the Class A Interests to be held by Bally's Chicago HoldCo and the public stockholders upon the closing of this offering will represent 19.8% of the voting power and 100.0% of the economic interest in Bally's Chicago, Inc.

------

[**TABLE OF CONTENTS**](#TOC)

Bally's Chicago OpCo intends to use the proceeds it receives from the sale of LLC Interests to us to repay $102.2 million outstanding aggregate amount under the Pre-IPO Intercompany Notes.

#### Indemnification Agreements
Our second amended and restated bylaws to be in effect prior to the closing of this offering provides that we will indemnify and advance expenses to our directors and officers to the fullest extent permitted under the Delaware General Corporation Law. In addition, we will enter into separate indemnification agreements with each of our directors and executive officers. For more information regarding these agreements, see "*Management — Limitations on Officers' and Directors' Liability and Indemnification Agreements*."

#### Subordinated Loans
In connection with this offering, we intend to enter into an amended and restated subordinated loan agreement with Bally's Chicago HoldCo pursuant to which Bally's Chicago HoldCo, as lender, will make subordinated loans to us, as borrower, in various tranches and in varying amounts based on the total number of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests sold in this offering. None of the new investors purchasing Class A Interests in this offering will be a party to the amended and restated subordinated loan agreement, or a borrower or lender under the Subordinated Loans. For each Class A-1 Interest sold in this offering and the concurrent private placements, we will incur $24,750 of Class A-1 Subordinated Loans. For each Class A-2 Interest sold in this offering and the concurrent private placements, we will incur $22,500 of Class A-2 Subordinated Loans. For each Class A-3 Interest sold in this offering and the concurrent private placements, we will incur $20,000 of Class A-3 Subordinated Loans. We will not incur any Subordinated Loans or other debt in connection with the issuance of the Class A-4 Interests or the Class B Interests. Pursuant to the terms of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering, so long as there are Subordinated Loans outstanding that are attributable to each of our various Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, any cash available for distribution that would otherwise be paid to holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, as applicable, will be required to be used for the repayment of principal and accrued interest on the corresponding Subordinated Loans owed by us. The Subordinated Loans will bear interest at a rate equal to 11.0% per annum, compounding quarterly. The Subordinated Loans will be non-recourse to the holders of our Class A Interests. See "*Subordinated Loans*."

#### Stockholders Agreement
In March 2025, we and Bally's Chicago HoldCo entered into the Stockholders Agreement, pursuant to which for so long as Bally's Chicago HoldCo beneficially owns at least 50% of the aggregate number of our stock outstanding, certain actions by us or any of our subsidiaries, including Bally's Chicago OpCo, will require the prior written consent of Bally's Chicago HoldCo. The actions that will require prior written consent include: (i) change in control transactions of our company or any of our subsidiaries, including Bally's Chicago OpCo, (ii) acquiring or disposing of assets or any business enterprise or division thereof for consideration in excess of $50.0 million in any single transaction or series of transactions, (iii) increasing or decreasing the size of our board of directors, (iv) initiating any liquidation, dissolution, bankruptcy, or other insolvency proceeding involving us or any of our subsidiaries, including Bally's Chicago OpCo, and (v) any transfer, issue, sale, or disposition by us of any shares of stock, other equity securities, equity-linked securities, or securities that are convertible into equity securities of us or our subsidiaries to any person or entity that is a non-strategic financial investor in a private placement transaction or series of transactions.

#### Support Letter
In January 2025, we obtained a letter of support from Bally's Corporation, pursuant to which Bally's Corporation commits to fund all of our operating, investing, and financing activities through at least December 31, 2026 and further commits not to make any decision or action that would reasonably be expected to negatively affect our ability to continue as a going concern through at least December 31, 2026.

------

[**TABLE OF CONTENTS**](#TOC)

#### Existing Subordinated Loans
In March 2025, we entered into a subordinated loan agreement with Bally's Chicago HoldCo, pursuant to which Bally's Chicago HoldCo made subordinated term loans (the "Existing Subordinated Loans") to us totaling $16.5 million at an annual interest rate of 11.0%, compounded quarterly, with no maturity date. The Existing Subordinated Loans were funded through the Bally's Chicago HoldCo's transfer of 659 Class A-4 shares to us.

#### Procedures for Related Party Transactions
All future material affiliated transactions and loans will be made or entered into on terms that are no less favorable to us than those that can be obtained from unaffiliated third parties. In addition, all future material affiliated transactions and loans, and any forgiveness of loans, must be approved by our Board.

#### Bally's Chicago OpCo Amended and Restated Limited Liability Company Agreement
As Bally's Chicago, Inc. holds LLC Interests in Bally's Chicago OpCo and will continue to be the sole managing member of Bally's Chicago OpCo after this offering and the concurrent private placements, Bally's Chicago, Inc. will have the obligation to absorb losses and receive benefits from Bally's Chicago OpCo, and consolidate the financial results of Bally's Chicago OpCo and, through Bally's Chicago OpCo and its operating entity subsidiaries, conduct our business.

Pursuant to the amended and restated limited liability company agreement of Bally's Chicago OpCo, Bally's Chicago, Inc. has the right to determine when distributions will be made to holders of LLC Interests and the amount of any such distributions, taken into consideration any applicable limitations and restrictions. See "*Dividend Policy*." If a distribution is authorized, such distribution will be made to the holders of LLC Interests pro rata in accordance with the percentages of their respective LLC Interests held.

The holders of LLC Interests, including Bally's Chicago, Inc., will incur U.S. federal, state and local income taxes on their allocable share of any taxable income of Bally's Chicago OpCo. Net profits and net losses of Bally's Chicago OpCo will generally be allocated to its holders (including Bally's Chicago, Inc.) pro rata in accordance with the percentages of their respective LLC Interests, except as otherwise required by law. The amended and restated limited liability company agreement of Bally's Chicago OpCo provides for cash distributions, which we refer to as "tax distributions," to the holders of LLC Interests. Generally, these tax distributions will be computed based on our estimate of the net taxable income of Bally's Chicago OpCo allocated to the holder of LLC Interests that receives the greatest proportionate allocation of income multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate prescribed for a corporation residing in Illinois. Tax distributions will be pro rata as among the LLC Interests.

------

[**TABLE OF CONTENTS**](#TOC)

#### PRINCIPAL STOCKHOLDERS
The following table sets forth information regarding the beneficial ownership of our shares of stock as of March 31, 2025, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • each of our directors and director nominees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • each of our named executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • each person, or group of affiliated persons, who is known by us to beneficially own more than 5% of our shares of stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • all of our executive officers, directors and director nominees as a group.

Beneficial ownership is determined in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities and include our shares of stock issuable upon the exercise of options that are immediately exercisable or exercisable within 60 days after March 31, 2025. Except as otherwise indicated in the footnotes to the table below, all of the shares of stock reflected in the table are our shares of stock and all persons listed below have sole voting and investment power with respect to the shares of stock beneficially owned by them, subject to applicable community property laws. The information is not necessarily indicative of beneficial ownership for any other purpose.

The percentage of beneficial ownership prior to this offering in the table below is based on 3,326 Class A Interests and 30,000 Class B Interests outstanding as of March 31, 2025.

Beneficial ownership representing less than 1% is denoted with an asterisk (\*). Unless otherwise indicated below, the address for each beneficial owner listed is c/o Bally's Chicago, Inc., 100 Westminster Street, Providence, RI 02903.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Number of shares <br> of stock beneficially <br> owned before the <br> offering and <br> the concurrent <br> private placements**  | **Number of shares <br> of stock beneficially <br> owned before the <br> offering and <br> the concurrent <br> private placements**  | **Percentage of shares <br> of stock beneficially <br> owned before the <br> offering and <br> the concurrent <br> private placements**  | **Percentage of shares <br> of stock beneficially <br> owned before the <br> offering and <br> the concurrent <br> private placements**  | **Number of shares <br> of stock beneficially <br> owned after the <br> offering and <br> the concurrent <br> private placements**  | **Number of shares <br> of stock beneficially <br> owned after the <br> offering and <br> the concurrent <br> private placements**  | **Percentage of <br> shares of stock <br> beneficially owned <br> after the offering <br> and the concurrent <br> private placements**  | **Percentage of <br> shares of stock <br> beneficially owned <br> after the offering <br> and the concurrent <br> private placements**  | **Percentage of <br> total voting <br> power after the <br> offering and <br> the concurrent <br> private placements**  |
| **Name of beneficial owner**  | **Class A <br> Interests**  | **Class B <br> Interests**  | **Class A <br> Interests**  | **Class B <br> Interests**  | **Class A <br> Interests**  | **Class B <br> Interests**  | **Class A <br> Interests**  | **Class B <br> Interests**  |  |
|  **Executive Officers, Directors and Director Nominees**  |  |  |  |  |  |  |  |  |  |
| Ameet Patel  |  |  | —% | —% |  |  | —% | —% | —% |
| H. C. Charles Diao  | 9.00 |  | \*% | —% | 9.00 |  | \*% | —% | \*% |
| Christopher Jewett  |  |  | —% | —% |  |  | —% | —% | —% |
| Kim M. Barker  |  |  | —% | —% |  |  | —% | —% | —% |
| Wanda Y. Wilson  | 1.00 |  | \*% | —% | 1.00 |  | \*% | —% | \*% |
| Renee Bradford  | 1.00 |  | \*% | —% | 1.00 |  | \*% | —% | \*% |
| Blanton Canady  | 30.00 |  | \*% | —% | 30.00 |  | \*% | —% | \*% |
| Ezequiel (Zeke) Flores  | 3.00 |  | \*% | —% | 3.00 |  | \*% | —% | \*% |
| Edward Lou  | 4.00 |  | \*% | —% | 4.00 |  | \*% | —% | \*% |
| Sharon Thomas Parrott  | 1.00 |  | \*% | —% | 1.00 |  | \*% | —% | \*% |
|  All executive officers, directors and director nominees (10 persons)<sup>(1)</sup>  | 49.00 |  | 1.47% | —% | 49.00 |  | \*% | —% | \*% |
| **5% Stockholders of Bally's** |  |  |  |  |  |  |  |  |  |
| Bally's Corporation<sup>(2)</sup>  | 2141.00 | 30000.00 | 64.37% | 100.00% | 3391 | 30000.00 | 45.8% | 100.00% | 89.3% |

---

------

[**TABLE OF CONTENTS**](#TOC)

(1) Includes 49 Class A Interests and zero Class B Interests held by all our current directors and executive officers as a group.

(2) Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, a wholly-owned subsidiary of Bally's Corporation, as the sole holder of our Class B Interests and the holder of 3,391 Class A-4 Interests, will hold 89.3% of the voting power and 45.8% of the economic power of our stock.

------

[**TABLE OF CONTENTS**](#TOC)

#### DESCRIPTION OF CAPITAL STOCK

#### General
Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering authorizes 42,500 share of capital stock, $0.001 par value per share, consisting of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 3,000 shares of Class A-1 Interests, 500 shares of Class A-2 Interests, 500 shares of Class A-3 Interests, and 8,500 shares of Class A-4 Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 30,000 shares of Class B Interests.

As of March 31, 2025, our Class A Interests are held by 268 stockholders of record and all of our Class B Interests is held by one stockholder of record, Bally's Chicago HoldCo.

The following description of our capital stock and provisions of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering and second amended and restated bylaws to be in effect prior to the closing of this offering is a summary and is qualified in its entirety by reference to the full copies of these documents, which have been filed with the SEC as exhibits to our registration statement, of which this prospectus forms a part. Currently, there is no established public trading market for any class or series of our stock.

#### Ownership Interests
No vote of the holders of our stock, except as otherwise provided in the Stockholders Agreement, shall be necessary to issue any shares of any class or series of stock authorized by the second amended and restated certificate of incorporation to be in effect prior to the closing of this offering. The rights, preferences and privileges of the holders of any class or series of our stock are subject to and may be adversely affected by the rights of the holders of shares of any class or series of our stock that we may authorize in the future.

Unless otherwise specified, our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering provides for the following powers, preferences and relative participating, optional and other special rights, and the qualifications, limitations or restrictions thereof with respect to our shares of stock that we may issue from time to time.

#### Voting Rights
Each Class A Interest is entitled to one vote on all matters submitted to a vote of stockholders. Each Class B Interest is entitled to one vote on all matters submitted to a vote of stockholders.

Each class of our stock will vote together as a single class with all other classes of stock, unless otherwise required by law. Under DGCL Section 242(b)(2), Delaware law would require holders of a class of stock to vote separately as a single class if we were to seek to (i) increase or decrease the aggregate number of authorized shares of such class (unless the certificate of incorporation provides otherwise), (ii) increase or decrease the par value of the shares of such class, or (iii) alter or change the powers, preferences or special rights of one class of stock in a manner that affected such shares adversely. However, in accordance with Delaware law, with respect to any increase or decrease in the aggregate number of authorized shares of a class of stock, our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will provide that the number of authorized shares of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, Class A-4 Interests or Class B Interests may be increased or decreased (but not below the number of shares thereof then outstanding) without a separate class vote of any holders of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, Class A-4 Interests or Class B Interests, irrespective of the provisions of Section 242(b)(2) of the DGCL. Delaware law also requires holders of a series of stock to vote separately as a single class if we were to seek to amend our certificate of incorporation in a manner that alters or changes the powers, preferences or special rights of one or more series of stock in a manner that affected such shares adversely, but shall not so affect the entire class.

We have not provided for cumulative voting for the election of directors in our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering.

------

[**TABLE OF CONTENTS**](#TOC)

#### Dividends
 *Class A Interests* 

We will be permitted, but not required, to pay dividends on our Class A Interests. For more information, see "*Prospectus Summary — Distributions and Repayment of Subordinated Loans*."

 *Class B Interests* 

Holders of our Class B Interests are not entitled to participate in any dividends declared by our Board.

#### Liquidation
In the event of a sale, liquidation, dissolution or winding up of Bally's Chicago OpCo, including a change of control, after payment or provision for payment of Bally's Chicago OpCo's debt and liabilities, including any amounts due under Bally's Chicago OpCo's senior indebtedness, each LLC Interest will be entitled to receive a proportionate interest in the net assets of Bally's Chicago OpCo. In turn, the interests in the net assets of Bally's Chicago OpCo received by Bally's Chicago, Inc. will be used to pay Bally's Chicago, Inc.'s debts and liabilities, including any amounts under any senior indebtedness and the Subordinated Loans owed by us at the time of such liquidation. Each Class A Interest will be entitled to receive a proportionate interest in the net assets remaining for distribution to holders of Class A Interests. Class B Interests hold no economic interest in Bally's Chicago, Inc.

#### Transfer Restrictions
Our Class A Interests will not be freely tradeable and will be subject to transfer restrictions. See "*Shares Eligible for Future Sale*" for additional information.

#### Right of First Refusal
Following five years after the closing of this offering, we and Bally's Corporation will have a right of first refusal if any holder of Class A Interests receives a bona fide offer from any person or entity to purchase such holder's Class A Interests that the holder desires to accept to transfer all or any portion of any Class A Interests that it owns. See "*Shares Eligible for Future Sale — Right of First Refusal*" for additional information.

#### Drag-Along Rights
In the event that Bally's Corporation (or any successor entity) proposes and/or we (as applicable) propose to sell us or all or substantially all of our assets to a third party purchaser, or agrees to any other transaction that would result in Bally's Corporation no longer directly or indirectly controlling a majority of our outstanding shares, holders of our stock may be required to participate in such sale. See "*Shares Eligible for Future Sale — Drag-Along Rights*" for additional information.

#### Tag-Along Rights
If any holder of Class B Interests proposes to transfer any of its Class B Interests to any person, each holder of Class A Interests will be permitted to participate in such sale. See "*Shares Eligible for Future Sale — Tag-Along Rights*" for additional information.

#### No Affiliation with City of Chicago
Officials, employees, or family members of an official or employee of the City of Chicago are not permitted to, directly or indirectly, hold any of our stock.

#### Anti-Takeover Provisions

#### Bally's Corporation Elevated Ownership Stake
Following the closing of this offering and the concurrent private placements, Bally's Corporation will indirectly continue to hold substantially all of the voting power of our outstanding stock. As a result, Bally's

------

[**TABLE OF CONTENTS**](#TOC)

Corporation will continue to be able to control all matters submitted to holders of our stock for approval. This control could discourage others from initiating any potential merger, takeover or other change of control transaction that other stockholders might view as beneficial.

#### Second Amended and Restated Certificate of Incorporation and Second Amended and Restated Bylaws to be in effect upon the Closing of this Offering
The number of directors constituting our Board is permitted to be established only by a resolution adopted by a majority of our whole Board, and only our Board is authorized to fill vacant directorships, including newly created directorships.

Our Board will consist of six directors. Following the closing of this offering and the concurrent private placements and the consummation of the Transactions, Bally's Chicago HoldCo, a wholly-owned subsidiary of Bally's Corporation, will be the sole holder of our Class B Interests and the holder of 2,141 of our Class A-4 Interests. Because the holders of our stock do not have cumulative voting rights, until such time as Bally's Chicago HoldCo owns less than a majority of our Class B Interests, Bally's Chicago HoldCo will elect a majority or more of the members of our Board. Our second amended and restated bylaws include advance notice procedures and other content requirements applicable to holders of our stock for proposals to be brought before a meeting of stockholders, including proposed nominations of persons for election to our Board.

Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will provide that any action required or permitted to be taken by our stockholders may be taken without a meeting, without prior notice and without a vote, if a consent or consents, setting forth the action so taken, are (1) signed by the holders of outstanding shares of stock of the Company representing not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of stock of the Company then issued and outstanding entitled to vote thereon were present and voted and (2) delivered to the Company in accordance with applicable law.

Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will require stockholders holding at least sixty-six and two-thirds percent (66<sup>2</sup>∕3%) of the voting power of all holders of our stock entitled to vote thereon to remove a director, and such removal may be with or without cause. Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will also require stockholders holding at least sixty-six and two-thirds percent (66<sup>2</sup>∕3%) of the voting power of all holders of our stock entitled to vote thereon to amend, repeal or adopt provisions inconsistent with certain provisions of our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering and for our stockholders to amend our second amended and restated bylaws to be in effect prior to the closing of this offering.

The combination of the lack of cumulative voting rights and supermajority voting requirements makes it more difficult for holders of our stock other than Bally's Chicago HoldCo (for so long as it holds sufficient voting rights) to replace our Board as well as for another party to obtain control of us by replacing our Board. Because our Board has the power to retain and discharge our officers, these provisions could also make it more difficult for holders of our stock other than Bally's Chicago HoldCo (for so long as it holds sufficient voting rights) or another party to effect a change in management.

These provisions may have the effect of deterring hostile takeovers or delaying changes in our control or management. These provisions are intended to enhance the likelihood of continued stability in the composition of our Board and its policies and to discourage certain types of transactions that may involve an actual or threatened acquisition of us. These provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our stock and, as a consequence, they also may inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts. Such provisions may also have the effect of preventing changes in our management.

#### Section 203 of the Delaware General Corporation Law
We elect not to be governed by Section 203 of the DGCL and the restrictions and limitations set forth therein.

------

[**TABLE OF CONTENTS**](#TOC)

#### Delaware as Sole and Exclusive Forum

#### Limitation of Liability and Indemnification of Executive Officers and Directors
 *For an in-depth discussion of liability and indemnification, please see "Management — Limitations on Officers' and Directors' Liability and Indemnification Agreements."* 

#### Transfer Agent and Registrar
BitGo Trust will act as our registrar and transfer agent for our Class A Interests. Our Class A Interests will be held in book-entry form only on our books and records, and any transfers of our Class A Interests must be made through an account with BitGo Trust.

------

[**TABLE OF CONTENTS**](#TOC)

#### DESCRIPTION OF CERTAIN INDEBTEDNESS

#### Guarantee of Bally's Corporation's Obligations
We and Bally's Chicago HoldCo, our direct parent and the entity that holds 2,141 of our Class A-4 Interests and all of our Class B Interests, as well as certain other current and future unrestricted subsidiaries of Bally's Corporation under its credit facilities and bond indentures, have guaranteed Bally's Chicago OpCo's obligations under the GLP Lease Agreement and GLP Development Agreement; *provided*, however, that at such time as Bally's Chicago OpCo becomes a restricted subsidiary under Bally's Corporation's credit facilities and bond indentures, (i) Bally's Corporation will be required to guarantee the GLP Lease Agreement and GLP Development Agreement and (ii) following the delivery of such guarantee, the guarantees of the GLP Lease Agreement and GLP Development Agreement provided by Bally's Chicago HoldCo and such other unrestricted subsidiaries of Bally's Corporation shall terminate.

In connection with Bally's Chicago HoldCo's commitment to guarantee the GLP Lease Agreement and GLP Development Agreement, and in partial consideration for certain investments by Bally's Corporation and its subsidiaries into Bally's Chicago OpCo, we and Bally's Chicago OpCo intend to guarantee all obligations, including, without limitation, indebtedness and lease obligations of Bally's Corporation and its subsidiaries upon Bally's Corporation's guaranteeing of the GLP Lease Agreement and the GLP Development Agreement or upon request from Bally's Corporation; provided that, at any time after such guarantee by Bally's Corporation or such request from Bally's Corporation, upon request of Bally's Chicago OpCo, Bally's Corporation will guarantee Bally's Chicago OpCo's obligations under any lease obligations outstanding at such time, including any obligations under the GLP Lease Agreement and the GLP Development Agreement, to the maximum extent permitted under the instruments governing Bally's Corporation's indebtedness (assuming full borrowing of all outstanding commitments under Bally's Corporation's revolving credit facilities outstanding at such time).

Furthermore, in March 2025, we and Bally's Chicago OpCo entered into the Guarantee Agreement with Bally's Corporation, pursuant to which, at any time in the future, upon request from Bally's Corporation, we and Bally's Chicago OpCo will guarantee, and cause each of our wholly-owned subsidiaries to guarantee, any additional obligations, including, without limitation, indebtedness and lease obligations that Bally's Corporation or its subsidiaries enter into at any time in the future. See "*Transactions with Related Persons — Guarantee of Bally's Corporation's Obligations.*"

#### Pre-IPO Intercompany Notes
We are currently dependent on Bally's for a majority of our working capital and financing requirements. As of March 31, 2025 (Successor), we and Bally's Chicago OpCo owe $642.4 million in Pre-IPO Intercompany Notes to Bally's and various of its subsidiaries. The Pre-IPO Intercompany Notes have borne and bear interest at a rate equal to 0.0% per annum and are scheduled to mature on December 31, 2025, but all portions that remain outstanding are expected to be extinguished upon the closing of this offering.

------

[**TABLE OF CONTENTS**](#TOC)

#### PLAN OF DISTRIBUTION
Under the terms and subject to the conditions contained in a placement agent agreement dated the date of this prospectus, we have engaged Loop Capital Markets LLC ("Loop") to act as lead placement agent and Innovation Capital, LLC to serve as co-placement agent to solicit offers to purchase the Class A Interest on a best efforts basis. The placement agents are not purchasing or selling any Class A Interests, nor are they required to arrange for the purchase and sale of any specific number or dollar amount of securities, other than to use their "reasonable best efforts" to arrange for the sale of the securities by us. Therefore, we may not sell the entire amount of Class A Interests being offered. We will enter into a securities purchase agreement directly with the investors, at the investor's option, who purchase our Class A Interests in this offering. The placement agents may engage one or more subagents or selected dealers in connection with this offering.

The placement agents initially propose to solicit offers to purchase our Class A-1 Interests for sale at the price of $250 per share, our Class A-2 Interests for sale at the price of $2,500 per share, our Class A-3 Interests for sale at the price of $5,000 per share and our Class A-4 Interests for sale at the price of $25,000 per share, in each case on a best efforts basis.

Upon the closing of this offering, we will pay the placement agents a cash transaction fee equal to 5.75% of the aggregate gross cash proceeds to us from the sale of the securities in this offering (the "Placement Fee"). The Placement Fee, in addition to any fees, discounts or commissions that may be earned by Loop from participating in any concurrent private placement that is separate from this offering, will not exceed $4 million (the "Cap"), provided that for each additional underwriter, placement agent or financial advisor that participates in this offering, the Cap will be increased by $500,000. Bally's has also entered into an advisory engagement letter with Loop, as amended on March 6, 2025, pursuant to which Bally's has agreed to pay $1.25 million to Loop as an advisory fee in connection with this offering and further reimburse Loop for certain of their fees and expenses in an amount up to $300,000.

We have also agreed to reimburse the placement agents for all reasonable and documented out-of-pocket expenses as incurred in connection with this offering, including but not limited to travel and communication expenses, printing expenses, roadshow expenses, due diligence expenses, courier charges and the reasonable fees and disbursements for Loop's legal counsel, and also the reasonable fees and disbursements of any other consultants or third party services engaged by Loop; provided, that the aggregate amount of reimbursable expenses shall not exceed $300,000 as set forth in the placement agent agreement.

We will also incur other expenses relating to this offering, which expenses are estimated to be approximately $8.4 million and include legal, accounting and printing costs and various other fees associated with registration of our Class A Interests.

Loop affiliated entities and persons have also committed to purchase from us $1.2 million worth of Class A Interests in a private placement that will close simultaneously with the closing of this offering. Such Class A Interests will be considered underwriting compensation in connection with this offering. Such Class A Interests will be subject to lock-up restrictions, as required by FINRA Rule 5110(e)(1) and may not be sold during the offering, or sold, transferred, assigned, pledged, or hypothecated, or be the subject of any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of such securities by any person for a period of 180 days from the date of effectiveness of the registration statement of which this prospectus forms a part or commencement of sales of the offering, except as provided in FINRA Rule 5110(e)(2).

The Company has retained Citizens Capital Markets, Inc. as financial advisor in connection with this offering. The financial advisor will receive customary fees for its services and may be reimbursed for certain expenses incurred in connection with the offering.

Prior to this offering, there has been no public or private market for our Class A Interests or our Class B Interests. Neither our Class A Interests nor our Class B Interests will be listed on any national securities exchange or on any other stock exchange, regulated trading facility or automated dealer quotation system in the United States or internationally. Our Class A Interests are subject to restrictions on transferability and redemption provisions, which will materially impact the ability of holders of our Class A Interests to transfer their shares. Additionally, there is no trading market for our Class A Interests and,

------

[**TABLE OF CONTENTS**](#TOC)

due to transferability restrictions, an active market for our Class A Interests will not likely develop in the future. As such, our Class A Interests will have limited liquidity and holders of our Class A Interests may not be able to monetize their full investment in our Class A Interests, if at all.

We made a number of assumptions to determine the price of our Class A Interests. Among the factors considered in determining the initial public offering prices of our Class A Interests, in addition to prevailing market conditions, are our estimates of our business potential and earnings prospects, an assessment of our management and the consideration of the above factors in relation to market valuation of companies in related businesses.

We and the placement agents may market our Class A Interests through roadshow presentations. We also plan to market our Class A Interests through media interviews in print and electronic media, including email, and other methods in compliance with applicable laws and regulations, including securities laws. We plan to permit investors who wish to do so to review this prospectus online at the internet address https://ballyschicagoinvest.com. We are not incorporating by reference in this prospectus the website.

In order to purchase our Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, or Class A-4 Interests, you must open an account with BitGo Trust Company, Inc. ("BitGo Trust"), a wholly owned subsidiary of BitGo, Inc. ("BitGo"). See below for additional information about opening an account with BitGo Trust.

In order to comply with the applicable securities laws of Illinois, Florida, New York and Texas, the securities will be offered or sold in Illinois, Florida, New York and Texas only if they have been registered or qualified for sale or an exemption from such registration is available with which we have complied. In addition, and without limiting the foregoing, we will be subject to applicable provisions, rules, and regulations under the Exchange Act with regard to securities transactions during the period of time when this registration statement is effective.

The placement agents are deemed to be underwriters within the meaning of Section 2(a)(11) of the Securities Act, and any fees received by them will be deemed to be underwriting discounts or commissions under the Securities Act. As underwriters, the placement agents are required to comply with the requirements of the Securities Act and the Exchange Act, including, without limitation, Rule 415(a)(4) under the Securities Act and Rule 10b-5 and Regulation M under the Exchange Act. Under these rules and regulations, the placement agents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • may not engage in any stabilization activity in connection with our securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • may not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities, other than as permitted under the Exchange Act, until it has completed its participation in the distribution.

#### Right of First Refusal
We will provide Loop with a right of first refusal to act as lead book-running manager for any and all future public and private equity offerings and as a book-running manager for any and all future public and private debt offerings by the Company or any successor to or any subsidiary of the Company, for a period of twelve (12) months following the earlier of the closing of this offering or termination of the engagement letter between us and Loop. In accordance with FINRA Rule 5110(g)(6)(A), such right of first refusal shall not have a duration of more than three (3) years from the date on which this registration statement is declared effective by the SEC.

#### Offering Process
The process being used for our initial public offering of Class A Interests differs from methods that have been traditionally used in most other underwritten initial public offerings in the United States. In particular, the Class A Interests are being offered at a predetermined price and orders may only be entered through the WealthBlock platform. We plan to conduct this offering in two stages — Qualification and Allocation. Investors that do not submit orders through the prescribed process will not be eligible for an allocation of shares in our offering.

------

[**TABLE OF CONTENTS**](#TOC)

#### The Qualification Process
Our objective is to ensure that only investors for whom an investment in the Class A Interests is suitable may participate in this offering. Before you can submit a conditional offer to purchase our Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, or Class A-4 Interests, which we refer to as an "investment commitment" or "reservation" you will be required to open an account with BitGo Trust.

You will be required to apply for an account with BitGo Trust through the WealthBlock web-based platform, which you can access at https://ballyschicagoinvest.com. Through the WealthBlock platform, you will be able to review the offering materials, undergo screening for demographic eligibility, undergo a suitability assessment, and provide personal information required to complete a custody account opening with BitGo Trust.

Upon review of the information that you provide in the account opening questionnaire, if we and BitGo Trust determine that an account may be opened without further information, then your account will be opened, and instructions will be provided on how to make an investment commitment and fund your account. Before establishing an account and making an investment commitment for our Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, or Class A-4 Interests, you should:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • read this prospectus, including all the risk factors, very carefully; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • understand that our initial public offering price is predetermined and that there will be no liquid trading market for our Class A Interests, which will impact your ability to monetize your investment.

We caution you that our Class A Interests may not be a suitable investment for you even if you qualify to open an account and participate in this offering. There is no minimum funding requirement to open a BitGo Trust account or submit investment commitments. You are not obligated to purchase shares at the time you submit an investment commitment. However, once we accept your investment commitment for our Class A Interests, you will become obligated to purchase the amount of the investment commitment accepted. Before we will accept your investment commitment for our Class A Interests in this offering, you must have sufficient funds in your account to cover the purchase price for such shares. You will not be required to deposit funds into your BitGo Trust account sufficient to cover the purchase price of the Class A Interests you reserved until after the registration statement is declared effective by the SEC. Finally, even if you open an account with BitGo Trust, submit an investment commitment for our Class A Interests and have sufficient funds deposited in your account to cover the entire purchase price for such shares, you still may not receive your complete allocation of shares in our offering for a number of reasons described below.

Once a BitGo Trust account is opened, you will be required to complete your investment commitment on the WealthBlock platform by (1) selecting which class(es) of securities to purchase, and the amounts of each; (2) e-sign the subscription agreement; (3) select your payment method; and (4) submit the investment commitment for processing. After being submitted, the investment commitment is registered with a status of "pending funding" until funds are received in escrow. When funds are received and available, BitGo Trust will automatically notify WealthBlock that that the investment commitment is funded and pending a closing.

Any funds that you may deposit in your BitGo Trust account, whether before or after the time you submit an investment commitment, will not be withdrawn by BitGo Trust until such time, if at all, as your investment commitment has been closed. Investment commitments that are never funded can be cancelled at any time. Investment commitments that are funded but not closed upon can be refunded and cancelled by requesting an electronic transfer of funds or a check from BitGo Trust.

Funds in your BitGo Trust account will not be designated for use in a particular offering at the time of deposit and any of your deposited funds may be used to purchase securities other than those offered pursuant to this registration statement. However, at the time we close on any investment commitments placed by you for a Class A-1 Interest, Class A-2 Interest, Class A-3 Interests, or Class A-4 Interests, all available funds will first be applied towards the purchase of the reserved securities.

Neither we nor the placement agents have undertaken any efforts to qualify this offering for offers to investors in any jurisdiction outside the United States. Investors must have a mailing address in Illinois,

------

[**TABLE OF CONTENTS**](#TOC)

Florida, New York or Texas (other than a P.O. Box) and a U.S. social security number and/or a U.S. tax identification number to be eligible to participate in this offering.

#### Reconfirmations of Investment Commitments
We will require that potential investors reconfirm their investment commitments that they have submitted in this offering if any of the following events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • more than 15 days have elapsed since the potential investor submitted his or her investment commitment in this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • there has been a material change to the prospectus available to the potential investor at the time of such potential investor's original investment commitment.

If a reconfirmation of investment commitments is required, we will send an electronic notice, at the email address on file with WealthBlock, notifying such potential investors that they must affirmatively reconfirm their investment commitment by visiting their account page on the BitGo Trust website to reconfirm the investment commitment, or by otherwise contacting the lead placement agent, Loop Capital Markets LLC. If a potential investor does not reconfirm his or her investment commitment when requested, we will disregard such investment commitment in this offering, and such investment commitments will be deemed to have been withdrawn.

#### The Closing Process
This offering will terminate upon the earlier to occur of (i) 30 days after the registration statement of which this prospectus forms a part becomes effective with the SEC or (ii) the date on which all Class A Interests offered hereby have been sold. You will have the ability to withdraw any investment commitment you make until such time that we close on the investment commitment. Such closing will occur when and if we conduct a closing via the WealthBlock platform. As noted above, if you are requested to reconfirm your investment commitment and fail to do so, your investment commitment will be deemed to have been withdrawn.

As noted above, you may deposit funds in your BitGo Trust account after the time you submit a investment commitment, but we will only close on funded investment commitments at the time of closing, and BitGo Trust will not withdraw any funds from your account until such time as any portion of your investment commitment has been closed upon. You may cancel your investment commitment at any time prior to closing. This offering will not be considered sold until all investment commitments have been closed upon. WealthBlock will provide an electronic notice of effectiveness to you, at the email address on file with WealthBlock, at least three days prior closing on investment commitments, which will be your final notice to withdraw your investment commitment. The notice will further inform you that investment commitments for Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, or Class A-4 Interests will only be considered to the extent you have sufficient funds in your account to cover the purchase price for such shares. If your investment commitment is closed upon, that sale shall be consummated, you will be unable to cancel your investment commitment and funds will be withdrawn from your account.

Promptly after we and the placement agents request the SEC to declare this registration statement effective, WealthBlock will provide an electronic notice to you, at the email address on file with WealthBlock, that such request for effectiveness has been made. Once the registration statement is effective, WealthBlock will send you a second electronic notice, at the email address on file with WealthBlock, informing you that the registration statement is effective and that we may close on your funded investment commitment in as little as three days. In the event investment commitments are placed subsequent to the SEC declaring this registration statement effective, you will receive a final electronic notice, at the email address on file with WealthBlock, informing you of your ability to withdraw your investment commitment or fund your account in amounts sufficient to cover your investment commitments and that we may close on your funded investment commitment in as little as twenty-four hours. WealthBlock will stop allowing investment commitments to be made at least twenty-four hours prior to when we intend to close on funded investment commitments. Until investment commitments are closed upon, you may still withdraw your investment commitments. However, once your funded investment commitment has been closed upon, you may no longer

------

[**TABLE OF CONTENTS**](#TOC)

withdraw your investment commitments. At this point, investment commitments will be deemed accepted orders and WealthBlock will send you a confirmation of the transaction, at the email address on file with WealthBlock.

Settlement for sales of Class A Interests will occur when funded investment commitments are closed upon. At such time, BitGo Trust will withdraw the sufficient funds from your account and we will deliver the Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, or Class A-4 Interests to your BitGo Trust account.

We caution you not to submit an investment commitment in this offering unless you are willing to take the risk that our Class A Interests price could decline significantly and you could lose your entire investment in our Class A Interests. Subsequent trades of Class A Interests will be significantly limited and burdensome to complete and will also entail significant transaction costs, which could reduce or eliminate your return on investment.

#### The Allocation Process
In the event that the number of shares represented by investment commitments during the initial offering period exceeds the number of shares we are offering, the offered shares will need to be allocated across the group of potential investors who have submitted investment commitments, at our sole discretion. The manner in which we determine allocations will be in our sole discretion, subject to compliance with applicable laws, rules, and regulations.

#### Limited Secondary Trading
This prospectus is not an offer to sell our Class A Interests and it is not a solicitation of an offer to buy our Class A Interests in any jurisdiction where an offer or sale thereof is not permitted. As of the date of this prospectus, we plan to exclusively offer our Class A Interests described in this prospectus for sale only in the states of Illinois, Florida, New York and Texas.

We will not sell our Class A Interests to customers in any jurisdiction outside of Illinois, Florida, New York and Texas. As of the date of this prospectus, we expect that, concurrent with the effectiveness of this registration statement, we will be qualified to sell Class A Interests in this offering under Blue Sky laws in Illinois, Florida, New York and Texas.

In addition, after the closing of this offering, you may not sell your Class A Interests (a secondary sale) to any person without first complying with the transferability restrictions described in "*Shares Eligible for Future Sale — Secondary Market and Restrictions on Transferability and Redemption of Class A Interests*."

#### Directed Share Program
We have reserved up to 300 Class A Interests, or approximately 4.0% of our Class A Interests, for sale to our director nominees on the same terms as the Class A Interests being purchased by investors in this offering. These persons must commit to purchase at the same time as the investors in this offering. The number of Class A Interests available for sale in this offering will be reduced to the extent these persons purchase the reserved Class A Interests.

------

[**TABLE OF CONTENTS**](#TOC)

#### CONCURRENT PRIVATE PLACEMENTS
The private placement investors have entered into agreements with us pursuant to which they have agreed to purchase 58 Class A-1 Interests, 4 Class A-2 Interests, 6 Class A-3 Interests and 1,277 Class A-4 Interests, respectively, in the concurrent private placements at a price per share equal to the initial public offering. The concurrent private placements are being made pursuant to Rule 506(c) under Regulation D promulgated under the Securities Act. Each private placement investor has represented to us in writing that such private placement investor qualified as an "Accredited Investor" as such term is defined by Regulation D promulgated under the Securities Act, and has provided us with additional documentation to assist us in verifying such private placement investor's status as an Accredited Investor. Our agreements with the private placement investors are contingent upon, and are scheduled to close immediately subsequent to, the closing of this offering as well as the satisfaction of certain conditions to closing.

------

[**TABLE OF CONTENTS**](#TOC)

#### SHARES ELIGIBLE FOR FUTURE SALE
Prior to this offering, there was no public market for our Class A Interests, and, due to transferability restrictions, an active market for our Class A Interests will not likely develop in the future.

Upon the closing of this offering and the concurrent private placements and the consummation of the Transactions, we will have outstanding (i) an aggregate of 7,412 Class A Interests and (ii) an aggregate of 30,000 Class B Interests. Of these shares, the Class A Interests sold in this offering, subject to the restrictions described below, will be freely tradable without restriction or further registration under the Securities Act, except for any Class A Interests purchased by our "affiliates" as that term is defined in Rule 144 under the Securities Act, whose sales would be subject to the Rule 144 resale restrictions described below, other than the holding period requirement.

The remaining 30,000 Class B Interests will be "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities, in addition to the restriction described below, are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rules 144 or 701 under the Securities Act, which are summarized below.

In addition, neither our Class A Interests nor our Class B Interests will be listed on any national securities exchange or on any other stock exchange, regulated trading facility or automated dealer quotation system in the United States or internationally. Our Class A Interests are also subject to restrictions on transferability and redemption provisions, as described below, which will materially impact the ability of holders of our Class A Interests to transfer their shares.

#### Secondary Market and Restrictions on Transferability and Redemption of Class A Interests
Our Class A Interests will not be listed on any national securities exchange or on any other stock exchange, regulated trading facility or automated dealer quotation system in the United States or internationally.

#### Transfers of Class A Interests With Our Consent
We will use our best efforts to maintain a list of individuals or entities that indicate interest in purchasing our Class A Interests and submit a qualification application to us (the "Interested Parties"). The qualification application, among other things, will require the applicant to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • consent to a background check

Holders of our Class A Interests who desire to sell or transfer all or any portion of any of their Class A Interests (each such holder individually, the "Offering Holder" and each such Class A Interest to be sold, an "Offered Interest") will be required to submit an application for sale (the "Intention to Sell Notice") to us.

------

[**TABLE OF CONTENTS**](#TOC)

The Intention to Sell Notice must include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the amount of Offered Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the minimum price per Offered Interest that the Offering Holder would accept; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • whether the Offering Holder has received an offer from a third party and, if so, the price offered by such third party.

Following the submission of the Intention to Sell Notice, the Interested Parties may submit offers to the Offering Holder to purchase the Offered Interests. The Offering Holder will then choose the offer that it desires to accept (the "Transfer Offer") and notify the Transfer Offer's offeror (the "Prospective Purchaser") of its intention to accept the Transfer Offer.

We, in our sole discretion, may require the Prospective Purchaser to submit a qualification application, even if such Prospective Purchase has submitted a previous qualification application, before approving, in our sole discretion, the transfer of the Offered Interests. Our Class A Interests cannot be transferred to employee benefit plans, IRAs or Plans (as defined herein).

#### Transfers of Class A-1 Interests, Class A-2 Interests and Class A-3 Interests
In the event that a holder of Class A-1 Interests, Class A-2 Interests and/or Class A-3 Interests wishes to sell, dispose or otherwise transfer such holder's Interests, such holder may only sell, dispose or otherwise transfer such Interests after the Subordinated Loans attributable to such Interests have been paid in full and such Interests are converted to Class A-4 Interests. In the event that a holder of Class A-1 Interests, Class A-2 Interests or A-3 Interests desires to transfer their Class A-1 Interests, Class A-2 Interests or Class A-3 Interests and the Subordinated Loan attributable to such holder's shares have not been paid in full (either through cash available through distribution or otherwise), such holder or the transferee, may elect to pay the remaining balance of the Subordinated Loans attributable to such shares of stock and convert such shares of stock into Class A-4 Interests before effectuating such sale, disposition or transfer.

#### Permitted Transfers of Class A Interests Without Our Consent
Notwithstanding the foregoing, holders of our Class A Interests may transfer their Class A Interest without our consent (each a "Permitted Transferee"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to any individual or entity who, directly or indirectly (including through one or more intermediaries), controls, is controlled by or is under common control with, such person or entity, including any partner, member, stockholder or other equity holder of such person or entity or manager, director, officer or employee of such person or entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • as bona fide gifts to any individual or entity that is the legal representative, heir, beneficiary or a member of the immediate family of such holder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • by operation of law pursuant to a court order, decree or judgment to any person or entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • to the Company.

#### Optional Redemption in Case of Transfers in Violation of Transfer Restrictions
Any purported transfer of Class A Interests in violation of the restrictions above shall be null and void ab initio. If, notwithstanding the above restrictions, a person, voluntarily or involuntarily (including by way of a foreclosure), purportedly becomes or attempts to become, the purported owner of Class A Interests, in violation of the above restrictions, the Company may redeem such Class A Interests for $0.001 per share. In the event that the Company exercises its right to redeem such Class A Interests, the Company shall also be required to redeem, out of funds legally available therefor, an amount of Class B Interests that is three times the number of Class A Interests being redeemed for $0.001 per share from certain stockholders as determined by the Board.

#### Drag-Along Rights
In the event that Bally's Corporation (or any successor entity) proposes and/or we (as applicable) propose to sell us all or substantially all of our assets to a third party purchaser, or agrees to any other

------

[**TABLE OF CONTENTS**](#TOC)

transaction that would result in Bally's Corporation no longer directly or indirectly controlling a majority of our outstanding shares (each a "Drag-Along Sale"), Bally's Corporation will have the right, after delivering the Drag-Along Notice, to require each other holder of our stock to participate in such Drag-Along Sale, on substantially the same terms and conditions as Bally's Corporation (the "Drag-Along Right").

If Bally's Corporation exercises its Drag-Along Right, the other holders of our stock will be required to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • sell their shares if the transaction is structured as an equity sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • vote in favor of the proposed transaction if the transaction is structured as an asset sale, merger, reorganization or recapitalization or otherwise requires a stockholder vote for approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • not object to the proposed transaction and waive any dissenters' appraisal or similar rights they may have in connection with the proposed transaction.

If Bally's Corporation wants to exercise its Drag-Along Right, it must do so by delivering notice to the other holders of our stock within 10 days after execution of the definitive documents for the proposed transaction, and no later than 20 business days before the closing of the proposed transaction. The notice must describe the terms of the proposed Drag-Along Sale in reasonable detail.

#### Tag-Along Rights
If any holder of Class B Interests (the "Selling Holder") proposes to transfer any of its Class B Interests (the "Tag-Along Interest") to any person, each holder of Class A Interests (each, a "Tag-Along Holder") will be permitted to participate in such sale (a "Tag-Along Sale") on the terms and conditions set forth below (the "Tag- Along Right"), except for transfers made in connection with the Drag-Along Rights.

If a Selling Holder proposes to transfer any Tag-Along Interests, they must give notice to us and each other Tag-Along Holder, describing the terms of the proposed Tag-Along Sale. Upon receipt of such notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Tag-Along Holders will then have 10 business days to decide if they want to participate in the Tag-Along Sale by selling some of their Class A Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Selling Holder and each Tag-Along Holder that elects to participate in the Tag-Along Sale shall deliver a notice to us and such Tag-Along Holder will have the right to transfer their *pro rata* portion of the Tag-Along Interests, based on the number of Class A Interests owned by each such holder and the aggregate amount of Class A Interests and Class B Interests outstanding at such time.

A Tag-Along Holder can choose to sell less than their entire *pro rata* portion of the Tag-Along Interests in the Tag-Along Sale, and any such Tag-Along Interests not sold by a Tag-Along Holder can be sold by the Selling Holder.

#### Transfers of Class A Interests by Death
In the event of the death of a holder of our Class A Interests, we will have the right to elect to repurchase the Class A Interests held by such holder, which we may exercise by delivering a notice (the "Repurchase Notice") to the estate of the deceased or incapacitated holder within 60 days after the date on which we were notified of such death. We will then have 90 days from the date on which we deliver the Repurchase Notice to purchase the Class A Interests of such holder, at a price equal to eight times our latest four fiscal quarters EBITDA divided by the amount of total Interests then outstanding, which price shall be set forth in the Repurchase Notice. We define *EBITDA* as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable. In the event that we exercise our right to repurchase such Class A Interests, we will at the same time also be required to redeem, out of funds legally available therefor, an amount of Class B Interests that is three times the number of Class A Interests being redeemed for $0.001 per share.

------

[**TABLE OF CONTENTS**](#TOC)

#### Right of First Refusal
Commencing on the fifth anniversary of the closing of this offering, we and Bally's Corporation will have a right of first refusal (the "Right of First Refusal") to purchase Offered Interests at a price equal to the Transfer Offer's price set forth in the Transfer Offer Notice. Within five (5) business days of receiving an offer to purchase any Offered Interests and prior to accepting such offer, the holder thereof must deliver a notice (the "Transfer Offer Notice") to us specifying in reasonable detail the terms of the offer, including the number of Offered Interests to be transferred and the offer price for the Offered Interests. We will have 20 days from the date the Transfer Offer Notice is delivered to us to decide if we want to purchase any of the Offered Interests. If we do not choose to purchase all of the Offered Interests, the holder thereof must deliver the Transfer Offer Notice to Bally's Corporation specifying in reasonable detail the terms of the offer, including the number of the remaining Offered Interests to be transferred and the offer price for the Offered Interests. Bally's Corporation will have 20 days from the date the Transfer Offer Notice is delivered to it to decide if it wants to purchase any of the remaining Offered Interests at the offer price set forth in the Transfer Offer Notice.

If we and Bally's Corporation decide to not exercise the Right of First Refusal partially or in full, the remaining Offered Interests may be transferred to the Prospective Purchaser at the offer price set forth in the Transfer Offer Notice.

The Right of First Refusal will not apply to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transfers to a Permitted Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transfers made in connection with the Drag-Along Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transfers made in connection with the Tag-Along Right; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • transfers made in connection with the Right of First Refusal after we and Bally's Corporation decline to exercise the Right of First Refusal in full.

#### No Affiliation with the City of Chicago
Officials, employees, or family members of an official or employee of the City of Chicago are not permitted to, directly or indirectly, hold any of our Interests.

#### Rule 144

#### Affiliate Resales of Restricted Securities
In general, beginning 90 days after the effective date of the registration statement of which this prospectus is a part, a person who is an affiliate of ours, or who was an affiliate at any time during the 90 days before a sale, who has beneficially owned our Class A Interests for at least 180 days would be, subject to the restrictions described above, entitled to sell in "broker's transactions" or certain "riskless principal transactions" or to market makers, a number of Class A Interests within any three-month period that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 1% of the number of Class A Interests then outstanding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the average weekly trading volume in our Class A Interests during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Affiliate resales under Rule 144 are also subject to the availability of current public information about us. In addition, if the number of Class A Interests being sold under Rule 144 by an affiliate during any three-month period exceeds 5,000 Class A Interests or has an aggregate sale price in excess of $50,000, the seller must file a notice on Form 144 with the SEC concurrently with either the placing of a sale order with the broker or the execution directly with a market maker.

#### Non-Affiliate Resales of Restricted Securities
Under Rule 144, a person who is not an affiliate of ours at the time of sale, and has not been an affiliate at any time during the 90 days preceding a sale, and who has beneficially owned Class A Interests

------

[**TABLE OF CONTENTS**](#TOC)

for at least six months but less than a year, is entitled to sell such shares subject only to the availability of current public information about us. If such person has held our Class A Interests for at least one year, such person can resell without regard to any Rule 144 restrictions, including the 90-day public company requirement and the current public information requirement.

Non-affiliate resales are not subject to the manner of sale, volume limitation or notice filing provisions of Rule 144.

------

[**TABLE OF CONTENTS**](#TOC)

#### MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
The following discussion describes the material U.S. federal income tax consequences to U.S. Holders and Non-U.S. Holders (each as defined herein and collectively, "Holders") of the purchase, ownership and disposition of our Class A Interests issued pursuant to this offering, but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions and published rulings and administrative pronouncements of the U.S. Internal Revenue Service (the "IRS"), in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a Holder. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance that the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the purchase, ownership and disposition of our Class A Interests.

This discussion is limited to Holders that hold our Class A Interests as "capital assets" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Holder's particular circumstances, including the impact of the Medicare contribution tax on net investment income and any alternative minimum tax. In addition, it does not address consequences relevant to Holders subject to special rules, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons holding our Class A Interests as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • banks, insurance companies and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • brokers, dealers or traders in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "controlled foreign corporations," "passive foreign investment companies," and corporations that accumulate earnings to avoid US federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • tax-exempt organizations or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons deemed to sell our Class A Interests under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons who hold or receive our Class A Interests pursuant to the exercise of any employee stock option or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • tax-qualified retirement plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • "qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • persons subject to special tax accounting rules as a result of any item of gross income with respect to the stock being taken into account in an applicable financial statement.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds our Class A Interests, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our Class A Interests and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.

 **THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR CLASS A INTERESTS ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.** 

------

[**TABLE OF CONTENTS**](#TOC)

#### U.S. Holders
For purposes of this discussion, a "U.S. Holder" is any beneficial owner of our Class A Interests that, for U.S. federal income tax purposes, is or is treated as any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code) or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

#### Distributions
Distributions of cash or property on our Class A Interests will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a U.S. Holder's adjusted tax basis in its applicable series of Class A Interests, but not below zero. Any excess will be treated as capital gain and will be treated as described below under "— Sale or Other Taxable Disposition."

Dividends received by a corporate U.S. Holder may be eligible for a dividends-received deduction, subject to applicable limitations, provided that certain holding period and other requirements are satisfied. Dividends received by certain non-corporate U.S. Holders (including individuals) are generally taxed at the lower applicable long-term capital gains rates, provided certain holding period and other requirements are satisfied.

Dividends that exceed certain thresholds in relation to a corporate U.S. Holder's tax basis in the applicable series of Class A Interests could be characterized as "extraordinary dividends" under the Code. If a corporate U.S. Holder that has held the applicable series of Class A Interests for two years or less before the dividend announcement date receives an extraordinary dividend, the U.S. Holder generally will be required to reduce its tax basis (but not below zero) in the applicable series of Class A Interests with respect to which the dividend was made by the non-taxed portion of the dividend. If the amount of the reduction exceeds the U.S. Holder's tax basis in the applicable series of Class A Interests, the excess is treated as gain from the sale or exchange of the applicable series of Class A Interests. Non-corporate U.S. Holders that receive an extraordinary dividend will be required to treat any losses on the sale of applicable series of Class A Interests as long-term capital losses to the extent of the extraordinary dividends such U.S. Holder receives that qualify for taxation at the preferential rates discussed above.

#### Deemed Distributions on Class A Interests
Section 305 of the Code provides that if a corporation distributes property to some shareholders and other shareholders have an increase in their proportionate interests in the assets or earnings and profits of the corporation, such other shareholders may be deemed to receive a distribution that could be a taxable dividend. In this case, because we and Bally's expect to treat the Subordinated Loans as "stock" for U.S. federal income tax purposes, "property" distributions will likely be considered to be made to "some shareholders" of Bally's Chicago, Inc. as payments are made on the Subordinated Loans, and equivalent cash ("property") distributions will be made with respect to the Class A-4 Interests. In addition, as payments are made on the Subordinated Loans, particularly those that repay the original principal amount of such Subordinated Loans, the proportionate interests of holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests in the assets or earnings and profits of Bally's Chicago, Inc. may be viewed as increasing. Accordingly, it is possible that such increase could be treated as a deemed distribution under Section 305 of the Code or otherwise as taxable income to such holders under other theories. However, under the Treasury Regulations relating to Section 305 of the Code and other IRS administrative guidance, certain financing arrangements in the form of preferred stock investments that fund a corporation and then are systematically eliminated through property distributions until they are fully retired, and are designed to facilitate the

------

[**TABLE OF CONTENTS**](#TOC)

ownership of a business with an effect of increasing another stockholder's proportionate interests in the assets or earnings and profits of a corporation over such period, do not result in a deemed distribution to such other stockholder. The applicability of these authorities to the holders of our Class A-1 Interests, Class A-2 Interests and Class A-3 Interests in this situation is uncertain. Although the matter is not free from doubt, we intend to take the position, and this discussion assumes, that U.S. Holders of applicable series of Class A Interests would not be treated as receiving a deemed distribution from us or otherwise realizing income as a result of repayment of the Subordinated Loans corresponding to such shares. However, there can be no assurance that the IRS will not take a contrary position, for example, treating the proportionate interest in our earnings and profits owned by U.S. Holders of the applicable series of Class A Interests as having increased upon repayment of the Subordinated Loans corresponding to such shares, and treating such U.S. Holders as having received a distribution. In that case, such deemed distribution will be taxable as a dividend, return of capital or capital gain as described above under "— *Distributions*" above, and U.S. Holders may be subject to U.S. federal income tax without the receipt of any cash. U.S. Holders should consult their own tax advisors about the application of Code Section 305 and any other potential deemed receipt of income risk with respect to our Class A Interests.

#### Sale or Other Taxable Disposition
Upon the sale or other taxable disposition of a Class A Interest, a U.S. Holder generally will recognize capital gain or loss equal to the difference between the amount realized and the U.S. Holder's adjusted tax basis in the Class A Interest. Such capital gain or loss will be long-term capital gain or loss if a U.S. Holder's holding period at the time of the sale or other taxable disposition of the Class A Interest is longer than one year. Long-term capital gains recognized by certain non-corporate U.S. Holders (including individuals) are generally subject to a reduced rate of U.S. federal income tax. The deductibility of capital losses is subject to limitations.

#### Non-U.S. Holders
For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our Class A Interests that is neither a U.S. Holder nor an entity or arrangement treated as a partnership for U.S. federal income tax purposes.

 *Distributions* 

If we make distributions of cash or property on our Class A Interests (or if any deemed distributions are made on our Class A Interests, as described above under "*U.S. Holders — Deemed Distributions on Class A Interests*"), such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis in its Class A Interests, but not below zero. Any excess will be treated as capital gain and will be treated as described below under "— *Sale or Other Taxable Disposition*." Non-U.S. Holders should consult their own tax advisors as to how these rules would apply if there were to be deemed distributions under Section 305 in excess of any available accumulated and current earnings and profits.

Subject to the discussion below on effectively connected income and the discussion in the subsequent paragraph regarding our potential USRPHC status, dividends paid to a Non-U.S. Holder will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate) (subject to any proposed or other changes to U.S. tax laws). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty and any proposed changes to U.S. tax laws.

If we are considered a USRPHC and a Non-U.S. Holder's Class A Interests are treated as a United States real property interest (a "USRPI") (e.g., either the Non-U.S. Holder has owned more than 5% of the

------

[**TABLE OF CONTENTS**](#TOC)

Class A Interests at any time during the Testing Period (as defined below), or the Class A Interests are not treated as "regularly traded on an established securities market," as discussed below under "— *Sale or Other Taxable Disposition*"), and if any distribution on our Class A Interests exceeds our current and accumulated earnings and profits, we will have additional withholding tax obligations which we will need to satisfy either by treating the entire distribution as a dividend, subject to the withholding rules above (but withhold at a minimum rate of 15% or such lower rate as may be specified by an applicable income tax treaty for distributions from a USRPHC) or by treating only the amount of the distribution equal to our reasonable estimate of our current and accumulated earnings and profits as a dividend, with the excess portion of the distribution possibly being subject to withholding at a rate of 15% or such lower rate as may be specified by an applicable income tax treaty as if such excess were the result of a sale of shares in a USRPHC.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.

Any such effectively connected dividends will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

 *Sale or Other Taxable Disposition* 

Subject to the discussion below on information reporting, backup withholding and FATCA, a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our Class A Interests unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Class A Interests constitute a USRPI by reason of our status as a USRPHC, for U.S. federal income tax purposes at any applicable time within the shorter of (i) the five year period preceding the Non-U.S. Holder's disposition of the Class A Interests and (ii) the Non-U.S. Holder's holding period for the Class A Interests (such shorter time, "Testing Period");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is attributable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Non-U.S. Holder is a nonresident alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements are met.

We have not analyzed whether we are a USRPHC, and there is no assurance that we will not become a USRPHC. If we are considered a USRPHC, subject to exceptions described below, Non-U.S. Holders in their capacity as sellers or transferors are subject to U.S. federal income tax in respect of a gain on their Class A Interests and are required to file a U.S. tax return. The amount realized from any disposition is subject to a withholding tax of 15% required to be collected from disposition proceeds, unless the Class A Interests qualify as "regularly traded on an established securities market." Non-U.S. Holders may, by filing a U.S. tax return, be able to claim a refund for any withholding tax deducted in excess of the U.S. federal income tax liability on gain. Furthermore, Non-U.S. Holders will be required to pay, by filing a U.S. tax return, any U.S. federal income tax liability on gain that is not satisfied by withholding. A Non-U.S. Holder that has owned 5% or less of the Class A Interests during the entire Testing Period, taking into account applicable constructive ownership rules, may treat its ownership of the Class A Interests as not constituting a USRPI and thereby avoid net income tax payment and tax return filing obligations if the Class A Interests are treated as "regularly traded on an established securities market." It is uncertain whether the Class A Interests will be treated as "regularly traded on an established securities market."

Gain described in the second bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder that is a corporation also may be subject to a

------

[**TABLE OF CONTENTS**](#TOC)

branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.

Gain described in the third bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses. Non-U.S. Holders should consult their tax advisors regarding tax consequences of our potential treatment as a USRPHC and regarding potentially applicable income tax treaties that may provide for different rules.

#### Information Reporting and Backup Withholding
 *U.S. Holders* 

Information reporting requirements generally will apply to dividends (and any deemed dividends) on the Class A Interests and the proceeds of a sale or other taxable disposition of Class A Interests paid to a U.S. Holder unless the U.S. Holder is an exempt recipient and, if required, certifies as to that status. Backup withholding generally will apply to dividends (and any deemed dividends) if the U.S. Holder fails to provide an appropriate certification with its correct taxpayer identification number or certification of exempt status. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or credit against a U.S. Holder's U.S. federal income tax liability, provided that the required information is timely furnished to the IRS.

 *Non-U.S. Holders* 

Generally, the amount of distributions (and any deemed distributions) on our Class A Interests paid (or deemed paid) to Non-U.S. Holders and the amount of tax, if any, withheld with respect to those amounts must be reported annually to the IRS and to the Non-U.S. Holders. Copies of the information returns reporting such distributions and withholding may also be made available to the tax authorities in a country in which the Non-U.S. Holder resides under the provisions of an applicable income tax treaty. In general, a Non-U.S. Holder will not be subject to backup withholding with respect to dividends (and any deemed dividends) on our Class A Interests, provided the applicable tax certifications have been received or the Non-U.S. Holder otherwise establishes an exemption. In addition, a Non-U.S. Holder will be subject to information reporting and, depending on the circumstances, backup withholding with respect to payments of the proceeds of the sale of our Class A Interests conducted within the United States or through certain US-related financial intermediaries, unless the statement described above has been received or the Non-U.S. Holder otherwise establishes an exemption. Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, if any, provided the required information is timely furnished to the IRS.

#### Additional Withholding Tax on Payments Made to Foreign Accounts
Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (such sections commonly referred to as the Foreign Account Tax Compliance Act, or FATCA) on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends (including any deemed dividends) on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or other disposition of, our Class A Interests paid (or deemed paid) to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (1) the foreign financial institution undertakes certain diligence and reporting obligations, (2) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (3) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in (1) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain "specified United States persons" or "United States-owned foreign entities" (each as defined in the Code), annually report certain

------

[**TABLE OF CONTENTS**](#TOC)

information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the United States governing FATCA may be subject to different rules.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies to dividends (and any deemed dividends) on our Class A Interests. While withholding under FATCA would have applied also to payments (and deemed payments) of gross proceeds from the sale or other disposition of our Class A Interests, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.

Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our Class A Interests.

------

[**TABLE OF CONTENTS**](#TOC)

#### CERTAIN ERISA CONSIDERATIONS
 *Class A Interests are not permitted to be acquired or held by employee benefit plans that are subject to Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), plans, individual retirement accounts ("IRAs") and other arrangements that are subject to Section 4975 of the Code, or provisions under any federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, "Similar Laws"), and entities whose underlying assets are considered to include "plan assets" of such plans, accounts and arrangements pursuant to 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA, or any Similar Law (each, a "Plan").* 

#### General Fiduciary Matters
ERISA and the Code impose certain duties on persons who are fiduciaries of a Plan subject to Title I of ERISA or Section 4975 of the Code (an "ERISA Plan") and prohibit certain transactions involving the assets of an ERISA Plan and its fiduciaries or other interested parties. Under ERISA and the Code, any person who exercises any discretionary authority or control over the administration of such an ERISA Plan or the management or disposition of the assets of such an ERISA Plan, or who renders investment advice for a fee or other compensation to such an ERISA Plan or has authority or responsibility to do so, is generally considered to be a fiduciary of the ERISA Plan.

#### Prohibited Transaction Issues
Section 406 of ERISA and Section 4975 of the Code prohibit ERISA Plans from engaging in specified transactions involving plan assets with persons or entities who are "parties in interest," within the meaning of ERISA, or "disqualified persons," within the meaning of Section 4975 of the Code, unless an exemption is available. Those sections further prohibit a fiduciary from engaging in transactions in which a conflict of interest is deemed present. A party in interest or disqualified person (including a fiduciary) who engages in a non-exempt prohibited transaction may be subject to excise taxes and other penalties and liabilities under ERISA and the Code. In addition, a fiduciary of the ERISA Plan that engages in such a non-exempt prohibited transaction may be subject to penalties and liabilities under ERISA and the Code.

Governmental plans (as defined in Section 3(32) of ERISA), certain church plans (as defined in Section 3(33) of ERISA) and non-U.S. plans (as described in Section 4(b)(4) of ERISA), while not subject to the fiduciary responsibility or prohibited transaction provisions of ERISA or the provisions of Section 4975 of the Code, may nevertheless be subject to federal, state, local, non-U.S. or other laws or regulations that are substantially similar to the foregoing provisions of ERISA or the Code.

Under a regulation of the U.S. Department of Labor, 29 C.F.R. 2510.3-101 (as modified by Section 3(42) of ERISA (the "Plan Assets Regulation")), if an ERISA Plan invests in an "equity interest" of an entity that is neither a "publicly offered security" nor a security issued by an investment company registered under the Investment Company Act of 1940, the ERISA Plan's assets are deemed to include both the equity interest and an undivided interest in each of the entity's underlying assets, unless, among other exceptions, the entity is an "operating company," as defined in the Plan Assets Regulation. It is not anticipated that the Issuer will qualify as an operating company. Under the Plan Assets Regulation, to be a "publicly-offered security" the security must be, among other conditions, freely transferable and part of a class of securities that is widely held. It is not clear that the Class A Interests will qualify as a security that is freely transferable or part of a class of securities that is widely held, as interpreted by the Plan Assets Regulation.

If any Class A Interests were deemed to be equity interests in the Issuer and no exception under ERISA or the Plan Assets Regulation applied, an undivided portion of the Issuer's assets would be deemed to be assets of each Plan that invests in those Class A Interests. In such case, certain transactions that the Issuer might enter into, or may have entered into, on behalf of the Issuer, in the ordinary course of its business, might be deemed to constitute direct or indirect "prohibited transactions" under Section 406 of ERISA or Section 4975 of the Code with respect to such Plan investors and might have to be rescinded.

Because of the foregoing, the Class A Interests should not be purchased or held by any person investing "plan assets" of any ERISA Plan, and should not be purchased or held by any person investing "plan assets" of plans subject to Similar Law.

------

[**TABLE OF CONTENTS**](#TOC)

The foregoing discussion is general in nature and is not intended to be all-inclusive nor should it be construed as legal advice.

#### Representation
Accordingly, by acceptance of and/or holding a Class A Interest, each purchaser and subsequent transferee of a Class A Interest will be deemed to have represented and warranted that such purchaser or subsequent transferee is not acquiring or holding the Class A Interest for or on behalf of, and no portion of the assets used by such purchaser or transferee to acquire or hold the Class A Interests constitutes assets of, any ERISA Plan, or of any plan subject to Similar Law.

------

[**TABLE OF CONTENTS**](#TOC)

#### LEGAL MATTERS
The validity of the Class A Interests we are offering will be passed upon by Latham & Watkins LLP, New York, New York. Certain legal matters in connection with this offering will be passed upon for the placement agents by Winston & Strawn LLP, Chicago, Illinois.

#### EXPERTS
The financial statements of Bally's Chicago, Inc. as of December 31, 2024 and 2023, and for the years ended December 31, 2024 and 2023, and for the period from May 24, 2022 (date of inception) to December 31, 2022, included in this prospectus, have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report. Such financial statements are included in reliance upon the report of such firm given their authority as experts in accounting and auditing.

#### WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the Class A Interests being offered by this prospectus. This prospectus, which constitutes part of that registration statement, does not contain all of the information set forth in the registration statement or the exhibits and schedules that are part of the registration statement. Some items included in the registration statement are omitted from the prospectus in accordance with the rules and regulations of the SEC. For further information with respect to us and the Class A Interests offered in this prospectus, we refer you to the registration statement and the accompanying exhibits and schedules. Statements contained in this prospectus regarding the contents of any contract, agreement or any other document to which reference is made are summaries of the material terms of these contracts, agreements or other documents. With respect to each of these contracts, agreements or other documents filed as an exhibit to the registration statement, reference is made to such exhibit for a more complete description of the matter involved.

A copy of the registration statement and the accompanying exhibits and schedules and any other document we file may be inspected without charge at the public reference facilities maintained by the SEC in 100 F Street, N.E., Washington, D.C. 20549 and copies of all or any part of the registration statement may be obtained from this office upon the payment of the fees prescribed by the SEC. The public may obtain information on the operation of the public reference facilities in Washington, D.C. by calling the SEC at 1-800-SEC-0330. Our filings with the SEC are available to the public from the SEC's website at www.sec.gov.

Upon the closing of this offering, we will be subject to the information and periodic reporting requirements of the Exchange Act applicable to a company with securities registered pursuant to Section 12 of the Exchange Act. In accordance therewith, we will file proxy statements, periodic information and other information with the SEC. All documents filed with the SEC are available for inspection and copying at the public reference room and website of the SEC referred to above.

------

[**TABLE OF CONTENTS**](#TOC)

#### INDEX TO FINANCIAL STATEMENTS

---

| | |
|:---|:---|
| | **Page No.**  |
| **Annual Financial Statements (Predecessor):** |  |
| [Report of Independent Registered Public Accounting Firm (PCAOB ID 34)](#fROIR)  | [F-2](#fROIR) |
| [Consolidated Balance Sheets at December 31, 2024 and 2023](#fCBS)  | [F-3](#fCBS) |
|  [Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022](#fCSOO)  | [F-4](#fCSOO) |
|  [Consolidated Statements of Changes in Stockholder's (Deficit) Equity for the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022](#fCSOS)  | [F-5](#fCSOS) |
|  [Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022](#fCSOC)  | [F-6](#fCSOC) |
| [Notes to Consolidated Financial Statements](#fNTCF)  | [F-7](#fNTCF) |
| **Interim Financial Statements:** |  |
|  [Condensed Consolidated Balance Sheets (unaudited) at March 31, 2025 (Successor) and December 31, 2024 (Predecessor)](#fCBS1)  | [F-28](#fCBS1) |
|  [Condensed Consolidated Statements of Operations (unaudited) for the Period from February 8 to March 31, 2025 (Successor), the Period from January 1 to February 7, 2025 (Predecessor) and the Three Months Ended March 31, 2024 (Predecessor)](#fCSOO1)  | [F-29](#fCSOO1) |
|  [Condensed Consolidated Statements of Stockholders' Deficit (unaudited) for the Period from February 8 to March 31, 2025 (Successor), the Period from January 1 to February 7, 2025 (Predecessor) and the Three Months Ended March 31, 2024 (Predecessor)](#fCSOS1)  | [F-30](#fCSOS1) |
|  [Condensed Consolidated Statements of Cash Flows (unaudited) for the Period from February 8 to March 31, 2025 (Successor), the Period from January 1 to February 7, 2025 (Predecessor) and the Three Months Ended March 31, 2024 (Predecessor)](#fCSOS2)  | [F-31](#fCSOS2) |
| [Notes to Condensed Consolidated Financial Statements](#fNTCF1)  | [F-32](#fNTCF1) |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the stockholder and the Board of Directors of Bally's Chicago, Inc.

#### Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Bally's Chicago, Inc. and its subsidiary (the "Company") as of December 31, 2024 and 2023, the related consolidated statements operations, stockholder's (deficit) equity, and cash flows, for the years ended December 31, 2024 and 2023, and for the period from May 24, 2022 (date of inception) to December 31, 2022, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024 and 2023, and for the period from May 24, 2022 (date of inception) to December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

#### Emphasis of Matter — Related Party Transactions
As described in the Note 3 to the financial statements, the Company has significant transactions with and balances due to and from Bally's Corporation, the Company's parent, and is dependent on its parent for the majority of its working capital and financing requirements.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

New York, New York

March 31, 2025

We have served as the Company's auditor since 2022.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### CONSOLIDATED BALANCE SHEETS (In thousands, except share data)

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| **<u>Assets</u>**  |  |  |
| Cash  | $14519 | $14027 |
| Restricted cash  |  | 57278 |
| Accounts receivable  | 1470 | 1874 |
| Inventory  | 2748 | 466 |
| Prepaid expenses and other current assets  | 4323 | 6235 |
| Due from related party (Bally's Corporation)  | 974 | 974 |
| **Total current assets**  | 24034 | 80854 |
| Property and equipment, net  | 172747 | 453674 |
| Right of use assets, net  | 209977 | 12111 |
| Intangible assets  | 186221 | 186250 |
| Other assets  | 6926 | 4378 |
| **Total assets**  | $599905 | $737267 |
| **<u>Liabilities and Stockholder's Deficit</u>**  |  |  |
| Current portion of lease liabilities  | 4323 | 3678 |
| Accounts payable  | 11397 | 9869 |
| Accrued and other current liabilities  | 12563 | 60012 |
| Promissory notes to related party (Bally's Corporation) (Note 3)  | 675528 | 527230 |
| Due to related party (Bally's Corporation) (Note 3)  | 416 |  |
| **Total current liabilities**  | 704227 | 600789 |
| Long-term portion of financing obligation  |  | 200000 |
| Long-term portion of lease liabilities  | 206297 | 8967 |
| **Total liabilities**  | 910524 | 809756 |
| **Commitments and contingencies (Note 12)** |  |  |
| **Stockholder's (deficit) equity:** |  |  |
|  Common stock ($0.01 par value; 100 shares authorized; 100 and 100 shares issued; <br> 100 and 100 shares outstanding  |  |  |
| Additional paid-in-capital  | 974 | 974 |
| Accumulated deficit  | (311593) | (73463) |
| **Total stockholder's deficit**  | (310619) | (72489) |
| **Total liabilities and stockholders' deficit**  | $599905 | $737267 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended <br> December 31, 2024**  | **Year Ended <br> December 31, 2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **Revenue:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | $115844 | $28734 | $— |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 12849 | 3443 |  |
| Total revenue  | 128693 | 32177 |  |
| **Operating costs and expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | 60268 | 13430 |  |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 8134 | 2138 |  |
| &nbsp;&nbsp;&nbsp; General and administrative  | 64696 | 36441 | 15057 |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | 60000 | 20680 | 424 |
| &nbsp;&nbsp;&nbsp; Loss on sale-leaseback  | 150000 |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 18300 | 5705 |  |
| Total operating costs and expenses  | 361398 | 78394 | 15481 |
| **Loss from operations**  | (232705) | (46217) | (15481) |
| **Other income (expense):** |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income  | 1466 | 2778 |  |
| &nbsp;&nbsp;&nbsp; Interest expense, net of amounts capitalized  | (6891) | (13819) | (2031) |
| &nbsp;&nbsp;&nbsp; Other non-operating income, net  |  | 893 | 414 |
| Total other expense, net  | (5425) | (10148) | (1617) |
| Loss before income taxes  | (238130) | (56365) | (17098) |
| Benefit for income taxes  |  |  |  |
| **Net loss**  | $(238130) | $(56365) | $(17098) |
| Basic loss per share  | $(2381300) | $(563650) | $(170980) |
| Weighted average common shares outstanding, basic  | 100 | 100 | 100 |
| Diluted loss per share  | $(2381300) | $(563650) | $(170980) |
|  Weighted average common shares outstanding, <br> diluted  | 100 | 100 | 100 |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### CONSOLIDATED STATEMENTS OF STOCKHOLDER'S (DEFICIT) EQUITY (In thousands, except shares)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Common Stock**  | **Common Stock**  | **Additional <br> Paid-in <br> Capital**  | **Accumulated <br> deficit**  | **Total <br> Stockholder's <br> (Deficit) Equity**  |
| | **Shares <br> Outstanding**  | **Amount**  | **Additional <br> Paid-in <br> Capital**  | **Accumulated <br> deficit**  | **Total <br> Stockholder's <br> (Deficit) Equity**  |
| **Balance as of May 24, 2022 (date of inception)**  | **—** | $**—** | $**—** | $**—** | $**—** |
| &nbsp;&nbsp;&nbsp; Issuance of common stock  | 100 |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Capital contributions from Bally's <br> Corporation  |  |  | 63465 |  | 63465 |
| &nbsp;&nbsp;&nbsp; Net loss  |  |  |  | (17098) | (17098) |
| **Balance as of December 31, 2022**  | **100** | **—** | **63465** | **(17098)** | **46367** |
| &nbsp;&nbsp;&nbsp; Return of capital to Bally's Corporation  |  |  | (62491) |  | (62491) |
| &nbsp;&nbsp;&nbsp; Net loss  |  |  |  | (56365) | (56365) |
| **Balance as of December 31, 2023**  | **100** | **—** | **974** | **(73463)** | **(72489)** |
| &nbsp;&nbsp;&nbsp; Net loss  |  |  |  | (238130) | (238130) |
| **Balance as of December 31, 2024**  | **100** | $**—** | $**974** | $**(311593)** | $**(310619)** |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended <br> December 31, 2024**  | **Year Ended <br> December 31, 2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **Cash flows from operating activities:** |  |  |  |
| Net loss  | $(238130) | $(56365) | $(17098) |
|  Adjustments to reconcile net loss to net cash used in operating activities:  |  |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 18300 | 5705 |  |
| &nbsp;&nbsp;&nbsp; Loss on sale-leaseback  | 150000 |  |  |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 3841 | 3589 | 310 |
| &nbsp;&nbsp;&nbsp; Other operating activities  | 42 |  |  |
| &nbsp;&nbsp;&nbsp; Changes in current operating assets and liabilities:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable  | 371 | (1874) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory  | (2282) | (466) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | 1912 | (5451) | (784) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Right of use assets  | (778) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable  | (78) | (2642) | 5799 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of lease liabilities  | (2953) | (3312) | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities  | 237 | 12889 | (5878) |
| Net cash used in operating activities  | (69518) | (47927) | (17704) |
| **Cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of land  | **—** |  | (200000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures  | (135280) | (191178) | (8511) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisition of gaming licenses  |  | (135250) |  |
| Net cash used in investing activities  | (135280) | (326428) | (208511) |
| **Cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from land financing obligation  |  |  | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance costs  | (702) | (3914) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financing from Bally's Corporation  | 219944 | 448482 | 27307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayment of promissory notes to Bally's Corporation  | (71230) |  |  |
| Net cash provided by financing activities  | 148012 | 444568 | 227307 |
| Net change in cash and restricted cash  | (56786) | 70213 | 1092 |
| Cash and restricted cash, beginning of period  | 71305 | 1092 |  |
| **Cash and restricted cash, end of period**  | $14519 | $71305 | $1092 |
| *Supplemental disclosure of cash flow information:* |  |  |  |
| Cash paid for interest, net of amounts capitalized  | $10101 | $13819 | $2031 |
| *Non-cash investing and financing activities:* |  |  |  |
| Unpaid property and equipment  | $11763 | $11951 | $9061 |
| Unpaid issuance costs  | 1848 |  |  |
| Derecognition of land assets  | 350000 |  |  |
| Land development liability  |  | 47739 |  |
| Return of capital to Bally's Corporation  |  | 62491 |  |
| Promissory notes to related party (Bally's Corporation)  |  | (62491) |  |
| Fixed assets transferred, net  |  | 16631 |  |
| Gaming license – capital contribution  |  |  | (51000) |
| Tax receivable – capital contribution  |  |  | (974) |
| Short term lease deposit – capital contribution  |  |  | (4500) |
| Expenses paid by Bally's Corporation – capital contribution  |  |  | (6991) |

---

The accompanying notes are an integral part of these consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. #### GENERAL INFORMATION
 *Description of Business* 

Bally's Chicago, Inc. (the "Company", "Bally's Chicago") was formed on May 24, 2022 and is a wholly owned subsidiary of Bally's Chicago Holding Company, LLC, a wholly owned subsidiary of Bally's Corporation. Bally's Chicago is a gaming, hospitality and entertainment company with the singular focus of building and operating a world-class entertainment destination resort in Chicago, Illinois. The Company intends to provide both Chicago residents and business and leisure travelers visiting Chicago with physical and interactive entertainment and gaming experiences.

On June 9, 2022, a wholly-owned subsidiary of the Company, Bally's Chicago Operating Company, LLC, signed a host community agreement with the City of Chicago to develop a destination casino resort, to be named Bally's Chicago, in downtown Chicago, Illinois that will include approximately 3,400 slot machines, 170 table games, 10 food and beverage venues, 500 hotel rooms, a 65,000 square foot entertainment and event center, a 20,000 square foot exhibition, outdoor music venue, 3,300 parking spaces and an outdoor green space. The project also provided the Company with the exclusive right to operate a temporary casino for up to three years while the permanent casino resort is constructed.

During construction of the permanent facility, the City of Chicago gave the Company the ability to build a temporary casino in downtown Chicago (the "Temporary Facility"). The Company opened the Temporary Facility situated in the location of the current Medinah Temple on September 9, 2023 which includes approximately 900 gaming positions and five food and beverage venues. The Company incurred approximately $70.0 million in costs in connection with the design and development of the temporary casino. The Company currently expects the permanent casino (the "Permanent Facility") to open to the public in 2026. However, there can be no assurances that the Company will be successful in so doing. Any increased construction costs could materially and adversely affect the return on the Company's investments.

 *Bally's Corporation* 

The Company's public company parent, Bally's Corporation ("Bally's" or the "Parent"), is a global gaming, hospitality and entertainment company with a portfolio of casinos and resorts and online gaming businesses. Bally's Corporation provides its customers with physical and interactive entertainment and gaming experiences, including traditional casino offerings, iCasino, online bingo games, sportsbook and free-to-play.

On February 7, 2025, Bally's Corporation completed its previously announced transactions, pursuant to which The Casino Queen & Entertainment Inc. ("Casino Queen"), a majority-owned by funds managed by Standard General L.P., its largest common stockholder, merged with Bally's Corporation, and Bally's paid cash consideration of $18.25 per share to holders of 22.9 million of their outstanding shares and stockholders owning 17.9 million of Bally's outstanding shares elected to remain invested in the combined company. As a result of these transactions, Bally's has elected to apply push-down accounting, whereby fair value adjustments will be made to the Company's assets and liabilities. Bally's and the Company are currently in the process of evaluating the quantitative impact of these adjustments on the Company's financial statements.

 *Going Concern* 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and the ability of the Company to continue as a going concern for a reasonable period of time.

In accordance with Accounting Standards Codification ("ASC") 205-40, Going Concern, ("ASC 205-40") the Company evaluated the severity of the following adverse conditions that raise substantial doubt about its ability to continue as a going concern as of the date the accompanying financial statements were issued (the "issuance date").

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Company has incurred significant losses and negative cash flows from operations since its inception and expects to continue to incur such losses and negative cash flows for the foreseeable future. In this regard, the Company incurred a net loss and used net cash in its operations of approximately $238.1 million and $69.5 million, respectively, during the year ended December 31, 2024. In addition, the Company has an accumulated deficit of $311.6 million and approximately $14.5 million of cash on hand as of December 31, 2024. As a result, the Company has been dependent of Bally's Corporation since its inception to fund substantially all of the Company's obligations as they become due and expects to continue to remain dependent on such funding for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • As disclosed in Notes 12, the Company is subject to a number of contractual obligations and commitments associated with the operation of the Temporary Facility and construction of the Permanent Facility, which includes the total committed costs that are expected to be incurred to construct the Permanent Facility of approximately $1.0 billion over the next two years. Refer to Note 10 "Leases" for further information on the funding of the Permanent Facility construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • As of the issuance date, the Company did not have sufficient capital or available liquidity to fund the obligations and commitments that are expected to become due over the next twelve months beyond the issuance date. In particular, while the Temporary Facility commenced operations on September 9, 2023, the Company has not yet generated an ongoing source of net cash inflows from operations that are sufficient to cover the cost of operating the Temporary Facility, as well as construction costs associated with the Permanent Facility that are expected to be incurred over the next twelve months beyond the issuance date.

In response to the foregoing adverse financial conditions, the Company obtained a letter of support whereby Bally's Corporation has committed to fund all of the Company's operating, investing, and financing activities through at least March 31, 2026 and has further committed not to make any decision or action that would reasonably be expected to negatively affect the Company's ability to continue as a going concern through at least March 31, 2026.

The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. #### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 *Basis of Presentation* 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"). The consolidated financial statements of Bally's Chicago include the accounts of the Company and its subsidiaries.

 *Use of Estimates in the Preparation of Consolidated Financial Statements* 

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and revenues and expenses and related disclosures of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates and judgments including those related to intangible assets, recoverability and useful lives of tangible and intangible long-lived assets and valuation allowances for deferred tax assets. The Company bases its estimates and judgments on historical experience and other relevant factors impacting the carrying value of assets and liabilities. Actual results may differ from these estimates.

 *Cash and Restricted Cash* 

The Company considers all cash balances and highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. Restricted cash as of December 31, 2023 included cash

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
collateral in connection with amounts due to the Chicago Tribune (refer to Note 7 "Property and Equipment"), which was unavailable for the Company's use. The following table reconciles cash and restricted cash in the consolidated balance sheets to the total shown on the consolidated statements of cash flows.

---

| | | |
|:---|:---|:---|
| **(in thousands)**  | **December 31, <br> 2024**  | **December 31, <br> 2023**  |
| Cash  | $14519 | $14027 |
| Restricted cash  |  | 57278 |
| Total cash and restricted cash  | $14519 | $71305 |

---

 *Concentrations of Credit Risk* 

The Company's financial instruments which potentially expose the Company to concentrations of credit risk consisted of cash and cash equivalents and trade receivables. The Company maintains cash with financial institutions in excess of federally insured limits, however, management believes the credit risk is mitigated by the quality of the institutions holding such deposits.

 *Accounts Receivable* 

Accounts receivable consists of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| **(in thousands)**  | **2024**  | **2023**  |
| Gaming receivables  | $1151 | $1570 |
| Non-gaming receivables  | 337 | 304 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | 1488 | 1874 |
| Less: Allowance for credit losses  | (18) |  |
| Accounts receivable, net  | $1470 | $1874 |

---

An allowance for credit losses is determined to reduce the Company's receivables for amounts that may not be collected. The allowance is estimated based on historical collection experience, current economic and business conditions and forecasts that affect the collectability and review of individual customer accounts and any other known information. Activity for the allowance for credit losses is as follows:

---

| | |
|:---|:---|
| **(in thousands)**  | **December 31, <br> 2024**  |
| Balance at beginning of year  | $— |
| Charges to expense  | 33 |
| Deductions  | (15) |
| Balance at end of year  | $18 |

---

There were no allowance for credit losses for the year ended December 31, 2023 and the Period from May 24, 2022 (date of inception) to December 31, 2022.

 *Inventory* 

Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis and consists primarily of food, beverage, promotional items and other supplies.

 *Property and Equipment* 

Property and equipment are stated at cost, net of accumulated depreciation and impairment losses, if applicable. Expenditures for renewals and betterments that extend the life or value of an asset are capitalized

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
and expenditures for repairs and maintenance are charged to expense as incurred. The costs and related accumulated depreciation applicable to assets sold or disposed are removed from the balance sheet accounts and the resulting gains or losses are reflected in the consolidated statements of operations. Depreciation is recorded using the straight-line method over the lessor of the estimated useful lives of the assets or the related lease term, if any, as follows:

---

| | |
|:---|:---|
| | **Years**  |
| Leasehold improvements  | 10 – 40  |
| Equipment  | 3 – 7  |
| Furniture and fixtures  | 5 – 10  |

---

Development costs directly associated with the acquisition, development and construction of a project are capitalized as a cost of the project during the periods in which activities necessary to prepare the property for its intended use are in progress. Interest costs associated with major construction projects are capitalized as part of the cost of the constructed assets. When no debt is incurred specifically for a project, interest is capitalized on amounts expended for the project using the weighted-average cost of borrowing. Capitalization of interest ceases when the project (or discernible portions of the project) is substantially complete. If substantially all of the construction activities of a project are suspended, capitalization of interest will cease until such activities are resumed.

 *Leases* 

The Company determines if a contract is or contains a lease at the contract inception date or the date in which a modification of an existing contract occurs. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (i) the right to obtain substantially all of the economic benefits from the use of the identified asset throughout the period of use and (ii) the right to direct the use of the identified asset.

Under ASC 842, *Leases*, the Company elected to account for lease and non-lease components as a single component for all classes of underlying assets. Additionally, the Company elected to not recognize short-term leases (defined as leases that are less than 12 months and do not contain purchase options) within the consolidated balance sheets.

The Company recognizes a lease liability for the present value of lease payments at the lease commencement date using its incremental borrowing rate commensurate with the lease term based on information available at the commencement date unless the rate implicit in the lease is readily determinable. Rent expense associated with the Company's leases and their associated variable expenses are reported in total operating costs and expenses within the consolidated statements of operations.

 *Intangible Assets* 

The Company's intangible assets consist of the Chicago gaming licenses associated with its permanent casino and the operations of it's temporary casino. The Company's temporary casino gaming license is classified as finite-lived, and is being amortized over its estimated useful life. The Company's permanent casino gaming license is classified as indefinite-lived based on future expectations of operating Bally's Chicago indefinitely.

For its finite-lived intangible asset, the Company establishes a useful life upon initial recognition based on the period over which the asset is expected to contribute to the future cash flows of the Company and periodically evaluates the remaining useful life to determine whether events and circumstances warrant a revision to the remaining amortization period. Finite-lived intangible assets are amortized over their remaining useful lives in a pattern in which the economic benefits of the intangible asset are consumed, which is generally on a straight-line basis. The Company reviews the carrying amount of its finite-lived intangible

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
asset for possible impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Should events and circumstances indicate finite-lived intangible assets may not be recoverable, the Company performs a test for recoverability whereby estimated undiscounted cash flows are compared to the carrying values of the assets. Should the estimated undiscounted cash flows exceed the carrying value, no impairments are recorded. If the undiscounted cash flows do not exceed the carrying values, an impairment is recorded based on the fair value of the asset.

Assessing indefinite-lived assets for impairment is a process that involves significant judgment and requires a qualitative and quantitative analysis with many assumptions which fluctuate based on our business. We review indefinite-lived intangible assets at least annually and between annual test dates if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The evaluation of indefinite-lived intangible assets requires the use of estimates about future operating results to determine the estimated fair value of the indefinite-lived assets. Refer to Note 8 "Intangible Assets" for further information.

 *Long-lived Assets* 

The Company reviews its long-lived assets, other than intangible assets not subject to amortization, for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is still under development, the analysis includes the remaining construction costs. If the carrying value of the asset exceeds the expected undiscounted future cash flows generated by the asset, the asset is written down to its estimated fair value and an impairment loss is recognized. There were no impairment charges during the years ended December 31, 2024 and 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022.

 *Revenue* 

The Company accounts for revenue earned from contracts with customers under ASC 606, *Revenue from Contracts with Customers* ("ASC 606"). The Company generates revenue from three principal sources: gaming, food and beverage, and other. Refer to Note 5 "Revenue Recognition" for further information.

 *Gaming Expenses* 

Gaming expenses include, among other things, payroll costs and expenses associated with the operation of slot machines and table games, including gaming taxes payable to the jurisdiction in which the Company operates.

 *Non-gaming Expenses* 

Non-gaming expenses, include, among other things, payroll costs and expenses associated with the operation of restaurants and retail operations.

 *General and Administrative Expense* 

General and administrative expenses consist primarily of salaries, bonuses and benefits for employees, legal and other professional services fees, and other general operating expenses.

 *Advertising Expenses* 

The Company expenses advertising costs as incurred. Advertising expenses, including production and agency fees of campaigns, for the years ended December 31, 2024 and 2023 were $5.1 million and $1.7 million, respectively, and included in "General and administrative" on the consolidated statements of operations. There was no advertising expense incurred during the period from May 24, 2022 (date of inception) to December 31, 2022.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 *Expansion Expenses* 

The Company expenses expansion costs as incurred. The Company defines expansion expenses as costs incurred in connection with the opening of a new facility or significant expansion of an existing property. Costs classified as expansion costs consist primarily of marketing, master planning, conceptual design fees and legal and professional fees that are not eligible for capitalization and are included in "General and administrative" on the consolidated statements of operations. Expansion expenses for the years ended December 31, 2024 and 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022 were $8.8 million, $24.7 million and $15.3 million, respectively.

 *Interest Expense, Net of Amounts Capitalized* 

Interest expense, net of amounts capitalized is comprised of lease payments related to the Company's long-term financing obligation, net of amounts capitalized for construction projects. Refer to Note 10 "Leases" for further information.

 *Defined Contribution Plans* 

The Company participates in the Bally's Corporation retirement savings plan under Section 401(k) of the Internal Revenue Code covering its employees. The plan allows employees to defer up to the lesser of the Internal Revenue Code prescribed maximum amount or 100% of their income on a pre-tax basis through contributions to the plan. Total employer contribution expenses attributable to defined contribution plans were $0.6 million and $0.1 million for the years ended December 31, 2024 and 2023, respectively. There was no employer contribution expense attributable to defined contribution plans for the period from May 24, 2022 (date of inception) to December 31, 2022.

 *Income Taxes* 

The Company prepares its income tax provision in accordance with ASC 740, *Income Taxes*. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the rate change is enacted. A valuation allowance is required when it is "more likely than not" that all or a portion of the deferred taxes will not be realized. The consolidated financial statements reflect expected future tax consequences of uncertain tax positions presuming the taxing authorities' full knowledge of the position and all relevant facts.

 *Statement of Cash Flows* 

The Company has presented the consolidated statements of cash flows using the indirect method, which involves the reconciliation of net income or loss to net cash flow from operating activities.

 *Fair Value Measurements* 

Fair value is determined using the principles of ASC 820, *Fair Value Measurement*. Fair value is described as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes and defines the inputs to valuation techniques as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 1: Observable quoted prices (unadjusted) for identical assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 2: Inputs are observable for the asset or liability either directly or through corroboration with observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 3: Unobservable inputs.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The inputs used to measure the fair value of an asset or a liability are categorized within levels of the fair value hierarchy. The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the measurement.

As of December 31, 2024 and 2023, the Company had cash and restricted cash of $14.5 million and $71.3 million, respectively, which was measured at fair value on a recurring basis and is classified within Level 1 of the fair value hierarchy.

3. #### RELATED PARTY TRANSACTIONS
Operations, as well as assets and liabilities, directly associated with the business activity of the Company are included in the consolidated financial statements. The consolidated financial statements include fees paid in accordance with the corporate services agreement, as described in Note 12 *"*Commitments and Contingencies", providing the Company with certain administrative and corporate services, beginning in September 2023 with the commencement of operations at the Temporary Facility. Additionally, the consolidated financial statements include allocations of certain general, administrative, sales and marketing expenses from its Parent, which management believes is commensurate with services provided at fair value, of $60.0 million, $20.7 million and $0.4 million for the for the years ended December 31, 2024 and 2023, and for the period from May 24, 2022 (date of inception) to December 31, 2022, respectively. These fees and allocated expenses are recorded within "Management fees to Bally's Corporation" on the consolidated statements of operations. As of December 31, 2024, there was a $0.4 million balance of Due to related party (Bally's Corporation) related to administrative expenses.

During the period from May 24, 2022 (date of inception) to December 31, 2022, the Company incurred costs from the Parent related to pre-formation expenses of $7.0 million, which are recorded within "General and administrative" on the consolidated statements of operations. There were no pre-formation expenses incurred during the years ended December 31, 2024 and 2023.

The Company is dependent on its Parent for a majority of its working capital and financing requirements as Bally's uses a centralized approach to cash management and financing of its operations which are accounted for through a due to/from account. Accordingly, none of Bally's cash, cash equivalents or debt has been assigned to Bally's Chicago in the consolidated financial statements. On December 31, 2023, all expenses paid by Bally's Corporation on the Company's behalf were converted into $527.2 million of promissory notes ("2023 Promissory Notes"), reported within "Promissory notes to related party (Bally's Corporation)" on the consolidated balance sheet.

During 2024, the Company entered into an additional $219.5 million of promissory notes, due December 31, 2025, with Bally's Corporation for expenses paid on the Company's behalf, made $71.2 million of payments on the intercompany promissory notes, and amended the 2023 Promissory Notes, extending their respective due dates to December 31, 2025.

As of December 31, 2024 and 2023 promissory notes to related party (Bally's Corporation) consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)**  | **Loan Balance as of <br> December 31, 2024**  | **Loan Balance as of <br> December 31, 2023**  | **Due Date**  | **Interest <br> Rate**  |
|  **Promissory notes payable by Bally's Chicago Operating Company, LLC:**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Bally's Chicago Holding Company, LLC<sup>(1)</sup>  | $628617 | $419221 | December 31, 2025  | —% |
| &nbsp;&nbsp;&nbsp; Bally's Management Group, LLC<sup>(1)</sup>  | 40573 | 43256 | December 31, 2025  | —% |
|  | $669190 | $462477 |  |  |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)**  | **Loan Balance as of <br> December 31, 2024**  | **Loan Balance as of <br> December 31, 2023**  | **Due Date**  | **Interest <br> Rate**  |
|  **Promissory notes payable by Bally's Chicago Inc.:**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Bally's Chicago Holding Company, <br> LLC<sup>(1)(2)</sup>  | $6338 | $64784 | December 31, 2025  | —% |
|  **Promissory notes receivable by Bally's Chicago Inc.:**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Bally's Management Group, LLC<sup>(1)</sup>  | $— | $31 | December 31, 2025  | —% |
|  **Consolidated promissory notes payable to related <br> party (Bally's Corporation)**  | $**675528** | $**527230** |  |  |

---

(1) A wholly owned subsidiary of Bally's Corporation.

(2) Refer to Note 14 "Subsequent Events" for further information.

As of December 31, 2024 and 2023, the aggregate amount of promissory notes to related party (Bally's Corporation) consisted of cash advances and payments of certain operating expenses made on behalf of the Company. The average aggregate balance of promissory notes to related party (Bally's Corporation) was $564.1 million and $527.2 million during the years ended December 31, 2024 and 2023, respectively.

4. #### RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
<u>Standards Implemented</u> 

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, *Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures*. The amendments in this update enhance the disclosures required for significant segment expenses on an annual and interim basis. The guidance will apply retrospectively and is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company adopted this ASU as of December 31, 2024. Refer to Note 13 "Segment Reporting" for further information.

<u>Standards to Be Implemented</u> 

In October 2023, the FASB issued ASU No. 2023-06, *Disclosure Improvements — Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative*. The amendments in this update align the requirements in the ASC to the Securities and Exchange Commission's ("SEC") regulations. The effective date for each amended topic in the ASC is the date on which the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. The Company is currently in the process of evaluating the impact of this amendment on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740) — Improvements to Income Tax Disclosures*. The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This update will be effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently in the process of evaluating the impact of this amendment on its consolidated financial statements and related disclosures.

 *In March 2024, the FASB issued ASU 2024-02, Codification Improvements — Amendments to Remove References to the Concepts Statements. This amendment to the Codification removes references to various* 

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Concepts Statements. This update will be effective for public business entities for fiscal years beginning after December 15, 2024, with early adoption permitted if adopted as of the beginning of the fiscal year that includes that interim period. The Company is currently in the process of evaluating the impact of this amendment on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, *Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. The amendments in this update require disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. This update will be effective for fiscal years beginning after December 15, 2026, and interim reporting periods in fiscal years beginning after December 15, 2027, with early adoption permitted. The disclosures required under the guidance can be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the impact that this guidance will have on its financial statement disclosures.

5. #### REVENUE RECOGNITION
The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers*, ("ASC 606") which requires the revenue to be recognized when a performance obligation is satisfied by transferring the control of promised goods or services and is measured at the transaction price or the amount of consideration that the Company expects to receive through satisfaction of the identified performance obligations.

The Company generates revenue from three principal sources: (1) gaming, (2) food and beverage, and (3) other.

Sales tax and other taxes collected on behalf of governmental authorities are accounted for on a net basis and are not included in revenue or operating expenses.

<u>Performance Obligations</u> 

Retail gaming service contracts involving our casino, each have an obligation to honor the outcome of a wager and to pay out an amount equal to the stated odds, including the return of the initial wager, if the customer receives a winning hand. These elements of honoring the outcome of the hand of play and generating a payout are considered one performance obligation, with an additional performance obligation for those customers earning incentives under the Company's player loyalty program.

Food and beverage and other services have been determined to be separate, stand-alone performance obligations and revenue is recognized as the good or service is transferred at the point in time of the transaction.

<u>Transaction Price</u> 

The Company applies a practical expedient to account for its gaming contracts on a portfolio basis as such wagers have similar characteristics and the Company reasonably expects the impact on the consolidated financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from the application of an individual wagering contract. The transaction price for a retail gaming wagering contract is the difference between wins and losses, not the total amount wagered. In addition, in the event of a multi-stage contest, the Company will allocate transaction price ratably from contest start to the contest's final stage.

The transaction price for food and beverage and other, is the net amount collected from the customer for such goods and services. The standalone selling price of these goods and services are determined based upon the actual retail prices charged to customers for those items.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<u>Revenue Recognition</u> 

The allocated revenue for gaming wagers is recognized when the wagering occurs as all such wagers settle immediately. If a player wins the wager, the Company pays the player a pre-determined amount known as fixed odds, and its revenue is recognized as total wagers net of payouts made and incentives awarded to players. Food and beverage and other revenues are recognized at the time the goods are sold from Company-operated outlets.

The estimated retail value related to goods and services provided to guests without charge or upon redemption under the Company's player loyalty programs included in departmental revenues, and therefore reducing gaming revenues, are as follows for the year ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,**  | **Years Ended December 31,**  |
| **(in thousands)**  | **2024**  | **2023**  |
| Food and beverage  | $4958 | $679 |

---

There were no goods and services provided to guests without charge or upon redemption under the Company's player loyalty programs included in departmental revenues during the period from May 24, 2022 (date of inception) to December 31, 2022.

The following table provides a disaggregation of total revenue (in thousands):

---

| | | |
|:---|:---|:---|
| | **Years Ended December 31,**  | **Years Ended December 31,**  |
| | **2024**  | **2023**  |
| Gaming  | $115844 | $28734 |
| Non-gaming: |  |  |
| &nbsp;&nbsp;&nbsp; Food and beverage  | 9981 | 2688 |
| &nbsp;&nbsp;&nbsp; Other  | 2868 | 755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-gaming revenue  | 12849 | 3443 |
| Total revenue  | $128693 | $32177 |

---

There was no revenue recorded during the period from May 24, 2022 (date of inception) to December 31, 2022.

 *Contract Assets and Contract Related Liabilities* 

The Company's receivables related to contracts with customers are primarily comprised of marker balances and other amounts due from gaming activities. The Company's receivables related to contracts with customers were $0.1 million and $0.2 million as of December 31, 2024 and 2023, respectively.

The Company has the following liabilities related to contracts with customers: liabilities for loyalty programs, advance deposits made for goods and services yet to be provided and unpaid wagers. All of the contract liabilities are short-term in nature and are included in "Accrued and other current liabilities" in the consolidated balance sheets.

Loyalty program incentives earned by customers are typically redeemed within one year from when they are earned and expire if a customer's account is inactive for more than 12 months; therefore, the majority of these incentives outstanding at the end of a period will either be redeemed or expire within the next 12 months.

Unpaid wagers include the Company's outstanding chip liability and unpaid slot tickets.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Liabilities related to contracts with customers as of December 31, 2024 and 2023 was as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **2024**  | **2023**  |
| Unpaid wagers  | $1541 | $6505 |
| Loyalty programs  | 51 |  |
| Advanced deposits from customers  | 1 | 1 |
| &nbsp;&nbsp;&nbsp; Total  | $1593 | $6506 |

---

The Company recognized $0.2 million and $26.0 thousand of revenue related to loyalty program redemptions for the years ended December 31, 2024 and 2023, respectively. There was no revenue related to loyalty program redemptions recognized during the period from May 24, 2022 (date of inception) to December 31, 2022.

6. #### PREPAID EXPENSES AND OTHER ASSETS
As of December 31, 2024 and 2023, prepaid expenses and other current assets were comprised of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| **(in thousands)**  | **2024**  | **2023**  |
| Taxes and license fees  | $2675 | $3478 |
| Services and license agreements  | 736 | 784 |
| Prepaid marketing  | 468 | 263 |
| Gaming taxes  | 390 |  |
| Prepaid ground lease payments  |  | 1167 |
| Prepaid rent  |  | 500 |
| Other  | 54 | 43 |
| &nbsp;&nbsp;&nbsp; Total prepaid expenses and other current assets  | $4323 | $6235 |

---

7. #### PROPERTY AND EQUIPMENT
As of December 31, 2024 and 2023, property and equipment, net was comprised of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| **(in thousands)**  | **2024**  | **2023**  |
| Land and improvements  | $— | $347741 |
| Leasehold improvements  | 42513 | 39703 |
| Equipment  | 28096 | 22972 |
| Furniture and fixtures  | 469 | 205 |
| Construction in process  | 125638 | 48754 |
| &nbsp;&nbsp;&nbsp; Total property and equipment  | 196716 | 459375 |
| Less: Accumulated depreciation<sup>(1)</sup>  | (23969) | (5701) |
| &nbsp;&nbsp;&nbsp; Property and equipment, net  | $172747 | $453674 |

---

(1) Depreciation expense on property and equipment for the years ended December 31, 2024 and 2023 was $18.3 million and $5.7 million, respectively. There was no depreciation expense related to property and equipment for the period from May 24, 2022 (date of inception) to December 31, 2022.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2024 the vast majority of the Company's Construction in process was attributable to the development of the Permanent Facility. During the years ended December 31, 2024 and 2023, there was $5.5 million and $8.8 million of capitalized interest, respectively. There was no capitalized interest during the period from May 24, 2022 (date of inception) to December 31, 2022.

 *Bally's Chicago Permanent Facility* 

The Company entered into a Lease Termination and Short Term License Agreement with Chicago Tribune Company, LLC ("Tribune"), effective March 31, 2023, which among other things provided that the Company will have possession of Permanent Chicago Site on or before July 5, 2024, subject to $150 million in payments by Bally's Chicago to Tribune payable in full upon Tribune vacating the site (the "Payment"). $10.0 million of the Payment was paid upon execution of the Lease Termination and Short Term License Agreement, $90.0 million of the Payment was paid during the third quarter of 2023. The Company paid the remaining $50.0 million on July 9, 2024 and gained possession of the property per the agreement with Tribune.

In the third quarter of 2024, as the result of a lease modification event, the Company derecognized $350.0 million of land relating to the site of the future Bally's Chicago permanent facility. Refer to Note 10 "Leases" for further information.

8. #### INTANGIBLE ASSETS
 *Annual Impairment Assessment* 

To assess indefinite-lived intangible assets for impairment, each indefinite-lived intangible asset is separately assessed for impairment if events or changes in circumstances occur that could adversely affect its fair value. Indefinite-lived intangibles are assessed for impairment at least annually on October 1st. If carrying value exceeds fair value, an impairment charge to earnings is recorded to reduce carrying value to fair value. Based on the Company's assessments, no impairment charges were recognized during during the years ended December 31, 2024 and 2023, and the period from May 24, 2022 (date of inception) to December 31, 2022.

As of December 31, 2024 and 2023, the Company's identifiable intangible assets consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in thousands, except years)**  | **Weighted Average <br> Remaining life <br> (in years)**  | **Gross Carrying <br> Amount**  | **Accumulated <br> Amortization**  | **Net**  |
| **December 31, 2024** |  |  |  |  |
| Gaming license – Temporary Casino  | 1.9  | $250 | $(29) | $221 |
| Gaming license – Permanent Casino  | Indefinite  | 186000 |  | 186000 |
| &nbsp;&nbsp;&nbsp; Total intangible assets, net  |  | $186250 | $(29) | $186221 |
| **December 31, 2023** |  |  |  |  |
| Gaming licenses – Temporary Casino  | Indefinite  | $250 | $— | $250 |
| Gaming licenses – Permanent Casino  | Indefinite  | 186000 |  | 186000 |
| &nbsp;&nbsp;&nbsp; Total intangible assets, net  |  | $186250 | $— | $186250 |

---

The Company's amortization expense during the year ended December 31, 2024 was $29.0 thousand. There was no amortization expense during the year ended December 31, 2023 or during the period from May 24, 2022 (date of inception) to December 31, 2022. As of December 31, 2024, the Company's remaining amortization expense associated with finite lived intangible assets will be $0.1 million for both the years ended December 31, 2025 and 2026.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
9. #### ACCRUED AND OTHER CURRENT LIABILITIES
As of December 31, 2024 and 2023, accrued and other current liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| **(in thousands)**  | **2024**  | **2023**  |
| Compensation  | 2369 | 1417 |
| Property taxes  | 2246 | 2872 |
| Professional service fees  | 2169 | 1017 |
| Construction  | 2089 | 4913 |
| Gaming liabilities  | 2037 | 923 |
| Legal  | 439 | 31 |
| Land development liability  |  | 47739 |
| Other  | 1214 | 1100 |
| &nbsp;&nbsp;&nbsp; Total accrued and other current liabilities  | $12563 | $60012 |

---

10. #### LEASES
 *<u>Operating Leases</u>* 

As of December 31, 2024 and 2023, the Company had total operating lease liabilities of $210.6 million and $12.6 million, respectively, and right of use assets of $210.0 million and $12.1 million, respectively.

Components of lease expense included within "General and administrative" for operating leases during the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022 are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **(in thousands)**  | **2024**  | **2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| Operating lease cost  | $10631 | $4547 | $405 |
| Variable lease cost  | 46 |  |  |
| &nbsp;&nbsp;&nbsp; Operating lease expense  | 10677 | 4547 | 405 |
| Short-term lease expense  | 3423 | 889 |  |
| &nbsp;&nbsp;&nbsp; Total operating lease expense  | $14100 | $5436 | $405 |

---

Supplemental cash flow and other information related to operating leases for the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022, are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **($ in thousands)**  | **2024**  | **2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
|  Cash paid for amounts included in the lease liability – operating cash flows from operating leases  | $9745 | $4272 | $148 |
|  Right of use assets obtained in exchange for operating lease liabilities  | $201706 | $254 | $15757 |
| Non-cash derecognition of financing obligation  | $(200000) | $— | $— |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

---

| | | |
|:---|:---|:---|
| | **December 31, 2024**  | **December 31, 2023**  |
| Weighted average remaining lease term  | 92.9 years  | 2.9 years  |
| Weighted average discount rate  | 9.9%  | 6.7%  |

---

As of December 31, 2024, future minimum lease payments under noncancelable operating leases are as follows:

---

| | |
|:---|:---|
| **(in thousands)**  |  |
| 2025  | $24789 |
| 2026  | 24714 |
| 2027  | 20094 |
| 2028  | 20000 |
| 2029  | 20000 |
| Thereafter  | 1837667 |
| &nbsp;&nbsp;&nbsp; Total lease payments  | 1947264 |
| Less: present value discount  | (1736644) |
| &nbsp;&nbsp;&nbsp; Lease obligations  | $210620 |

---

 *<u>Financing Obligation</u>* 

The Company entered into a ground lease, guaranteed by Bally's Corporation, for the land on which the Permanent Facility will be built. The lease commenced November 18, 2022 and has a 99-year term followed by ten separate 20-year renewals at the Company's option.

The Company recorded land within property and equipment, net of $200.0 million with a corresponding long-term financing obligation of $200.0 million on its consolidated balance sheets as of December 31, 2023. The Company did not allocate any value to the existing building located on the land as the Company intends to demolish it to construct the Permanent Facility. All lease payments were recorded as interest expense and there was no reduction to the financing obligation over the lease term. The Company made cash payments, and recorded corresponding interest expense, of $12.4 million, $17.4 million and $2.0 million for the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022.

In the third quarter of 2024, GLP Capital, L.P. ("GLP") acquired the real estate underlying the Permanent Facility, for which the Company was subject to the financing obligation, and assumed the existing lease. The lease with GLP was amended in the third quarter, creating a lease modification event whereby the land components previously classified as a financing obligation were reassessed and are now classified as an operating lease. This change was due to the transfer of control of the land asset from the Company to the lessor, which permitted sale recognition in accordance with ASC 842. As a result of this reassessment, the Company, within it's Permanent Casino reportable segment, derecognized $350.0 million from "Property and equipment, net" related to the land asset and $200.0 million from the "Long-term portion of financing obligation" within our consolidated balance sheets. As a result of the lease modification, a $150.0 million loss was recorded in "Loss on sale-leaseback" within the consolidated statements of operations for the year ended December 31, 2024.

 *<u>Pending Lease Transactions</u>* 

On July 11, 2024, the Company entered into a Binding Term Sheet to form a strategic construction and financing arrangement with GLP which includes the funding to complete the construction of the Permanent Facility. GLP will amend the existing land lease through a new master lease agreement with the Company ("Chicago MLA"). The Chicago MLA includes annual rent of $20.0 million, subject to customary escalation

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
provisions. The Chicago MLA also provides up to $940.0 million in construction financing, subject to conditions and approvals. The Company will pay additional rent under the Chicago MLA based on a 8.5% capitalization rate on funded amounts. The initial lease term for the Chicago MLA is 15 years with renewal options to be agreed upon by the parties.

 *<u>Lessor</u>* 

During the first quarter of 2023, the Company entered into a lease termination agreement with its tenants. Refer to Note 7 "Property and Equipment" for further information on it's tenant agreement with Tribune. Other income from tenant leases was $0.9 million and $0.4 million for the years ended December 31, 2023 and the period from May 24, 2022 (date of inception) to December 30, 2022 and is included in "Other non-operating income, net" in the Company's consolidated statements of operations. There was no other income from tenant leases during the year ended December 31, 2024.

11. #### INCOME TAXES
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. Income taxes as presented in the Company's consolidated financial statements have been allocated in a manner that is systematic, rational, and consistent with the broad principles of ASC 740. For the years ended December 31, 2024, and 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022, the Company's operations will be included in Bally's Corporation's U.S. federal consolidated tax return and certain state tax returns. For the purposes of these financial statements, the Company's income tax provision was computed as if the Company filed separate tax returns, and had not been included in the consolidated income tax return group with Bally's Corporation. The separate return method applies ASC 740 to the financial statements of each member of a consolidated tax group as if the group member were a separate taxpayer. As a result, actual tax transactions included in the consolidated financial statements of Bally's Corporation may not be included in these consolidated financial statements. Further, the Company's tax results as presented in the consolidated financial statements may not be reflective of the results that the Company expects to generate in the future. Also, the tax treatment of certain items reflected in the consolidated financial statements may not be reflected in the consolidated financial statements and tax returns of Bally's Corporation. It is conceivable that items such as net operating losses, other deferred taxes, uncertain tax positions and valuation allowances may exist in the consolidated financial statements that may or may not exist in the Bally's Corporation consolidated financial statements.

Since the Company's results are included in the Bally's Corporation tax returns, payments to certain tax authorities are made by Bally's Corporation, and not by the Company. For tax jurisdictions where the Company is included with Bally's Corporation in a consolidated tax filing, the Company does not maintain taxes payable to or from Bally's Corporation and the payments are deemed to be settled immediately with the legal entities paying the tax in the respective tax jurisdictions through changes in Due from Bally's Corporation in the consolidated financial statements.

The Company evaluates the realizability of its deferred tax assets and recognizes a valuation allowance when it is more likely than not that a future benefit on such deferred tax assets will not be realized. Changes in the valuation allowance, when recorded, would be included in the Company's statement of operations. Management's judgment is required in determining the Company's valuation allowance recorded against its net deferred tax assets.

For the years ended December 31, 2024, 2023 and the period from May 24, 2022 (date of inception) to December 31, 2022, there was no income tax provision recorded in the consolidated statement of operations as the Company has established a full valuation allowance against the net deferred tax asset position.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The effective rate varies from the statutory US federal tax rate as follows:

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)**  | **Year Ended <br> December 31, 2024**  | **Year Ended <br> December 31, 2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| Income tax benefit at statutory federal rate  | $(50008) | $(11837) | $(3592) |
| State income taxes, net of federal effect  | (22553) | (5219) | (1565) |
| Nondeductible professional fees  | (5) | 172 |  |
|  Other permanent differences including lobbying expense  | 157 | 127 | 134 |
| Change in valuation allowance  | 72409 | 16757 | 5023 |
| &nbsp;&nbsp;&nbsp; Total (benefit) provision for income taxes  | $— | $— | $— |
| Effective income tax rate on continuing operations  | —% | —% | —% |

---

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. Significant components of the Company's deferred income taxes at December 31, 2024 and 2023 are as follows:

---

| | | |
|:---|:---|:---|
| **(in thousands)**  | **December 31, <br> 2024**  | **December 31, <br> 2023**  |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp; Property and equipment  | $39151 | $— |
| &nbsp;&nbsp;&nbsp; Net operating loss carryforwards  | 56348 | 29592 |
| &nbsp;&nbsp;&nbsp; Intangible assets  |  | 2475 |
| &nbsp;&nbsp;&nbsp; Valuation allowance  | (94189) | (21780) |
| Total deferred tax assets, net  | $1310 | $10287 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Intangible assets  | $(1303) | $— |
| &nbsp;&nbsp;&nbsp; Accrued liabilities and other  | (7) | (692) |
| &nbsp;&nbsp;&nbsp; Property and equipment  |  | (9595) |
| Total deferred tax liabilities  | $(1310) | $(10287) |
| Net deferred tax liabilities  | $— | $— |

---

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 carryovers. Accordingly, a $94.2 million and $21.8 million valuation allowance has been established as of December 31, 2024 and 2023, respectively. The change in valuation allowance for the year ended December 31, 2024 was $72.4 million.

As of December 31, 2024, the Company has $198.0 million of federal net operating carryforwards with an unlimited carryforward period. There was $111.3 million of federal net operating carryforwards with an unlimited carryforward period as of December 31, 2023. As of December 31, 2024 and December 31, 2023, the Company had $155.6 million and $65.4 million of state net operating loss carryforwards, respectively, which expire at various dates through 2044.

Under the ASC 740 guidance for uncertainty in income taxes, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
examination by the tax authorities. As of December 31, 2024 and 2023, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

12. #### COMMITMENTS AND CONTINGENCIES
 *Community Host Agreement* 

As mentioned in Note 1 "General Information", the Company signed a host community agreement with the City of Chicago to develop a Permanent Facility, Bally's Chicago, for $1.34 billion. No assurance can be made that this estimate will not materially change during the development of the facility. As of December 31, 2024, approximately $1.0 billion of this commitment remains.

In connection with the entry into the host community agreement with the City of Chicago, the Company will is required to pay annual fixed host community impact fees of $4.0 million. Additionally, Bally's Corporation provided the City of Chicago with a performance guaranty whereby Bally's Corporation agreed to have and maintain available financial resources in an amount reasonably sufficient to allow the Company to complete its obligations under the host community agreement. Upon notice from the City of Chicago that the Company has failed to perform various obligations under the host community agreement, Bally's Corporation has indemnified 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 Company's obligations. The guaranty will terminate two years after the later of (i) the date on which the Permanent Facility commences operations or (ii) the date on which Bally's Chicago achieves final completion as defined in the host community agreement.

 *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.

 *Corporate Services Agreement* 

The Company's Corporate Services Agreement with Bally's Corporation requires a fixed monthly payment of $5.0 million, which began in September 2023 with the commencement of operations at the Temporary Facility. The Corporate Services Agreement provides the Company with certain administrative and corporate services from Bally's Management Group, LLC, a wholly owned subsidiary of Bally's Corporation. These fixed payments are in addition to personnel and administrative costs allocated to the Company, based on an estimated percentages of time spent on the Company's activities by corporate employees. In accordance with the corporate services agreement, the Company recorded $60.0 million and $20.0 million during the years ended December 31, 2024 and 2023, respectively, within Management fees from Bally's Corporation in the consolidated statements of operations.

13. #### SEGMENT REPORTING
During the third quarter of 2024, the Company updated its operating and reportable segments to align with how the business is being managed. A change in the way the Company's chief operating decision maker makes operating decisions, assesses the performance of the business and allocates resources was driven by the Company taking possession of the land underlying the permanent casino project during the quarter. As a result of this segment re-alignment, the Company determined it had two operating and reportable segments: Temporary Casino and Permanent Casino. The "Other adjustments" include certain unallocated corporate operating expenses and other adjustments to reconcile to the Company's consolidated results including, among other expenses, compensation for certain executives and other transaction costs. The prior year results presented below were reclassified to conform to the new segment presentation.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Temporary Casino operating segment, the Company's measure of segment performance is Adjusted EBITDAR (defined below). Management believes segment Adjusted EBITDAR is representative of its ongoing business operations including its ability to service debt and to fund capital expenditures and its 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. For the Permanent Casino operating segment, the measure of segment performance is operating income (loss).

The Company's chief operating decision maker (the "CODM") is its President. Temporary Casino Adjusted EBITDAR and Permanent Casino operating income (loss) are utilized by the CODM to analyze and evaluate period-to-period performance of the business and are used as determining factors for performance-based compensation for members of the Company's management.

The following table sets forth the measures of segment performance for the Company's two reportable segments, reconciled to net loss on a consolidated basis. The Other adjustments category is included in the following table in order to reconcile the segment information to the Company's consolidated financial statements.

---

| | | | |
|:---|:---|:---|:---|
| **(in thousands)**  | **Year Ended <br> December 31, 2024**  | **Year Ended <br> December 31, 2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | $128693 | $32177 | $— |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue  | $128693 | $32177 | $— |
| **Permanent Casino Loss from Operations**  | $(163757) | $(2227) | $— |
| **Temporary Casino Adjusted EBITDAR<sup>(1)</sup>**  | $11250 | $7721 | $— |
|  **Reconciliation of segment performance measures to net loss:**  |  |  |  |
| Temporary Casino Operating costs and expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | (18300) | (5705) |  |
| &nbsp;&nbsp;&nbsp; Expansion costs<sup>(2)</sup>  | (112) | (22865) | (15057) |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | (60000) | (20000) | (424) |
| Total other expense, net<sup>(3)</sup>  | (5425) | (10148) | (1617) |
| Other adjustments  | (1786) | (3141) |  |
| **Total Net loss**  | $(238130) | $(56365) | $(17098) |

---

(1) Adjusted EBITDAR is defined as earnings, or loss, for the Temporary Casino before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, expansion costs, management fees to Bally's Corporation, rent expense from triple net operating leases, and certain other gains or losses.

(2) The Company defines expansion expenses as costs incurred in connection with the opening of a new facility or significant expansion of an existing property. Costs classified as expansion consist primarily of marketing, master planning, conceptual design fees and legal and professional fees that are not eligible for capitalization and are included in "General and administrative" on the consolidated statements of operations.

(3) Total other expense, net for the years ended December 31, 2024 and 2023, and the period from May 24, 2022 (date of inception) to December 31, 2022 was included within the Permanent Casino reportable segment, and includes primarily interest expense.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables sets forth significant segment expenses and other segment items by reportable segment (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| | **2024**  | **2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **Temporary Casino** |  |  |  |
| Revenue  | $128693 | $32177 | $— |
| Less: segment expenses |  |  |  |
| &nbsp;&nbsp;&nbsp; Marketing costs  | 18778 | 2791 |  |
| &nbsp;&nbsp;&nbsp; Gaming tax  | 35770 | 6982 |  |
| &nbsp;&nbsp;&nbsp; Compensation  | 36986 | 9374 |  |
| &nbsp;&nbsp;&nbsp; Casino property costs  | 9001 | 2566 |  |
| &nbsp;&nbsp;&nbsp; General and administrative  | 7287 | 2031 |  |
| &nbsp;&nbsp;&nbsp; Other segment items<sup>(1)</sup>  | 9621 | 712 |  |
| Segment EBITDAR  | $11250 | $7721 | $— |
| **<u>Permanent Casino</u>** |  |  |  |
| Revenue  | $— | $— | $— |
| Less: segment expenses |  |  |  |
| &nbsp;&nbsp;&nbsp; Expansion costs  | 7701 | 2227 |  |
| &nbsp;&nbsp;&nbsp; Rent expense  | 6056 |  |  |
| &nbsp;&nbsp;&nbsp; Loss on sale-leaseback  | 150000 |  |  |
| Permanent Casino Loss from Operations  | $(163757) | $(2227) | $— |

---

(1) Other segment items for includes Gaming and non-gaming expenses and certain other immaterial costs and allocations.

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,**  | **Year Ended December 31,**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **(in thousands)**  | **2024**  | **2023**  | **Period from <br> May 24, 2022 <br> (date of inception) to <br> December 31, 2022**  |
| **Capital Expenditures** |  |  |  |
| Temporary Casino  | $1672 | $66637 | $4764 |
| Permanent Casino  | 133608 | 124541 | 3747 |
| &nbsp;&nbsp;&nbsp; Total  | $135280 | $191178 | $8511 |

---

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| **(in thousands)**  | **2024**  | **2023**  |
| **Total assets** |  |  |
| Temporary Casino  | $79208 | $141870 |
| Permanent Casino  | 512686 | 591019 |
| Other<sup>(1)</sup> | 8011 | 4378 |
| &nbsp;&nbsp;&nbsp; Total  | $599905 | $737267 |

---

(1) Other primarily includes capitalized costs associated with the Company's proposed initial public offering and certain other unallocated Corporate assets.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. #### SUBSEQUENT EVENTS
In accordance with ASC 855, *Subsequent Events*, the Company has evaluated all events and transactions that occurred after December 31, 2024, through March 31, 2025, the date the financial statements were issued. Based upon this review, other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the consolidated financial statements.

 *Litigation* 

On January 29, 2025, the American Alliance for Equal Rights and certain other individuals filed a complaint against the City of Chicago, certain members of the Illinois Gaming Board, and the Company, alleging that the Class A Qualification violates federal laws and seeking, among other remedies, permanent injunctions to prevent the Illinois Gaming Board members from enforcing 230 ILCS 10/6(a-5)(9), to allow shareholders to sell their Class A Interests to white males, to mandate the rescission of the Host Community Agreement ("HCA"), and to require the rescission of shares sold under the Class A Qualification Criteria. In addition, on January 30, 2025, a complaint was filed against the City of Chicago (including the Mayor and Treasurer in their official capacities), certain members of the Illinois Gaming Board, and the Company, also alleging that the Class A Qualification violates federal laws and seeking, among other remedies, permanent injunctions to prevent the implementation of the HCA's requirements for minority and woman ownership in the Company, and to prevent the exclusion of "otherwise qualified individuals" from participating in the Company's ownership, Board, or employment. On January 31, 2025, an emergency motion was filed for preliminary injunction and temporary restraining order, seeking to preclude the closing of the offering while the case proceeds on the merits. On February 6, 2025, the court denied the plaintiffs' request for a temporary restraining order to enjoin this offering.

The Company expects to incur substantial costs defending this lawsuit and if any person were to bring such a lawsuit against the Company in the future, the Company could incur additional substantial costs defending against any additional lawsuits. In addition, the time and attention of the Company's management could be diverted from the business and operations. Furthermore, in the event that a court were to find the Class A Qualification Criteria to be invalid or unconstitutional, the Company could be found liable for monetary damages against the plaintiffs and the HCA could be terminated, which could adversely affect our ability to operate our casinos and could materially adversely affect our business, financial condition and results of operations.

 *Changes to Authorized Shares* 

On March 10, 2025, in connection with the Company's consummation of its private offerings, the Company amended its Certificate of Incorporation to establish Class A and Class B Interests of the Company's common stock, and authorize the issuance of up to a total of 34,300 shares of all classes in the Company.

The total number of shares of all classes of stock the Company is authorized to issue consists of the following: (i) 300 shares of Class A-1 common stock, with a par value of $0.001 per share (the "Class A-1 Interests"); (ii) 300 shares of Class A-2 common stock, with a par value of $0.001 per share (the "Class A-2 Interests"); (iii) 200 shares of Class A-3 common stock, with a par value of $0.001 per share (the "Class A-3 Interests"); (iv) 3,500 shares of Class A-4 common stock, with a par value of $0.001 per share (the "Class A-4 Interests" and, together with Class A-1 Interest, Class A-2 Interests, and Class A-3 Interests, the "Class A Interests"); and (v) 30,000 shares of Class B common stock, with a par value of $0.001 per share (the "Class B Interests"). Each Class A and Class B Interest entitles its holder to one vote per share and shares of Class B Interests may only be held Bally's Corporation's wholly-owned subsidiary Bally's Chicago Holding Company, LLC (the "Holding Company").

Upon the effectiveness of the amended Certificate of Incorporation, each share of the Company's 100 common shares outstanding was reclassified into 300 shares of Class B Interests, for a total of 30,000 Class B Interests outstanding.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 *Issuance of Class A Interests* 

On March 10, 2025, the Company sold a total of 1,185 Class A Interests to certain accredited investors for an aggregate purchase price of $13.2 million, consisting of the following share classes and price per share:

---

| | | |
|:---|:---|:---|
| **Share Class**  | **Number of Shares**  | **Price Per Share**  |
| Class A-1  | 272 | $250 |
| Class A-2  | 281 | $2500 |
| Class A-3  | 171 | $5000 |
| Class A-4  | 461 | $25000 |

---

The Company also sold an additional 2,800 shares of Class A-4 Interests to the Holding Company at a purchase price of $25,000 per share. Consideration received included cash of $63.7 million and $6.3 million of shares issued in lieu of payment on the promissory notes payable by the Company to the Holding Company. Refer to Note 3 "Related Party Transactions" for further information.

 *Subordinated Loan Agreement* 

In connection with the issuance of these shares, the Company entered into a subordinated loan agreement with the Holding Company, pursuant to which the Holding Company made subordinated term loans (the "Subordinated Loans") to the Company totaling $16.5 million at an annual interest rate of 11%, compounded quarterly, with no maturity date. The Subordinated Loans were funded through the Holding Company's transfer of 659 Class A-4 shares to the Company.

 *Limited Liability Company Agreement* 

On March 10, 2025, the Company amended and restated its limited liability company agreement with Bally's Chicago Operating Company, LLC, converting the Company's existing shares into LLC Interests and appointing the Company as the sole managing member of Bally's Chicago Operating Company, LLC.

Subsequent to the above transactions, the Company purchased 3,326 LLC interests of Bally's Chicago Operating Company, LLC from Bally's Chicago Operating Company, LLC for total purchase price of $83.2 million. The Company will continue to consolidate Bally's Chicago Operating Company, LLC as the sole managing member in accordance with ASC 810, *Consolidation*, and consequently, the Holding Company's ownership interest in Bally's Chicago Operating Company, LLC will be represented as non-controlling interest in our consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC

#### CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share data)

---

| | | |
|:---|:---|:---|
| | **March 31, <br> 2025 <br> (Successor)**  | **December 31, <br> 2024 <br> (Predecessor)**  |
| **<u>Assets</u>**  |  |  |
| Cash  | $15597 | $14519 |
| Accounts receivable, net  | 1818 | 1470 |
| Inventory  | 2391 | 2748 |
| Prepaid expenses and other current assets  | 3584 | 4323 |
| Due from related party (Bally's Corporation)  | 974 | 974 |
| **Total current assets**  | 24364 | 24034 |
| Property and equipment, net  | 210472 | 172747 |
| Right of use assets, net  | 267319 | 209977 |
| Goodwill  | 105506 |  |
| Intangible assets  | 316078 | 186221 |
| Other assets  | 10418 | 6926 |
| **Total assets**  | $934157 | $599905 |
| **<u>Liabilities, Redeemable Non-controlling Interest, and Stockholder's Deficit</u>**  |  |  |
| Current portion of lease liabilities  | $4544 | $4323 |
| Accounts payable  | 7517 | 11397 |
| Accrued and other current liabilities  | 28991 | 12563 |
| Promissory notes to related party (Bally's Corporation) (Note 3)  | 642399 | 675528 |
| Due to related party (Bally's Corporation) (Note 3)  | 4790 | 416 |
| **Total current liabilities**  | 688241 | 704227 |
| Long-term portion of lease liabilities  | 264318 | 206297 |
| Subordinated loans due to related party (Bally's Corporation) (Note 3)  | 16475 |  |
| Deferred tax liability  | 5924 |  |
| **Total liabilities**  | 974958 | 910524 |
| **Commitments and contingencies (Note 12)** |  |  |
| **Redeemable non-controlling interest**  | 744387 |  |
| **Stockholders' deficit:** |  |  |
|  Common stock, $0.01 par value no shares authorized issued or outstanding as of <br> March 31, 2025 (Successor); 100 shares authorized, issued and outstanding as <br> of December 31, 2024 (Predecessor)  |  |  |
|  Class A common stock, $0.001 par value, 4,300 shares authorized, and 3,326 shares issued and outstanding as of March 31, 2025 (Successor); Class B common stock, $0.001 par value, and 30,000 shares authorized, issued and outstanding as of March 31, 2025 (Successor)  |  |  |
| Additional paid-in-capital  | 66861 | 974 |
| Accumulated deficit  | (852049) | (311593) |
| **Total stockholders' deficit**  | (785188) | (310619) |
| **Total liabilities, redeemable non-controlling interest, and stockholders' deficit**  | $934157 | $599905 |

---

See accompanying notes to condensed consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC

#### CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (In thousands, except per share data)

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| | **Period from <br> February 8 <br> to March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three <br> Months <br> Ended <br> March 31, <br> 2024**  |
| **Revenue:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | $15935 | $10353 | $28191 |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 1861 | 1134 | 3331 |
| Total revenue  | 17796 | 11487 | 31522 |
| **Operating costs and expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Gaming  | 8157 | 6039 | 14472 |
| &nbsp;&nbsp;&nbsp; Non-gaming  | 1462 | 1260 | 1941 |
| &nbsp;&nbsp;&nbsp; General and administrative  | 10196 | 8946 | 15241 |
| &nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | 8871 | 6129 | 15000 |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 4842 | 1985 | 4277 |
| Total operating costs and expenses  | 33528 | 24359 | 50931 |
| **Loss from operations**  | (15732) | (12872) | (19409) |
| **Other income (expense):** |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income  |  |  | 693 |
| &nbsp;&nbsp;&nbsp; Interest expense, net of amounts capitalized  | (248) |  | (2833) |
| Total other income (expense), net  | (248) |  | (2140) |
| Loss before income taxes  | (15980) | (12872) | (21549) |
| Benefit for income taxes  |  |  |  |
| **Net loss**  | $(15980) | $(12872) | $(21549) |
| Net loss attributable to Redeemable non-controlling interest  | (5613) |  |  |
| **Net loss attributable to Bally's Chicago, Inc.**  | $(10367) | $(12872) | $(21549) |
| Basic loss per share  | $(9223) | $(128720) | $(215490) |
| Weighted average common shares outstanding, basic  | 1124 | 100 | 100 |
| Diluted loss per share  | $(9223) | $(128720) | $(215490) |
| Weighted average common shares outstanding, diluted  | 1124 | 100 | 100 |

---

See accompanying notes to condensed consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC

#### CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (unaudited) (In thousands, except share data)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| | **Common Stock**  | **Common Stock**  | **Additional <br> Paid-in- <br> Capital**  | **Accumulated <br> Deficit**  | **Total <br> Stockholder's <br> Deficit**  |
| | **Shares <br> Outstanding**  | **Amount**  | **Additional <br> Paid-in- <br> Capital**  | **Accumulated <br> Deficit**  | **Total <br> Stockholder's <br> Deficit**  |
| **Balance as of December 31, 2024 (Predecessor)**  | 100 | $&nbsp;&nbsp;&nbsp;&nbsp;— | $974 | $(311593) | $(310619) |
| &nbsp;&nbsp;&nbsp; Net loss  |  |  |  | (12872) | (12872) |
| **Balance as of February 7, 2025 (Predecessor)**  | 100 | $— | $974 | $(324465) | $(323491) |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  | **Successor**  |
| | **Redeemable <br> Non-controlling <br> Interest**  | **Common Stock Shares Outstanding**  | **Common Stock Shares Outstanding**  | **Common Stock Shares Outstanding**  | **Common Stock Amount**  | **Common Stock Amount**  | **Common Stock Amount**  | **Additional <br> Paid-in- <br> Capital**  | **Accumulated <br> Deficit**  | **Total <br> Stockholders' <br> Deficit**  |
| | **Redeemable <br> Non-controlling <br> Interest**  | **Common <br> Stock**  | **Class A**  | **Class B**  | **Common <br> Stock**  | **Class A**  | **Class B**  | **Additional <br> Paid-in- <br> Capital**  | **Accumulated <br> Deficit**  | **Total <br> Stockholders' <br> Deficit**  |
|  **Balance as of February 8, 2025 <br> (Successor)**  | $— | 100 |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;— | $974 | $(91682) | $(90708) |
| &nbsp;&nbsp; Reorganization and Private <br> Placement  | 750000 | (100) | 3985 | 30000 |  |  |  | 82362 | (750000) | (667638) |
| &nbsp;&nbsp; Issuance of subordinated loans  |  |  | (659) |  |  |  |  | (16475) |  | (16475) |
| &nbsp;&nbsp; Net Loss  | (5613) |  |  |  |  |  |  |  | (10367) | (10367) |
|  **Balance as of March 31, 2025 <br> (Successor)**  | $744387 |  | 3326 | 30000 | $— | $— | $— | $66861 | $(852049) | $(785188) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  | **Predecessor**  |
| | **Common Stock**  | **Common Stock**  | **Additional <br> Paid-in- <br> Capital**  | **Accumulated <br> Deficit**  | **Total <br> Stockholder's <br> Deficit**  |
| | **Shares <br> Outstanding**  | **Amount**  | **Additional <br> Paid-in- <br> Capital**  | **Accumulated <br> Deficit**  | **Total <br> Stockholder's <br> Deficit**  |
| **Balance as of December 31, 2023 (Predecessor)**  | 100 | $&nbsp;&nbsp;&nbsp;&nbsp;— | $974 | $(73463) | $(72489) |
| &nbsp;&nbsp;&nbsp; Net loss  |  |  |  | (21549) | (21549) |
| **Balance as of March 31, 2024 (Predecessor)**  | 100 | $— | $974 | $(95012) | $(94038) |

---

See accompanying notes to condensed consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC

#### CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three Months <br> Ended <br> March 31, <br> 2024**  |
| **Cash flows from operating activities:** |  |  |  |
| Net loss  | $(15980) | $(12872) | $(21549) |
|  Adjustments to reconcile net loss to net cash used in operating activities  |  |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization  | 4842 | 1985 | 4277 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 206 | 415 | 937 |
| &nbsp;&nbsp;&nbsp; Bad debt expense  | 29 | 21 |  |
| &nbsp;&nbsp;&nbsp; Change in operating assets and liabilities:  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable  | (575) | 177 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventory  | 76 | 281 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | 671 | 68 | 862 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable  | 3700 | 261 | 3032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion of lease liabilities  | 1337 | (1986) | (889) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued and other current liabilities  | (5337) | 5514 | 1489 |
| Net cash used in operating activities  | (11031) | (6136) | (11765) |
| **Cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Capital expenditures  | (22941) | (10969) | (18353) |
| Net cash used in investing activities  | (22941) | (10969) | (18353) |
| **Cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Financing from Bally's Corporation  | 31774 | 22622 | 31921 |
| &nbsp;&nbsp;&nbsp; Repayment of promissory notes to Bally's Corporation  | (76776) |  |  |
| &nbsp;&nbsp;&nbsp; Issuance costs  | (789) | (1452) | (6) |
| &nbsp;&nbsp;&nbsp; Proceeds from Private Placement  | 13151 |  |  |
| &nbsp;&nbsp;&nbsp; Private Placement proceeds from Bally's Corporation  | 63625 |  |  |
| Net cash provided by financing activities  | 30985 | 21170 | 31915 |
| Net change in cash and restricted cash  | (2987) | 4065 | 1797 |
| Cash and restricted cash, beginning of period  | 18584 | 14519 | 71305 |
| **Cash and restricted cash, end of period**  | $15597 | $18584 | $73102 |
| *Supplemental disclosure of cash flow information:* |  |  |  |
| Cash paid for interest, net of amounts capitalized  | $— | $— | $3789 |
| *Non-cash investing and financing activities:* |  |  |  |
| Unpaid property and equipment  | 18133 | 11403 | 11193 |
| Unpaid issuance costs  | 3276 | 485 |  |
| Issuance of subordinated loans to Bally's Corporation  | 16475 |  |  |
| Issuance of redeemable non-controlling interest  | 750000 |  |  |
|  Issuance of shares to Bally's Corporation in lieu of promissory note <br> repayment  | 6325 |  |  |
| Land development liability  |  |  | 956 |

---

See accompanying notes to condensed consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. #### GENERAL INFORMATION
 *Description of Business* 

Bally's Chicago, Inc. (the "Company", "Bally's Chicago") was formed on May 24, 2022 and is a majority owned subsidiary of Bally's Chicago Holding Company, LLC (the "Holding Company"), a wholly owned subsidiary of Bally's Corporation. Bally's Chicago is a gaming, hospitality and entertainment company with the singular focus of building and operating a world-class entertainment destination resort in Chicago, Illinois. The Company intends to provide both Chicago residents and business and leisure travelers visiting Chicago with physical and interactive entertainment and gaming experiences.

On June 9, 2022, a wholly-owned subsidiary of the Company, Bally's Chicago Operating Company, LLC (the "Operating Company"), signed a host community agreement with the City of Chicago to develop a destination casino resort, to be named Bally's Chicago, in downtown Chicago, Illinois that will include approximately 3,400 slot machines, 170 table games, 10 food and beverage venues, 500 hotel rooms, a 65,000 square foot entertainment and event center, a 20,000 square foot exhibition, outdoor music venue, 3,300 parking spaces and an outdoor green space. The project also provided the Company with the exclusive right to operate a temporary casino for up to three years while the permanent casino resort is constructed.

During construction of the permanent facility, the City of Chicago gave the Company the ability to build a temporary casino in downtown Chicago (the "Temporary Facility"). The Company opened the Temporary Facility situated in the location of the current Medinah Temple on September 9, 2023, which includes approximately 900 gaming positions and five food and beverage venues. The Company incurred approximately $70.0 million in costs in connection with the design and development of the temporary casino. The Company currently estimates the permanent casino (the "Permanent Facility") construction to be materially completed by the third quarter of 2026 (Successor). However, there can be no assurances that the Company will be successful in so doing. Any increased construction costs could materially and adversely affect the return on the Company's investments.

 *Bally's Corporation* 

The Company's public company parent, Bally's Corporation ("Bally's" or the "Parent"), is a global gaming, hospitality and entertainment company with a portfolio of casinos and resorts and online gaming businesses. Bally's Corporation provides its customers with physical and interactive entertainment and gaming experiences, including traditional casino offerings, iCasino, online bingo games, sportsbook and free-to-play.

 *The Merger* 

On February 7, 2025 (the "Closing Date"), Bally's Corporation completed a merger (the "Merger") with SG Parent LLC, a Delaware limited liability company ("SG Parent"), The Queen Casino & Entertainment, Inc., a Delaware corporation and affiliate of Parent ("Queen"), Epsilon Sub I, Inc., a Delaware corporation and wholly owned subsidiary of the Company ("Merger Sub I"), Epsilon Sub II, Inc., a Delaware corporation and wholly owned subsidiary of the Company ("Merger Sub II", and together with the Company and Merger Sub I, (the "Company Parties"), and, solely for purposes of specified provisions thereof, SG CQ Gaming LLC, a Delaware limited liability company ("SG Gaming" and together with Parent and Queen, the "Buyer Parties"). The Merger with Queen was accounted for as a transaction between entities under common control and resulted in a change in control, in accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), due to the control of Bally's Corporation and Queen by SG Parent and its affiliates before and after the Merger. Bally's Corporation elected to push down SG Parent's basis in its net assets into its financial statements.

To better align the accounting and presentation with our public company parent, the Company has also determined that it will elect to apply pushdown accounting in these standalone financial statements. As

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
a result of the application of pushdown accounting, these financial statements reflect the Company's basis in the assets and liabilities of Bally's Corporation, which were remeasured to fair value as of the Closing Date.

The financial information for the period ended March 31, 2024, and the period from January 1 to February 7, 2025, reflects the historical cost basis of accounting for Bally's Chicago, Inc., prior to the pushdown of the Merger. These are referred to as the "Predecessor periods."

The period from February 8 to March 31, 2025, is termed the "Successor period." This period reflects the costs, activities, and recognition of the Company's assets and liabilities at their fair values due to pushdown accounting applied at the time of the Merger. The differences in accounting due to the acquisition method and the application of pushdown accounting mean the results of operations, cash flows, and financial information for the Successor period are not comparable to those of the Predecessor periods. A black line between the Successor and Predecessor periods has been placed in the condensed consolidated financial statements and in the tables to the notes to the condensed consolidated financial statements to highlight the lack of comparability between these two periods. Refer to Note 2 "Summary of Significant Accounting Policies" for further information on the Company's basis of presentation and consolidation as a result of Bally's transactions under its previously announced transactions under the Agreement and Plan of Merger (as amended, the "Merger Agreement") with SG Parent LLC, a Delaware limited liability company.

 *Going Concern* 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and the ability of the Company to continue as a going concern for a reasonable period of time.

In accordance with ASC 205-40, Going Concern, ("ASC 205-40") the Company evaluated the severity of the following adverse conditions that raise substantial doubt about its ability to continue as a going concern as of the date the accompanying financial statements were issued (the "issuance date").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Company has incurred significant losses and negative cash flows from operations since its inception and expects to continue to incur such losses and negative cash flows for the foreseeable future. In this regard, the Company incurred a net loss and used net cash in its operations of approximately $16.0 million and $11.0 million, respectively for the period from February 8 to March 31, 2025 (Successor) and $12.9 million and $6.1 million, respectively, for the period from January 1 to February 7, 2025 (Predecessor). In addition, the Company has an accumulated deficit of $852.0 million and approximately $15.6 million of cash on hand as of March 31, 2025 (Successor). As a result, the Company has been dependent of Bally's Corporation since its inception to fund substantially all of the Company's obligations as they become due and expects to continue to remain dependent on such funding for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • As disclosed in Note 12 "Commitments and Contingencies", the Company is subject to a number of contractual obligations and commitments associated with the operation of the Temporary Facility and construction of the Permanent Facility, which includes the total committed costs that are expected to be incurred to construct the Permanent Facility of approximately $1.0 billion over the next two years. Refer to Note 11 "Leases" for further information on the funding of the Permanent Facility construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • As of the issuance date, the Company did not have sufficient capital or available liquidity to fund the obligations and commitments that are expected to become due over the next twelve months beyond the issuance date. In particular, while the Temporary Facility commenced operations on September 9, 2023 (Predecessor), the Company has not yet generated an ongoing source of net cash inflows from operations that are sufficient to cover the cost of operating the Temporary Facility, as well as construction costs associated with the Permanent Facility that are expected to be incurred over the next twelve months beyond the issuance date.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In response to the foregoing adverse financial conditions, the Company obtained a letter of support whereby Bally's Corporation has committed to fund all of the Company's operating, investing, and financing activities through at least December 31, 2026 and has further committed not to make any decision or action that would reasonably be expected to negatively affect the Company's ability to continue as a going concern through at least December 31, 2026.

The accompanying condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. #### SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 *Basis of Presentation* 

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (the "SEC") for interim financial information, including Rule 10-01 of the SEC's Regulation S-X. Accordingly, certain information and note disclosures normally required in complete financial statements prepared in conformity with accounting principles generally accepted in the United States ("US GAAP") have been condensed or omitted. In the Company's opinion, these condensed consolidated financial statements include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's annual financial statements for the year ended December 31, 2024 (Predecessor) included elsewhere in this registration statement.

We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates.

 *Changes to Authorized Shares* 

On March 10, 2025 (Successor), in connection with the Company's consummation of its private offering (the "Private Placement") (described below), the Company amended its Certificate of Incorporation to establish Class A and Class B Interests of the Company's common stock, and authorize the issuance of up to a total of 34,300 shares of all classes in the Company.

The total number of shares of all classes of stock the Company is authorized to issue consists of the following: (i) 300 shares of Class A-1 common stock, with a par value of $0.001 per share (the "Class A-1 Interests"); (ii) 300 shares of Class A-2 common stock, with a par value of $0.001 per share (the "Class A-2 Interests"); (iii) 200 shares of Class A-3 common stock, with a par value of$0.001 per share (the "Class A-3 Interests"); (iv) 3,500 shares of Class A-4 common stock, with a par value of $0.001 per share (the "Class A-4 Interests" and, together with Class A-1 Interest, Class A-2 Interests, and Class A-3 Interests, the "Class A Interests"); and (v) 30,000 shares of Class B common stock, with a par value of $0.001 per share (the "Class B Interests"). Each Class A and Class B Interest entitles its holder to one vote per share, with no economic interest in the Company and shares of Class B Interests may only be held by the Holding Company.

Upon the effectiveness of the amended Certificate of Incorporation, each share of the Company's 100 common shares outstanding was reclassified into 300 shares of Class B Interests, for a total of 30,000 Class B Interests outstanding.

 *Reorganization and Private Placement* 

On March 10, 2025 (Successor), as part of the Private Placement, the Company sold a total of 1,185 Class A Interests to certain accredited investors, raising $13.2 million in gross proceeds, consisting of the following share classes and price per share:

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

---

| | | |
|:---|:---|:---|
| **Share Class**  | **Number of Shares**  | **Price Per Share**  |
| Class A-1  | 272 | $250 |
| Class A-2  | 281 | $2500 |
| Class A-3  | 171 | $5000 |
| Class A-4  | 461 | $25000 |

---

The Company also sold an additional 2,800 shares of Class A-4 Interests to the Holding Company at a purchase price of $25,000 per share. Consideration received from the Holding Company included cash of $63.7 million and $6.3 million of shares in lieu of payment on its outstanding promissory notes payable by the Company to the Holding Company.

In connection with the Private Placement, in March 2025 the Company also consummated a reorganization (the "Reorganization"), where it amended and restated its limited liability company agreement with the Operating Company, converting the Operating Company's existing shares into LLC Interests and appointed the Company as the sole managing member of the Operating Company. As part of the reorganization, the Holding Company was issued 30,000 LLC interests in the Operating Company, valued at $750.0 million, or $25,000 per interest. The Company subsequently purchased 3,326 LLC interests from the Operating Company for a total purchase price of $83.2 million.

In connection with the Private Placement, the Company entered into a subordinated loan agreement with the Holding Company, pursuant to which the Holding Company made subordinated term loans (the "Subordinated Loans"), based on the number of Class A-1, A-2 and A-3 Interests sold in the Private Placement, to the Company totaling $16.5 million, which were funded through the Holding Company's transfer of 659 Class A-4 shares back to the Company. Refer to Note 3 "Related Party Transactions" for further information.

As a result of the Private Placement and Reorganization, the Holding Company's combined Class A-4 and Class B Interests give the Holding Company 96.4% of the voting power in the Company, and its LLC Interests give the Holding Company a 90.0% economic interest in the Operating Company.

The Company as the sole managing member, operating as a holding company with its principal asset being the LLC interests, consolidates the Operating Company in accordance with ASC 810, recognizing the Holding Company's 90.0% economic interest as a redeemable non-controlling interest in its financial statements. Refer to Note 14 "Redeemable Non-controlling Interest" for further information.

 *Cash* 

The Company considers all cash balances and highly liquid investments with an original maturity of three months or less to be cash and cash equivalents. As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), the Company has cash of $15.6 million and $14.5 million, respectively.

 *Accounts Receivable* 

Accounts receivable consists of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)**  | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| Gaming receivables  | $1561 | $1151 |
| Non-gaming receivables  | 325 | 337 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | 1886 | 1488 |
| Less: Allowance for doubtful accounts  | (68) | (18) |
| Accounts receivable, net  | $1818 | $1470 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 *Advertising Expenses* 

The Company expenses advertising costs as incurred and is included in "General and administrative" on the condensed consolidated statements of operations. Advertising expense was $0.5 million, $0.2 million and $2.7 million, respectively, for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor).

 *Expansion Expenses* 

The Company expenses expansion costs as incurred. The Company defines expansion expenses as costs incurred in connection with the opening of a new facility or significant expansion of an existing property. Costs classified as expansion costs consist primarily of marketing, master planning, conceptual design fees and legal and professional fees that are not eligible for capitalization and are included in "General and administrative" on the condensed consolidated statements of operations. Expansion expenses for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor) were $0.5 million, $1.4 million and $1.9 million, respectively.

 *Defined Contribution Plans* 

The Company participates in the Bally's Corporation retirement savings plan under Section 401(k) of the Internal Revenue Code covering its employees. The plan allows employees to defer up to the lesser of the Internal Revenue Code prescribed maximum amount or 100% of their income on a pre-tax basis through contributions to the plan. Total employer contribution expense attributable to defined contribution plans was $0.1 million for both the the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor), and $0.2 million for and the three months ended March 31, 2024 (Predecessor).

 *Fair Value Measurements* 

Fair value is determined using the principles of ASC 820, *Fair Value Measurement*. Fair value is described as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes and defines the inputs to valuation techniques as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 1: Observable quoted prices (unadjusted) for identical assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 2: Inputs are observable for the asset or liability either directly or through corroboration with observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 3: Unobservable inputs.

The inputs used to measure the fair value of an asset or a liability are categorized within levels of the fair value hierarchy. The fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the measurement.

As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), the Company had cash of $15.6 million and $14.5 million, respectively, which was measured at fair value on a recurring basis and is classified within Level 1 of the fair value hierarchy.

 *Earnings Per Share (EPS)* 

We have two classes of common stock in the form of Class A Interests and Class B Common Stock. Our Class A Interests are entitled to discretionary dividends, subject to the impact of liquidation and distribution priority of the subordinated loans on the Class A-1, Class A-2 and Class A-3 Interests. While the Class A-1 Interests and Class A-2 Interests are legally outstanding, they are not considered outstanding

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
for accounting purposes, and are treated as equity classified warrants. Each of the respective Class A-3 and Class A-4 Interests represent different classes of common stock for the purposes of the Company's earnings per share ("EPS") computation. We apply the two-class method for purposes of calculating earnings per share of common stock for the Class A-3 and Class A-4 Interests. The two-class method determines earnings per share of common stock and participating securities according to dividends or dividend equivalents declared during the period and each security's respective participation rights in undistributed earnings and losses. The number of Class A-3 Interests included in the denominator of the basic and diluted loss per share computation are the share equivalent number of partially paid Class A-4 share, as Class A-3 Interests are considered partially outstanding based on the proportion of amounts paid relative to the full value of a Class A-4 Interest. The Class B Common Stock do not have rights to participate in dividends or undistributed earnings, as such, have no impact on the Company's computation of EPS.

There were 690 Class A Interests that were considered anti-dilutive for the period from February 8 to March 31, 2025 (Successor). As the unaudited condensed consolidated statements of operations is in a net loss position for this period, the potentially dilutive effects of these shares were excluded from the calculation of diluted loss per share because of the effect of including such potentially dilutive shares would have been anti-dilutive upon conversion under the if-converted method. There were no shares that were considered anti-dilutive for the period from January 1 to February 7, 2025 (Predecessor) or the three months ended March 31, 2024 (Predecessor).

 *Goodwill and Intangible Assets* 

Goodwill is tested for impairment on an annual basis in the fourth fiscal quarter, or sooner if an indicator of impairment occurs. To determine whether goodwill is impaired, the Company first assesses certain qualitative factors. Based on this assessment, if it is determined more likely than not that the fair value of a reporting unit is less than its carrying value, the Company performs a quantitative analysis of the goodwill impairment test.

The Company's intangible asset consists of the Chicago gaming license associated with its casino operations. Following the Merger, the Company's gaming license is classified as finite-lived, and is being amortized over its estimated useful life.

For its finite-lived intangible asset, the Company establishes a useful life upon initial recognition based on the period over which the asset is expected to contribute to the future cash flow of the Company and periodically evaluates the remaining useful life to determine whether events and circumstances warrant a revision to the remaining amortization period. Finite-lived intangible assets are amortized over their remaining useful lives in a pattern in which the economic benefits of the intangible asset are consumed, which is generally on a straight-line basis. The Company reviews the carrying amount of its finite-lived intangible asset for possible impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Should events and circumstances indicate finite-lived intangible assets may not be recoverable, the Company performs a test for recoverability whereby estimated undiscounted cash flows are compared to the carrying values of the assets. Should the estimated undiscounted cash flows exceed the carrying value, no impairments are recorded. If the undiscounted cash flows do not exceed the carrying values, an impairment is recorded based on the fair value of the asset.

3. #### RELATED PARTY TRANSACTIONS
Operations, as well as assets and liabilities, directly associated with the business activity of the Company are included in the condensed consolidated financial statements. The condensed consolidated financial statements include fees paid in accordance with the corporate services agreement, as described in Note 12 *"*Commitments and Contingencies", providing the Company with certain administrative and corporate services, beginning in September 2023 with the commencement of operations at the Temporary Facility. Additionally, the condensed consolidated financial statements include allocations of certain general, administrative, sales and marketing expenses from its Parent, which management believes is commensurate

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
with services provided at fair value, of $8.9 million, $6.1 million and $15.0 million for the for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), respectively. These fees and allocated expenses are recorded within "Management fees to Bally's Corporation" on the condensed consolidated statements of operations. As of March 31, 2025 (Successor), there was a $4.8 million balance of Due to related party (Bally's Corporation) related to administrative expenses.

The Company is dependent on its Parent for a majority of its working capital and financing requirements as Bally's uses a centralized approach to cash management and financing of its operations which are accounted for through a due to/from account. Accordingly, none of Bally's cash, cash equivalents or debt has been assigned to Bally's Chicago in the condensed consolidated financial statements. All expenses paid by Bally's Corporation on the Company's behalf are converted into promissory notes and reported within "Promissory notes to related party (Bally's Corporation)" on the condensed consolidated balance sheet.

On March 31, 2025 (Successor), the Company entered into an additional $50.0 million of promissory notes with Bally's Corporation, for expenses paid on the Company's behalf, due on December 31, 2025. Additionally, during the period from February 8 to March 31, 2025 (Successor), the Company used $76.8 million of cash proceeds from the Private Placement to pay down its promissory notes, and $6.3 million of shares were issued in lieu of payment on the promissory notes payable by the Company to the Holding Company.

As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), promissory notes to related party (Bally's Corporation) consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in thousands)**  | **Loan Balance As of <br> March 31, 2025 <br> (Successor)**  | **Loan Balance As of <br> December 31, 2024 <br> (Predecessor)**  | **Due Date**  | **Interest <br> Rate**  |
|  **Promissory notes payable by Bally's Chicago <br> Operating Company, LLC:**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Bally's Chicago Holding Company, <br> LLC<sup>(1)(2)</sup>  | $640958 | $628617 | December 31, 2025  | —% |
| &nbsp;&nbsp;&nbsp; Bally's Management Group, LLC<sup>(1)(2)</sup>  |  | 40573 | December 31, 2025  | —% |
|  | $640958 | $669190 |  |  |
|  **Promissory notes payable by Bally's Chicago <br> Inc.:**  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Bally's Chicago Holding Company, <br> LLC<sup>(1)(2)</sup>  | $1441 | $6338 | December 31, 2025  | —% |
|  **Promissory notes payable to related party (Bally's Corporation)**  | $**642399** | $**675528** |  |  |

---

(1) A wholly owned subsidiary of Bally's Corporation.

(2) Reclassified $40.6 million of promissory notes due to Bally's Management Group, LLC to promissory notes due to Bally's Chicago Holding Company during the period from February 8 to March 31, 2025 (Successor).

As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), the aggregate amount of promissory notes to related party (Bally's Corporation) consisted of cash advances and payments of certain operating expenses made on behalf of the Company. The average aggregate balance of promissory notes to related party (Bally's Corporation) was $655.8 million, $675.5 million and $527.2 million period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), respectively.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 *Subordinated Loan Agreement* 

In connection with the Private Placement, the Company entered into a subordinated loan agreement with the Holding Company. Under this agreement, the Holding Company, as the lender, provided the Company, the borrower, with subordinated loans in various tranches and amounts. These amounts were determined by the total number of Class A-1, Class A-2 and Class A-3 Interests sold in the Private Placement. None of the investors purchasing Class A Interests in the Private Placement are a party to the subordinated loan agreement, are non-recourse to the holders of our Class A-1 Interests.

The Company incurred the following subordinated loans for the Class A-1, Class A-2 and Class A-3 Interests sold in the Private Placement (in thousands, except per share data):

---

| | | |
|:---|:---|:---|
| **Share Class**  | **Initial Loan per <br> Share<sup>(1)</sup>**  | **Total Subordinated <br> Loans<sup>(2)</sup>**  |
| Class A-1  | $24750 | $6732 |
| Class A-2  | $22500 | 6323 |
| Class A-3  | $20000 | 3420 |
|  |  | $16475 |

---

(1) Each subordinated loan issued at annual interest rate of 11%, compounded quarterly, with no maturity date.

(2) As of March 31, 2025 (Successor), total subordinated loans reflects the total original issuance and outstanding principal balance.

In accordance with the Company's amended and restated certificate of incorporation, any cash available for distribution to the holders of Class A-1, Class A-2 and Class A-3 Interests must first be used to repay the principal and accrued interest on the corresponding subordinated loans. For the three months ended March 31, 2025 (Successor), the Company incurred $0.2 million of interest expense related to the subordinated loans, which were recognized within Interest expense, net of amounts capitalized on the Company's unaudited condensed consolidated statement of operations.

4. #### RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
<u>Standards Implemented</u> 

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, *Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures*. The amendments in this update enhance the disclosures required for significant segment expenses on an annual and interim basis. The guidance was applied retrospectively and effective for annual reporting periods in fiscal years beginning after December 15, 2023, and interim reporting periods in fiscal years beginning after December 31, 2024. The Company adopted this ASU as of December 31, 2024. Refer to Note 13 "Segment Reporting" for further information.

<u>Standards to Be Implemented</u> 

In October 2023, the FASB issued ASU No. 2023-06, *Disclosure Improvements — Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative*. The amendments in this update align the requirements in the ASC to the Securities and Exchange Commission's ("SEC") regulations. The effective date for each amended topic in the ASC is the date on which the SEC's removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. The Company is currently

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
in the process of evaluating the impact of this amendment on its condensed consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU No. 2023-09, *Income Taxes (Topic 740) — Improvements to Income Tax Disclosures*. The amendments in this update enhance the transparency and decision usefulness of income tax disclosures. This update will be effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently in the process of evaluating the impact of this amendment on its condensed consolidated financial statements and related disclosures.

In March 2024, the FASB issued ASU 2024-02, *Codification Improvements — Amendments to Remove References to the Concepts Statements*. This amendment to the Codification removes references to various Concepts Statements. This update will be effective for public business entities for fiscal years beginning after December 15, 2024, with early adoption permitted if adopted as of the beginning of the fiscal year that includes that interim period. The Company is currently in the process of evaluating the impact of this amendment on its condensed consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, *Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses*. The amendments in this update require disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. This update will be effective for fiscal years beginning after December 15, 2026, and interim reporting periods in fiscal years beginning after December 15, 2027, with early adoption permitted. The disclosures required under the guidance can be applied either prospectively to financial statements issued for reporting periods after the effective date or retrospectively to any or all periods presented in the financial statements. The Company is currently evaluating the impact that this guidance will have on its financial statement disclosures.

5. #### REVENUE RECOGNITION
The Company recognizes revenue in accordance with ASC 606, *Revenue from Contracts with Customers*, ("ASC 606") which requires the revenue to be recognized when a performance obligation is satisfied by transferring the control of promised goods or services and is measured at the transaction price or the amount of consideration that the Company expects to receive through satisfaction of the identified performance obligations.

The Company generates revenue from three principal sources: (1) gaming, (2) food and beverage, and (3) other.

Sales tax and other taxes collected on behalf of governmental authorities are accounted for on a net basis and are not included in revenue or operating expenses.

<u>Performance Obligations</u> 

Retail gaming service contracts involving our casino, each have an obligation to honor the outcome of a wager and to pay out an amount equal to the stated odds, including the return of the initial wager, if the customer receives a winning hand. These elements of honoring the outcome of the hand of play and generating a payout are considered one performance obligation, with an additional performance obligation for those customers earning incentives under the Company's player loyalty program.

Food and beverage and other services have been determined to be separate, stand-alone performance obligations and revenue is recognized as the good or service is transferred at the point in time of the transaction.

<u>Transaction Price</u> 

The Company applies a practical expedient to account for its gaming contracts on a portfolio basis as such wagers have similar characteristics and the Company reasonably expects the impact on the condensed

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
consolidated financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from the application of an individual wagering contract. The transaction price for a retail gaming wagering contract is the difference between wins and losses, not the total amount wagered. In addition, in the event of a multi-stage contest, the Company will allocate transaction price ratably from contest start to the contest's final stage.

The transaction price for food and beverage and other, is the net amount collected from the customer for such goods and services. The standalone selling price of these goods and services are determined based upon the actual retail prices charged to customers for those items.

<u>Revenue Recognition</u> 

The allocated revenue for gaming wagers is recognized when the wagering occurs as all such wagers settle immediately. If a player wins the wager, the Company pays the player a pre-determined amount known as fixed odds, and its revenue is recognized as total wagers net of payouts made and incentives awarded to players. Food and beverage and other revenues are recognized at the time the goods are sold from Company-operated outlets.

The estimated retail value related to goods and services provided to guests without charge or upon redemption under the Company's player loyalty programs included in departmental revenues, and therefore reducing gaming revenues, are as follows for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor):

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, 2025**  | **Period from <br> January 1 to <br> February 7, 2025**  | **Three Months <br> Ended <br> March 31, 2024**  |
| Food and beverage  | $699 | $443 | $1190 |

---

The following table provides a disaggregation of total revenue (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| | **Period from <br> February 8 to <br> March 31, 2025**  | **Period from <br> January 1 to <br> February 7, 2025**  | **Three Months <br> Ended <br> March 31, 2024**  |
| Gaming  | $15935 | $10353 | $28191 |
| Non-gaming: |  |  |  |
| &nbsp;&nbsp;&nbsp; Food and beverage  | 1440 | 868 | 2600 |
| &nbsp;&nbsp;&nbsp; Other  | 421 | 266 | 731 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-gaming revenue  | 1861 | 1134 | 3331 |
| Total revenue  | $17796 | $11487 | $31522 |

---

 *Contract Assets and Contract Related Liabilities* 

The Company's receivables related to contracts with customers are primarily comprised of marker balances and other amounts due from gaming activities. The Company's receivables related to contracts with customers were $0.1 million and $0.1 million as of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), respectively.

The Company has the following liabilities related to contracts with customers: liabilities for loyalty programs, advance deposits made for goods and services yet to be provided and unpaid wagers. All of the contract liabilities are short-term in nature and are included in "Accrued and other current liabilities" in the condensed consolidated balance sheet.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Loyalty program incentives earned by customers are typically redeemed within one year from when they are earned and expire if a customer's account is inactive for more than 12 months; therefore, the majority of these incentives outstanding at the end of a period will either be redeemed or expire within the next 12 months.

Unpaid wagers include the Company's outstanding chip liability and unpaid slot tickets.

Liabilities related to contracts with customers as of March 31, 2025 (Successor) and December 31, 2024 (Predecessor) were as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| Unpaid wagers  | $1809 | $1541 |
| Loyalty programs  | 8 | 51 |
| Advanced deposits from customers  | 160 | 1 |
| Total  | $1977 | $1593 |

---

The Company recognized $173.4 thousand, $88.0 thousand and $44.0 thousand of revenue related to loyalty program redemptions during the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), respectively.

6. #### BUSINESS COMBINATIONS
 *The Merger & Pushdown Accounting* 

As described in Note 1 "General Information", Bally's elected to apply pushdown accounting at the time of the Merger, which resulted in the following assets and liabilities of the Company to be measured and recognized at their fair values as of the Closing Date.

---

| | |
|:---|:---|
| **(in thousands)**  | **February 7, 2025**  |
| Property and equipment, net  | $183121 |
| Right of use assets, net  | 268014 |
| Goodwill  | 105506 |
| Intangible assets  | 318600 |
| Lease liabilities  | (271080) |
| Deferred tax liability  | (5924) |

---

The purchase consideration in the Merger has been allocated to the Company's tangible and identifiable intangible assets and liabilities based upon their estimated fair values as of the Closing Date, with the excess of the purchase consideration over the aggregate net fair values recorded as goodwill, which is not deductible for tax purposes. Qualitative factors that contribute to the recognition of goodwill include certain intangible assets that are not recognized as separate identifiable intangible assets apart from goodwill, which consist primarily management team experienced in the gaming industry.

Accounts receivable, inventory, other assets, and current liabilities were stated at their historical carrying value, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for property and equipment was based on an assessment of the assets' condition, as well as an evaluation of the current market value of such assets. The fair value of leasehold interests were estimated based on evaluating contractual rent payments relative to market rent giving consideration to the Company's capitalization rates and rent coverage ratios, under the income method or by estimating the fee simple value and estimated rate of return, depending on the nature of the underlying leasehold interest.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The valuation of the gaming license intangible asset was determined using using the Greenfield Method under the income approach. This method estimates isolated income that is properly attributable to a license based on modeling a hypothetical start-up company going into business without any other assets than the gaming license being valued and building a new casino with similar utility to the existing casino. Using this method, the valuation of the gaming license was dependent upon significant estimates such as projected revenues and cash flows, estimated construction costs, duration of that construction, expansion costs and appropriate discounting. Level 3 inputs used in estimating future cash flows included a terminal growth rate of 3% and a discount rate of 14.5%. Following the Merger, the gaming license was determined to be finite-lived, with an estimated useful life of 18 years.

The estimated fair values were based on assumptions that the Company believes are reasonable. As of March 31, 2025 (Successor), Bally's Corporation is in the process of completing its valuation of tangible and intangible assets and the allocation of the purchase price to the assets acquired and liabilities assumed, including the goodwill allocation to reporting units, which will be completed once the valuation process has been finalized.

7. #### PREPAID EXPENSES AND OTHER CURRENT ASSETS
As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), prepaid expenses and other current assets was comprised of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)**  | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| Taxes and license fees  | $2009 | $2675 |
| Services and license agreements  | 725 | 736 |
| Prepaid marketing  | 554 | 468 |
| Gaming taxes  | 226 | 390 |
| Other  | 70 | 54 |
| &nbsp;&nbsp;&nbsp; Total prepaid expenses and other current assets  | $3584 | $4323 |

---

8. #### PROPERTY AND EQUIPMENT
As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), property and equipment was comprised of the following:

---

| | | |
|:---|:---|:---|
| **(in thousands)**  | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| Leasehold improvements  | $24295 | $42513 |
| Equipment  | 20232 | 28096 |
| Furniture and fixtures  | 2513 | 469 |
| Construction in process  | 165753 | 125638 |
| Total property and equipment  | 212793 | 196716 |
| Less: Accumulated deprecation  | (2321) | (23969) |
| Total property and equipment, net  | $210472 | $172747 |

---

Depreciation expense related to property and equipment was $2.3 million, $2.0 million and $4.3 million for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), respectively.

As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), the vast majority of the Company's Construction in process was attributable to the development of the Permanent Facility. During

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
the three months ended March 31, 2024, the Company capitalized $1.8 million of interest. There was no interest capitalized during the period from February 8 to March 31, 2025 (Successor) or the period from January 1 to February 7, 2025 (Predecessor).

9. #### GOODWILL AND INTANGIBLE ASSETS
In connection with the Merger, the Company recorded $105.5 million of Goodwill within its Permanent Casino reportable segment. For the period from February 8 to March 31, 2025 (Successor), there were no changes to the goodwill balance.

Additionally, the Company recorded an increase of $132.4 million to Intangible assets, net related to the Company's gaming license in Chicago in connection with the Merger.

As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), the Company's identifiable intangible assets consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **(in thousands, except years)**  | **Weighted Average <br> Remaining life <br> (in years)**  | **Gross Carrying <br> Amount**  | **Accumulated <br> Amortization**  | **Net**  |
| **March 31, 2025 (Successor)** |  |  |  |  |
| Gaming license  | 18  | 318600 | (2522) | 316078 |
| &nbsp;&nbsp;&nbsp; Total intangible assets, net  |  | $318600 | $(2522) | $316078 |
| **December 31, 2024 (Predecessor)** |  |  |  |  |
| Gaming licenses  | 1.9  | 250 | (29) | 221 |
| Gaming licenses  | Indefinite  | 186000 |  | 186000 |
| &nbsp;&nbsp;&nbsp; Total intangible assets, net  |  | $186250 | $(29) | $186221 |

---

Amortization of intangible assets was approximately $2.5 million for the period from February 8 to March 31, 2025 (Successor). Amortization expense for the period from January 1 to February 7, 2025 (Predecessor) and he three months ended March 31, 2024 (Predecessor) was de minimus.

The following table reflects the remaining amortization expense associated with the finite-lived intangible assets as of March 31, 2025 (Successor):

---

| | |
|:---|:---|
| **(in thousands)**  |  |
| Remaining 2025  | $13335 |
| 2026  | 17700 |
| 2027  | 17700 |
| 2028  | 17700 |
| 2029  | 17700 |
| Thereafter  | 231943 |
| &nbsp;&nbsp;&nbsp; Total  | $316078 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
10. #### ACCRUED AND OTHER CURRENT LIABILITIES
As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), accrued liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
| | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| Construction  | $12991 | $2089 |
| Gaming liabilities  | 4487 | 2037 |
| Compensation  | 3056 | 2369 |
| Property taxes  | 1717 | 2246 |
| Legal  | 1924 | 439 |
| Professional service fees  | 4110 | 2699 |
| Other  | 706 | 684 |
| &nbsp;&nbsp;&nbsp; Total accrued and other current liabilities  | $28991 | $12563 |

---

11. #### LEASES
 *<u>Operating Leases</u>* 

As of March 31, 2025 (Successor) and December 31, 2024 (Predecessor), the Company had total operating lease liabilities of $268.9 million and $210.6 million, respectively, and right of use assets of $267.3 million and $210.0 million, respectively.

Components of lease expense included within "General and administrative" for operating leases during the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor) are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three Months <br> Ended March 31, <br> 2024**  |
| Operating lease cost  | $3609 | $2560 | $1144 |
| Variable lease cost  | 20 | 14 | 17 |
| &nbsp;&nbsp;&nbsp; Operating lease expense  | 3629 | 2574 | 1161 |
| Short-term lease expense  | 652 | 466 | 832 |
| &nbsp;&nbsp;&nbsp; Total operating lease expense  | $4281 | $3040 | $1993 |

---

Supplemental cash flow and other information related to operating leases for the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor) are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, <br> 2025**  | **Period from <br> January 1 to <br> February 7, <br> 2025**  | **Three Months <br> Ended March 31, <br> 2024**  |
|  Cash paid for amounts included in the lease liability – operating <br> cash flows from operating leases  | $3650 | $2548 | $1095 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

---

| | | |
|:---|:---|:---|
| | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| Weighted average remaining lease term  | 93.9 | 92.9 |
| Weighted average discount rate  | 7.9% | 9.9% |

---

As of March 31, 2025 (Successor), future minimum lease payments under noncancelable operating leases are as follows:

---

| | |
|:---|:---|
| **(in thousands)**  |  |
| Remaining 2025  | $18591 |
| 2026  | 24714 |
| 2027  | 20094 |
| 2028  | 20000 |
| 2029  | 20000 |
| Thereafter  | 1837667 |
| &nbsp;&nbsp;&nbsp; Total lease payments  | 1941066 |
| Less: present value discount  | (1672204) |
| &nbsp;&nbsp;&nbsp; Lease obligations  | $268862 |

---

 *<u>Pending Lease Transactions</u>* 

On July 11, 2024 (Predecessor), the Company entered into a Binding Term Sheet to form a strategic construction and financing arrangement with GLP Capital, L.P. ("GLP") which includes the funding to complete the construction of the Permanent Facility. GLP will amend the existing land lease through a new master lease agreement with the Company ("Chicago MLA"). The Chicago MLA includes annual rent of $20.0 million, subject to customary escalation provisions. The Chicago MLA also provides up to $940.0 million in construction financing, subject to conditions and approvals. The Company will pay additional rent under the Chicago MLA based on a 8.5% capitalization rate on funded amounts. The initial lease term for the Chicago MLA is 15 years with renewal options to be agreed upon by the parties.

12. #### COMMITMENTS AND CONTINGENCIES
 *Community Host Agreement* 

As mentioned in Note 1 "General Information", the Company signed a host community agreement with the City of Chicago to develop a Permanent Facility, Bally's Chicago, for $1.34 billion. No assurance can be made that this estimate will not materially change during the development of the facility. As of March 31, 2025 (Successor), approximately $1.0 billion of this commitment remains.

In connection with the entry into the host community agreement with the City of Chicago, the Company will is required to pay annual fixed host community impact fees of $4.0 million. Additionally, Bally's Corporation provided the City of Chicago with a performance guaranty whereby Bally's Corporation agreed to have and maintain available financial resources in an amount reasonably sufficient to allow the Company to complete its obligations under the host community agreement. Upon notice from the City of Chicago that the Company has failed to perform various obligations under the host community agreement, Bally's Corporation has indemnified 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 Company's obligations. The guaranty will terminate two years after the later of (i) the date on which the Permanent Facility commences operations or (ii) the date on which Bally's Chicago achieves final completion as defined in the host community agreement.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 *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.

 *Corporate Services Agreement* 

The Company has a Corporate Services Agreement with Bally's Corporation requiring a fixed monthly payment of $5.0 million, beginning with the commencement of operations at the Temporary Facility. The Corporate Services Agreement provides the Company with certain administrative and corporate services from Bally's Management Group, LLC. These fixed payments are in addition to certain expenses such as personnel and administrative costs allocated to the Company, based on an estimated percentages of time spent on the Company's activities by corporate employees. In accordance with the corporate services agreement, the Company recorded $8.9 million, $6.1 million and $15.0 million during the period from February 8 to March 31, 2025 (Successor), the period from January 1 to February 7, 2025 (Predecessor) and the three months ended March 31, 2024 (Predecessor), respectively, within Management fees from Bally's Corporation in the condensed consolidated statements of operations.

13. #### SEGMENT REPORTING
During the third quarter of 2024, the Company updated its operating and reportable segments to align with how the business is being managed. A change in the way the Company's chief operating decision maker makes operating decisions, assesses the performance of the business and allocates resources was driven by the Company taking possession of the land underlying the permanent casino project during the quarter. As a result of this segment re-alignment, the Company determined it had two operating and reportable segments: Temporary Casino and Permanent Casino. The "Other adjustments" include certain unallocated corporate operating expenses and other adjustments to reconcile to the Company's consolidated results including, among other expenses, compensation for certain executives and other transaction costs. The prior year results presented below were reclassified to conform to the new segment presentation.

For the Temporary Casino operating segment, the Company's measure of segment performance is Adjusted EBITDAR (defined below). Management believes segment Adjusted EBITDAR is representative of its ongoing business operations including its ability to service debt and to fund capital expenditures and its 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. For the Permanent Casino operating segment, the measure of segment performance is operating income (loss).

The Company's chief operating decision maker (the "CODM") is its President. Temporary Casino Adjusted EBITDAR and Permanent Casino operating income (loss) are utilized by the CODM to analyze and evaluate period-to-period performance of the business and are used as determining factors for performance-based compensation for members of the Company's management.

The following table sets forth the measures of segment performance for the Company's two reportable segments, reconciled to net loss on a consolidated basis. The Other adjustments category is included in the following table in order to reconcile the segment information to the Company's unaudited condensed consolidated financial statements.

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, 2025**  | **Period from <br> January 1 to <br> February 7, 2025**  | **Three Months <br> Ended <br> March 31, 2024**  |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp; Temporary Casino  | $17796 | $11487 | $31522 |
| &nbsp;&nbsp;&nbsp; Permanent Casino  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total revenue  | $17796 | $11487 | $31522 |
| **Permanent Casino Loss from Operations**  | $(5806) | $(3536) | $(1489) |
| **Temporary Casino Adjusted EBITDAR<sup>(1)</sup>**  | $1634 | $(917) | $1838 |
| &nbsp;&nbsp;&nbsp; **Temporary Casino Operating costs and expenses:**  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization  | (2320) | (1976) | (4277) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expansion costs<sup>(2)</sup>  |  |  | (51) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees to Bally's Corporation  | (8871) | (6129) | (15000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Temporary Casino operating costs and expenses**  | (9557) | (9022) | (17490) |
| **Total other expense, net<sup>(3)</sup>**  | (248) |  | (2140) |
| **Other adjustments**  | (369) | (314) | (430) |
| **Total Net loss**  | $(15980) | $(12872) | $(21549) |

---

(1) Adjusted EBITDAR is defined as earnings, or loss, for the Temporary Casino before interest expense, net of interest income, provision (benefit) for income taxes, depreciation and amortization, non-operating (income) expense, expansion costs, management fees to Bally's Corporation, rent expense from triple net operating leases, and certain other gains or losses.

(2) The Company defines expansion expenses as costs incurred in connection with the opening of a new facility or significant expansion of an existing property. Costs classified as expansion consist primarily of marketing, master planning, conceptual design fees and legal and professional fees that are not eligible for capitalization and are included in "General and administrative" on the unaudited condensed consolidated statements of operations.

(3) Total other expense, net includes primarily interest expense.

The following table sets forth significant segment expenses and other segment items by reportable segment (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| | **Period from <br> February 8 to <br> March 31, 2025**  | **Period from <br> January 1 to <br> February 7, 2025**  | **Three Months <br> Ended <br> March 31, 2024**  |
| **<u>Temporary Casino</u>** |  |  |  |
| Revenue  | $17796 | $11487 | $31522 |
| Less: Segment expenses |  |  |  |
| &nbsp;&nbsp;&nbsp; Marketing costs  | 1193 | 1390 | 2094 |
| &nbsp;&nbsp;&nbsp; Gaming tax  | 4868 | 3271 | 8915 |
| &nbsp;&nbsp;&nbsp; Compensation  | 5348 | 4482 | 9113 |
| &nbsp;&nbsp;&nbsp; Casino property costs  | 1749 | 590 | 2330 |
| &nbsp;&nbsp;&nbsp; General and administrative  | 1991 | 770 | 1832 |
| &nbsp;&nbsp;&nbsp; Other segment items<sup>(1)</sup>  | 1013 | 1901 | 5400 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Temporary Casino EBITDAR  | $1634 | $(917) | $1838 |

---

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| | **Period from <br> February 8 to <br> March 31, 2025**  | **Period from <br> January 1 to <br> February 7, 2025**  | **Three Months <br> Ended <br> March 31, 2024**  |
| **<u>Permanent Casino</u>** |  |  |  |
| Revenue  | $— | $— | $— |
| Less: segment expenses |  |  |  |
| &nbsp;&nbsp;&nbsp; Expansion costs  | 465 | 1348 | 1489 |
| &nbsp;&nbsp;&nbsp; Rent expense  | 2819 | 2179 |  |
| &nbsp;&nbsp;&nbsp; Amortization of gaming license  | 2522 | 9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Permanent Casino Loss from Operations  | $(5806) | $(3536) | $(1489) |

---

(1) Other segment items includes Gaming and non-gaming expenses and certain other immaterial costs and allocations.

---

| | | | |
|:---|:---|:---|:---|
| | **Successor**  | **Predecessor**  | **Predecessor**  |
| **(in thousands)**  | **Period from <br> February 8 to <br> March 31, 2025**  | **Period from <br> January 1 to <br> February 7, 2025**  | **Three Months <br> Ended <br> March 31, 2024**  |
| **Capital Expenditures** |  |  |  |
| Temporary Casino  | $53 | $— | $899 |
| Permanent Casino  | 22888 | 10969 | 17454 |
| &nbsp;&nbsp;&nbsp; Total  | $22941 | $10969 | $18353 |

---

---

| | | |
|:---|:---|:---|
| **(in thousands)**  | **March 31, 2025 <br> (Successor)**  | **December 31, 2024 <br> (Predecessor)**  |
| **Total assets** |  |  |
| Temporary Casino  | $76117 | $79208 |
| Permanent Casino  | 846365 | 512686 |
| Other<sup>(1)</sup> | 11675 | 8011 |
| &nbsp;&nbsp;&nbsp; Total  | $934157 | $599905 |

---

(1) Other primarily includes capitalized costs associated with the Company's proposed initial public offering and certain other unallocated Corporate assets.

14. #### REDEEMABLE NON-CONTROLLING INTEREST
In conjunction with the Reorganization, the Holding Company acquired 30,000 of the total issued and outstanding 33,326 LLC interests in the Operating Company, representing a 90% economic interest in the Operating Company. Pursuant to its limited liability company agreement with the Operating Company (the "LLC Agreement"), as amended and restated on March 10, 2025, upon a change in control event, the Company, as the sole managing member, may redeem all or a portion of the LLC interests along with an equal number of Class B interests in exchange for either (a) shares of Class A Interests in the Company; or, (b) at the election of the Company, an approximately equivalent amount of cash as determined pursuant to the terms of the LLC Agreement. In connection with such redemption, a corresponding number of shares of Class B interests held by the Holding Company will be cancelled. The cash redemption election is not considered to be within the control of the Company because the holders of Class B interests, the Holding Company, control the Company through direct representation on the Board of Directors.

As a result, the Company presents the non-controlling interests in the Operating Company as redeemable non-controlling interest outside of permanent equity. Upon issuance of the Operating Company's LLC

------

[**TABLE OF CONTENTS**](#TOC2)

#### BALLY'S CHICAGO, INC.

#### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
interests to the Holding Company in March 2025, $750.0 million of redeemable non-controlling interest was recorded in accordance with ASC 480-10-S99. The consideration for the LLC interests issued by the Operating Company is in the form of a capital commitment, which is contingent on the occurrence of the Company's equity issuance through public offering. As a result, concurrent with any future public offering, the Company will recognize a receivable as contra-mezzanine equity within its Redeemable non-controlling interest.

The redemption of the non-controlling interest is tied to the occurrence of a contingent event, which is not considered probable as of March 31, 2025 (Successor), and as such, the redeemable non-controlling interests have not been subsequently remeasured.

Net loss attributable to redeemable non-controlling interest was $5.6 million for the period from February 8 to March 31, 2025 (Successor). There was no net loss attributable to redeemable non-controlling interest for the period from January 1 to February 7, 2025 (Predecessor) or the three months ended March 31, 2024 (Predecessor).

As of March 31, 2025 (Successor), redeemable non-controlling interest was $744.4 million. There was no redeemable non-controlling interest as of December 31, 2024 (Predecessor).

15. #### SUBSEQUENT EVENTS
In accordance with ASC 855, *Subsequent Events*, the Company has evaluated all events and transactions that occurred after March 31, 2025 (Successor), through June 23, 2025, the date the financial statements were issued, that require consideration as adjustments to, or disclosures in, the condensed consolidated financial statements.

The Company has updated this evaluation through August 5, 2025. There are no significant events that require disclosure in these condensed consolidated financial statements, except as follows.

On July 17, 2025, the Company entered into the Chicago MLA, as described in Note 11 "Leases", with GLP, that amended the existing ground lease for the property on which the Company plans to develop its Permanent Facility and executed a development agreement with GLP (the "GLP Development Agreement") pursuant to which GLP has committed to advance up to $940 million (the "GLP Development Advances") for the payment of hard costs used to construct the Permanent Facility in exchange for increasing the amount of rent payable to GLP under the Chicago MLA.

The Chicago MLA has an initial term of 15 years and includes four, five-year options to renew and is subject to annual escalation. Annual rent under the Chicago MLA is $20.0 million, with additional rent equal to 8.5% of the GLP Development Advances that are made to the Company. The amended and restated ground lease will be accounted for as a lease modification event in the third quarter of 2025. During the third quarter of 2025, the Company requested an initial advance of $53.0 million, subject to approval by GLP, related to previously incurred and capitalized costs. The remaining GLP Development Advances will pertain to future development costs incurred by the Company.

------

### **TABLE OF CONTENTS** $7,429,250 Bally's Chicago, Inc. 2,207 Class A-1 Interests at $250 per share 141 Class A-1 Interests at $2,500 per share 165 Class A-3 Interests at $5,000 per share 228 Class A-4 Interests at $25,000 per share PROSPECTUS , 2025 Placement Agent Loop Capital Markets Co-Placement Agents Innovation Capital
[**TABLE OF CONTENTS**](#TOC2)

#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution
The following table indicates the expenses to be incurred in connection with this offering. All amounts are estimated except the Securities and Exchange Commission registration fee.

---

| | |
|:---|:---|
| | **Amount**  |
| Securities and Exchange Commission registration fee  | $1137 |
| FINRA filing fee  | 8000 |
| Accountants' fees and expenses  | 1580000 |
| Legal fees and expenses  | 4710756 |
| Blue Sky fees and expenses  | 23268 |
| Print and engraving expenses  | 245000 |
| Miscellaneous expenses  | 1750000 |
| **Total**  | $8318161 |

---

#### Item 14. Indemnification of Directors and Officers
Section 102 of the General Corporation Law of the State of Delaware permits a corporation to eliminate the personal liability of directors and officers of a corporation to the corporation or its stockholders for monetary damages for a breach of fiduciary duty as a director or officer, except where the director or officer breached his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, obtained an improper personal benefit, or with respect to a director, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law, or with respect to an officer, for actions by or in the right of the Company. Our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering will provide that no director or officer of Bally's Chicago, Inc. shall be personally liable to it or its stockholders for monetary damages for any breach of fiduciary duty as a director or officer, notwithstanding any provision of law imposing such liability, except to the extent that the General Corporation Law of the State of Delaware prohibits the elimination or limitation of liability of directors or officers for breaches of fiduciary duty.

Section 145(a) of the General Corporation Law of the State of Delaware provides that a corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person's conduct was unlawful. Section 145(b) of the General Corporation Law of the State of Delaware provides that a corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by the person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court

------

[**TABLE OF CONTENTS**](#TOC2)

of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

Upon closing of this offering, our second amended and restated bylaws to be in effect prior to the closing of this offering will provide indemnification for our directors and officers to the fullest extent permitted by the General Corporation Law of the State of Delaware, provided that except in certain specified circumstances, we will not be required to indemnify a person in connection with an action, suit or proceeding (or part thereof) initiated by such person. We will also advance expenses to those covered by our indemnification protections in our bylaws under certain circumstances.

Prior to the closing of this offering, we intend to enter into separate indemnification agreements with each of our directors and executive officers. Each indemnification agreement will provide, among other things, for indemnification to the fullest extent permitted by law and our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering and second amended and restated bylaws to be in effect prior to the closing of this offering against any and all expenses, judgments, fines, penalties and amounts paid in settlement of any claim. The indemnification agreements will provide for the advancement or payment of all expenses to the indemnitee and for the reimbursement to us if it is found that such indemnitee is not entitled to such indemnification under applicable law and our second amended and restated certificate of incorporation to be in effect prior to the closing of this offering and second amended and restated bylaws to be in effect prior to the closing of this offering.

We maintain a general liability insurance policy that covers certain liabilities of directors and officers of our corporation arising out of claims based on acts or omissions in their capacities as directors or officers.

In any placement agency agreement we enter into in connection with the sale of Class A Interests being registered hereby, the placement agents will agree to indemnify, under certain conditions, us, our directors, our officers and persons who control us within the meaning of the Securities Act of 1933, as amended, or the Securities Act, against certain liabilities.

#### Item 15. Recent Sales of Unregistered Securities
Since our incorporation in May 2022, we have sold and issued the following securities that were not registered under the Securities Act:

#### Issuance of Common Stock; Class B Interests Reclassification
In May 2022, we issued and sold 100 shares of common stock to Bally's Chicago HoldCo at a purchase price of $0.01 per share, for an aggregate price of $1.0. In March 2025, the 100 shares of common stock were reclassified into 30,000 Class B Interests.

#### Issuance of Class A Interests
On March 10, 2025, pursuant to Rule 506(c), we sold a total of 1,185 Class A Interests, including 272 Class A-1 Interests at $250 per share, 281 Class A-2 Interests at $2,500 per share, 171 Class A-3 Interests at $5,000 per share and 461 Class A-4 Interests at $25,000 per share, to certain Accredited Investors for an aggregate purchase price of $13.2 million.

We also sold an additional 2,800 shares of Class A-4 Interests to Bally's Chicago HoldCo, LLC at a purchase price of $25,000 per share. Consideration received included cash of $63.7 million and $6.3 million of shares issued in lieu of payment on the promissory notes payable by us to Bally's Chicago HoldCo.

#### Subordinated Loan Agreement
In connection with the issuance of these shares, we entered into a subordinated loan agreement with Bally's Chicago HoldCo, pursuant to which Bally's Chicago HoldCo made subordinated term loans (the "Existing Subordinated Loans") to us totaling $16.5 million at an annual interest rate of 11.0%, compounded

------

[**TABLE OF CONTENTS**](#TOC2)

quarterly, with no maturity date. The Existing Subordinated Loans were funded through the Bally's Chicago HoldCo's transfer of 659 Class A-4 shares to us.

#### Limited Liability Company Agreement and Purchase of Additional LLC Interests
On March 10, 2025, Bally's Chicago OpCo amended and restated its limited liability company agreement issuing 30,000 LLC Units to Bally's Chicago HoldCo and appointing us as the sole managing member of Bally's Chicago OpCo.

Concurrently with the entry into the amended and restated limited liability agreement, we purchased 3,326 LLC Interests from Bally's Chicago OpCo for total purchase price of $83.2 million. We will continue to consolidate Bally's Chicago OpCo as the sole managing member in accordance with ASC 810, and consequently, the Bally's Chicago HoldCo's ownership interest in Bally's Chicago OpCo will be represented as a non-controlling interest in our consolidated financial statements.

The issuances of the securities in the transactions described above were deemed to be exempt from registration under the Securities Act in reliance upon Section 4(a)(2) of the Securities Act and/or Rule 506, Rule 701 or Regulation S promulgated thereunder. The securities were issued directly by us and did not involve a public offering or general solicitation. The recipients of such securities represented their intentions to acquire the securities for investment purposes only and not with a view to, or for sale in connection with, any distribution thereof.

None of the transactions set forth in Item 15 involved any underwriters, underwriting discounts or commissions or any public offering. All recipients had adequate access, through their relationships with us, to information about us. The sales of these securities were made without any general solicitation or advertising.

#### Item 16. Exhibits
The exhibits to the registration statement are listed in the Exhibit Index to this registration statement and are incorporated by reference herein.

#### Item 17. Undertakings
The undersigned registrant hereby undertakes to provide to the placement agents, at the closing specified in the placement agent agreement, certificates in such denominations and registered in such names as required by the placement agents to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and this offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

------

[**TABLE OF CONTENTS**](#TOC2)

#### EXHIBIT INDEX

---

| | |
|:---|:---|
| **Exhibit No.**  | **Description**  |
| &nbsp;&nbsp; 1.1\* | [Form of Placement Agent Agreement](tm2310971d51_ex1-1.htm)  |
| &nbsp;&nbsp; 1.2\*\*\* | [Form of Subscription Agreement](https://www.sec.gov/Archives/edgar/data/1935799/000110465925061353/tm2310971d43_ex1-2.htm)  |
| &nbsp;&nbsp; 3.1\*\*\* | [Amended and Restated Certificate of Incorporation of Bally's Chicago, Inc., as currently in effect](https://www.sec.gov/Archives/edgar/data/1935799/000110465925068147/tm2310971d48_ex3-1.htm)  |
| &nbsp;&nbsp; 3.2\* | [Form of Second Amended and Restated Certificate of Incorporation of Bally's Chicago, Inc., to be in effect prior to the closing of this offering](tm2310971d51_ex3-2.htm)  |
| &nbsp;&nbsp; 3.3\*\*\* | [Amended and Restated Bylaws of Bally's Chicago, Inc., as currently in effect](https://www.sec.gov/Archives/edgar/data/1935799/000110465925068147/tm2310971d48_ex3-3.htm)  |
| &nbsp;&nbsp; 3.4\*\*\* | [Form of Second Amended and Restated Bylaws of Bally's Chicago, Inc., to be in effect prior to the closing of this offering](https://www.sec.gov/Archives/edgar/data/1935799/000110465925068147/tm2310971d48_ex3-4.htm)  |
| &nbsp;&nbsp; 5.1\* | [Opinion of Latham & Watkins LLP](tm2310971d51_ex5-1.htm)  |
| 10.1\*\*\* | [Form of Amended and Restated Subordinated Loan Agreement, by and between Bally's Chicago, Inc., as borrower, and Bally's Chicago Holding Company, LLC, as lender](https://www.sec.gov/Archives/edgar/data/1935799/000110465925008202/tm2310971d31_ex10-1.htm) |
| 10.2\*\*\* | [Corporate Services Agreement for Temporary Casino, dated as of August 30, 2023, by and between Bally's Management Group, LLC (f/k/a Twin River Management Group, Inc.) and Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-2.htm) |
| 10.3\*\*\* | [Services Agreement, dated as of January 27, 2023, by and between Bally's Management Group, LLC (f/k/a Twin River Management Group, Inc.) and UTGR, Inc., Mile High USA, LLC, Premier Entertainment Biloxi LLC, Twin River — Tiverton, LLC, Dover Downs, Inc., Premier Entertainment Black Hawk, LLC, IOC Kansas City, Inc, Premier Entertainment Vicksburg, LLC, Premier Entertainment Shreveport, LLC, Premier Entertainment Ac, LLC, Premier Entertainment Tahoe, LLC, Aztar Indiana Gaming Company, LLC, The Rock Island Boatworks, LLC, Tropicana Las Vegas, Inc., and Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-3.htm) |
| 10.4†\*\*\* | [Bally's Corporation 2021 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-4.htm)  |
| 10.5†\*\*\* | [Form of Award Agreements under Bally's Corporation 2021 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-5.htm)  |
| 10.6\*\*\* | [Promissory Note, dated as of December 31, 2023, issued by Bally's Chicago Operating Company, LLC in favor of Bally's Chicago Holding Company LLC, as amended on September 30, 2024](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-6.htm) |
| 10.7\*\*\* | [Promissory Note, dated as of December 31, 2023, issued by Bally's Chicago Operating Company, LLC in favor of Bally's Management Group, LLC as amended on September 30, 2024](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-7.htm) |
| 10.8\*\*\* | [Promissory Note, dated as of December 31, 2023, issued by Bally's Chicago Inc. in favor of Bally's Chicago Holding Company, LLC, as amended on September 30, 2024](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-8.htm)  |
| 10.9\*\*\* | [Promissory Note, dated as of December 31, 2023, issued by Bally's Management Group, LLC in favor of Bally's Chicago Inc., as amended on September 30, 2024](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-9.htm)  |
| 10.10\*\*\* | [Promissory Note, dated as of December 31, 2023, issued by Bally's Chicago Inc. in favor of Bally's Chicago Operating Company, LLC, as amended on September 30, 2024](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-10.htm)  |
| 10.11\*\*\* | [Promissory Note, dated as of December 31, 2023, issued by Bally's Chicago Operating Company, LLC in favor of Bally's Chicago Inc., as amended on September 30, 2024](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-11.htm)  |
| 10.12\*\*\* | [Promissory Note, dated as of September 30, 2024, issued by Bally's Chicago, Inc. in favor of Bally's Chicago Holding Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-12.htm)  |
| 10.13\*\*\* | [Promissory Note, dated as of September 30, 2024, issued by Bally's Chicago Operating Company, LLC in favor of Bally's Chicago Holding Company LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-13.htm)  |
| 10.14\*\*\* | [Promissory Note, dated as of September 30, 2024, issued by Bally's Chicago Operating Company, LLC in favor of Bally's Management Group, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-14.htm)  |
| 10.15\*\*\* | [Promissory Note, dated as of March 31, 2025, issued by Bally's Chicago Operating Company, LLC in favor of Bally's Chicago Holding Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465925061353/tm2310971d43_ex10-15.htm) |
| 10.16\*\*\* | [Promissory Note, dated as of March 31, 2025, issued by Bally's Chicago Inc. in favor of Bally's Chicago Holding Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465925061353/tm2310971d43_ex10-16.htm) |

---

------

[**TABLE OF CONTENTS**](#TOC2)

---

| | |
|:---|:---|
| **Exhibit No.**  | **Description**  |
| 10.17\*\*\* | [Assignment and Assumption Agreement, dated as of March 31, 2025, issued by Bally's Management Group, LLC in favor of Bally's Chicago Holding Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465925061353/tm2310971d43_ex10-17.htm) |
| 10.18\*\*\* | [Form of Promissory Note to be issued by Bally's Chicago, Inc. in favor of Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465925008202/tm2310971d31_ex10-15.htm) |
| 10.19^\*\*\* | [Sublease Agreement, dated as of November 28, 2022, by and among Medinah Holdings, LLC, Medinah Building LLC, and Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-16.htm) |
| 10.20^\* | [Amended and Restated Lease, dated as of July 17, 2025, by and between GLP Capital, L.P. and Bally's Chicago Operating Company, LLC](tm2310971d51_ex10-20.htm) |
| 10.21^\* | [Development Agreement, dated as of July 17, 2025, by and between GLP Capital, L.P. and Bally's Chicago Operating Company, LLC](tm2310971d51_ex10-21.htm) |
| 10.22#^\*\*\*  | [Lease Modification and Short Term License Agreement, dated March 31, 2023, by and between Chicago Tribune Company, LLC and Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-19.htm) |
| 10.23\*\*\* | [Agreement to Provide Future Guarantee, dated as of March 10, 2025, by and among Bally's Corporation, Bally's Chicago, Inc., Bally's Chicago Operating Company, LLC, and other subsidiary guarantors as may be subsequently designated.](https://www.sec.gov/Archives/edgar/data/1935799/000110465925008202/tm2310971d31_ex10-20.htm) |
| 10.24\*\*\* | [Stockholders Agreement, dated as of March 10, 2025,by and between Bally's Chicago, Inc. and Bally's Chicago Holding Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465925008202/tm2310971d31_ex10-21.htm) |
| 10.25\*\*\* | [Host Community Agreement, dated June 9, 2022, by and between the City of Chicago, Illinois and Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-22.htm) |
| 10.26†\*\*\* | [Employment Agreement, dated as of October 1, 2023, by and between Bally's Management Group, LLC and Ameet Patel](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-23.htm) |
| 10.27†\*\*\* | [Employment Agreement, dated as of May 8, 2023, by and between Bally's Management Group, LLC and H.C. Charles Diao](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-24.htm) |
| 10.28†\*\*\* | [Employment Agreement, dated as of February 1, 2024, by and between Bally's Management Group, LLC and Christopher Jewett](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-25.htm) |
| 10.29†\*\*\* | [Employment Agreement, dated as of October 19, 2022, by and between Twin River Management Group, Inc. and Kim Barker Lee](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex10-26.htm) |
| 10.30†\*\*\* | [Form of Indemnification Agreement](https://www.sec.gov/Archives/edgar/data/1935799/000110465924132193/tm2310971d14_ex10-27.htm) |
| 10.31\*\*\* | [Amended and Restated Limited Liability Company Agreement of Bally's Chicago Operating Company, LLC](https://www.sec.gov/Archives/edgar/data/1935799/000110465925061353/tm2310971d43_ex10-31.htm) |
| 10.32\* | [Form of Placement Agent Agreement for Private Placements](tm2310971d51_ex10-32.htm) |
| 10.33\*\*\* | [Form of Subscription Agreement for Private Placements](https://www.sec.gov/Archives/edgar/data/1935799/000110465925061353/tm2310971d43_ex10-33.htm) |
| 10.34\*\*\* | [Support Letter from Bally's Corporation](http://www.sec.gov/Archives/edgar/data/1935799/000110465925007269/tm2310971d27_ex10-33.htm) |
| 10.35\*\*\* | [Subordinated Loan Agreement, dated as of March 10, 2025, by and between Bally's Chicago, Inc., as borrower, and Bally's Chicago Holding Company, LLC, as lender](https://www.sec.gov/Archives/edgar/data/1935799/000110465925037557/tm2310971d37_ex10-32.htm) |
| 21.1\*\*\* | [List of subsidiaries of Bally's Chicago, Inc.](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex21-1.htm) |
| 23.1\* | [Consent of Deloitte & Touche LLP, independent registered public accounting firm](tm2310971d51_ex23-1.htm) |
| 23.2\* | [Consent of Latham & Watkins LLP (included in Exhibit 5.1)](tm2310971d51_ex5-1.htm) |
| 24.1\*\*\* | [Power of Attorney (included on the signature page of the initial filing of the Registration Statement)](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971-8_s1.htm#tPOA) |
| 99.1\*\*\* | [Consent of Renee Bradford, Director Nominee](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex99-1.htm) |
| 99.2\*\*\* | [Consent of Blanton Canady, Director Nominee](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex99-2.htm) |
| 99.3\*\*\* | [Consent of Ezequiel (Zeke) Flores, Director Nominee](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex99-3.htm) |
| 99.4\*\*\* | [Consent of Edward Lou, Director Nominee](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex99-4.htm) |
| 99.5\*\*\* | [Consent of Sharon Thomas Parrott, Director Nominee](https://www.sec.gov/Archives/edgar/data/1935799/000110465924128076/tm2310971d9_ex99-5.htm) |
| 107\* | [Filing Fee Table](tm2310971d50_ex-filingfees.htm) |

---

\*

Filed herewith.

\*\*

To be filed by amendment.

\*\*\*

Previously filed.

†

Indicates a management contract or compensatory plan.

------

[**TABLE OF CONTENTS**](#TOC2)

#

Portions of this exhibit (indicated by asterisks) have been omitted pursuant to Item 601(b)(10) of Regulation S-K.

^

Certain exhibits and schedules to this exhibit have been omitted pursuant to Item 601(a)(5) and (6) of Regulation S-K. The registrant will furnish copies of any of the exhibits and schedules to the Securities and Exchange Commission upon request.

------

[**TABLE OF CONTENTS**](#TOC)

#### SIGNATURES
Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Chicago, Illinois, on this 5<sup>th</sup> day of August, 2025.

#### Bally's Chicago, Inc.
By:

/s/ Ameet Patel

Name:

Ameet Patel

Title:

President

Pursuant to the requirements of the Securities Act of 1933, as amended, this registration statement has been signed by the following persons in the capacities set forth opposite their names and on the date indicated above.

---

| | |
|:---|:---|
| **Signature**  | **Title**  |
| /s/ Ameet Patel <br>Ameet Patel  | President (Principal Executive Officer) <br> and Director  |
| /s/ H. C. Charles Diao <br>H. C. Charles Diao  | Chief Financial Officer (Principal <br> Financial Officer and Principal Accounting Officer)  |
| \* <br>Wanda Y. Wilson  | Director, Chairperson  |
| \* <br>Kim M. Barker  | Director  |

---

---

| | |
|:---|:---|
| \*By: | /s/ Ameet Patel <br>Ameet Patel <br> Attorney-in-fact  |

---

------

## Exhibit 1.1

**Exhibit 1.1**

**BALLY'S CHICAGO, INC.**

**Up to [__] Class A-1 Interests**

**Up to [__] Class A-2 Interests**

**Up to [__] Class A-3 Interests**

**Up to [__] Class A-4 Interests**

**<u>PLACEMENT AGENT AGREEMENT</u>**

[●], 2025

Loop Capital Markets LLC

425 South Financial Place, Suite 2700

Chicago, IL 60605

Innovation Capital, LLC

222 S Riverside Plaza #2800

Chicago, IL 60606

Ladies and Gentlemen:

Subject to the terms and conditions herein (this "Agreement") Bally's Chicago, Inc., a Delaware corporation (the "Company"), hereby agrees to sell up to an aggregate of [__] Class A Interests (as defined below) of the Company, $0.001 par value per interest, allocated among (i) [__] Class A-1 Interests at $250.00 per interest (the "Class A-1 Interests"), (ii) [__] Class A-2 Interests at $2,500.00 per interest (the "Class A-2 Interests"), (iii) [__] Class A-3 Interests at $5,000.00 per interest (the "Class A-3 Interests") and (iv) [__] Class A-4 Interests at $25,000.00 per interest (the "Class A-4 Interests" and, together with the Class A-1 Interests, the Class A-2 Interests and the Class A-3 Interests, the "Class A Interests") directly to various purchasers (each, a "Purchaser" and, collectively, the "Purchasers") through Loop Capital Markets LLC and Innovation Capital, LLC, as Placement Agents (the "Placement Agents"). This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Offering, including, without limitation, certain securities subscription agreements (the "Subscription Agreements"), shall be collectively referred to herein as the "Transaction Documents." The Placement Agents may retain other brokers or dealers to act as sub-agents or selected-dealers on their behalf in connection with the Offering. The Class A Interests will be issued under the Registration Statement (as defined below) and pursuant to the terms thereof.

The Company has prepared and filed in conformity with the requirements of the Securities Act of 1933, as amended (the "Securities Act"), and the published rules and regulations thereunder (the "Rules") adopted by the Securities and Exchange Commission (the "Commission") a registration statement on Form S-1 (No. 333-283772) including any related preliminary prospectus (the "Preliminary Prospectus", including any prospectus that is included in the registration statement immediately prior to the effectiveness of the registration statement), for the registration of the Class A Interests under the Securities Act. The conditions for use of Form S-1 to register the Offering under the Act, as set forth in the General Instructions to such Form, have been satisfied in all material respects.

Except as the context may otherwise require, such registration statement, as amended, on file with the Commission at the time the registration statement became effective, including the prospectus, financial statements, schedules, exhibits and all other documents and information deemed to be part of the Registration Statement by incorporation by reference or otherwise, including the information (if any) contained in the form of final prospectus filed with the Commission pursuant to Rule 424(b) of the Rules and deemed to be part thereof at the time of effectiveness pursuant to Rule 430B of the Rules (the "Prospectus") is hereinafter called the "Registration Statement."

The term "Effective Date" shall mean the date that the Registration Statement becomes effective. Unless otherwise stated herein, any reference herein to the Registration Statement shall be deemed to refer to and include the documents incorporated by reference therein.

The Company hereby confirms that the Placement Agents have been authorized to distribute or cause to be distributed each Issuer Free Writing Prospectus (as hereinafter defined) and are authorized to distribute the prospectus.

1. <u>Agreement to Act as Placement Agents</u>. On the basis of the representations, warranties and agreements contained in, and subject to the terms and conditions of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company hereby authorizes the Placement Agents to act as its exclusive agents to solicit offers for the purchase of all or part of the Class A Interests from the Company in connection with the proposed public offering of the Class A Interests (the "Offering"). Until the Closing Date (as defined below) or earlier upon termination of this Agreement pursuant to Section 7, the Company shall not, without the prior written consent of the Placement Agents, solicit or accept offers to purchase the Class A Interests otherwise than through the Placement Agents. Notwithstanding the foregoing, nothing herein shall prevent the Company from offering and selling its Class A Interests in private placements that are contingent upon, and are scheduled to close immediately subsequent to, the closing of this Offering (the "Private Placements").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company hereby acknowledges that the Placement Agents have agreed, as agents of the Company, to use their reasonable "best efforts" to solicit offers to purchase the Class A Interests from the Company on the terms and subject to the conditions set forth herein. The Placement Agents shall use commercially reasonable efforts to assist the Company in obtaining performance by each Purchaser whose offer to purchase Class A Interests has been solicited by the Placement Agents and accepted by the Company, but the Placement Agents shall not, except as otherwise provided in this Agreement, be obligated to disclose the identity of any potential purchaser or have any liability to the Company in the event any such purchase is not consummated for any reason. Under no circumstances will the Placement Agents be obligated to underwrite or purchase any Class A Interests for their own accounts and, in soliciting purchases of the Class A Interests, the Placement Agents shall act solely as the Company's agents and not as principals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the provisions of this Section 1, offers for the purchase of the Class A Interests may be solicited by the Placement Agents as agents for the Company at such times and in such amounts as the Placement Agents deem advisable. The Placement Agents shall communicate to the Company, orally or in writing, each reasonable offer to purchase Class A Interests received by them as agents of the Company. The Company shall have the sole right to accept offers to purchase Class A Interests and may reject any such offer, in whole or in part. The Placement Agents shall have the right, in their discretion reasonably exercised, without notice to the Company, to reject any offer to purchase Class A Interests received by them, in whole or in part, and any such rejection shall not be deemed a breach of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Class A-1 Interest is being sold to Purchasers at a price of $250.00. Each Class A-2 Interest is being sold to Purchasers at a price of $2,500.00. Each Class A-3 Interest is being sold to Purchasers at a price of $5,000.00. Each Class A-4 Interest is being sold to Purchasers at a price of $25,000.00. There shall be no minimum purchase requirements for each investor and no minimum number of Class A Interests to be sold or minimum aggregate offering proceeds for this Offering to close. The purchases of Class A Interests by the Purchasers shall be evidenced by the execution of the Subscription Agreements between each of the Purchasers and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It is anticipated that $[●] of the Class A Interests will be privately placed primarily with institutional investors, qualified institutional investors, and accredited investors as each are defined under the Rules. Such privately placed Class A Interests shall be placed pursuant to a separate private placement agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) For each Class A-1 Interest sold to the Purchasers, Bally's Chicago Holding Company, LLC ("HoldCo") will issue $24,750 of subordinated loans (such loans, the "A-1 Subordinated Loans"). For each Class A-2 Interest sold to the Purchasers, the Parent will issue $22,500 of subordinated loans (such loans, the "A-2 Subordinated Loans"). For each Class A-3 Interest sold to the Purchasers, the Parent will issue $20,000 of subordinated loans (such loans, the "A-3 Subordinated Loans" and, together with the Class A-1 Subordinated Loans and Class A-2 Subordinated Loans, the "Subordinated Loans"). The issuances of the Subordinated Loans shall be evidenced by the execution of a separate subordinated loan agreement by HoldCo and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) As compensation for services rendered, on the Closing Date, the Company shall pay or cause to be paid to the Placement Agents in the manner set forth below, a placement fee (the "Placement Fee") of 5.75% of the gross cash proceeds from the sale of Class A Interests, which fee shall be paid by the Company to the Placement Agent on behalf of the syndicate in cash upon the Closing Date as set forth opposite the names of the Placement Agents in Schedule II hereto, in cash upon the Closing Date. The Placement Fee, in addition to any fees, discounts or commissions that may be earned by Loop from participating in any concurrent private placement that is separate from the Offering, will not exceed $4 million (the "Cap"), provided that for each additional underwriter, placement agent or financial advisor that participates in the Placement, the Cap will be increased by $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No Class A Interests which the Company has agreed to sell pursuant to this Agreement and the Subscription Agreements shall be deemed to have been purchased and paid for, or sold by the Company, until such Class A Interests shall have been delivered to the Purchaser thereof against payment by such Purchaser. If the Company shall default in its obligations to deliver Class A Interests to a Purchaser whose offer it has accepted, the Company shall indemnify and hold the Placement Agents harmless against any loss, claim, damage or expense arising from or as a result of such default by the Company in accordance with the procedures set forth in Section 5(c) herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The time and date of closing and delivery of the documents required to be delivered to the Placement Agents pursuant to Sections 3 and 4 hereof (the "Closing") shall be at 10:00 a.m. (Eastern Time) on [_], 2025 (the "Closing Date") at the office of Winston & Strawn LLP, 35 W. Wacker Drive, Chicago IL 60601, or at such other time and location as the Company and the Placement Agents shall otherwise agree.

2. <u>Representations and Warranties of the Company</u>. The representations, warranties and agreements of the Company contained in Section 3.2 and Article 5 of the Subscription Agreements are hereby incorporated by reference in this Agreement, as if made directly by the Company to the Placement Agents on the date of this Agreement, with the understanding that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any defined terms used in such incorporated sections shall have the meanings given to them in this Agreement or, if no definition is given to them in this Agreement, such defined terms will have the meanings given to them in the incorporated sections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the event of a conflict in meaning or defined term between the incorporated sections and this Agreement, this Agreement shall control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) references to "this Agreement" in the incorporated sections from the Subscription Agreements means this Agreement.

3. <u>Conditions of the Obligations of the Placement Agents</u>. The obligations of the Placement Agent hereunder are subject to each of the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notification that the Prospectus shall have been timely filed with the Commission in accordance with Section 4(a) of this Agreement and any material required to be filed by the Company pursuant to Rule 433(d) of the Rules shall have been timely filed with the Commission in accordance with such rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No order preventing or suspending the use of the Prospectus or any "free writing prospectus" (as defined in Rule 405 of the Rules), shall have been or shall be in effect and no order suspending the effectiveness of the Registration Statement shall be in effect and no proceedings for such purpose shall be pending before or, to the Company's knowledge, threatened by the Commission, and any requests for additional information on the part of the Commission (to be included in the Registration Statement or the Prospectus or otherwise) shall have been complied with to the satisfaction of the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The representations and warranties of the Company incorporated by reference in this Agreement and in any certificates delivered pursuant to Section 3(d) shall be true and correct when made and on and as of the Closing Date as if made on such date. The Company shall have performed all covenants and agreements and satisfied all the conditions contained in this Agreement required to be performed or satisfied by it at or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Placement Agents shall have received on the Closing Date a certificate, addressed to the Placement Agents and dated the Closing Date, of the chief executive or chief operating officer and the chief financial officer or chief accounting officer of the Company, in their capacity as such officers, to the effect that: (i) the representations, warranties and agreements of the Company in the Subscription Agreements were true and correct when made and are true and correct as of the Closing Date; (ii) the Company has performed all covenants and agreements and satisfied all conditions contained herein and in the Subscription Agreements; (iii) they have carefully examined the Registration Statement the Prospectus and any individual Issuer Free Writing Prospectus and, in their opinion (A) as of the Effective Date the Prospectus did not include, and as of [●]:00 [a.m./p.m.] (Eastern Time) on the date of this Agreement, no individual Issuer Free Writing Prospectus, included, any untrue statement of a material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and (B) since the Effective Date no event has occurred which should have been set forth in a supplement or otherwise required an amendment to the Registration Statement or the Prospectus and was not so disclosed; (iv) no stop order suspending the effectiveness of the Registration Statement has been issued and, to their knowledge, no proceedings for that purpose have been instituted or are pending under the Securities Act and (v) there has not occurred any material adverse change in the assets, properties, condition, financial or otherwise, or in the results of operations, business affairs or business prospects of the Company and its subsidiaries considered as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Placement Agents shall have received on the Closing Date from Latham & Watkins LLP, counsel for the Company, an opinion and negative assurance statement, addressed to the Placement Agents and dated the Closing Date, in form and substance reasonably satisfactory to the Placement Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Placement Agents shall have received on the Closing Date from Winston & Strawn LLP, counsel for the Placement Agents, a negative assurance statement, addressed to the Placement Agents and dated the Closing Date, in form and substance reasonably satisfactory to the Placement Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Placement Agents shall be reasonably satisfied that since the respective dates as of which information is given in the Registration Statement, (i) there shall not have been any material change in the capital stock of the Company or any material change in the indebtedness (other than in the ordinary course of business) of the Company, (ii) except as set forth or contemplated by the Registration Statement, no material oral or written agreement or other transaction shall have been entered into by the Company that is not in the ordinary course of business or that could reasonably be expected to result in a material reduction in the future earnings of the Company, (iii) no loss or damage (whether or not insured) to the property of the Company shall have been sustained that had or could reasonably be expected to have a material adverse effect, (iv) no legal or governmental action, suit or proceeding affecting the Company or any of its properties that is material to the Company or that affects or could reasonably be expected to affect the transactions contemplated by this Agreement shall have been instituted or, to the Company's knowledge, threatened and (v) there shall not have been any material change in the assets, properties, condition (financial or otherwise), or in the results of operations, business affairs or business prospects of the Company or its subsidiaries considered as a whole that makes it impractical or inadvisable in the Placement Agents' judgment to proceed with the purchase or offering of the Class A Interests as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) At the date that this Agreement is executed and delivered by the parties hereto (the "Execution Time") and the Closing Date, the Company shall have requested and caused Deloitte & Touche LLP to furnish to the Placement Agent comfort letters, dated as of the Closing Date, in form and substance satisfactory to the Placement Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *No Changes*. Subsequent to the Execution Time or, if earlier, the dates as of which information is given in the Registration Statement (exclusive of any amendment thereof), there shall not have been (i) any change or decrease specified in the comfort letter or comfort letters referred to in paragraph (i) of this Section 3 or (ii) any change, or any development involving a prospective change, in or affecting the financial condition, business or properties of the Company and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, the effect of which, in any case referred to in clause (i) or (ii) above, is, in the sole judgment of the Placement Agent, so material and adverse as to make it impractical or inadvisable to proceed with the offering or delivery of the Class A Interests as contemplated by the Registration Statement (exclusive of any amendment thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company shall have furnished or caused to be furnished to the Placement Agents such further certificates or documents as the Placement Agents shall have reasonably requested.

4. <u>Covenants and other Agreements of the Company and the Placement Agents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants and agrees as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company shall prepare the Prospectus in a form approved by the Placement Agents and file such Prospectus pursuant to Rule 424(b) under the Securities Act not later than the Commission's close of business on the second business day following the execution and delivery of this Agreement, or, if applicable, such earlier time as may be required by the Rules. The Company will file with the Commission all Issuer Free Writing Prospectuses in the time and manner required under Rules 433(d) or 163(b)(2), as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company shall promptly advise the Placement Agents in writing (A) when any post-effective amendment to the Registration Statement shall have become effective or any supplement to the Prospectus shall have been filed, (B) of any request by the Commission for any amendment of the Registration Statement or the Prospectus or for any additional information, (C) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of any preliminary prospectus or any "free writing prospectus", as defined in Rule 405 of the Rules, or the institution or threatening of any proceeding for that purpose and (D) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Class A Interests for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose. The Company shall not file any amendment of the Registration Statement or supplement to the Prospectus or any document incorporated by reference in the Registration Statement or any Issuer Free Writing Prospectus unless the Company has furnished the Placement Agents a copy for their review prior to filing and shall not file any such proposed amendment or supplement to which the Placement Agents reasonably object. The Company shall use its reasonable best efforts to prevent the issuance of any such stop order and, if issued, to obtain as soon as possible the withdrawal thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If, at any time when a prospectus relating to the Class A Interests (or, in lieu thereof, the notice referred to in Rule 173(a) of the Rules) is required to be delivered under the Securities Act, any event occurs as a result of which the Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, or if it shall be necessary to amend or supplement the Prospectus to comply with the Securities Act or the Rules or the Securities Exchange Act of 1934, as amended ("Exchange Act") and the rules and regulations of the Commission thereunder, the Company promptly shall prepare and file with the Commission, subject to the second sentence of paragraph (ii) of this Section 4(a), an amendment or supplement which shall correct such statement or omission or an amendment which shall effect such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If at any time following issuance of an Issuer Free Writing Prospectus there occurs an event or development as a result of which such Issuer Free Writing Prospectus would conflict with the information contained in the Registration Statement or would include an untrue statement of a material fact or would omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances prevailing at the subsequent time, not misleading, the Company will promptly notify the Placement Agents and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict or so that the statements in such Issuer Free Writing Prospectus as so amended or supplemented will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at such time, not misleading, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company will timely file such reports pursuant to the 1934 Act as are necessary in order to make generally available to its security holders as soon as practicable an earnings statement for the purposes of, and to provide to the Placement Agents the benefits contemplated by, the last paragraph of Section 11(a) of the 1933 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Company shall furnish to the Placement Agents and counsel for the Placement Agents, without charge, signed copies of the Registration Statement (including all exhibits thereto and amendments thereof) and, so long as delivery of a prospectus by the Placement Agents or dealer may be required by the Securities Act or the Rules, as many copies of any Issuer Free Writing Prospectus and the Prospectus and any amendments thereof and supplements thereto as the Placement Agents may reasonably request. If applicable, the copies of the Registration Statement, preliminary prospectus, any Issuer Free Writing Prospectus and Prospectus and each amendment and supplement thereto furnished to the Placement Agents will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The Company shall cooperate with the Placement Agents and their counsel with the offering under the laws of Illinois, Florida, New York, and Texas, and shall maintain such qualifications in effect so long as required for the distribution of the Class A Interests; provided, however, that the Company shall not be required in connection therewith, as a condition thereof, to qualify as a foreign corporation or to execute a general consent to service of process in any jurisdiction or subject itself to taxation as doing business in any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) The Company, during the period when the Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) of the Rules) is required to be delivered under the Securities Act and the Rules or the Exchange Act, will file all reports and other documents required to be filed with the Commission pursuant to Section 13, 14 or 15 of the Exchange Act within the time periods required by the Exchange Act and the regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) On or before completion of this offering, the Company shall make all filings required under applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Prior to the Closing Date, the Company will issue no press release or other communications directly or indirectly and hold no press conference with respect to the Company, the condition, financial or otherwise, or the earnings, business affairs or business prospects of any of them, or the offering of the Class A Interests without the prior written consent of the Placement Agents unless in the judgment of the Company and its counsel, and after notification to the Placement Agents, such press release or communication is required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) The Company will apply the net proceeds from the offering of the Class A Interests in the manner set forth under "Use of Proceeds" in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees it shall pay, or reimburse if paid by the Placement Agents, whether or not the transactions contemplated hereby are consummated or this Agreement is terminated, all costs and expenses incident to the public offering of the Class A Interests and the performance of the obligations of the Company under this Agreement including those relating to: (i) the preparation, printing, reproduction filing and distribution of the Registration Statement including all exhibits thereto, the Prospectus, any Issuer Free Writing Prospectus, all amendments and supplements thereto and any document incorporated by reference therein, and the printing, filing and distribution of this Agreement; (ii) the preparation and delivery of certificates for the Class A Interests to or as directed by the Placement Agents or the Purchasers; (iii) the registration or qualification of the Class A Interests for offer and sale under the securities or Blue Sky laws of the various jurisdictions referred to in Section 5(a)(vi), including the reasonable fees and disbursements of counsel for the Placement Agents in connection with such registration and qualification and the preparation, printing, distribution and shipment of preliminary and supplementary Blue Sky memoranda; (iv) the furnishing (including costs of shipping and mailing) to the Placement Agents of copies of the Prospectus and all amendments or supplements to the Prospectus, any Issuer Free Writing Prospectus, and of the several documents required by this Section to be so furnished, as may be reasonably requested for use in connection with the offering and sale of the Class A Interests by the Placement Agents or by dealers to whom Securities may be sold; (v) the filing fees of FINRA in connection with its review of the terms of the public offering and reasonable fees and disbursements of counsel for the Placement Agents in connection with such review; (vi) the Company's legal fees and expenses; (vii) the costs of pre-approved due diligence meetings; (viii) all costs and expenses related to road shows; (ix) trustee, transfer and warrant agent and registrar fees; (x) the cost of any background investigations performed by the Placement Agents of the principals of the Company; and (xi) all transfer taxes, if any, with respect to the sale and delivery of the Class A Interests by the Company to the Purchasers. The Company agrees that the Company shall also reimburse the Placement Agents for certain of its fees and expenses in an amount up to $300,000, including but not limited to travel and communication expenses, printing expenses, road show expenses, due diligence expenses, courier charges and the reasonable fees and disbursements for Placement Agent legal counsel, and also the reasonable fees and disbursements of any other consultants or third party services engaged by the Placement Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company acknowledges and agrees that the Placement Agents have acted and are acting solely in the capacity of a principal in an arm's length transaction between the Company, on the one hand, and the Placement Agents, on the other hand, with respect to the offering of Class A Interests contemplated hereby (including in connection with determining the terms of the Offering) and not as agent or fiduciary to the Company or any other person. Additionally, the Company acknowledges and agrees that the Placement Agents have not and will not advise the Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company has consulted with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Placement Agents shall have no responsibility or liability to the Company or any other person with respect thereto, whether arising prior to or after the date hereof. The Company agrees that the Placement Agents shall have no responsibility or liability to the Company with respect to whether any Purchaser is eligible to participate in the offering, and the Company shall make such determination in its sole discretion when determining whether to ultimately accept an offer by a prospective purchaser. Any review by the Placement Agents of the Company, the transactions contemplated hereby or other matters relating to such transactions have been and will be performed solely for the benefit of the Placement Agents and shall not be on behalf of the Company. The Company agrees that it will not claim that the Placement Agents have rendered advisory services of any nature or respect, or owes a fiduciary duty to the Company or any other person in connection with any such transaction or the process leading thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company represents and agrees that, unless it obtains the prior consent of the Placement Agents, and the Placement Agents represent and agree that, unless they obtain the prior consent of the Company, the Company and the Placement Agents have not made and will not make any offer relating to the Class A Interests that would constitute an "issuer free writing prospectus," as defined in Rule 433, or that would otherwise constitute a "free writing prospectus," as defined in Rule 405, required to be filed with the Commission. The Company has complied and will comply with the requirements of Rule 433 under the Securities Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission where required, legending and record keeping. The Company represents that is has satisfied and agrees that it will satisfy the conditions set forth in Rule 433 of the Rules to avoid a requirement to file with the Commission any Road Show.

5. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees to indemnify and hold harmless the Placement Agents, their respective officers and employees and each person, if any, who controls the Placement Agents within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against any and all losses, claims, damages and liabilities, joint or several (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted), to which they, or any of them, may become subject under the Securities Act, the Exchange Act or other Federal or state law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any "issuer-information" filed or required to be filed pursuant to Rule 433(d) of the Rules, any amendment thereof or supplement thereto, or in any Blue Sky application or other information or other documents executed by the Company filed in any state or other jurisdiction to qualify any or all of the Class A Interests under the securities laws thereof (any such application, document or information being hereinafter referred to as a "Blue Sky Application") or arise out of or are based upon any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that such indemnity shall not inure to the benefit of the Placement Agents (or any person controlling such Placement Agents) on account of any losses, claims, damages or liabilities arising from the sale of the Class A Interests to any person by or through the Placement Agents if such untrue statement or omission or alleged untrue statement or omission was made in such preliminary prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or such amendment or supplement thereto, or in any Blue Sky Application in reliance upon and in conformity with information furnished in writing by the Placement Agent specifically for use in the Prospectus (the "Agent Information"). This indemnity agreement will be in addition to any liability which the Company may otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Placement Agents agree to indemnify and hold harmless the Company and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, each director of the Company, and each officer of the Company who signs the Registration Statement, against any losses, claims, damages or liabilities (including any reasonable investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted) to which such party may become subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, the Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement or the Prospectus or any such amendment or supplement in reliance upon and in conformity with the Agent Information; provided, however, that the obligation of the Placement Agents to indemnify the Company (including any controlling person, director or officer thereof) shall be limited to the amount of the Placement Fee actually received by the Placement Agents hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any party that proposes to assert the right to be indemnified under this Section will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim is to be made against an indemnifying party or parties under this Section, notify each such indemnifying party in writing of the commencement of such action, suit or proceeding, enclosing a copy of all papers served. No indemnification provided for in Section 5(a) or 5(b) shall be available to any party who shall fail to give notice as provided in this Section 5(c) if the party to whom notice was not given was unaware of the action, suit or proceeding to which such notice would have related and was prejudiced by the failure to give such notice but the omission so to notify such indemnifying party of any such action, suit or proceeding shall not relieve it from any liability that it may have to any indemnified party for contribution or otherwise than under this Section 5. In case any such action, suit or proceeding shall be brought against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in, and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof and the approval by the indemnified party of such counsel, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses, except as provided below and except for the reasonable costs of investigation subsequently incurred by such indemnified party in connection with the defense thereof. The indemnified party shall have the right to employ its counsel in any such action, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the employment of counsel by such indemnified party has been authorized in writing by the indemnifying parties, (ii) the indemnified party shall have been advised by counsel that there may be one or more legal defenses available to it which are different from or in addition to those available to the indemnifying party (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party) or (iii) the indemnifying parties shall not have employed counsel to assume the defense of such action within a reasonable time after notice of the commencement thereof, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying parties. An indemnifying party shall not be liable for any settlement of any action, suit, and proceeding or claim effected without its written consent, which consent shall not be unreasonably withheld or delayed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is a party or could be named and indemnity was or would be sought hereunder by such indemnified party, unless such settlement, compromise or consent (a) includes an unconditional release of such indemnified party from all liability for claims that are the subject matter of such action, suit or proceeding and (b) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

6. <u>Contribution</u>. In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in Section 5(a) or 5(b) is due in accordance with its terms but for any reason is unavailable to or insufficient to hold harmless an indemnified party in respect to any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate losses, liabilities, claims, damages and expenses (including any investigation, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted, but after deducting any contribution received by any person entitled hereunder to contribution from any person who may be liable for contribution) incurred by such indemnified party, as incurred, in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Placement Agents on the other hand from the offering of the Class A Interests pursuant to this Agreement or, if such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to above but also the relative fault of the Company on the one hand and the Placement Agents on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable considerations. The Company and the Placement Agents agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to above. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 6, (i) the Placement Agents shall not be required to contribute any amount in excess of the Placement Fee actually received by the Placement Agents; and no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6, each person, if any, who controls an Placement Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as such Placement Agent, and each director of the Company, each officer of the Company who signed the Registration Statement, and each person, if any, who controls the Company within the meaning of the Section 15 of the Securities Act or Section 20 of the Exchange Act, shall have the same rights to contribution as the Company. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties under this Section 6, notify such party or parties from whom contribution may be sought, but the omission so to notify such party or parties from whom contribution may be sought shall not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have hereunder or otherwise than under this Section 6. No party shall be liable for contribution with respect to any action, suit, proceeding or claim settled without its written consent.

7. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be terminated by the Placement Agents by notifying the Company at any time at or before the Closing Date in the absolute discretion of the Placement Agents if: (i) there has occurred any material adverse change in the securities markets or any event, act or occurrence that has materially disrupted, or in the opinion of the Placement Agents, will in the future materially disrupt, the securities markets or there shall be such a material adverse change in general financial, political or economic conditions or the effect of international conditions on the financial markets in the United States is such as to make it, in the judgment of the Placement Agents, inadvisable or impracticable to market the Class A Interests or enforce contracts for the sale of the Class A Interests; (ii) there has occurred any outbreak or material escalation of hostilities or acts of terrorism or other calamity or crisis the effect of which on the financial markets of the United States is such as to make it, in the judgment of the Placement Agents, inadvisable or impracticable to market the Class A Interests or enforce contracts for the sale of the Class A Interests; (iii) trading in the Class A Interests or any securities of the Company has been suspended or materially limited by the Commission, or minimum or maximum ranges for prices for securities shall have been fixed, or maximum ranges for prices for securities have been required, by such system or by order of the Commission, FINRA, or any other governmental or regulatory authority or (iv) a banking moratorium has been declared by any state or Federal authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If this Agreement is terminated pursuant to any of its provisions, the Company shall not be under any liability to the Placement Agents, and the Placement Agents shall not be under any liability to the Company, except that if this Agreement is terminated by the Placement Agents because of any failure, refusal or inability on the part of the Company to comply with the terms or to fulfill any of the conditions of this Agreement or the other Transaction Documents, the Company will reimburse the Placement Agents for all out-of-pocket expenses (including the reasonable fees and disbursements of its counsel) incurred by them in connection with the proposed Offering or in contemplation of performing their obligations hereunder.

8. <u>[Reserved]</u>

9. <u>Miscellaneous</u>. The respective agreements, representations, warranties, indemnities, rights of contribution and other statements of the Company and the Placement Agents, as set forth in this Agreement or made by or on behalf of them pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf of the Company or the Placement Agents or any of their respective officers, directors or controlling persons referred to in Sections 5 and 6 hereof, and shall survive delivery of and payment for the Class A Interests. In addition, the provisions of Sections 4(b), 5, 6 and 7 shall survive the termination or cancellation of this Agreement. Notwithstanding anything herein to the contrary, the engagement agreement dated January 19, 2023 and as amended on July [____], 2025, between the Company and Loop Capital Markets LLC, shall continue to be effective and continue to survive and be enforceable by the parties in accordance with its terms.

This Agreement has been and is made for the benefit of the Placement Agents, the Company and their respective successors and assigns, and, to the extent expressed herein, for the benefit of persons controlling the Placement Agents, or the Company, and directors and officers of the Company, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. The term "successors and assigns" shall not include any Purchaser merely because of such purchase. The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless and until the same shall be in writing and signed by the Company and the Placement Agents.

All notices and communications hereunder shall be in writing and mailed or delivered or by telephone or telegraph if subsequently confirmed in writing, (a) if to the Placement Agents, c/o Loop Capital Markets, 425 South Financial Place, Suite 2700 Chicago, IL 60605, and to Winston & Strawn LLP, 800 Capitol St., STE 2400, Houston, TX 77002, Attention: Mike Blankenship and (b) if to the Company, c/o Bally's Corporation, 100 Westminster Street, Providence, RI 02903, Attention: Chief Legal Officer – Chicago Equity Offering.

**This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed in such state.**

This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.

*[Signature Page Follows]*

Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Loop the enclosed copy of this Agreement.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **Loop Capital markets, LLC** | **Loop Capital markets, LLC** |
| By: |  |
|  | Name: |
|  | Title: |
| <u>Address for notice:</u> | <u>Address for notice:</u> |
| Attention:<br> Email: | Attention:<br> Email: |

---

Accepted and Agreed to as of the date first written above:

**BALLY'S CHICAGO, INC.**

By:   <br> Name: Ameet Patel <br> Title: President

<u>Address for notice</u>: c/o Bally's Corporation, 100 Westminster Street, Providence, RI 02903, Attention: Chief Legal Officer – Chicago Equity Offering

**BALLY'S CHICAGO OPERATING COMPANY, LLC**

By:   <br> Name: Ameet Patel <br> Title: President

<u>Address for notice</u>: c/o Bally's Corporation, 100 Westminster Street, Providence, RI 02903, Attention: Chief Legal Officer – Chicago Equity Offering

SCHEDULE I

Issuer Free Writing Prospectuses

None.

SCHEDULE II

[·]

## Exhibit 3.2

**Exhibit 3.2**

**SECOND AMENDED AND RESTATED CERTIFICATE OF INCORPORATION**

**OF**

**BALLY'S CHICAGO, INC.**

Bally's Chicago, Inc., a corporation organized and existing under the laws of the State of Delaware, hereby certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The original Certificate of Incorporation of the Corporation was filed with the Office of the Secretary of State of the State of Delaware on May 24, 2022. The Corporation filed an Amended and Restated Certificate of Incorporation with the Office of the Secretary of State of the State of Delaware on March 10, 2025 (the "***A&R Certificate***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Corporation is filing this Second Amended and Restated Certificate of Incorporation of the Corporation (the "***Certificate of Incorporation***"), which restates, integrates and further amends the A&R Certificate, as heretofore amended, and which was duly adopted by all necessary action of the board of directors of the Corporation (the "***Board of Directors***") and the stockholders of the Corporation in accordance with the provisions of Sections 242, 245 and 228 of the General Corporation Law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The text of the A&R Certificate is hereby amended, integrated and restated in its entirety by this Certificate of Incorporation to read in full as follows:

**Article I.**

The name of the corporation is Bally's Chicago, Inc. (the "***Corporation***").

**Article II.**

The address of the Corporation's registered office in the State of Delaware is 1209 Orange Street, Wilmington, County of New Castle, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company.

**Article III.**

The nature of the business of the Corporation and the objects or purposes to be transacted, promoted or carried on by the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware (the "***DGCL***"), including, without limitation, (i) investing in securities of Bally's Chicago Operating Company, LLC, a Delaware limited liability company, or any successor entities thereto and any of its subsidiaries, (ii) exercising all rights, powers, privileges and other incidents of ownership or possession with respect to the Corporation's assets, including managing, holding, selling and disposing of such assets and (iii) engaging in any other activities incidental or ancillary thereto.

**Article IV.**

Section 4.1 Authorized Interests. The total number of shares of all classes of stock that the Corporation is authorized to issue is [·] ([·]), consisting of the following five classes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) [·] ([·]) shares of Class A-1 common stock, with a par value of $0.001 per share (the "***Class A-1 Interests***");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [·] ([·]) shares of Class A-2 common stock, with a par value of $0.001 per share (the "***Class A-2 Interests***");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [·] ([·]) shares of Class A-3 common stock, with a par value of $0.001 per share (the "***Class A-3 Interests***");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Ten thousand (10,000) shares of Class A-4 common stock, with a par value of $0.001 per share (the "***Class A-4 Interests***" and, together with Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, the "***Class A Interests***"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Thirty thousand (30,000) shares of Class B common stock, with a par value of $0.001 per share (the "***Class B Interests***").

Section 4.2 <u>Reserved</u>.

Section 4.3 <u>Number of Authorized Interests</u>. The number of authorized shares of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, Class A-4 Interests or Class B Interests may be increased or decreased (but not below the number of shares thereof then outstanding) without a separate class vote of any holders of Class A-1 Interests, Class A-2 Interests, Class A-3 Interests, Class A-4 Interests or Class B Interests, irrespective of the provisions of Section 242(b)(2) of the DGCL (or any successor provision thereto).

Section 4.4 <u>Class A Interests and Class B Interests</u>. The powers, preferences and rights of the Class A Interests and the Class B Interests, and the qualifications, limitations or restrictions thereof are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Voting Rights</u>. Except as otherwise required by law,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Class A Interest shall entitle the record holder thereof as of the applicable record date to one (1) vote per share in person or by proxy on all matters submitted to a vote of the holders of Class A Interests, whether voting separately as a class or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Class B Interest shall entitle the record holder thereof as of the applicable record date to one (1) vote per share in person or by proxy on all matters submitted to a vote of the holders of Class B Interests, whether voting separately as a class or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as otherwise required by applicable law or this Certificate of Incorporation, the holders of Class A Interests and Class B Interests shall vote together as a single class on all matters submitted to a vote of stockholders of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Dividends</u>. Subject to Section 4.4(c) hereof, and applicable law and the rights, if any, of the holders of any class or series of stock having a preference over or the right to participate with the Class A Interests with respect to the payment of dividends, dividends may be declared and paid on the Class A Interests out of the assets or funds of the Corporation that are by law available therefor, at such times and in such amounts as the Board of Directors in its discretion shall determine. Other than in connection with a dividend declared by the Board of Directors in connection with Change of Control, a "poison pill" or similar stockholder rights plan, dividends shall not be declared or paid on the Class B Interests and the holders of Class B Interests shall have no right to receive dividends in respect of such Class B Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subordinated Loans Repayment</u>. All cash dividends declared by the Board of Directors on the Class A Interests shall be allocated and applied among Tranches (as defined below) in accordance with the Applicable Ratio (as defined below) applicable for such Tranche. In accordance with the terms of the Subordinated Loan Agreement (as defined below), all cash dividends allocable to a Class of Equity Interest shall be used to pay off all amounts owed under the corresponding Subordinated Loan Tranche unless and until there are no further amounts outstanding under such corresponding Subordinated Loan Tranche. In the event that the Board of Directors declares a dividend on the Class A Interests and there is any Class of Equity Interest that does not have any amounts outstanding under a corresponding Subordinated Loan Tranche, then the cash that would have been allocated to such Tranche in accordance with the Applicable Ratio for such Tranche shall be paid by the Corporation to the holders of the Class of Equity Interest of such Tranche. In the event that the Board of Directors declares a dividend on the Class A Interests and such cash payment would result in the payment in full of all amounts due and payable with respect to one Subordinated Loan Tranche without requiring the entire cash amount allocable to such Tranche to be applied to such Subordinated Loan Tranche, then such Subordinated Loan Tranche will be paid or prepaid in full, and any remaining cash that would have been allocated to such Tranche in accordance with the Applicable Ratio for such Tranche shall be paid by the Corporation as a dividend to the holders of such Class of Equity Interest of such Tranche.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Liquidation Rights</u>. In the event of liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, after payment or provision for payment of the debts and other liabilities of the Corporation (including without limitation any Subordinated Loans outstanding at the time of such liquidation that are attributable to any Class of Equity Interest under the Subordinated Loan Agreement) and after making provisions for preferential and other amounts, if any, to which the holders of any class or series of stock having a preference over or the right to participate with the Class A Interests with respect to the distribution of assets of the Corporation upon such dissolution, liquidation or winding up shall be entitled, the remaining assets and funds of the Corporation available for distribution shall be divided among and paid ratably to the holders of all outstanding Class A Interests in proportion to the number of shares of stock held by each such stockholder, as adjusted for each Tranche to reflect the Subordinated Loans outstanding at the time of such liquidation that are attributable to such Class of Equity Interest under the Subordinated Loan Agreement. The holders of Class B Interests shall not be entitled to receive any assets of the Corporation in the event of any voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Corporation. A consolidation, reorganization or merger of the Corporation with any other Person or Persons (as defined below), a conversion of the Corporation or a sale of all or substantially all of the assets of the Corporation, shall not be considered to be a dissolution, liquidation or winding up of the Corporation within the meaning of this <u>Section 4.4(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Class A Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The aggregate number of Class A Interests outstanding at any time must be equal to the aggregate number of LLC Interests held of record at such time by the Corporation under the LLC Agreement. As used in this Certificate of Incorporation, "***LLC Interests***" has the meaning set forth in the Amended and Restated Limited Liability Company Agreement of Bally's Chicago Operating Company, LLC, dated as of the date hereof, as such agreement may be further amended, restated, amended and restated, supplemented or otherwise modified from time to time (the "***LLC Agreement***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Corporation shall, to the fullest extent permitted by law, undertake all necessary and appropriate action within its control to ensure that the aggregate number of Class A Interests issued by the Corporation at any time shall be equal to the aggregate number of LLC Interests held of record by the Corporation in accordance with the terms of the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Class B Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (x) Class B Interests may be issued only to, and registered only in the name of, Bally's Chicago Holding Company, LLC, a Delaware limited liability company and a wholly-owned subsidiary of Bally's Corporation, and its Affiliates (collectively, the "Permitted Class B Owners") and (y) the aggregate number of Class B Interests outstanding at any time must be equal to the aggregate number of LLC Interests held of record at such time by the Permitted Class B Owners under the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Corporation shall, to the fullest extent permitted by law, undertake all necessary and appropriate action within its control to ensure that the aggregate number of Class B Interests issued by the Corporation at any time to, or otherwise held of record by, the holders of Class B Interests shall be equal to the aggregate number of LLC Interests held of record by the Permitted Class B Owners in accordance with the terms of the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event that there is a merger, consolidation, conversion, transfer or Change of Control (as defined below) of the Corporation that was approved by the Board of Directors, prior to such merger, consolidation, conversion, transfer or Change of Control, the holders of Class B Interests shall be entitled to receive $0.001 per Class B Interest and nothing further, whether in the form of consideration for such shares or in the form of a distribution of the proceeds of a sale of all or substantially all of the assets of the Corporation with respect to such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Adjustments for Subdivisions, Combinations or Reclassifications of Class A Interests and Class B Interests.</u> If the Corporation in any manner subdivides, combines or reclassifies the outstanding Class A-1 Interests, Class A-2 Interests, Class A-3 Interest, Class A-4 Interests or Class B Interests, the outstanding shares of each other such class (or classes) shall, concurrently therewith, be subdivided, combined or reclassified in the same proportion and manner such that the same proportionate equity ownership between the holders of outstanding Class A-1 Interests, Class A-2 Interests, Class A-3 Interest, Class A-4 Interests and Class B Interests on the record date for such subdivision, combination or reclassification is preserved, unless different treatment of the shares of each such class is approved by (i) the holders of a majority of the outstanding Class A Interests and (ii) the holders of a majority of the outstanding Class B Interests, each of (i) and (ii) voting as separate classes. In the event of any such subdivision, combination or reclassification, the Corporation shall cause Bally's Chicago Operating Company, LLC to make corresponding changes to the LLC Interests to give effect to such subdivision, combination or reclassification, as applicable.

Section 4.5 <u>Transfer of Class A Interests</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Transfer with the Corporation's Consent</u>. A holder of Class A Interests may Transfer their Class A Interests only with the Corporation's consent and only to a Permitted Transferee. In addition, a holder of Class A-1 Interests, Class A-2 Interests or Class A-3 Interests may Transfer their Class A-1 Interests, Class A-2 Interests or Class A-3 Interests only if the Subordinated Loans attributable to such Class of Equity Interest is paid in full in accordance with the Subordinated Loan Agreement and such Interests are converted to Class A-4 Interests before or substantially concurrently with the Transfer. In the event that a holder of Class A-1 Interests, Class A-2 Interests or Class A-3 Interests desires to Transfer their Class A-1 Interests, Class A-2 Interests or Class A-3 Interests and the Subordinated Loans attributable to such shares have not been paid in full, such holder or the transferee may repay in full the pro rata amount of the remaining balance of the Subordinated Loans attributable to such Class of Equity Interest in accordance with the Subordinated Loan Agreement and <u>Section 4.11</u> below. Upon such repayment, the Subordinated Loans attributable to such Class of Equity Interest will be deemed to be fully satisfied. For the avoidance of doubt, in no circumstances, such holder will be deemed a successor lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer without the Corporation's Consent</u>. Notwithstanding the foregoing, holders of our Class A Interests may transfer their Class A Interest without our consent (each a "***Permitted Transferee***"): (i) to any individual or entity who, directly or indirectly (including through one or more intermediaries), controls, is controlled by or is under common control with, such person or entity, including any partner, member, stockholder or other equity holder of such person or entity or manager, director, officer or employee of such person or entity; (ii) as a bona fide gifts to any individual or entity that is the legal representative, heir, beneficiary or a member of the immediate family of such holder; (iii) by operation of law pursuant to a court order, decree or judgment to any person or entity; or (iv) to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Class A Interests cannot be transferred to employee benefit plans that are subject to Title I of the Employee Retirement Income Security Act of 1974, as amended ("***ERISA***"), plans, individual retirement accounts ("***IRAs***") and other arrangements that are subject to Section 4975 of the U.S. Internal Revenue Code of 1986, as amended (the "***Code***"), or provisions under any federal, state, local, non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, "***Similar Laws***"), and entities whose underlying assets are considered to include "plan assets" of such plans, accounts and arrangements pursuant to 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA, or any Similar Law (each, a "***Plan***"). The Transfer restrictions described in <u>Section 4.5(a)-(c)</u> are referred to as the "***Class A Restrictions***".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any purported Transfer of Class A Interests in violation of the Class A Restrictions shall be null and void *ab initio*. If, notwithstanding the Class A Restrictions, a Person, voluntarily or involuntarily (including by way of a foreclosure), purportedly becomes or attempts to become, the purported owner (the "***Purported Class A Owner***") of Class A Interests, in violation of the Class A Restrictions, then (A) the Purported Class A Owner shall not obtain any rights in, to or with respect to such (i) Class A Interests, and the purported Transfer of the Class A Interests to the Purported Class A Owner shall not be recognized by the Corporation, the Corporation's transfer agent (the "***Transfer Agent***") or the Secretary of the Corporation and (ii) each holder of such Class A Interests shall, to the fullest extent permitted by law, automatically, without any further action on the part of the Corporation, the holder thereof, the Purported Class A Owner or any other party, not be entitled to any voting rights with respect to those Class A Interests and (B) the Corporation may redeem the Class A Interests for $0.001 per share (the "***Redemption Price***"). With respect to any such redemption, the Class A Interests shall be redeemable by the Corporation, out of funds legally available therefor as and to the extent deemed necessary or advisable by the Board of Directors. In connection with such redemption, the Corporation shall deliver a notice (the "***Redemption Notice***") to the holder of the Class A Interests and shall redeem or purchase the Class A Interests on a date set forth therein (the "***Redemption Date***") and for the Redemption Price set forth in the Redemption Notice. From and after the Redemption Date, such Class A Interests shall no longer be deemed to be outstanding, such holder of Class A Interests shall cease to be a stockholder of the Corporation with respect to such Class A Interests, and all rights of such holder in such Class A Interests, other than the right to receive the Redemption Price, shall cease. In accordance with the requirements of the Redemption Notice, such holder shall surrender the certificate(s), if any, representing the Class A Interests to be so redeemed. In the event that the Corporation exercises its right to redeem such Class A Interests, the Corporation shall also be required to redeem, out of funds legally available therefor, an amount of Class B Interests that is three times the number of Class A Interests being redeemed for $0.001 per share from any Permitted Class B Owner(s) as determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon a determination by the Board of Directors that a Person has attempted or may attempt to Transfer or to acquire Class A Interests in violation of the Class A Restrictions, the Corporation may take such action as it deems necessary or advisable to refuse to give effect to such Transfer or acquisition on the books and records of the Corporation, including without limitation to cause the Transfer Agent or the Secretary of the Corporation, as applicable, to not record the Purported Class A Owner as the record owner of the Class A Interests on the books and records of the Corporation and to institute proceedings to enjoin or rescind any such Transfer or acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Board of Directors may, to the extent permitted by law, from time to time establish, modify, amend or rescind, by bylaw or otherwise, regulations and procedures not inconsistent with the provisions of this <u>Section 4.5</u> for determining whether any Transfer or acquisition of Class A Interests would violate the Class A Restrictions, and for the orderly application, administration and implementation of the provisions of this <u>Section 4.5</u>. Any such procedures and regulations shall be kept on file with the Secretary of the Corporation and with the Transfer Agent and shall be made available for inspection by and, upon written request shall be mailed to, any requesting holders of shares of stock of the Corporation.

Section 4.6 <u>Certificates</u>. All certificates or book entries representing Class A Interests shall bear a legend substantially in the following form (or in such other form as the Board of Directors may determine):

THE SECURITIES REPRESENTED BY THIS [CERTIFICATE][BOOK ENTRY] ARE SUBJECT TO THE RESTRICTIONS (INCLUDING RESTRICTIONS ON TRANSFER) SET FORTH IN THE CERTIFICATE OF INCORPORATION OF THE CORPORATION AS IT MAY BE AMENDED AND/OR RESTATED (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE CORPORATION AND SHALL BE PROVIDED FREE OF CHARGE TO ANY STOCKHOLDER MAKING A REQUEST THEREFOR).

Section 4.7 <u>Right of First Refusal</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Commencing on the fifth anniversary of the initial registration of the Corporation's Class A Interests pursuant to the Exchange Act, each of the Corporation and Bally's Corporation will have a right of first refusal (the "***Right of First Refusal***") to purchase any Class A Interests that holders of Class A Interests may Transfer (the "***Offered Interests***") at a price equal to the offer price set forth in the Transfer Offer Notice (as defined below). Within five (5) business days of receiving an offer to purchase any Offered Interests and prior to accepting such offer, the holder thereof must deliver a notice (the "***Transfer Offer Notice***") to the Corporation specifying in reasonable detail the terms of the offer, including the number of Offered Interests to be Transferred and the offer price for the Offered Interests. The Corporation will have twenty (20) days from the date the Transfer Offer Notice is delivered to it to decide if it wants to purchase any of the Offered Interests at the offer price set forth in the Transfer Offer Notice. If the Corporation does not choose to purchase all of the Offered Interests, the holder thereof must deliver the Transfer Offer Notice to Bally's Corporation specifying in reasonable detail the terms of the offer, including the number of the remaining Offered Interests to be Transferred and the offer price for the Offered Interests. Bally's Corporation will have twenty (20) days from the date the Transfer Offer Notice is delivered to it to decide if it wants to purchase any of the remaining Offered Interests at the offer price set forth in the Transfer Offer Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Corporation and Bally's Corporation do not exercise the Right of First Refusal partially or in full, the remaining Offered Interests may be purchased by the prospective purchaser at the offer price set forth in the Transfer Offer Notice and transferred to the prospective purchaser. The Right of First Refusal will not apply to (i) Transfers pursuant to <u>Sections 4.5(b)</u>, <u>4.8 and 4.9</u> or (ii) Transfers made in connection with <u>Section 4.10</u> after the Corporation and Bally's Corporation decline to exercise the Right of First Refusal in full.

Section 4.8 <u>Drag-Along Right</u>. In the event that Bally's Corporation (or any successor entity) and/or the Corporation (as applicable) proposes to sell the Corporation or all or substantially all of the Corporation's assets to a third party purchaser, or agrees to any other transaction that would result in Bally's Corporation no longer directly or indirectly controlling a majority of the voting power of the stock of the Corporation (each a "***Drag-Along Sale***"), Bally's Corporation will have the right, after delivering a notice thereof to the stockholders of the Corporation (the "***Drag-Along Notice***"), to require each other stockholder to participate in such Drag-Along Sale, on substantially the same terms and conditions as Bally's Corporation (the "***Drag-Along Right***"). If Bally's Corporation exercises its Drag-Along Right, the other stockholders will be required to (i) sell their shares if the transaction is structured as an equity sale; (ii) vote in favor of the proposed transaction if the transaction is structured as an asset sale, merger, reorganization or recapitalization or otherwise requires a stockholder vote for approval and (iii) not object to the proposed transaction and waive any dissenters', appraisal or similar rights they may have in connection with the proposed transaction. If Bally's Corporation wants to exercise its Drag-Along Right, it must do so by delivering notice to the other stockholders within ten (10) days after execution of the definitive documents for the proposed transaction, and no later than twenty (20) business days before the closing of the proposed transaction. The notice must describe the terms of the proposed Drag-Along Sale in reasonable detail.

Section 4.9 <u>Tag-Along Right</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any holder of Class B Interests (the "***Selling Holder***") proposes to transfer any of its Class B Interests (the "***Tag-Along Interest***") to any person, each holder of Class A Interests (each, a "***Tag-Along Holder***") will be permitted to participate in such sale (a "***Tag-Along Sale***") on the terms and conditions set forth below (the "***Tag-Along Right***"), except for transfers made in connection with the Drag-Along Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a Selling Holder proposes to transfer any Tag-Along Interests, they must give notice to the Corporation and each other Tag-Along Holder, describing the terms of the proposed Tag-Along Sale. Upon receipt of such notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Tag-Along Holders will then have ten (10) business days to decide if they want to participate in the Tag-Along Sale by selling some of their Class A Interests; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Selling Holder and each Tag-Along Holder that elects to participate in the Tag-Along Sale shall deliver a notice to the Corporation within ten (10) business days of receiving the notice from the Seller Holder pursuant to Section 4.9(b) and such Tag-Along Holder will have the right to transfer their pro rata portion of the Tag-Along Interests, based on the amount of Class A Interests owned by each such holder and the aggregate amount of Class A Interests and Class B Interests outstanding at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A Tag-Along Holder can choose to sell less than their entire pro rata portion of the Class A Interests it is entitled to sell in the Tag-Along Sale, and any such number of Class A Interests not sold by a Tag-Along Holder may be substituted for additional shares of Class B Interests sold by the Selling Holder.

Section 4.10 <u>Transfers of Class A Interests by Death</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of the death of a holder of Class A Interests, the Corporation will have the right to elect to repurchase the Class A Interests held by such holder, which it may exercise by delivering a notice (the "***Repurchase Notice***") to the estate of the deceased holder within sixty (60) days after the date on which the Corporation was notified of such death. The Corporation will then have ninety (90) days from the date on which it delivers the Repurchase Notice to purchase the Class A Interests of such holder, at a price equal to eight times its latest four fiscal quarters EBITDA divided by the aggregate number of Interests then outstanding (the "***Repurchase Price***"), which price shall be set forth in the Repurchase Notice. With respect to any such repurchase, the Class A Interests shall be repurchased by the Corporation, out of funds legally available therefor as and to the extent deemed necessary or advisable by the Board of Directors. From the date of such repurchase, such Class A Interests shall no longer be deemed to be outstanding, such holder of Class A Interests shall cease to be a stockholder of the Corporation with respect to such Class A Interests, and all rights of such holder in such Class A Interests, other than the right to receive the Repurchase Price, shall cease. In the event that the Corporation exercises its right to repurchase such Class A Interests, the Corporation shall at the same time also be required to redeem, out of funds legally available therefor, an amount of Class B Interests that is three times the number of Class A Interests being redeemed for $0.001 per share from any Permitted Class B Owner(s) as determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of the death of a holder of our Class A Interests, the Corporation will have the right to elect to repurchase the Class A Interests held by such holder, which it may exercise by delivering a Repurchase Notice to the estate of the deceased holder at any time after the date on which the Corporation was notified of such death, unless the transferee or transferees deliver a notice to the Corporation, in which case the Corporation may exercise its repurchase right by delivering the Repurchase Notice within sixty (60) days of such date. The Corporation will then have ninety (90) days from the date on which it delivers the Repurchase Notice to purchase the Class A Interests of such holder, at the Repurchase Price. With respect to any such repurchase, the Class A Interests shall be repurchased by the Corporation, out of funds legally available therefor as and to the extent deemed necessary or advisable by the Board of Directors. From the date of such repurchase, such Class A Interests shall no longer be deemed to be outstanding, such holder of Class A Interests shall cease to be a stockholder of the Corporation with respect to such Class A Interests, and all rights of such holder in such Class A Interests, other than the right to receive the Repurchase Price, shall cease. In the event that the Corporation exercises its right to repurchase such Class A Interests, the Corporation shall at the same time also be required to redeem an amount of Class B Interests that is three times the amount of Class A Interests being redeemed for $0.001 per share.

Section 4.11 <u>Optional Conversion of Class A-1, A-2 and A-3 Interests</u>. Each Class A-1 Interest, Class A-2 Interest and Class A-3 Interest shall be convertible into one (1) fully paid and nonassessable Class A-4 Interest at the option of the holder thereof at any time upon written notice to the Corporation (an "***Class A-4 Conversion Event***"), *provided that*, if the Subordinated Loans attributable to such Class of Equity Interest remains outstanding, the holder of such Interest, or a transferee, shall pay to the Corporation an amount equal to the pro rata amount of the remaining balance of the Subordinated Loans attributable to such Class of Equity Interest and the Corporation shall use such proceeds to repay such remaining balance of the Subordinated Loans attributable to such Class of Equity Interest in accordance with the Subordinated Loan Agreement, in each case before or substantially concurrently with the conversion. Upon such repayment, the Subordinated Loans attributable to such Class of Equity Interest will be deemed to be fully satisfied. For the avoidance of doubt, in no circumstances, such holder or transferee will be deemed a successor lender. Once such amount has been repaid in full, or substantially concurrently with such repayment in full, such holder shall surrender the certificate or certificates therefor (if any), duly endorsed, at the principal corporate office of the Corporation or of any transfer agent for such Class of Equity Interest, and shall provide written notice to the Corporation at its principal corporate office, of such conversion election and shall state therein the name or names (i) in which the certificate or certificates representing the Class A-4 Interests into which the Class A-1 Interests, Class A-2 Interests or Class A-3 Interests are to be converted (if such Class A-4 Interests are certificated) or (ii) in which such Class A-4 Interests are to be registered in book-entry form (if such Class A-4 Interests are uncertificated). If the Class A-4 Interests into which the Class A-1 Interests, Class A-2 Interests or Class A-3 Interests are to be converted are to be issued in a name or names other than the name of the holder of the Class A-1 Interests, Class A-2 Interests or Class A-3 Interests being converted, such notice shall be accompanied by a written instrument or instruments of transfer, in form satisfactory to the Corporation, duly executed by the holder. The Corporation shall, as soon as practicable thereafter, issue and deliver at such office to such holder, or to the nominee or nominees of such holder, a certificate or certificates representing the number of Class A-4 Interests to which such holder converted such holders' Class A-1 Interests, Class A-2 Interests or Class A-3 Interests (if such Class A-4 Interests are certificated) or shall register such Class A-4 Interests in book-entry form (if such Class A-4 Interests are uncertificated). Such conversion shall be deemed to be effective immediately prior to the close of business on the date of such surrender of the Class A-1 Interests, Class A-2 Interests or Class A-3 Interests to be converted following or contemporaneously with the provision of written notice of such conversion election as required by this <u>Section 4.11</u>, the Class A-4 Interests issuable upon such conversion shall be deemed to be outstanding as of such time, and the Person or Persons entitled to receive the Class A-4 Interests issuable upon such conversion shall be deemed to be the record holder or holders of such shares of Class A-4 Interests as of such time. Notwithstanding anything herein to the contrary, Class A-1 Interests, Class A-2 Interests or Class A-3 Interests represented by a lost, stolen or destroyed stock certificate may be converted pursuant to an Class A-4 Conversion Event if the holder thereof notifies the Corporation or its transfer agent that such certificate has been lost, stolen or destroyed and makes an affidavit of that fact acceptable to the Corporation and executes an agreement acceptable to the Corporation to indemnify the Corporation from any loss incurred by it in connection with such certificate.

**Article V.**

In furtherance and not in limitation of the powers conferred upon it by the DGCL, the Board of Directors shall have the power to adopt, amend, alter or repeal the Bylaws of the Corporation. The stockholders may not adopt, amend, alter or repeal the Bylaws of the Corporation unless such action is approved, in addition to any other vote required by this Certificate of Incorporation or applicable law, by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of the Corporation entitled to vote thereon, voting together as a single class.

**Article VI.**

Section 6.1 <u>Ballot</u>. Elections of directors (each such director, in such capacity, a "***Director***" and collectively the "***Directors***") need not be by written ballot unless the Bylaws shall so provide.

Section 6.2 <u>Number of Directors</u>. Except as otherwise provided by the DGCL or this Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. The number of Directors shall be fixed from time to time exclusively by a majority of the Whole Board of Directors. For purposes of this Certificate of Incorporation, the term "***Whole Board of Directors***" shall mean the total number of authorized Directors (from time to time) whether or not there exist any vacancies.

Section 6.3 <u>Terms of Office</u>. Each director of the Corporation shall serve for a term expiring at the first annual meeting of the stockholders following the initial registration of the Corporation's Class A Interests pursuant to the Securities Exchange Act of 1934, as amended (the "***Exchange Act***"). At each annual meeting of stockholders of the Corporation beginning with the first annual meeting of stockholders following the initial registration of the Corporation's Class A Interests pursuant to the Exchange Act, the successors of all directors shall be elected to hold office for a term expiring at the next succeeding annual meeting of stockholders. Each director shall hold office until his or her successor is duly elected and qualified or until his or her earlier death, resignation, disqualification or removal. No decrease in the number of directors shall shorten the term of any incumbent director.

Section 6.4 <u>Newly Created Directorships and Vacancies</u>. Except as otherwise provided by law, any vacancies on the Board of Directors resulting from death, resignation, disqualification, retirement, removal or other causes and any newly created directorships resulting from any increase in the number of Directors shall be filled exclusively by the affirmative vote of a majority of the Directors then in office, even if less than a quorum, or by a sole remaining Director, and shall not be filled by the stockholders. Any Director appointed in accordance with the preceding sentence shall hold office until the expiration of the term to which such Director shall have been appointed or until his or her earlier death, resignation, retirement, disqualification, or removal. When the number of Directors is increased or decreased, the Board of Directors shall determine the class or classes to which the increased or decreased number of Directors shall be apportioned.

Section 6.5 <u>Removal</u>. The Board of Directors or any individual Director may be removed from office either with or without cause by the affirmative vote of the holders of shares representing at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then outstanding shares of stock of the Corporation entitled to vote thereon, voting together as a single class.

Section 6.6 <u>Notice</u>. Advance notice of stockholder nominations for election of Directors and other business to be brought by stockholders before a meeting of stockholders shall be given in the manner provided by the Bylaws.

**Article VII.**

Section 7.1 <u>Consent of Stockholders In Lieu of Meeting</u>. Any action required or permitted to be taken by the stockholders of the Corporation may be taken without a meeting, without prior notice and without a vote, if a consent or consents, setting forth the action so taken, are (1) signed by the holders of outstanding shares of stock of the Corporation representing not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of stock of the Corporation then issued and outstanding entitled to vote thereon were present and voted and (2) delivered to the Corporation in accordance with applicable law.

Section 7.2 <u>Special Meetings of Stockholders</u>. Subject to the requirements of applicable law, special meetings of the stockholders of the Corporation may be called, for any purpose or purposes, at any time only by or at the direction of (i) the Chairperson of the Board of Directors (if any), (ii) the President, (iii) the Board of Directors pursuant to a resolution adopted by a majority of the Whole Board of Directors or (iv) the holders of at least twenty-five percent (25%) of the voting power of all of the then-outstanding shares of the Corporation, and shall not be called by any other person or persons.

**Article VIII.**

The Corporation reserves the right to amend, alter, change, adopt or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation; <u>provided, however</u>, that the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of the Corporation entitled to vote thereon, voting together as a single class, shall be required to amend or repeal, or adopt any provision of this Certificate of Incorporation inconsistent with <u>Sections 4.2</u>, <u>4.3</u>, <u>4.4</u> and <u>4.5</u> of Article IV or with Articles V, VI, VII, VIII, IX, XI and XII; <u>provided further</u>, that any amendment (including by merger, consolidation, conversion, transfer or otherwise) to this Certificate of Incorporation that gives holders of the Class B Interests (i) any rights to receive dividends (other than as set forth in the last sentence of <u>Section 4.4(b)</u> of Article IV) or any other kind of distribution, (ii) any right to convert into or be exchanged for Class A Interests or (iii) any other economic rights (except for payments in cash in lieu of receipt of fractional shares) shall, in addition to the vote of the holders of any class or series of shares of the Corporation required by law or by this Certificate of Incorporation, also require the affirmative vote of the holders of a majority of the voting power of the outstanding Class A-1 Interests, Class A-2 Interests, Class A-3 Interests and Class A-4 Interests voting together as a separate class. Notwithstanding anything herein to the contrary, any amendment to this Certificate of Incorporation effecting changes set forth in (i) Section 242(d)(1) of the DGCL can be affected without a stockholder vote and (ii) Section 242(d)(2) of the DGCL shall only require the vote of stockholders set forth in Section 242(d)(2) of the DGCL.

**Article IX.**

The Corporation is authorized to indemnify, and to advance expenses to, each current or former Director, officer, employee or agent of the Corporation to the fullest extent permitted by Section 145 of the DGCL (or any successor provision thereto) as it presently exists or may hereafter be amended. To the fullest extent permitted by the laws of the State of Delaware as it exists on the date hereof or as it may hereafter be amended, no Director or officer shall be personally liable to the Corporation or its stockholders for monetary damages for any breach of his or her fiduciary duties as a Director or officer, as applicable. No amendment to, or modification or repeal of, this <u>Article IX</u>, or adoption of any provision of this Certificate of Incorporation, or, to the fullest extent permitted by the DGCL, any modification of law, shall eliminate, reduce or otherwise adversely affect any right or protection of a Director, officer, employee or agent of the Corporation existing hereunder with respect to any act or omission occurring prior to such amendment, adoption, modification or repeal.

**Article X.**

Section 10.1 <u>Corporate Opportunity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the fullest extent permitted by the laws of the State of Delaware and in accordance with Section 122(17) of the DGCL (or any successor provision thereto), (i) the Corporation hereby renounces all interest and expectancy that it otherwise would be entitled to have in, and all rights to be offered an opportunity to participate in, any business opportunity that from time to time may be presented to any Director or stockholder who is not employed by the Corporation or its subsidiaries (each such Person, an "***Exempt Person***"); (ii) no Exempt Person will have any duty to refrain from (1) engaging in a corporate opportunity in the same or similar lines of business in which the Corporation or its subsidiaries from time to time is engaged or proposes to engage or (2) otherwise competing, directly or indirectly, with the Corporation or any of its subsidiaries; and (iii) if any Exempt Person acquires knowledge of a potential transaction or other business opportunity which may be a corporate opportunity both for such Exempt Person or any of his or her respective Affiliates (as defined below), on the one hand, and for the Corporation or its subsidiaries, on the other hand, such Exempt Person shall have no duty to communicate or offer such transaction or business opportunity to the Corporation or its subsidiaries and such Exempt Person or any of his or her respective Affiliates may take any and all such transactions or opportunities for itself or offer such transactions or opportunities to any other Person. Notwithstanding the foregoing, the preceding sentence of this <u>Section 10.1(a)</u> shall not apply to any potential transaction or business opportunity that is expressly offered to a Director, executive officer or employee of the Corporation or its subsidiaries, solely in his or her capacity as a Director, executive officer or employee of the Corporation or its subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by the laws of the State of Delaware, no potential transaction or business opportunity may be deemed to be a corporate opportunity of the Corporation or its subsidiaries unless (i) the Corporation or its subsidiaries would be permitted to undertake such transaction or opportunity in accordance with this Certificate of Incorporation, (ii) the Corporation or its subsidiaries at such time have sufficient financial resources to undertake such transaction or opportunity, (iii) the Corporation or its subsidiaries have an interest or expectancy in such transaction or opportunity and (iv) such transaction or opportunity would be in the same or similar line of business in which the Corporation or its subsidiaries are then engaged or a line of business that is reasonably related to, or a reasonable extension of, such line of business.

Section 10.2 <u>Liability</u>. To the fullest extent permitted by law, no stockholder and no Director will be liable to the Corporation or its subsidiaries or stockholders for breach of any duty solely by reason of any activities or omissions of the types referred to in this <u>Article X</u>, except to the extent such actions or omissions are in breach of this <u>Article X</u>.

**Article XI.**

Section 11.1 <u>Section 203 of the DGCL</u>. The Corporation expressly elects not to be governed by Section 203 of the DGCL and the restrictions and limitations set forth therein.

**Article XII.**

Section 12.1 <u>Definitions</u>. As used in this Certificate of Incorporation, the following terms shall have the following meaning:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "***A-1 Subordinated Loan***" means the $[·] tranche A-1 subordinated term loan issued to the Corporation pursuant to the Subordinated Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "***A-2 Subordinated Loan***" means the $[·] tranche A-2 subordinated term loan issued to the Corporation pursuant to the Subordinated Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "***A-3 Subordinated Loan***" means the $[·] tranche A-3 subordinated term loan issued to the Corporation pursuant to the Subordinated Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "***Affiliate***" means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another Person and, for purposes of the definition of Affiliate, "***control***" (including the terms "controlling," "controlled by" and "under common control with,") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting stock, by contract, or otherwise. A Person who is the owner, of twenty percent (20%) or more of the outstanding voting stock of a corporation, partnership, unincorporated association or other entity shall be presumed to have control of such entity, in the absence of proof by a preponderance of the evidence to the contrary. Notwithstanding the foregoing, a presumption of control shall not apply where such Person holds voting stock, in good faith and not for the purpose of circumventing this ‎Article XII, as an agent, bank, broker, nominee, custodian or trustee for one or more owners who do not individually or as a group have control of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "***Applicable Ratio***" means, for each Tranche and as of any date of determination, the percentage equal to (i) the number of outstanding shares of stock of such Tranche divided by (ii) the aggregate number of outstanding shares of stock of all Tranches.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "***Associate***", when used to indicate a relationship with any Person, means: (i) any corporation, partnership, unincorporated association or other entity of which such Person is a Director, officer or partner or is, directly or indirectly, the owner of twenty percent (20%) or more of any class of shares of the Corporation; (ii) any trust or other estate in which such Person has at least a twenty percent (20%) beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity and (iii) any relative or spouse of such Person, or any relative of such spouse, who has the same residence as such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "***Change of Control***" means the occurrence of any of the following events: (1) any "Person" or "group" (within the meaning of Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such Person and its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the "beneficial owner" (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Class A Interests, Class B Interests and/or any other class or classes of stock of the Corporation (if any) representing in the aggregate more than fifty percent (50%) of the voting power of all of the outstanding stock of the Corporation entitled to vote generally in the election of directors; (2) the stockholders of the Corporation approve a plan of complete liquidation or dissolution of the Corporation or there is consummated a transaction or series of related transactions for the sale, lease or exchange, directly or indirectly, by the Corporation of all or substantially all of the Corporation's assets (including a sale of all or substantially all of the assets of Bally's Chicago Operating Company LLC); (3) there is consummated a merger or consolidation of the Corporation with any other corporation or entity, and, immediately after the consummation of such merger or consolidation, the voting securities of the Corporation immediately prior to such merger or consolidation do not continue to represent, or are not converted into, voting securities representing more than fifty percent (50%) of the combined voting power of the outstanding voting securities of the Person resulting from such merger or consolidation or, if the surviving company is a subsidiary, the ultimate parent thereof or (4) the Corporation ceases to be the sole managing member of Bally's Chicago Operating Company LLC; <u>provided</u>, <u>however</u>, that a "Change of Control" shall not be deemed to have occurred by virtue of the consummation of any transaction or series of related transactions immediately following which the beneficial owners of the Class A Interests, Class B Interests and/or any other class or classes of shares of the Corporation (if any) immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of the Corporation immediately following such transaction or series of transactions or (b) in the case of the foregoing clauses (1) or (3), the Permitted Transferees are the "beneficial owner" (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Class A Interests, Class B Interests and/or any other class or classes of stock of the Corporation (if any) representing in the aggregate more than fifty percent (50%) of the voting power of all of the outstanding stock of the Corporation entitled to vote generally in the election of directors (or, in the case of a transaction described in the foregoing clause (3), more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the Person resulting from such merger of consolidation or, if the surviving company is a subsidiary, the ultimate parent thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "***Class of Equity Interest***" shall mean each of the Class A-1 Interests, Class A-2 Interests and Class A-3 Interests, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "***owner***," including the terms "own" and "owned," when used with respect to any stock, means, for purposes of this Article XII, a Person that individually or with or through any of its Affiliates or Associates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) beneficially owns such stock, directly or indirectly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has (A) the right to acquire such stock (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding, or upon the exercise of conversion rights, exchange rights, warrants or options, or otherwise; <u>provided</u>, <u>however</u>, that a Person shall not be deemed the owner of stock tendered pursuant to a tender or exchange offer made by such Person or any of such Person's Affiliates or Associates until such tendered stock is accepted for purchase or exchange; or (B) the right to vote such stock pursuant to any agreement, arrangement or understanding; <u>provided</u>, <u>however</u>, that a Person shall not be deemed the owner of any stock because of such Person's right to vote such stock if the agreement, arrangement or understanding to vote such stock arises solely from a revocable proxy or consent given in response to a proxy or consent solicitation made to ten (10) or more Persons; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting (except voting pursuant to a revocable proxy or consent as described in clause (B) of subsection (ii) above), or disposing of such stock with any other person that beneficially owns, or whose Affiliates or Associates beneficially own, directly or indirectly, such stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "***Person***" means any individual, corporation, partnership, limited liability company, unincorporated association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "***stock***" means, for purposes of this Article XII, with respect to any corporation, capital stock and, with respect to any other entity, any equity interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "***Subordinated Loan Agreement***" means that certain Subordinated Loan Agreement, dated as of [·], 2025, by and between the Corporation and Bally's Chicago Operating Company, LLC, as such agreement may be amended from time to time in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "***Subordinated Loans***" means, collectively, the A-1 Subordinated Loan, the A-2 Subordinated Loan and the A-3 Subordinated Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "***Subordinated Loan Tranche***" means, each of the A-1 Subordinated Loan, the A-2 Subordinated Loan and the A-3 Subordinated Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "***Tranche***" means each of (i) the Class A-1 Interests and the Class A-1 Subordinated Loan, (ii) the Class A-2 Interests and the Class A-2 Subordinated Loan, (iii) the Class A-3 Interests and the Class A-3 Subordinated Loan and (iv) the Class A-4 Interests (and collectively, the "***Tranches***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "***Transfer***" (and, with correlative meanings, "***Transferred and Transferring***") means any sale, transfer, assignment, redemption or other disposition of (whether directly or indirectly, whether with or without consideration and whether voluntarily or involuntarily or by operation of law) (a) any shares (legal or beneficial) of the Corporation or (b) any equity or other interest (legal or beneficial) in any stockholder if substantially all of the assets of such stockholder consist solely of shares of the Corporation; <u>provided</u>, <u>however</u>, that the following shall not be considered a Transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the granting of a revocable proxy to officers or directors of the Corporation at the request of the Board of Directors in connection with (i) actions to be taken at an annual or special meeting of stockholders, or (ii) any other action of the stockholders permitted by this Certificate of Incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the pledge of Class A Interests by a stockholder that creates a mere security interest in such shares pursuant to a bona fide loan or indebtedness transaction for so long as such stockholder continues to exercise voting control over such pledged shares; <u>provided</u>, <u>however</u>, that a foreclosure on such shares or other similar action by the pledgee shall constitute a Transfer unless such foreclosure or similar action results in a transfer or assignment of the Class A Interests (or any legal or beneficial interest in such shares) to one or more Permitted Transferees at such time; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) entering into a support, voting, tender or similar agreement or arrangement (with or without granting a proxy) or tendering any shares in any tender or exchange offer for the outstanding Class A Interests and Class B Interests, in each case, in connection with a Change of Control transaction, sale of all or substantially all assets, or any merger, consolidation or other business combination involving the Corporation, whether effectuated through one transaction or series of related transactions, that, in each case, has been approved by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "***voting stock***" means stock of any class or series entitled to vote generally in the election of directors and, with respect to any entity that is not a corporation, any equity interest entitled to vote generally in the election of the governing body of such entity. Every reference in this ‎Article XII to a percentage or proportion of voting stock shall refer to such percentage or other proportion of the votes of such voting stock.

**Article XIII.**

If any provision or provisions of this Certificate of Incorporation shall be held to be invalid, illegal or unenforceable as applied to any Person or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provisions in any other circumstance and of the remaining provisions of this Certificate of Incorporation (including, without limitation, each portion of any sentence of this Certificate of Incorporation containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other Persons and circumstances shall not in any way be affected or impaired thereby.

[Signature Page Follows]

IN WITNESS WHEREOF, the Corporation has caused this Second Amended and Restated Certificate of Incorporation to be signed on this [·] day of [·], 2025.

---

| | |
|:---|:---|
| **BALLY'S CHICAGO, INC.** | **BALLY'S CHICAGO, INC.** |
| By: |  |
| Name: | Ameet Patel |
| Title: | President |

---

## Exhibit 5.1

**Exhibit 5.1** 

---

| | | |
|:---|:---|:---|
|  | 1271 Avenue of the Americas | 1271 Avenue of the Americas |
|  | New York, New York 10020-1401 | New York, New York 10020-1401 |
|  | Tel: +1.212.906.1200 Fax: +1.212.751.4864 | Tel: +1.212.906.1200 Fax: +1.212.751.4864 |
|  | www.lw.com | www.lw.com |
| ![](tm2310971d51_ex5-1img001.jpg) | FIRM / AFFILIATE OFFICES | FIRM / AFFILIATE OFFICES |
| ![](tm2310971d51_ex5-1img001.jpg) | Austin | Milan |
|  | Beijing | Munich |
|  | Boston | New York |
|  | Brussels | Orange County |
|  | Century City | Paris |
|  | Chicago | Riyadh |
| August 5, 2025 | Dubai | San Diego |
|  | Düsseldorf | San Francisco |
|  | Frankfurt | Seoul |
|  | Hamburg | Silicon Valley |
|  | Hong Kong | Singapore |
| Bally's Chicago, Inc. | Houston | Tel Aviv |
| 100 Westminster Street | London | Tokyo |
| Providence, RI 02903 | Los Angeles | Washington, D.C. |
|  | Madrid |  |

---

---

| | |
|:---|:---|
| Re: | Registration Statement No. 333-283772 |
|  | 2,207 shares of Class A-1 common stock, par value $0.001 per share; 141 shares of Class A-2 common stock, par value $0.001 per share; 165 shares of Class A-3 common stock, par value $0.001 per share; 228 shares of Class A-4 common stock, par value $0.001 per share |

---

To the addressee set forth above:

We have acted as special counsel to Bally's Chicago, Inc., a Delaware corporation (the "***Company***"), in connection with the proposed issuance of 2,207 shares of Class A-1 common stock, par value $0.001 per share, 141 shares of Class A-2 common stock, par value $0.001 per share, 165 shares of Class A-3 common stock, par value $0.001 per share, and 228 shares of Class A-4 common stock, par value $0.001 per share, which are being offered by the Company (collectively, the "***Shares***"). The Shares are included in a registration statement on Form S-1 under the Securities Act of 1933, as amended (the "***Act***"), initially filed with the Securities and Exchange Commission (the "***Commission***") on December 12, 2024 (Registration No. 333-283772, as amended, the "***Registration Statement***"). The term "Shares" shall include any additional shares of Class A common stock registered by the Company pursuant to Rule 462(b) under the Act in connection with the offering contemplated by the Registration Statement. This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related Prospectus, other than as expressly stated herein with respect to the issue of the Shares.

As such counsel, we have examined such matters of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon certificates and other assurances of officers of the Company and others as to factual matters without having independently verified such factual matters. We are opining herein as to General Corporation Law of the State of Delaware, and we express no opinion with respect to any other laws.

**August 5, 2025**<br> **Page 2**<br>

![](tm2310971d51_ex5-1img001.jpg)

Subject to the foregoing and the other matters set forth herein, it is our opinion that, as of the date hereof, upon the proper filing of the second amended and restated certificate of incorporation of the Company, substantially in the form most recently filed as an exhibit to the Registration Statement, with the Secretary of State of Delaware and when such Shares shall have been duly registered on the books of the transfer agent and registrar therefor in the name or on behalf of the purchasers and have been issued by the Company against payment therefor (not less than par value) in the circumstances contemplated by the form of subscription agreement most recently filed as an exhibit to the Registration Statement, the issue and sale of the Shares will have been duly authorized by all necessary corporate action of the Company, and the Shares will be validly issued, fully paid and nonassessable. In rendering the foregoing opinion, we have assumed that the Company will comply with all applicable notice requirements regarding uncertificated shares provided in the General Corporation Law of the State of Delaware.

This opinion is for your benefit in connection with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Act. We consent to your filing this opinion as an exhibit to the Registration Statement and to the reference to our firm in the Prospectus under the heading "Legal Matters." We further consent to the incorporation by reference of this letter and consent into any registration statement filed pursuant to Rule 462(b) with respect to the Shares. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.

---

| |
|:---|
| Sincerely, |
| **/s/ Latham & Watkins LLP** |

---

## Exhibit 10.20

**Exhibit 10.20**

***Execution Version***

**<u>AMENDED AND RESTATED LEASE</u>**

**TABLE OF CONTENTS**<br> TO<br> LEASE

<u>Page</u>

---

| | | |
|:---|:---|:---|
| **ARTICLE I** | **ARTICLE I** | **ARTICLE I** |
| 1.1 | Leased Property | 1 |
| 1.2 | Single, Indivisible Lease | 2 |
| 1.3 | Term | 3 |
| 1.4 | Renewal Terms | 3 |
| **ARTICLE II** | **ARTICLE II** | **ARTICLE II** |
| 2.1 | Definitions | 4 |
| **ARTICLE III** | **ARTICLE III** | **ARTICLE III** |
| 3.1 | Rent | 32 |
| 3.2 | Late Payment of Rent | 33 |
| 3.3 | Method of Payment of Rent | 33 |
| 3.4 | Net Lease | 33 |
| **ARTICLE IV** | **ARTICLE IV** | **ARTICLE IV** |
| 4.1 | Impositions | 34 |
| 4.2 | Utilities | 35 |
| 4.3 | Impound Account | 36 |
| **ARTICLE V** | **ARTICLE V** | **ARTICLE V** |
| 5.1 | No Termination, Abatement, etc. | 36 |
| **ARTICLE VI** | **ARTICLE VI** | **ARTICLE VI** |
| 6.1 | Ownership of the Leased Property | 37 |
| 6.2 | Ownership of the Tenant Capital Improvements | 38 |
| 6.3 | Tenant's Property | 39 |
| 6.4 | Guarantors | 40 |
| 6.5 | Refinancing Transaction | 41 |
| **ARTICLE VII** | **ARTICLE VII** | **ARTICLE VII** |
| 7.1 | Condition of the Leased Property | 41 |
| 7.2 | Use of the Leased Property | 41 |
| 7.3 | Competing Business | 43 |

---

i

---

| | | |
|:---|:---|:---|
| **ARTICLE VIII** | **ARTICLE VIII** | **ARTICLE VIII** |
| 8.1 | Representations and Warranties | 44 |
| 8.2 | Compliance with Legal and Insurance Requirements, etc. | 44 |
| 8.3 | Zoning and Uses | 45 |
| 8.4 | Compliance with Ground Leases | 46 |
| **ARTICLE IX** | **ARTICLE IX** | **ARTICLE IX** |
| 9.1 | Maintenance and Repair | 47 |
| 9.2 | Encroachments, Restrictions, Mineral Leases, etc. | 50 |
| **ARTICLE X** | **ARTICLE X** | **ARTICLE X** |
| 10.1 | Construction of Capital Improvements to the Leased Property – The Chicago Project | 50 |
| 10.2 | Construction of Capital Improvements to the Leased Property | 51 |
| 10.3 | Construction Requirements for All Capital Improvements | 52 |
| 10.4 | Landlord's Right of First Offer to Fund | 53 |
| **ARTICLE XI** | **ARTICLE XI** | **ARTICLE XI** |
| 11.1 | Liens | 54 |
| **ARTICLE XII** | **ARTICLE XII** | **ARTICLE XII** |
| 12.1 | Permitted Contests | 55 |
| **ARTICLE XIII** | **ARTICLE XIII** | **ARTICLE XIII** |
| 13.1 | General Insurance Requirements | 56 |
| 13.2 | Maximum Foreseeable Loss | 57 |
| 13.3 | Additional Insurance | 58 |
| 13.4 | Waiver of Subrogation | 58 |
| 13.5 | Policy Requirements | 58 |
| 13.6 | Increase in Limits | 58 |
| 13.7 | Blanket Policy | 59 |
| 13.8 | No Separate Insurance | 59 |
| **ARTICLE XIV** | **ARTICLE XIV** | **ARTICLE XIV** |
| 14.1 | Property Insurance Proceeds | 59 |
| 14.2 | Tenant's Obligations Following Casualty | 60 |
| 14.3 | No Abatement of Rent | 60 |
| 14.4 | Waiver | 61 |
| 14.5 | Insurance Proceeds Paid to Facility Mortgagee | 61 |

---

ii

---

| | | |
|:---|:---|:---|
| **ARTICLE XV** | **ARTICLE XV** | **ARTICLE XV** |
| 15.1 | Condemnation | 62 |
| 15.2 | Award Distribution | 62 |
| 15.3 | Temporary Taking | 62 |
| 15.4 | Condemnation Awards Paid to Facility Mortgagee | 63 |
| 15.5 | Termination of Lease; Abatement of Rent | 63 |
| **ARTICLE XVI** | **ARTICLE XVI** | **ARTICLE XVI** |
| 16.1 | Events of Default | 63 |
| 16.2 | Certain Remedies | 67 |
| 16.3 | Damages | 68 |
| 16.4 | Receiver | 69 |
| 16.5 | Waiver | 69 |
| 16.6 | Application of Funds | 69 |
| **ARTICLE XVII** | **ARTICLE XVII** | **ARTICLE XVII** |
| 17.1 | Permitted Leasehold Mortgagees | 69 |
| 17.2 | Landlord's Right to Cure Tenant's Default | 77 |
| 17.3 | Landlord's Right to Cure Debt Agreement | 77 |
| **ARTICLE XVIII** | **ARTICLE XVIII** | **ARTICLE XVIII** |
| 18.1 | Sale of the Leased Property | 78 |
| **ARTICLE XIX** | **ARTICLE XIX** | **ARTICLE XIX** |
| 19.1 | Holding Over | 78 |
| **ARTICLE XX** | **ARTICLE XX** | **ARTICLE XX** |
| 20.1 | Risk of Loss | 79 |
| **ARTICLE XXI** | **ARTICLE XXI** | **ARTICLE XXI** |
| 21.1 | General Indemnification | 79 |
| **ARTICLE XXII** | **ARTICLE XXII** | **ARTICLE XXII** |
| 22.1 | Subletting and Assignment | 80 |
| 22.2 | Permitted Assignments | 80 |
| 22.3 | Permitted Sublease Agreements | 83 |
| 22.4 | Required Assignment and Subletting Provisions | 84 |
| 22.5 | Costs | 84 |
| 22.6 | No Release of Tenant's Obligations; Exception | 85 |

---

iii

---

| | | |
|:---|:---|:---|
| **ARTICLE XXIII** | **ARTICLE XXIII** | **ARTICLE XXIII** |
| 23.1 | Officer's Certificates and Financial Statements | 85 |
| 23.2 | Confidentiality; Public Offering Information | 89 |
| 23.3 | Financial Covenants | 90 |
| 23.4 | Landlord Obligations | 92 |
| **ARTICLE XXIV** | **ARTICLE XXIV** | **ARTICLE XXIV** |
| 24.1 | Landlord's Right to Inspect | 93 |
| **ARTICLE XXV** | **ARTICLE XXV** | **ARTICLE XXV** |
| 25.1 | No Waiver | 93 |
| **ARTICLE XXVI** | **ARTICLE XXVI** | **ARTICLE XXVI** |
| 26.1 | Remedies Cumulative | 93 |
| **ARTICLE XXVII** | **ARTICLE XXVII** | **ARTICLE XXVII** |
| 27.1 | Acceptance of Surrender | 93 |
| **ARTICLE XXVIII** | **ARTICLE XXVIII** | **ARTICLE XXVIII** |
| 28.1 | No Merger | 94 |
| **ARTICLE XXIX** | **ARTICLE XXIX** | **ARTICLE XXIX** |
| 29.1 | Conveyance by Landlord | 94 |
| **ARTICLE XXX** | **ARTICLE XXX** | **ARTICLE XXX** |
| 30.1 | Quiet Enjoyment | 94 |
| **ARTICLE XXXI** | **ARTICLE XXXI** | **ARTICLE XXXI** |
| 31.1 | Landlord's Financing | 95 |
| 31.2 | Attornment | 96 |
| 31.3 | Compliance with Facility Mortgage Documents | 96 |
| **ARTICLE XXXII** | **ARTICLE XXXII** | **ARTICLE XXXII** |
| 32.1 | Hazardous Substances | 98 |
| 32.2 | Notices | 98 |
| 32.3 | Remediation | 98 |
| 32.4 | Indemnity by Tenant | 99 |
| 32.5 | Environmental Inspections | 100 |
| 32.6 | Survival | 100 |

---

iv

---

| | | |
|:---|:---|:---|
| **ARTICLE XXXIII** | **ARTICLE XXXIII** | **ARTICLE XXXIII** |
| 33.1 | Memorandum of Lease | 100 |
| 33.2 | Tenant Financing | 100 |
| **ARTICLE XXXIV** | **ARTICLE XXXIV** | **ARTICLE XXXIV** |
| 34.1 | Expert Valuation Process | 101 |
| **ARTICLE XXXV** | **ARTICLE XXXV** | **ARTICLE XXXV** |
| 35.1 | Notices | 103 |
| **ARTICLE XXXVI** | **ARTICLE XXXVI** | **ARTICLE XXXVI** |
| 36.1 | Transfer of Tenant's Property and Operational Control of the Facility | 104 |
| 36.2 | Determination of Successor Tenant and Gaming Assets FMV | 104 |
| 36.3 | Operation Transfer | 106 |
| 36.4 | Power of Attorney | 106 |
| **ARTICLE XXXVII** | **ARTICLE XXXVII** | **ARTICLE XXXVII** |
| 37.1 | Attorneys' Fees | 107 |
| **ARTICLE XXXVIII** | **ARTICLE XXXVIII** | **ARTICLE XXXVIII** |
| 38.1 | Brokers | 107 |
| **ARTICLE XXXIX** | **ARTICLE XXXIX** | **ARTICLE XXXIX** |
| 39.1 | Anti-Terrorism Representations | 107 |
| **ARTICLE XL** | **ARTICLE XL** | **ARTICLE XL** |
| 40.1 | GLP REIT Protection | 108 |
| **ARTICLE XLI** | **ARTICLE XLI** | **ARTICLE XLI** |
| 41.1 | Survival | 109 |
| 41.2 | Severability | 109 |
| 41.3 | Non-Recourse; Consequential Damages | 109 |
| 41.4 | Successors and Assigns | 110 |
| 41.5 | Governing Law | 110 |
| 41.6 | Waiver of Trial by Jury | 110 |
| 41.7 | Amendment and Restatement; Entire Agreement | 110 |
| 41.8 | Headings | 111 |
| 41.9 | Counterparts | 111 |
| 41.10 | Interpretation | 111 |
| 41.11 | Time of Essence | 111 |
| 41.12 | Further Assurances | 111 |
| 41.13 | Gaming Regulations | 111 |
| 41.14 | Host Community Agreement | 112 |

---

v

EXHIBITS AND SCHEDULES

EXHIBIT A – FACILITY

EXHIBIT B-1 – LEGAL DESCRIPTION

EXHIBIT B-2 – DEVELOPMENT LAND

EXHIBIT C – GAMING LICENSES

EXHIBIT D – FORM OF GUARANTY OF LEASE

EXHIBIT E – FORM OF NONDISTURBANCE AND ATTORNMENT AGREEMENT

EXHIBIT F – FORM OF SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT

EXHIBIT G – EFFECTIVE DATE DEUTSCHE CREDIT AGREEMENT

SCHEDULE A – DISCLOSURE ITEMS

SCHEDULE B – PROPERTY AGREEMENTS

SCHEDULE 6.4 – GUARANTORS UNDER THE LEASE

vi

**AMENDED AND RESTATED LEASE**

This **AMENDED AND RESTATED LEASE** (this "**Lease**") is entered into as of July 17, 2025 (the "**Effective Date**"), by and between GLP CAPITAL, L.P., a Pennsylvania limited partnership (together with its permitted successors and assigns, "**Landlord**"), and BALLY'S CHICAGO OPERATING COMPANY, LLC, a Delaware limited liability company (together with its permitted successors and assigns, "**Tenant**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord (as successor-in-interest to BACHIL001 LLC, a Delaware limited liability company) and Tenant are parties to that certain Ground Lease, dated as of November 18, 2022 (as amended prior to the Effective Date, the "**Existing Lease**") pursuant to which Landlord leases the Leased Property (as hereinafter defined) to Tenant, and Tenant leases the Leased Property from Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Landlord and Tenant desire to amend and restate the Existing Lease in its entirety on the terms and conditions set forth herein, and in connection therewith, Landlord desires to continue to lease the Leased Property (as hereinafter defined) to Tenant, and Tenant hereby agrees to continue to lease the Leased Property from Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Leased Property includes, without limitation, that certain Gaming Facility currently known as Bally's Chicago and to be constructed at 777 W. Chicago Avenue in Chicago, Illinois (the "**Facility**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Capitalized terms used in this Lease and not otherwise defined herein are defined in Article II hereof.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

**ARTICLE I**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Leased Property.** Upon and subject to the terms and conditions hereinafter set forth, Landlord leases to Tenant and Tenant leases from Landlord all of Landlord's rights and interest in and to the following with respect to the Facility (collectively, the "**Leased Property**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the real property or properties described in <u>Exhibit B-1</u> attached hereto (collectively, the "**Land**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all buildings, structures, Fixtures (as hereinafter defined) and other improvements of every kind now or hereafter located on the Land or connected thereto including, but not limited to, alleyways and connecting tunnels, sidewalks, utility pipes, conduits and lines (on-site and off-site to the extent Landlord has obtained any interest in the same), parking areas and roadways appurtenant to such buildings and structures of the Facility (collectively, the "**Leased Improvements**");

[Signature Page to Lease]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all easements, rights and appurtenances relating to the Land and the Leased Improvements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all equipment, machinery, fixtures, and other items of property, including all components thereof, that (i) are now or hereafter located in, on or used in connection with and permanently affixed to or otherwise incorporated into the Leased Improvements and (ii) qualify as Long-Lived Assets, together with all replacements, modifications, alterations and additions thereto (collectively, the "**Fixtures**").

The Leased Property is leased subject to all covenants, conditions, restrictions, easements and other matters affecting the Leased Property as of the Commencement Date and such subsequent covenants, conditions, restrictions, easements and other matters as may be agreed to by Landlord or Tenant in accordance with the terms of this Lease, whether or not of record, including any matters which would be disclosed by an inspection or accurate survey of the Leased Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **<u>Single, Indivisible Lease</u>.** Notwithstanding anything contained herein to the contrary, this Lease constitutes one indivisible lease of the Leased Property and not separate leases governed by similar terms. The Leased Property constitutes one economic unit, and the Rent and all other provisions have been negotiated and agreed to be based on a demise of all of the Leased Property to Tenant as a single, composite, inseparable transaction and would have been substantially different had separate leases or a divisible lease been intended. Except as expressly provided in this Lease for specific, isolated purposes (and then only to the extent expressly otherwise stated), all provisions of this Lease apply equally and uniformly to all of the Leased Property as one unit. An Event of Default with respect to any portion of the Leased Property is an Event of Default as to all of the Leased Property. The parties intend that the provisions of this Lease shall at all times be construed, interpreted and applied so as to carry out their mutual objective to create an indivisible lease of all of the Leased Property and, in particular but without limitation, that, for purposes of any assumption, rejection or assignment of this Lease under 11 U.S.C. Section 365, or any successor or replacement thereof or any analogous state law, this is one indivisible and non-severable lease and executory contract dealing with one legal and economic unit and that this Lease must be assumed, rejected or assigned as a whole with respect to all (and only as to all) of the Leased Property.

Landlord and Tenant intend that this Lease be an indivisible true lease that affords the parties hereto the rights and remedies of landlord and tenant hereunder and does not represent a financing arrangement. This Lease is not an attempt by Landlord or Tenant to evade the operation of any aspect of the law applicable to any of the Leased Property. Except as otherwise required by a change in tax law or any change in accounting rules or regulations or a "determination" within the meaning of Section 1313(a) of the Code (or similar provision of state or local law), Landlord and Tenant hereby acknowledge and agree that this Lease shall be treated as an operating lease for all purposes and not as a synthetic lease, financing lease or loan and that Landlord shall be entitled to all the benefits of ownership of the Leased Property, including depreciation for all federal, state and local tax purposes.

If, notwithstanding (a) the form and substance of this Lease and (b) the intent of the parties, and the language contained herein providing that this Lease shall at all times be construed, interpreted and applied to create an indivisible lease of all of the Leased Property, any court of competent jurisdiction finds that this Lease is a financing arrangement, this Lease shall be considered a secured financing agreement and Landlord's title to the Leased Property shall constitute a perfected first priority lien in Landlord's favor on the Leased Property to secure the payment and performance of all the obligations of Tenant hereunder (and to that end, Tenant hereby grants, assigns and transfers to the Landlord a security interest in all right, title or interest in or to any and all of the Leased Property, as security for the prompt and complete payment and performance when due of Tenant's obligations hereunder). Tenant authorizes Landlord, at the expense of Tenant, to make any filings or take other actions as Landlord reasonably determines are necessary or advisable in order to effect fully this Lease or to more fully perfect or renew the rights of the Landlord, and to subordinate to the Landlord the lien of any Permitted Leasehold Mortgagee, with respect to the Leased Property (it being understood that nothing herein shall affect the rights of a Permitted Leasehold Mortgagee under Article XVII hereof). At any time and from time to time upon the request of the Landlord, and at the expense of the Tenant, Tenant shall promptly execute, acknowledge and deliver such further documents and do such other acts as the Landlord may reasonably request in order to effect fully this Lease or to more fully perfect or renew the rights of the Landlord with respect to the Leased Property. Upon the exercise by the Landlord of any power, right, privilege or remedy pursuant to this Lease which requires any consent, approval, recording, qualification or authorization of any governmental authority, Tenant will execute and deliver, or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that Landlord may be required to obtain from Tenant for such consent, approval, recording, qualification or authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3** **<u>Term</u>.** The "**Term**" of this Lease is the Initial Term *plus* all Renewal Terms, to the extent exercised. The initial term of this Lease (the "**Initial Term**") commenced on the Effective Date (the "**Commencement Date**") and shall end on July 31, 2040, subject to renewal as set forth in Section 1.4 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4** **<u>Renewal Terms</u>.** The term of this Lease may be extended for four (4) separate, but consecutive, "Renewal Terms" of five (5) years each if: (a) at least twelve (12), but not more than eighteen (18) months prior to the end of the then current Term, Tenant delivers to Landlord a Notice that it desires to exercise its right to extend this Lease for one (1) Renewal Term (a "**Renewal Notice**"); and (b) no Event of Default shall have occurred and be continuing on the date Landlord receives the Renewal Notice or on the last day of the then current Term. During any such Renewal Term, except as otherwise specifically provided for herein, all of the terms and conditions of this Lease shall remain in full force and effect, except that the number of Renewal Terms remaining shall be decreased on account of Tenant's exercise of such Renewal Term such that the Initial Term plus all properly exercised Renewal Terms shall not be extended beyond July 31, 2060. If Tenant fails to timely deliver a Renewal Notice, then Tenant shall have no further rights under this Section 1.4, and Landlord shall be under no further obligation to offer to renew or extend the Term.

**ARTICLE II**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **<u>Definitions</u>.** For all purposes of this Lease, except as otherwise expressly provided or unless the context otherwise requires, (i) the terms defined in this Article II have the meanings assigned to them in this Article and include the plural as well as the singular; (ii) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; (iii) all references in this Lease to designated "Articles," "Sections" and other subdivisions are to the designated Articles, Sections and other subdivisions of this Lease; (iv) the word "including" shall have the same meaning as the phrase "including, without limitation," and other similar phrases; (v) the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or other subdivision; (vi) all Exhibits, Schedules and other attachments annexed to the body of this Lease are hereby deemed to be incorporated into and made an integral part of this Lease; (vii) the word "or" is not exclusive; and (viii) for the calculation of any financial ratios or tests referenced in this Lease (including the Adjusted Revenue to Rent Ratio and the Indebtedness to EBITDA Ratio), this Lease, regardless of its treatment under GAAP, shall be deemed to be an operating lease and the Rent payable hereunder shall be treated as an operating expense and shall not constitute Indebtedness or interest expense.

"<u>AAA</u>" has the meaning set forth in Section 34.1(b).

"<u>Accounts</u>" means all accounts, including deposit accounts and any Facility Mortgage Reserve Account (to the extent actually funded by Tenant), all rents, profits, income, revenues or rights to payment or reimbursement derived from the use of any space within the Leased Property and/or from goods sold or leased or services rendered from the Leased Property (including, without limitation, from goods sold or leased or services rendered from the Leased Property by any subtenant) and all accounts receivable, in each case whether or not evidenced by a contract, document, instrument or chattel paper and whether or not earned by performance, including without limitation, the right to payment of management fees and all proceeds of the foregoing.

"<u>Additional Charges</u>" means all Impositions and all other amounts, liabilities and obligations which Tenant assumes or agrees to pay under this Lease and, in the event of any failure on the part of Tenant to pay any of those items, except where such failure is due to the acts or omissions of Landlord, every fine, penalty, interest and cost which may be added for non-payment or late payment of such items.

"<u>Adjusted Revenue</u>" means for any Test Period, Net Revenue (i) *minus* expenses other than Specified Expenses and (ii) *plus* Specified Proceeds, if any; <u>provided</u>, <u>however</u>, that for purposes of calculating Adjusted Revenue, Net Revenue shall not include Gaming Revenues, Retail Sales, Hospitality and Leisure Revenues or Promotional Allowances of any subtenants or sub-subtenants of Tenant (unless such subtenants or sub-subtenants are Subsidiaries of Tenant) and shall include payments to Tenant or its Subsidiaries under subleases or sub-subleases of this Lease, licenses or other access rights from subtenants and sub-subtenants (unless such subtenants or sub-subtenants are Subsidiaries of Tenant). Adjusted Revenue for the Leased Property shall be calculated on a pro forma basis to give effect to any increase or decrease in Rent as a result of the addition or removal of Leased Property to this Lease since the beginning of any Test Period of Tenant as if each such increase or decrease had been effected on the first day of such Test Period.

For purposes of calculating the Adjusted Revenue to Rent Ratio during any Covenant Suspension Period, (a) subject to clause (b) below, if the Facility is closed to the public for more than thirty (30) consecutive days, as a result of an Unavoidable Delay during any fiscal quarter of any Test Period, then (i) the Adjusted Revenue attributable to the Facility in respect of such fiscal quarter shall be excluded from the calculation of Adjusted Revenue for such Test Period and (ii) the Adjusted Revenue attributable to the Facility during any fiscal quarters of such Test Period during which the Facility is not closed to the public for more than thirty (30) consecutive days, shall be annualized as follows for purposes of calculating Adjusted Revenue for such Test Period: (A) if the Facility is not closed to the public for more than thirty (30) consecutive days in any of the remaining three (3) fiscal quarters of such Test Period, then the aggregate Adjusted Revenue attributable to the Facility for such quarters shall be multiplied by 4/3, (B) if the Facility is not closed to the public for more than thirty (30) consecutive days in only two (2) fiscal quarters of such Test Period, then the aggregate Adjusted Revenue attributable to the Facility for such quarters shall be multiplied by 2 and (C) if the Facility is not closed to the public for more than thirty (30) consecutive days in only one (1) fiscal quarter of such Test Period, then the Adjusted Revenue attributable to the Facility for such quarter shall be multiplied by 4 and (b) notwithstanding clause (a) above, for purposes of calculating the Adjusted Revenue from and after any Covenant Resumption Date, (i) the Adjusted Revenue for the Test Period ending on the last day of the fiscal quarter in which the Covenant Resumption Date occurs (the "**Suspension Initial Test Period**") shall be deemed to be the Adjusted Revenue for the last fiscal quarter of the Suspension Initial Test Period, in each case, multiplied by 4, (ii) the Adjusted Revenue for the first Test Period ending after the Suspension Initial Test Period (the "**Suspension Second Test Period**") shall be deemed to be the Adjusted Revenue for the last two fiscal quarters of the Suspension Second Test Period, in each case, multiplied by 2 and (iii) the Adjusted Revenue for the second Test Period ending after the Suspension Initial Test Period (the "**Suspension Third Test Period**") shall be deemed to be the Adjusted Revenue for the last three fiscal quarters of the Suspension Third Test Period, in each case, multiplied by 4/3.

"<u>Adjusted Revenue to Rent Ratio</u>" means, at any date of determination, the ratio for any period of Adjusted Revenue to Rent. For purposes of calculating the Adjusted Revenue to Rent Ratio, Adjusted Revenue shall be calculated on a pro forma basis (and shall be calculated to give effect to (x) pro forma adjustments reasonably contemplated by Tenant and (y) such other pro forma adjustments consistent with Regulation S-X under the Securities Act) to give effect to any material acquisitions and material asset sales consummated by the Tenant or any Guarantor during any Test Period of Tenant as if each such material acquisition had been effected on the first day of such Test Period and as if each such material asset sale had been consummated on the day prior to the first day of such Test Period. In addition, (i) Adjusted Revenue and Rent shall be calculated on a pro forma basis to give effect to any increase or decrease in Rent as a result of the addition or removal of Leased Property to this Lease during any Test Period as if such increase or decrease had been effected on the first day of such Test Period, and (ii) in the event Rent is to be increased in connection with the addition or inclusion of a Long-Lived Asset that is projected to increase Adjusted Revenue, such Rent increase shall not be taken into account in calculating the Adjusted Revenue to Rent Ratio until the first fiscal quarter following the completion of the installation or construction of such Long-Lived Assets.

"<u>Affiliate</u>" means with respect to any corporation, limited liability company, or partnership, the term "Affiliate" shall mean any person which, directly or indirectly, controls or is controlled by or is under common control with such corporation, limited liability company or partnership. For the purposes of this definition and the definition of a "Change in Control", "control" (including the correlative meanings of the terms "controlled by" and "under common control with"), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, through the ownership of voting securities, partnership interests or other equity interests.

"<u>Alter Domus</u>" means Alter Domus (US) LLC, solely in its capacity as collateral agent under the Apollo Note Purchase Agreement.

"<u>Apollo Note Purchase Agreement</u>" means that certain Note Purchase Agreement, dated as of February 7, 2025, among Tenant's Parent, as issuer, the subsidiary guarantors from time to time party thereto, the purchasers from time to time party thereto and Alter Domus (US) LLC, as agent and as collateral agent, as the same may be amended, restated, amended and restated, supplemented or modified from time to time.

"<u>Applicable Standards</u>" means the standards generally and customarily applicable from time to time during the Term to similar Gaming Facilities in similar markets that have reasonably similar tax rates, competition, population, demographics, annual capital expenditures and are of an age comparable to the age and quality of the Leased Improvements existing at the time this standard is being applied assuming that Tenant has complied at all times in all material respects with its repair and maintenance obligations under this Lease.

"<u>Appointing Authority</u>" has the meaning set forth in Section 34.1(b).

"<u>Award</u>" means all compensation, sums or anything of value awarded, paid or received on a total or partial Taking.

"<u>Base Building Systems</u>" means the mechanical, gas, electrical, sanitary, heating, air conditioning, ventilating, elevator, plumbing, and fire control and suppression, sprinkler/life safety systems of the Leased Improvements.

"<u>Bally's Chicago</u>" means Bally's Chicago, Inc., a Delaware corporation.

"<u>Bally's Indenture</u>" means that certain Indenture, dated as of August 20, 2021, among Tenant's Parent, the subsidiary guarantors party thereto from time to time and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee, as the same may be amended, amended and restated, supplemented, refinanced, replaced or otherwise modified from time to time.

"<u>Bally's Lease 1</u>" means that certain Master Lease, dated as of June 3, 2021, by and between Landlord and Bally's Management Group, LLC (f/k/a Twin River Management Group, Inc.), as amended by that certain First Amendment to Master Lease, dated as of April 1, 2022, that certain Second Amendment to Master Lease dated as of January 2, 2023, that certain Third Amendment to Master Lease dated as of December 16, 2024 and that certain Fourth Amendment to Master Lease, effective as of July 1, 2025, as the same may be further amended, modified, or amended and restated from time to time.

"<u>Bally's Lease 2</u>" means that certain Master Lease, dated as of December 16, 2024 by and between Landlord (or its Affiliates) and Bally's Management Group, LLC, as amended by that certain First Amendment to Master Lease, effective as of July 1, 2025, as the same may be further amended, modified, or amended and restated from time to time.

"<u>Bally's Leases</u>" means, collectively, Bally's Lease 1 and Bally's Lease 2.

"<u>Bally's Revolving Credit Facility</u>" means the revolving credit facilit(y)(ies) under the Deutsche Credit Agreement.

"<u>Business Day</u>" means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which national banks in the City of New York, New York or the City of Chicago, Illinois are authorized, or obligated, by law or executive order, to close.

"<u>Capital Improvements</u>" means with respect to the Facility, any and all improvements or alterations, expansions, additions or modifications of the Leased Improvements (as existing from time to time), including without limitation (i) improvements and structural alterations, and modifications to or on the Leased Property, (ii) the construction of one or more additional structures either annexed to any portion of any of the Leased Improvements or built upon the Land, (iii) the expansion of existing improvements, which are constructed on any parcel or portion of the Land, including, but not limited to, the construction of a new wing or new story or addition to the Facility, (iv) modifications to, or the addition of, parking areas, driveways, curb cuts and other access points on the Land to and from any public-right-of-way, and (v) any new buildings or structures constructed on any parcel or portion of the Leased Property, all of which shall constitute a portion of the Leased Improvements in accordance with Section 10.4;

"<u>Cash</u>" means cash and cash equivalents and all instruments evidencing the same or any right thereto and all proceeds thereof.

"<u>Casualty Event</u>" means any loss of title or any loss of or damage to or destruction of, or any condemnation or other taking (including by any governmental authority) of, any asset for which Tenant or any of its Subsidiaries (directly or through Tenant's Parent) receives cash insurance proceeds or proceeds of a condemnation award or other similar compensation (excluding proceeds of business interruption insurance). "Casualty Event" shall include, but not be limited to, any taking of all or any part of any real property of Tenant or any of its Subsidiaries or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any applicable law, or by reason of the temporary requisition of the use or occupancy of all or any part of any real property of Tenant or any of its Subsidiaries or any part thereof by any governmental authority, civil or military.

"<u>Change in Control</u>" means (i) the failure of the Ownership and Control Requirement to be satisfied at any time during the OCR Period, (ii) from and after the expiration of the OCR Period, any of one or more Person(s) or "group(s)" (within the meaning of Rules 13d- 3 and 13d-5 under the Securities Exchange Act of 1934, as amended from time to time, and any successor statute), in one or more transactions (a) shall have acquired direct or indirect beneficial ownership or control of fifty percent (50%) or more on a fully diluted basis of the direct or indirect Equity Interests of Tenant's Parent, (b) shall have acquired direct or indirect beneficial ownership or control of fifty percent (50%) or more on a fully diluted basis of the direct or indirect voting power in the Equity Interests of Tenant's Parent that are entitled to vote in an election of directors or equivalent body, as applicable, of Tenant's Parent, (c) shall have caused the election of a majority of the members of the board of directors or equivalent body of Tenant's Parent, which such members have not been nominated by a majority of the members of the board of directors or equivalent body of Tenant's Parent as such were constituted immediately prior to such election, or (d) shall have increased or decreased the number of members of the board of directors or equivalent body of Tenant or Tenant's Parent, which increase or decrease has not been authorized by the shareholders and/or equity holders, as the case may be, of Tenant or the shareholders or equity holders of Tenant's Parent (in each case, being the shareholders and/or equity holders as of the date hereof) in accordance with the certificate of formation and operating agreement of Tenant or the certificate of incorporation and bylaws of Tenant's Parent, respectively, (iii) the direct or indirect sale by Tenant or Tenant's Parent of all or substantially all of Tenant's assets, whether held directly or through Subsidiaries, relating to the Facility in one transaction or in a series of related transactions (excluding sales to Tenant or its Subsidiaries), (iv) (a) Tenant ceasing to be a wholly-owned Subsidiary (directly or indirectly) of Tenant's Parent or (b) Tenant's Parent ceasing to control one hundred percent (100%) of the voting power in the Equity Interests of Tenant, or (v) Tenant's Parent (or any subsidiary of Tenant's Parent) consolidates with, or merges with or into, any Person (other than another Subsidiary of Tenant's Parent or Tenant's Parent), or any Person (other than another Subsidiary of Tenant's Parent or Tenant's Parent) consolidates with, or merges with or into, Tenant's Parent, in any such event pursuant to a transaction in which any of the outstanding Equity Interests of Tenant's Parent ordinarily entitled to vote in an election of directors of Tenant's Parent or such other Person is either converted into or exchanged for cash, securities or other property (including exchanged for a majority (if applicable, as determined by voting power in an election of directors or equivalent body) of the outstanding Equity Interests in Tenant's Parent), other than any such transaction where the Equity Interests of Tenant's Parent ordinarily entitled to vote in an election of directors of Tenant's Parent outstanding immediately prior to such transaction constitute or are converted into or exchanged into or exchanged for a majority (if applicable, as determined by voting power in an election of directors or any equivalent body) of the outstanding Equity Interests, including, such Equity Interests as are ordinarily entitled to vote in an election of directors or equivalent body of such surviving or transferee Person (immediately after giving effect to such transaction). Notwithstanding anything herein to the contrary, no Change in Control shall be deemed to have occurred as a result of any IPO of Bally's Chicago so long as (a) after giving effect to such IPO Tenant's Parent continues to own and control, (directly or indirectly, including through Equity Interests in Bally's Chicago or any other managing member, member, general partner, limited partner or other holder of Equity Interests of Tenant) more than seventy percent (70%) of Tenant's economic and voting Equity Interests and (b) such IPO complies in all material respects with any and all requirements under the Host Community Agreement.

"<u>Chicago Project</u>" means the construction and development of the Facility upon the Leased Property, pursuant to and in accordance with the terms set forth in the Development Agreement.

"<u>City</u>" means the City of Chicago.

"<u>Code</u>" means the Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations promulgated thereunder, each as amended from time to time.

"<u>Commencement Date</u>" has the meaning set forth in Section 1.3.

"<u>Competing Facility</u>" means a Gaming Facility (other than the Facility) within the Restricted Area; <u>provided</u>, <u>however</u>, that a "Competing Facility" shall not include (i) with respect to Tenant, any Gaming Facility located within the terminals of Chicago O'Hare International Airport or Chicago Midway International Airport with, in each case, fewer than 500 machines, in the aggregate, and which such machines are only available to ticketed passengers, and (ii) with respect to Landlord, (A) Hollywood Casino Aurora and (B) Hollywood Casino Joliet.

"<u>Completion</u>" has the meaning set forth in the Development Agreement.

"<u>Condemnation</u>" means the exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor or a voluntary sale or transfer by Landlord to any Condemnor, either under threat of condemnation or while legal proceedings for condemnation are pending.

"<u>Condemnor</u>" means any public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

"<u>Confidential Information</u>" means any and all financial, technical, proprietary, confidential, and other information, including data, reports, interpretations, forecasts, analyses, compilations, studies, summaries, extracts, records, know-how, statements (written or oral) or other documents of any kind, that contain information concerning the business and affairs of a party or its affiliates, divisions and subsidiaries, which such party or its Related Persons provide to the other party or its Related Persons, whether furnished before or after the Commencement Date, and regardless of the manner in which it was furnished, and any material prepared by a party or its Related Persons, in whatever form maintained, containing, reflecting or based upon, in whole or in part, any such information; provided, however, that "Confidential Information" shall not include information which: (i) was or becomes generally available to the public other than as a result of a disclosure by the other party or its Related Persons in breach of this Lease; (ii) was or becomes available to the other party or its Related Persons on a non-confidential basis prior to its disclosure hereunder as evidenced by the written records of the other party or its Related Persons, provided that the source of the information is not bound by a confidentiality agreement or otherwise prohibited from transmitting such information by a contractual, legal or fiduciary duty; or (iii) was independently developed by the other party without the use of any Confidential Information, as evidenced by the written records of the other party.

"<u>Consolidated Interest Expense</u>" means for any period, interest expense of Tenant and its Subsidiaries that are Guarantors for such period as determined on a consolidated basis for Tenant and its Subsidiaries that are Guarantors in accordance with GAAP.

"<u>Contribution Agreement</u>" means that certain Contribution Agreement, dated September 6, 2022, by and among UTGR, Inc, a Delaware corporation, Twin River-Tiverton, LLC, a Delaware limited liability company, Premier Entertainment Biloxi LLC, a Delaware limited liability company, Twin River Management Group, Inc., a Delaware corporation, Tenant's Parent, and Landlord, as the same may be amended, supplemented, modified, extended, restructured, renewed, refinanced, restated, replaced or refunded in whole or in part from time to time following the Commencement Date.

"<u>Cosmetic Alterations</u>" means all Capital Improvements that are solely cosmetic or decorative in nature, including painting, carpeting, flooring, light fixtures and other finishes that do not affect the structural components of the Facility or any mechanical, gas, electrical, sanitary, heating, air conditioning, ventilating, elevator, plumbing, fire control and suppression, sprinkler/life safety and other common service systems of the Facility.

"<u>Covenant Failure</u>" means a Minimum RCF Covenant Failure and/or a Net Leverage Covenant Failure.

"<u>Covenant Resumption Date</u>" means the first day following the end of a Covenant Suspension Period.

"<u>Covenant Suspension Period</u>" means, if on the last day of any Test Period the Facility is closed to the public due to an Unavoidable Delay for a period in excess of thirty (30) consecutive days, then the period commencing on (and including) the last day of any such Test Period and continuing until (but excluding) the last day of the first full consecutive fiscal quarter throughout which the foregoing trigger is no longer in effect and the Facility is open to the public. Notwithstanding the foregoing, Tenant may, in its sole discretion, elect that any Covenant Suspension Period end on any date prior to the date that such Covenant Suspension Period would otherwise end absent such election.

"<u>Covenant Trigger</u>" means a Minimum RCF Covenant Trigger and/or a Net Leverage Covenant Trigger.

"<u>CPI</u>" means the United States Department of Labor, Bureau of Labor Statistics Revised Consumer Price Index for All Urban Consumers (1982-84=100), U.S. City Average, All Items, or, if that index is not available at the time in question, the index designated by such Department as the successor to such index, and if there is no index so designated, an index for an area in the United States that most closely corresponds to the entire United States, published by such Department, or if none, by any other instrumentality of the United States.

"<u>CPI Increase</u>" means the percentage equal to (i) the most recently published CPI as of the beginning of the relevant Lease Year, *divided by* (ii) the most recently published CPI as of the beginning of the first Lease Year; <u>provided</u>, <u>however</u>, for purposes of calculating any escalation in Rent, clause (ii) shall be the most recently published CPI as of the beginning of the prior Lease Year. For purposes of Sections 10.4, 13.6 and 16.1(q), if the product is less than one, the CPI Increase shall be equal to one.

"<u>CPR Institute</u>" has the meaning set forth in Section 34.1(b).

"<u>Cross-Default Restriction</u>" means any prohibition of, or restriction upon the ability to cross-collateralize and/or the ability to cross-default this Lease with Bally's Lease 1 and Bally's Lease 2.

"<u>Date of Taking</u>" means the date the Condemnor has the right to possession of the property being condemned.

"<u>Debt Agreement</u>" means, if designated by Tenant to Landlord in writing to be included in the definition of "Debt Agreement," one or more (A) debt facilities or commercial paper facilities, providing for revolving credit loans, term loans, deeds of trust, receivables financing (including through the sale of receivables to lenders or to special purpose entities formed to borrow from lenders against such receivables) or letters of credit, (B) debt securities, bond indentures, indentures or other forms of debt financing (including convertible or exchangeable debt instruments or bank guarantees or bankers' acceptances), or (C) instruments or agreements evidencing any other indebtedness, in each case, with the same or different borrowers or issuers and in each case, (i) entered into from time to time by Tenant and/or its Affiliates (including Tenant's Parent), (ii) as amended, supplemented, modified, extended, restructured, renewed, refinanced, restated, replaced or refunded in whole or in part from time to time, (iii) which may be secured by assets of Tenant and its Subsidiaries, including, but not limited to, their Cash, Accounts, Tenant's Property, real property and leasehold estates in real property (including this Lease), and (iv) which shall provide Landlord, in accordance with Section 17.3 hereof, the right to receive copies of notices of Specified Debt Agreement Defaults thereunder and opportunity to cure any breaches or defaults by Tenant thereunder within the cure period, if any, that exists under such Debt Agreement. Each of the Deutsche Credit Agreement and the Apollo Note Purchase Agreement is hereby deemed a "Debt Agreement".

"<u>Deferred Rent</u>" has the meaning set forth in Section 3.1.

"<u>Deferred Rent Repayment Date</u>" has the meaning set forth in Section 3.1.

"<u>Deutsche Credit Agreement</u>" means that certain Credit Agreement, dated as of October 1, 2021, among Tenant's Parent, as borrower, the subsidiary guarantors from time to time party thereto, the other parties from time to time party thereto, and Deutsche Bank AG New York Branch, in its capacity as administrative agent and collateral agent, as amended by that certain First Amendment to Credit Agreement dated as of June 23, 2023, as the same may be amended, restated, amended and restated, supplemented, or modified from time to time.

"<u>Deutsche Collateral Agent</u>" means Deutsche Bank AG New York Branch, in its capacity as collateral agent under the Deutsche Credit Agreement.

"<u>Development Agreement</u>" means that certain Development Agreement, dated as of the Effective Date, by and between Landlord and Tenant, with respect to the development and construction of the Chicago Project.

"<u>Development Land</u>" means that certain portion of the Land shown as the hash-marked area on <u>Exhibit B-2</u>, together with all Leased Property with respect thereto.

"<u>Development Period Rent</u>" has the meaning set forth in the Development Agreement.

"<u>Discretionary Transferee</u>" means a transferee that meets all of the following requirements set forth in clauses (a) through (d) below: (a) such transferee has (1) at least five (5) years of experience (directly or through one or more of its Subsidiaries) operating one or more casinos with revenues in the immediately preceding fiscal year of at least Six Hundred Million Dollars ($600,000,000) (excluding any revenues derived from iGaming) in the aggregate that is not in the business, and that does not have an Affiliate in the business, of leasing properties to gaming operators, or (2) in the case of a Permitted Leasehold Mortgagee Foreclosing Party only, agreement(s) in place in a form reasonably satisfactory to Landlord to retain for a period of eighteen (18) months (or more) after the effective time of the transfer at least (i) eighty percent (80%) of Tenant's and its Subsidiaries' personnel employed at the Facility who have employment contracts as of the date of the relevant agreement to transfer and (ii) seventy percent (70%) of Tenant's and Tenant's Parent's ten (10) (in the aggregate between both Tenant and Tenant's Parent) most highly compensated corporate employees as of the date of the relevant agreement to transfer based on total compensation determined in accordance with Item 402 of Regulation S-K of the Securities and Exchange Act of 1934, as amended; (b) such transferee (directly or through one or more of its Subsidiaries) is licensed or certified by each gaming authority with jurisdiction over any portion of the Leased Property as of the date of any proposed assignment or transfer to such entity (or will be so licensed upon its assumption of this Lease); (c) such transferee is Solvent, and if such transferee has a Parent Company, the Parent Company of such transferee is Solvent, and (d) (i) other than in the case of a Permitted Leasehold Mortgagee Foreclosing Party, (x) the Parent Company of such transferee, if such transferee has a Parent Company, or the Discretionary Transferee, if such transferee does not have a Parent Company, has sufficient assets so that, after giving effect to its assumption of Tenant's obligations hereunder or the applicable assignment (including pursuant to a Change in Control under Section 22.2(c)(i) or Section 22.2(c)(ii)), the Indebtedness to EBITDA Ratio of such Parent Company (or Discretionary Transferee, as applicable) on a consolidated basis in accordance with GAAP is less than 7:1 on a pro forma basis based on projected earnings and after giving effect to the proposed transaction or (y) an entity that has an investment grade credit rating from a two nationally recognized rating agencies with respect to such entity's long term, unsecured debt has provided a Guaranty or (ii) with respect to a Permitted Leasehold Mortgagee Foreclosing Party, such Permitted Leasehold Mortgagee Foreclosing Party or Permitted Leasehold Designee, as applicable, and if applicable, any Parent Company of such Permitted Leasehold Mortgagee Foreclosing Party or Permitted Leasehold Mortgagee Designee, has sufficient assets so that, after giving effect to its assumption of Tenant's obligations hereunder or the applicable assignment (including pursuant to a Change in Control), either (x) the Indebtedness to EBITDA Ratio of such Permitted Leasehold Mortgagee Foreclosing Party (or Permitted Leasehold Mortgagee Designee, as applicable) and, if applicable, such Parent Company on a consolidated basis in accordance with GAAP is less than 7:1 on a pro forma basis based on projected earnings and after giving effect to the proposed transaction or (y) an entity that has an investment grade credit rating from two nationally recognized rating agencies with respect to such entity's long term, unsecured debt has provided a Guaranty.

"<u>Disease Event Closure Order</u>" has the meaning set forth in Section 3.1.

"<u>Dollars</u> and <u>$</u>" means the lawful money of the United States.

"<u>EBITDA</u>" means, for any Test Period, the consolidated net income or loss of Tenant's Parent or the Parent Company of a Discretionary Transferee (or, in the case of (x) a Permitted Leasehold Mortgagee Foreclosing Party, such Permitted Leasehold Mortgagee Foreclosing Party or (y) a Discretionary Transferee that does not have a Parent Company, such Discretionary Transferee), as applicable, on a consolidated basis for such period, determined in accordance with GAAP, adjusted by excluding (1) income tax expense, (2) consolidated interest expense (net of interest income), (3) depreciation and amortization expense, (4) any income, gains or losses attributable to the early extinguishment or conversion of indebtedness or cancellation of indebtedness, (5) gains or losses on discontinued operations and asset sales, disposals or abandonments, (6) impairment charges or asset write-offs including, without limitation, those related to goodwill or intangible assets, long-lived assets, and investments in debt and equity securities, in each case, in accordance with GAAP, (7) any non-cash items of expense (other than to the extent such non-cash items of expense require or result in an accrual or reserve for future cash expenses), (8) extraordinary gains or losses and (9) unusual or non-recurring gains or items of income or loss.

"<u>Effective Date</u>" has the meaning set forth in the preamble.

"<u>Effective Date Deutsche Credit Agreement</u>" means the Deutsche Credit Agreement as in effect on the Effective Date and attached hereto as <u>Exhibit G</u>.

"<u>Emergency</u>" means the imminent threat of injury to persons or imminent threat of damage to property, including, without limitation, in respect of security and life safety.

"<u>Encumbrance</u>" means any mortgage, deed of trust, lien, encumbrance or other matter affecting title to any of the Leased Property, or any portion thereof or interest therein.

"<u>End of Term Gaming Asset Transfer Notice</u>" has the meaning set forth in Section 36.1.

"<u>End of Term Notice Deadline</u>" has the meaning set forth in Section 36.1.

"<u>Environmental Costs</u>" has the meaning set forth in Section 32.4.

"<u>Environmental Laws</u>" means any and all applicable federal, state, county, municipal and local laws, statutes, ordinances, rules, regulations, guidances, policies, orders, codes, decrees or judgments, whether statutory or common law, as amended from time to time, now or hereafter in effect, or promulgated, pertaining to the environment, public health and safety and industrial hygiene, including, without limitation, (i) the use, generation, manufacture, production, storage, release, discharge, disposal, handling, treatment, removal, decontamination, cleanup, transportation or regulation of any Hazardous Substance, (ii) greenhouse gas, carbon energy, carbon emissions, utility (including, gas, oil and water) or other environmental emissions, releases, discharges, usage limits or the like that are applicable to the Leased Property, and (iii) the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act, the Federal Insecticide, Fungicide, Rodenticide Act, the Safe Drinking Water Act and the Occupational Safety and Health Act.

"<u>Equity Interests</u>" means, with respect to any Person, any and all interest of equity in such Person, regardless of whether held legally or beneficially, including, without limitation, any and all shares, interests, participations or other equivalents, including stock, membership interests and partnership interests (however designated, whether voting or nonvoting) of such Person, including, if such Person is a partnership, partnership interests (whether general or limited) and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership.

"<u>Equity Rights</u>" means, with respect to any Person, any then outstanding subscriptions, options, warrants, commitments, preemptive rights or agreements of any kind (including any stockholders' or voting trust agreements) for the issuance, sale, registration or voting of any additional Equity Interests of any class, or partnership or other ownership interests of any type in, such Person; <u>provided</u>, <u>however</u>, that a debt instrument convertible into or exchangeable or exercisable for any Equity Interests shall not be deemed an Equity Right.

"<u>Event of Default</u>" has the meaning set forth in Section 16.1.

"<u>Excess Chicago IPO Proceeds</u>" has the meaning set forth in that certain letter agreement, dated as of the Effective Date, between Tenant and Landlord.

"<u>Exempt Capital Improvements</u>" means (i) all Cosmetic Alterations, (ii) any Capital Improvements that are necessary to promptly respond to an Emergency and render the Leased Property to a safe condition; <u>provided</u>, <u>however</u>, any Capital Improvements required to repair or remedy an Emergency shall not constitute an "Exempt Capital Improvement" under this clause (ii) (without limiting any other clauses of this definition), and (iii) routine repair and maintenance of (but not the replacement of) the Leased Property performed pursuant to Section 9.1(a) that does not constitute a Capital Improvement.

"<u>Existing Lease</u>" has the meaning set forth in Recital A.

"<u>Expert</u>" means an independent third party professional, with expertise in respect of a matter at issue, appointed by the agreement of Landlord and Tenant or otherwise in accordance with Article XXXIV hereof.

"<u>Facility</u>" has the meaning set forth in Recital C.

"<u>Facility Mortgage</u>" has the meaning set forth in Section 13.1.

"<u>Facility Mortgage Documents</u>" means with respect to each Facility Mortgage and Facility Mortgagee, the applicable Facility Mortgage, loan agreement, debt agreement, credit agreement or indenture, lease, note, collateral assignment instruments, guarantees, indemnity agreements and other documents or instruments evidencing, securing or otherwise relating to the loan made, credit extended, or lease or other financing vehicle entered into pursuant thereto.

"<u>Facility Mortgage Reserve Account</u>" has the meaning set forth in Section 31.3(b).

"<u>Facility Mortgagee</u>" has the meaning set forth in Section 13.1.

"<u>Financial Statements</u>" means (i) for a Fiscal Year, consolidated statements of Tenant's Parent and its consolidated subsidiaries (as defined by GAAP) of income, stockholders' equity and comprehensive income and cash flows for such period and the related consolidated balance sheet as at the end of such period, together with the notes thereto, all in reasonable detail and setting forth in comparative form the corresponding figures for the preceding Fiscal Year and prepared in accordance with GAAP and audited by a "big four" or other nationally recognized accounting firm, and (ii) for a fiscal quarter, consolidated statements of Tenant's Parent and its consolidated subsidiaries (as defined by GAAP) of income, stockholders' equity and comprehensive income and cash flows for such period and for the period from the beginning of the Fiscal Year to the end of the applicable fiscal quarter and the related consolidated balance sheet as at the end of such period, together with the notes thereto, all in reasonable detail and setting forth in comparative form the corresponding figures for the corresponding period in the preceding Fiscal Year and prepared in accordance with GAAP.

"<u>Fiscal Year</u>" means the annual period commencing January 1 and terminating December 31 of each year.

"<u>Fixtures</u>" has the meaning set forth in Section 1.1(d).

"<u>Foreclosure Assignment</u>" has the meaning set forth in Section 22.2(c)(iv).

"<u>Foreclosure COC</u>" has the meaning set forth in Section 22.2(c)(iv).

"<u>Foreclosure Purchaser</u>" has the meaning set forth in Section 31.1.

"<u>GAAP</u>" means generally accepted accounting principles consistently applied in the preparation of financial statements, as in effect from time to time (except with respect to any financial ratio defined or described herein or the components thereof, for which purposes GAAP shall refer to such principles as in effect as of the Commencement Date).

"<u>Gaming</u>" means casino, race track, racino, video lottery terminal, or other gambling activities, including, but not limited to, the operation of slot machines, video lottery terminals, table games, sports wagering, sports betting or other applicable types of wagering.

"<u>Gaming Assets FMV</u>" has the meaning set forth in Section 36.1.

"<u>Gaming Authority</u>" means any federal, state, local and other governmental, regulatory, permitting, licensing, and administrative authorities, agencies, boards and officials responsible for, or involved in, the regulation of Gaming or similar activities (including, without limitation, the Illinois Gaming Board), and all state and local regulatory, permitting, and licensing bodies with authority over Gaming in the State of Illinois and its political subdivisions.

"<u>Gaming Equipment</u>" means any and all gaming devices (electronic, video, or otherwise), gaming device parts inventory and other related gaming equipment and supplies authorized by the applicable Gaming Authorities to be used in connection with the operation of a casino, gaming tables, cards, dice, chips, tokens, player tracking systems, cashless wagering systems, electronic betting systems, interactive gaming systems, inter-casino linked systems, on-line slot metering systems, and associated equipment, together with all improvements and/or additions thereto, in each case, which are located at the Leased Property and used or usable in the Gaming operations conducted at the Leased Property.

"<u>Gaming Facility</u>" means facility at which there are Gaming operations.

"<u>Gaming License</u>" means any license, permit, approval, finding of suitability or other authorization issued by a state regulatory agency to operate, carry on or conduct any Gaming on the Leased Property, or required by any Gaming Regulation, including each of the licenses, permits or other authorizations set forth on <u>Exhibit C</u>, as amended from time to time.

"<u>Gaming Regulation(s)</u>" means any and all laws, statutes, ordinances, rules, regulations, policies, orders, codes, decrees or judgments, and Gaming License conditions or restrictions, as amended from time to time, now or hereafter in effect or promulgated, pertaining to the operation, control, maintenance or Capital Improvement of a Gaming Facility or the conduct of a person or entity holding a Gaming License, including, without limitation, any requirements imposed by a regulatory agency, commission, board or other governmental body pursuant to the jurisdiction and authority granted to it under applicable law.

"<u>Gaming Revenues</u>" has the meaning set forth in the definition of Net Revenue.

"<u>GLP</u>" means Gaming and Leisure Properties, Inc.

"<u>Greenfield Project</u>" has the meaning set forth in Section 7.3(a).

"<u>Ground Leased Property</u>" means the real property leased pursuant to a Ground Lease.

"<u>Ground Lease</u>" means, individually or collectively, as the context requires, any lease pertaining to real property that constitutes all or a portion of the Leased Property, including any parking lot or other lease, pursuant to which Landlord is a tenant and which lease (i) has been approved by Tenant, (ii) is in existence as of the Effective Date and listed on <u>Schedule A</u> hereto, or (iii) from and after Tenant's assignment of the Medinah Temple Sublease to Landlord in accordance with Section 2.9 of the Development Agreement, the Medinah Temple Sublease.

"<u>Ground Lessor</u>" has the meaning set forth in Section 8.4(a).

"<u>Guarantor</u>" means any Person that guaranties the payment or collection of all or any portion of the amounts payable by Tenant, or the performance by Tenant of all or any of its obligations, under this Lease, including any replacement guarantor consented to by Landlord in connection with the assignment of this Lease or a sublease of Leased Property pursuant to Article XXII.

"<u>Guaranty</u>" means the Initial Guaranty, the Subsequent Guaranty, and any other guaranty in form and substance reasonably satisfactory to the Landlord executed by a Guarantor in favor of Landlord (as the same may be amended, supplemented or replaced from time to time) pursuant to which such Guarantor agrees to guaranty all of the obligations of Tenant hereunder.

"<u>Handling</u>" has the meaning set forth in Section 32.4.

"<u>Hazardous Substances</u>" means, collectively, any petroleum, petroleum product or by product, polychlorinated biphenyls, asbestos, lead-based paint, mold or any other contaminant, pollutant or hazardous or toxic substance, material or waste regulated or listed pursuant to any Environmental Law.

"<u>Hospitality and Leisure Revenues</u>" has the meaning set forth in the definition of Net Revenue.

"<u>Host Community Agreement</u>" has the meaning set forth in Section 41.14.

"<u>Identified Repairs</u>" means those repairs identified in any Property Report or other notice delivered by Landlord to Tenant that (i) (a) affect the fire/sprinkler system or other life-safety related building systems, (b) constitute an Emergency or (c) are otherwise reasonably required in order to prevent bodily injury or damage to the Leased Property (such repairs under this clause (i) being a "**Life Safety Repair**"), or (ii) are required to maintain the Leased Property in the condition required under this Lease, including, but not limited to, in compliance with all Legal Requirements (including, Environmental Laws).

"<u>iGaming</u>" means online, mobile or internet-based Gaming (including online gaming or internet-based sports-related gaming or wagering).

"<u>Impartial Appraiser</u>" has the meaning set forth in Section 13.2.

"<u>Impositions</u>" means collectively, all (1) taxes, including capital stock, franchise, margin and other state taxes of Landlord, (2) ad valorem, real property, transfer, sales, use, gross receipts, transaction privilege, rent or similar taxes, (3) assessments including assessments for public improvements or benefits, whether or not commenced or completed prior to the Commencement Date and whether or not to be completed within the Term, (4) ground rents (pursuant to the Ground Leases), (5) all obligations of Tenant under the Host Community Agreement, (6) all obligations of Landlord and its Affiliates under the documents listed on <u>Schedule B</u> hereto (collectively, with all other covenants, conditions, restrictions or other agreements recorded in the applicable real property records for the Facility, the "**Property Agreements**"), (7) water, sewer and other utility levies and charges, (8) excise tax levies, (9) fees including license, permit, inspection, authorization and similar fees, and (10) all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Leased Property and/or the Rent and Additional Charges and all interest and penalties thereon attributable to any failure in payment by Tenant (other than failures arising from the acts or omissions of Landlord) which at any time prior to, during or in respect of the Term hereof may be assessed or imposed on or in respect of or be a lien upon (i) Landlord or Landlord's interest in the Leased Property, (ii) the Leased Property or any part thereof or any rent therefrom or any estate, right, title or interest therein, or (iii) any occupancy, operation, use or possession of, or sales from or activity conducted on or in connection with the Leased Property or the leasing or use of the Leased Property or any part thereof; <u>provided</u>, <u>however</u>, that Impositions shall not include and nothing contained in this Lease shall be construed to require Tenant to pay (a) any tax based on net or overall gross income (whether denominated as a franchise or capital stock or other tax) imposed on Landlord or any other Person, (b) any transfer, or net revenue tax of Landlord or any other Person except Tenant and its successors, (c) any tax imposed with respect to the sale, exchange or other disposition by Landlord of any Leased Property or the proceeds thereof, or (d) any principal, interest or other amounts due on, or any mortgage recording taxes or other amounts relating to the incurrence of, any indebtedness on or secured by the Leased Property owed to a Facility Mortgagee for which Landlord or its Subsidiaries is the obligor; <u>provided</u>, <u>further</u>, Impositions shall include any tax, assessment, tax levy or charge set forth in clause (a) or (b) that is levied, assessed or imposed in lieu of, or as a substitute for, any Imposition.

"<u>Indebtedness</u>" of any Person, means, without duplication, (a) all indebtedness of such Person for borrowed money, whether or not evidenced by bonds, debentures, notes or similar instruments, (b) all obligations of such Person as lessee under capital leases which have been or should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (c) all obligations of such Person to pay the deferred purchase price of property or services (excluding trade accounts payable in the ordinary course of business), (d) all indebtedness secured by a lien on the property of such Person, whether or not such indebtedness shall have been assumed by such Person, (e) all obligations, contingent or otherwise, with respect to the face amount of all letters of credit (whether or not drawn) and banker's acceptances issued for the account of such Person, (f) all obligations under any agreement with respect to any swap, forward, future or derivative transaction or option or similar arrangement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or combination of transactions, (g) all guarantees by such Person of any of the foregoing and (h) all indebtedness of the nature described in the foregoing clauses (a)-(g) of any partnership of which such Person is a general partner.

"<u>Indebtedness to EBITDA Ratio</u>" means at any date of determination, the ratio of (a) Indebtedness of the applicable (x) Discretionary Transferee or Parent Company of the Discretionary Transferee or (y) in the case of a Permitted Leasehold Mortgagee Foreclosing Party, the Permitted Leasehold Mortgagee Foreclosing Party (such Discretionary Transferee, Parent Company, or Permitted Leasehold Mortgagee Foreclosing Party, as applicable the "<u>Relevant Party</u>") on a consolidated basis, as of such date (excluding (1) Indebtedness of the type referenced in clauses (e) or (f) of the definition of Indebtedness and (2) Indebtedness referred to in clauses (d), (g) or (h) of the definition of Indebtedness solely to the extent such Indebtedness relates to Indebtedness of the type referenced in clauses (e) or (f) of the definition of Indebtedness), to (b) EBITDA of the Relevant Party for the Test Period most recently ended prior to such date for which financial statements are available. For purposes of calculating the Indebtedness to EBITDA Ratio, EBITDA shall be calculated on a pro forma basis (and shall be calculated, except for pro forma adjustments reasonably contemplated by the potential transferee which may be included in such calculations, otherwise in accordance with Regulation S-X under the Securities Act) to give effect to any material acquisitions and material asset sales consummated by the Relevant Party and its Subsidiaries since the beginning of any Test Period of the Relevant Party as if each such material acquisition had been effected on the first day of such Test Period and as if each such material asset sale had been consummated on the day prior to the first day of such period. In addition, for the avoidance of doubt, (i) if the Relevant Party or any Subsidiary of the Relevant Party has incurred any Indebtedness or repaid, repurchased, acquired, defeased or otherwise discharged any Indebtedness since the end of the most recent Test Period for which financial statements are available, Indebtedness shall be calculated (for purposes of this definition) after giving effect on a pro forma basis to such incurrence, repayment, repurchase, acquisition, defeasance or discharge and the applications of any proceeds thereof as if it had occurred prior to the first day of such Test Period and (ii) the Indebtedness to EBITDA Ratio shall give pro forma effect to the transactions whereby the applicable Discretionary Transferee becomes party to this Lease or the Change in Control transactions permitted under Section 22.2(c) and shall include the Indebtedness and EBITDA of Tenant and its Subsidiaries for the relevant period.

"<u>Initial Guaranty</u>" means that certain Guaranty of Lease, dated as of Effective Date, in the form attached as <u>Exhibit D</u> hereto by and among Landlord and each of the Guarantors set forth on <u>Schedule 6.4</u> and such other parties as may become a party thereto from time to time, as the same may be amended, supplemented or replaced from time to time in accordance with the terms of this Lease.

"<u>Initial Term</u>" has the meaning set forth in Section 1.3.

"<u>Initial Test Period</u>" means the Test Period ending on the last day of the fiscal quarter in which the eighteen (18) month anniversary of the Opening Date occurs.

"<u>Insurance Requirements</u>" means the terms of any insurance policy required by this Lease and all requirements of the issuer of any such policy and of any insurance board, association, organization or company necessary for the maintenance of any such policy.

"<u>Investment Fund</u>" means a bona fide private equity fund or bona fide investment vehicle arranged by and managed by or controlled by, or under common control with, a private equity fund (excluding any private equity fund investment vehicle the primary assets of which are Tenant and its Subsidiaries and/or this Lease and assets related thereto) that is engaged in making, purchasing, funding or otherwise investing in a diversified portfolio of businesses and companies and is organized primarily for the purpose of making equity investments in companies.

"<u>IPO</u>" means a public offering and sale of equity securities of the Tenant or Bally's Chicago pursuant to an effective registration in accordance with applicable requirements, including any business combination with a special purpose acquisition company entered into with the intent of effectuating or replicating a public offering of the securities of Tenant or Bally's Chicago, as applicable.

"<u>Land</u>" has the meaning set forth in Section 1.1(a).

"<u>Landlord</u>" has the meaning set forth in the preamble.

"<u>Landlord Representatives</u>" has the meaning set forth in Section 23.4.

"<u>Landlord Tax Returns</u>" has the meaning set forth in Section 4.1(b).

"<u>Lease</u>" has the meaning set forth in the preamble.

"<u>Lease Year</u>" means each period of twelve (12) full calendar months during the Term commencing on the Commencement Date or any anniversary thereof, provided, however, if the Commencement Date does not fall on the first day of a calendar month, the first Lease Year shall consist of the partial calendar month following the Commencement Date and the succeeding twelve (12) full calendar months, and each succeeding Lease Year shall consist of a one-year period commencing on the first day of the calendar month following the calendar month in which the Commencement Date fell.

"<u>Leased Improvements</u>" has the meaning set forth in Section 1.1(b).

"<u>Leased Property</u>" has the meaning set forth in Section 1.1.

"<u>Leasehold Estate</u>" has the meaning set forth in Section 17.1(a).

"<u>Legal Requirements</u>" means all federal, state, county, municipal and other governmental statutes, laws, rules, policies, guidance, codes, orders, regulations, ordinances, permits, licenses, covenants, conditions, restrictions, judgments, decrees and injunctions (including common law, Gaming Regulations, Environmental Laws, and the Host Community Agreement) affecting either the Leased Property, Tenant's Property and all Capital Improvements or the construction, use or alteration thereof, whether now or hereafter enacted and in force, including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Leased Property and Tenant's Property, (ii) in any way adversely affect the use and enjoyment thereof, or (iii) regulate the transport, handling, use, storage or disposal or require the cleanup or other treatment of any Hazardous Substance.

"<u>Life Safety Repair</u>" has the meaning set forth in the definition of Identified Repairs.

"<u>Lincoln Contribution Condition</u>" has the meaning set forth in Section 23.3(d).

"<u>Lincoln Net Sales Proceeds</u>" means the net cash proceeds of the Lincoln Contribution (as defined in the Contribution Agreement) actually received by Tenant's Parent and its applicable Affiliates in the amount set forth in the settlement statements for the Lincoln Contribution (as defined in the Contribution Agreement).

"<u>Liquor Authority</u>" has the meaning set forth in Section 41.13(a).

"<u>Liquor Laws</u>" has the meaning set forth in Section 41.13(a).

"<u>Long-Lived Assets</u>" means (i) with respect to property owned by Tenant as of the Commencement Date, if any, all property capitalized in accordance with GAAP with an expected life of not less than fifteen (15) years as initially reflected on the books and records of Tenant at or about the time of acquisition thereof or (ii) with respect to those assets purchased, replaced or otherwise maintained by Tenant after the Commencement Date, such asset capitalized in accordance with GAAP with an expected life of not less than fifteen (15) years as of or about the time of the acquisition thereof, as classified by Tenant in accordance with GAAP.

"<u>Major Alteration(s)</u>" means any Capital Improvement that (a) includes the construction of any additional structures upon the Leased Property, (b) affects the Structural Elements of the Facility, including, without limitation, by adding any new Structural Elements, enlarging any existing Structural Elements, or modifying the footprint of the Leased Improvements, (c) has or could be reasonably expected to have a material effect on Base Building Systems, (d) requires a demolition permit, (e) the performance thereof requires Tenant, Tenant's Parent or their respective Affiliates and/or Subsidiaries to deliver a completion guaranty to any Permitted Leasehold Mortgagee or (f) the cost of which is reasonably expected to equal or exceed Seven Million Five Hundred Thousand and 00/100 Dollars ($7,500,000.00).

"<u>Material Indebtedness</u>" means, at any time, Indebtedness of any one or more of the Tenant (and its Subsidiaries) and any Guarantor in an aggregate principal amount exceeding (i) after financial statements are available for the Initial Test Period, ten percent (10%) of Adjusted Revenue of Tenant and the Guarantors that are Subsidiaries of Tenant on a consolidated basis over the most recent Test Period for which financial statements are available or (ii) until financial statements are available for the Initial Test Period, Fifty-Five Million One Hundred Thousand Dollars ($55,100,000).

"<u>Maximum Foreseeable Loss</u>" has the meaning set forth in Section 13.2.

"<u>Medinah Temple Sublease</u>" means that certain Sublease Agreement dated as of November 28, 2022 by and among Medinah Holdings, LLC, an Illinois limited liability company, Medinah Building LLC, an Illinois limited liability company, and Tenant.

"<u>Minimum RCF Capacity</u>" has the meaning set forth in Section 23.3(c).

"<u>Minimum RCF Covenant</u> <u>Failure</u>" means a Minimum RCF Covenant Trigger shall have occurred and either (1) Landlord has the right consummate the Lincoln Contribution and Tenant fails to timely satisfy the conditions set forth in Section 23.3(d)(2), or (2) Landlord does not have the right to consummate the Lincoln Contribution.

"<u>Minimum RCF Covenant Trigger</u>" means the failure of the Minimum RCF Covenant to be satisfied at any time the Minimum RCF Covenant is in effect pursuant to Section 23.3(c).

"<u>Minimum Undrawn Amount</u>" means an amount equal to (x) $387,595,062.47 *minus* (y) the sum of (i) the aggregate amount of funding of Tenant by Tenant's Parent after July 1, 2024 that is actually applied toward the development and construction of the Chicago Project, *plus* (ii) any Excess Chicago IPO Proceeds, *plus* (iii) the amount of loan proceeds actually received by Tenant after deducting reasonable out of pocket costs and expenses actually incurred by Tenant, without duplication, in connection therewith from any Chicago Project-level financing obtained by the Tenant and, if secured by Tenant's Leasehold Estate, entered into in accordance with Section 17.1(a) of this Lease.

"<u>Net Debt</u>" means, as of any date of determination, an amount equal to (a) the aggregate outstanding principal amount of all Indebtedness of Tenant's Parent *minus* (b) the sum of (i) all Cash on hand of Tenant's Parent and (ii) the cash in cage of Tenant in excess of the minimum amount required by the applicable Gaming Authority.

"<u>Net Leverage Covenant Failure</u>" means a Net Leverage Covenant Trigger shall have occurred and either (1) Landlord has the right consummate the Lincoln Contribution and Tenant fails to timely satisfy the conditions set forth in Section 23.3(d)(2), or (2) Landlord does not have the right to consummate the Lincoln Contribution.

"<u>Net Leverage Covenant Trigger</u>" means the failure of the Net Leverage Covenant to be satisfied on the last day of two consecutive fiscal quarters (the last day of the first such fiscal quarter, the "**Initial Breach**") followed by a third failure of the Net Leverage Covenant to be satisfied on the last day of any fiscal quarter that ends on or prior to the fifth anniversary of the Initial Breach.

"<u>Net Leverage Ratio</u>" means as of any date of determination, the ratio of (a) Net Debt as of such date to (b) EBITDA of Tenant's Parent for the Test Period most recently ended on or prior to such date.

"<u>Net Revenue</u>" means the sum of, without duplication, (i) the amount received by Tenant (and its Subsidiaries and its subtenants) from patrons at the Facility for gaming, less refunds and free promotional play provided to the customers and invitees of Tenant (and its Subsidiaries and subtenants) pursuant to a rewards, marketing, and/or frequent users program, and less amounts returned to patrons through winnings at the Facility (the amounts in this clause (i), "**Gaming Revenues**"); *plus* (ii) the gross receipts of Tenant (and its Subsidiaries and subtenants) for all goods and merchandise sold, the charges for all services performed, or any other revenues generated by Tenant (and its Subsidiaries and subtenants) in, at, or from the Facility for cash, credit, or otherwise (without reserve or deduction for uncollected amounts), but excluding any Gaming Revenues (the amounts in this clause (ii), "**Retail Sales**"); *plus* (iii) all online or internet-based revenue (including online gaming or internet-based sports related gaming) generated by Tenant (and its Subsidiaries and subtenants) in, at, or from the Facility; *plus* (iv) the gross receipts of Tenant (and its Subsidiaries and subtenants) for accommodations, use of event spaces, conference centers and banquet halls, food and beverage, sports and entertainment services and other similar items, including, without limitation receipts from any hotel, restaurant, banquet or concert hall, theater, other entertainment venue, or golf course or club constituting any portion of the Leased Property (the amounts in this clause (iv), "**Hospitality and Leisure Revenues**"); *less* (v) the retail value of accommodations, food and beverage, and other services furnished without charge to guests of Tenant (and its Subsidiaries and subtenants) at the Facility (the amounts in this clause (v), "**Promotional Allowance**"). For the avoidance of doubt, gaming taxes and casino operating expenses (such as salaries, income taxes, employment taxes, supplies, equipment, cost of goods and inventory, rent, office overhead, marketing and advertising and other general administrative costs) will not be deducted in arriving at Net Revenue. Net Revenue will be calculated on an accrual basis for these purposes, as required under GAAP. For the absence of doubt, if Gaming Revenues, Retail Sales, Hospitality and Leisure Revenues or Promotional Allowances of a Subsidiary or subtenant, as applicable, are taken into account for purposes of calculating Net Revenue, any rent received by Tenant from such Subsidiary or subtenant, as applicable, pursuant to any sublease with such Subsidiary or subtenant, as applicable, shall not also be taken into account for purposes of calculating Net Revenues. Notwithstanding the foregoing, Net Revenue shall not include Gaming Revenues, Retail Sales, Hospitality and Leisure Revenues or Promotional Allowances from the subtenants or sub-subtenants thereunder and shall include the rent received by Tenant or its Subsidiaries thereunder (unless the subtenant or sub-subtenant is a Subsidiary of the Tenant in which case the Gaming Revenues, Retail Sales, Hospitality and Leisure Revenues and Promotional Allowances shall be included in Net Revenue but the rent payable by such subtenant or sub-subtenant shall not be included in Net Revenue).

"<u>New Lease</u>" has the meaning set forth in Section 17.1(f).

"<u>Notice</u>" means a notice given in accordance with Article XXXV.

"<u>Notice of Termination</u>" has the meaning set forth in Section 17.1(f).

"<u>OCR COC</u>" has the meaning set forth in Section 22.2(c)(v).

"<u>OCR Period</u>" means that certain period which commences on the Effective Date and thereafter continues until the earliest to occur of (i) the date that Landlord has consented to such transaction(s) that triggered the failure of the Ownership and Control Requirement, (ii) the date that such requirement no longer applies by virtue of the proviso set forth in the definition of Ownership and Control Requirement provided that the underlying transactions triggering the proviso complied with the requirements of this Lease, and (iii) a OCR COC has occurred that complies with Section 22.2(c)(v) of this Lease.

"<u>OFAC</u>" has the meaning set forth in Section 39.1.

"<u>Officer's Certificate</u>" means a certificate of Tenant or Landlord, as the case may be, signed by an officer of such party authorized to so sign by resolution of its board of directors or by its sole member or by the terms of its by-laws or operating agreement, as applicable.

"<u>Opening Date</u>" has the meaning set forth in the Development Agreement.

"<u>Overdue Rate</u>" means on any date, a rate equal to five (5) percentage points above the Prime Rate, but in no event greater than the maximum rate then permitted under applicable law.

"<u>Ownership and Control Requirement</u>" means, as of any given date, that all of the following are satisfied: (i) Permitted Holders shall beneficially own not less than 25% of the Equity Interests in Tenant's Parent, and (ii) Permitted Holders shall hold the voting power (and such Permitted Holders have no agreement or understanding with any other Person (written, oral or otherwise) to vote at such Person's or any other Person's direction) to appoint 60% or more of the board of directors or equivalent body of Tenant's Parent; <u>provided</u>, that it shall not constitute a failure of the Ownership and Control Requirement if either or both of clauses (i) and/or (ii) of this definition are not satisfied and, as of the date of such failure, and only for so long thereafter as, more than five (5) Persons (or groups of Persons), in the aggregate, (x) beneficially own more than 51% of the Equity Interests in Tenant's Parent and (y) hold the voting power to appoint a majority of the board of directors or equivalent body of Tenant's Parent. For purposes of this definition of "Ownership and Control Requirement", references to "beneficially own" means within the meaning of Section 13 of the Exchange Act or any successor provisions, and the term "group" includes any group acting for the purpose of acquiring, holding or disposing of securities within the meaning of Rule 13d-5 under the Exchange Act or any successor provision.

"<u>Parent Company</u>" means with respect to any Person, any other Person (other than an Investment Fund) (x) as to which such Person is a Subsidiary; and (y) which is not a Subsidiary of any other Person (other than an Investment Fund).

"<u>Payment Date</u>" means any due date for the payment of the installments of Rent or any other sums payable under this Lease.

"<u>Permitted Holder</u>" means any one or more of (a) Soohyung Kim, (b) Person(s) "controlled" (as such term is defined in the definition of "Affiliate" herein) by Soohyung Kim, and (c) any group consisting solely of Persons referred to clauses (a) and (b) of this definition; <u>provided</u>, that upon the death or incapacitation of Soohyung Kim, Standard General, L.P. shall automatically be substituted for Soohyung Kim in clauses (a) and (b) of this definition.

"<u>Permitted Institution</u>" means a commercial national banking institution in the business of generally acting as a real estate lender, agent or trustee or similar representative under Debt Agreements.

"<u>Permitted Leasehold Mortgage</u>" means the document creating or evidencing an encumbrance on Tenant's leasehold interest (or a subtenant's subleasehold interest) in the Leased Property, granted to or for the benefit of a Permitted Leasehold Mortgagee as security for the obligations under a Debt Agreement.

"<u>Permitted Leasehold Mortgagee</u>" means a Permitted Institution that is acting on behalf of one or more lenders or noteholders under a Debt Agreement, in each case as and only to the extent that such Person has the power to act on behalf of all such lenders and noteholders under the applicable Debt Agreement pursuant to the terms thereof. Notwithstanding the foregoing to the contrary, (i) Deutsche Collateral Agent shall be a Permitted Leasehold Mortgagee for those assets under which Deutsche Collateral Agent has satisfied the requirements of Section 17.1(a) of this Lease and for so long as such requirements remain satisfied, and (ii) Alter Domus (but not any successor or assign thereof unless, in each case, such successor or assign is a Permitted Leasehold Mortgagee and has independently satisfied the requirements set forth in Section 17.1(a)) and any and all requirements to obtain the consent of Landlord with respect thereto shall be a Permitted Leasehold Mortgagee for only so long as the following conditions remain satisfied: (a) Alter Domus shall remain the sole collateral agent under the Apollo Note Purchase Agreement, (b) Alter Domus shall have satisfied each of the requirements set forth in Section 17.1(a) and only for so long as such requirements remain satisfied, (c) the Apollo Note Purchase Agreement is and thereafter remains a "Debt Agreement" complying with the requirements set forth in the definition thereof, including without limitation the requirement set forth in clause (iv) thereof, and (d) each Permitted Leasehold Mortgage that secures the Apollo Note Purchase Agreement (1) is granted only in favor of Alter Domus in its capacity as collateral agent, (2) permits only Alter Domus the right to exercise remedies thereunder, and (3) complies with, and thereafter continues to comply with, the requirements set forth in this Lease, including those set forth in Section 17.1(a); <u>provided</u>, <u>however</u>, in no event shall Alter Domus constitute a Permitted Leasehold Mortgagee from and after the date that is the earliest to occur of (i) January 30, 2029, and (ii) thirty (30) days in the case of a monetary default, or ninety (90) days in the case of a non-monetary default, as the case may be, following Alter Domus' receipt of a Termination Notice pursuant to Section 17.1(d) unless Alter Domus timely complies with the requirements set forth in Section 17.1(d) and then only for so long thereafter as Alter Domus continues to comply with the requirements set forth in Article XVII.

"<u>Permitted Leasehold Mortgagee Designee</u>" means an entity designated by a Permitted Leasehold Mortgagee and acting for the benefit of the Permitted Leasehold Mortgagee, or the lenders, noteholders or investors represented by the Permitted Leasehold Mortgagee.

"<u>Permitted Leasehold Mortgagee Foreclosing Party</u>" means a Permitted Leasehold Mortgagee that forecloses on this Lease and assumes this Lease or a Subsidiary of a Permitted Leasehold Mortgagee that assumes this Lease in connection with a foreclosure on this Lease by a Permitted Leasehold Mortgagee.

"<u>Person</u> or <u>person</u>" means any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other form of entity.

"<u>Pre-Opening Expense</u>" means, with respect to any fiscal period, the amount of expenses (including Consolidated Interest Expense) incurred with respect to capital projects which are appropriately classified as "pre-opening expenses" on the applicable financial statements of Tenant's Parent or Tenant and their respective Subsidiaries for such period.

"<u>Primary Gaming Use</u>" means (i) use as a casino including the operation of slot machines and table games or (ii) if Tenant no longer wishes to use the Leased Property for the uses set forth in clause (i), then thereafter with Landlord's prior written consent, such other prevailing Gaming industry use lawfully permitted at any time.

"<u>Primary Intended Use</u>" means (a) initially, the construction of the Chicago Project, (b) following Completion of the Chicago Project, the Primary Gaming Use; provided, however, so long as the primary use of the Facility remains in compliance with clauses (a) and (b) above, then the uses of the Facility may include ancillary Gaming uses consistent with prevailing Gaming industry use lawfully permitted at any time, including video lottery terminals, sports wagering and sports betting, (c) provided that the Leased Property remains in compliance with clauses (a) and (b) above, other lawfully permitted ancillary uses in support of Gaming, including hotels, restaurants, bars, retail shopping, golf courses, recreational vehicle parks, banquet facilities, and employee support facilities and (d) with respect to the Development Land, the uses permitted by Air-Rights Waterway-Business-Residential Planned Development No. 1426, as amended, provided that, (i) only so long as such uses are ancillary uses in support of the Primary Intended Use of the Leased Property and (ii) no Gaming is conducted on the Development Land. Notwithstanding the foregoing, the Primary Intended Use may include Gaming prior to Completion if all Gaming Licenses necessary to conduct such Gaming remain in full force and effect; provided, however, following Completion, any Gaming conducted at the Facility must comply with the Primary Gaming Use in accordance with clause (b) above.

"<u>Prime Rate</u>" means on any date, a rate equal to the annual rate on such date publicly announced by JPMorgan Chase Bank, N.A. (provided that if JPMorgan Chase Bank, N.A. ceases to publish such rate, the Prime Rate shall be determined according to the Prime Rate of another nationally known money center bank reasonably selected by Landlord), to be its prime rate for ninety (90)-day unsecured loans to its corporate borrowers of the highest credit standing, but in no event greater than the maximum rate then permitted under applicable law.

"<u>Proceeding</u>" has the meaning set forth in Section 23.1(b)(v).

"<u>Prohibited Persons</u>" has the meaning set forth in Section 39.1.

"<u>Promotional Allowance</u>" has the meaning set forth in the definition of Net Revenue.

"<u>Property Agreements</u>" has the meaning set forth in the definition of Impositions.

"<u>Qualified Successor Tenant</u>" has the meaning set forth in Section 36.2.

"<u>Refinancing Transaction</u>" means the first refinancing, restructuring, recapitalization, extension, amendment, or modification of the Deutsche Credit Agreement to occur after the Commencement Date with approval from lenders holding more than fifty percent (50%) of the aggregate commitments and loans under the Deutsche Credit Agreement.

"<u>Related Persons</u>" means, with respect to a party, such party's Affiliates and Subsidiaries and the directors, officers, employees, agents, advisors and controlling persons of such party and its Affiliates and Subsidiaries.

"<u>Relevant Party</u>" has the meaning set forth in the definition of Indebtedness to EBITDA Ratio.

"<u>Remediate</u>" has the meaning set forth in Section 32.3.

"<u>Remediation</u>" has the meaning set forth in Section 32.3.

"<u>Renewal Notice</u>" has the meaning set forth in Section 1.4.

"<u>Renewal Term</u>" means a period for which the Term is renewed in accordance with Section 1.4.

"<u>Rent</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Commencing on the Effective Date, an annual amount equal to Twenty Million Dollars ($20,000,000); <u>provided</u>, <u>however</u>, commencing on first day of the second (2<sup>nd</sup>) Lease Year and on each anniversary thereafter (each such day, an "**Adjustment Date**"), subject to clause (C) below, (a) if the CPI Increase is at least 0.5% for any Lease Year, the Rent for such Lease Year shall increase by an amount equal to the greater of (i) 1% of the annual Rent as of the immediately preceding Lease Year and (ii) the CPI Increase (up to an amount not to exceed 2% of the annual Rent as of the immediately preceding Lease Year), and (b) if the CPI Increase is less than 0.5% for such Lease Year, then the Rent shall not increase for such Lease Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) In addition to the Rent then in effect under clause (A) above, commencing on the date of the Initial Advance (as defined in the Development Agreement) until the Rent Conversion Trigger Date, an amount equal to the Development Period Rent, <u>provided</u>, <u>however</u>, in no event shall there be a double payment of Development Period Rent due under the Development Agreement and this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) On the Rent Conversion Trigger Date, the Rent then in effect under clause (A) above shall be increased by an annual amount equal to the sum of (1) the product of (i) Final Total Hard Cost Amount (as defined in the Development Agreement) that has been advanced by Landlord to Tenant, *multiplied by* (ii) 8.50% (the "**Unescalated Development Funding Increase**"), *plus* (2) an amount equal to 2.0% of the Unescalated Development Funding Increase (the "**Escalation Increase**", and together with the Unescalated Development Funding Increase, the "**Development Funding Increase**"), which amount shall thereafter escalate on each Adjustment Date after the Rent Conversion Trigger Date in accordance with clause (A) above; <u>provided</u>, <u>however</u>, that (a) in the event that the Development Funding Increase was added to the Rent due under clause (A) on a date other than an Adjustment Date, on the first Adjustment Date occurring after the Rent Conversion Trigger Date, the portion of the Rent attributable to the Development Funding Increase shall escalate by an amount equal to (x) the percentage by which the Rent under clause (A) above increases on such Adjustment Date, *multiplied by* (y) the product of (i) the number of days elapsing from and including the Rent Conversion Trigger Date to, but excluding, such Adjustment Date divided by 365, and (ii) the Development Funding Increase, (b) the Development Funding Increase payable under this clause (C) during the Lease Year in which the Rent Conversion Trigger Date occurs shall be prorated as to the remaining portion of such Lease Year, (c) if the Rent Conversion Trigger Date occurs after the fifth (5<sup>th</sup>) Business Day of the calendar month in which the Rent Conversion Trigger Date occurs, then the monthly installment of the Development Funding Increase due in respect of such calendar month shall be paid in arrears with the monthly installment of Rent due and payable in the immediately following calendar month (together with the monthly installment of the Development Funding Increase then due and payable) and (d) if the Rent Conversion Trigger Date is determined in accordance with clause (b) of the definition thereof, then Final Total Hard Cost Amount for purposes of this definition shall be deemed to be the total outstanding amount of Project Funding (as defined in the Development Agreement) that has been advanced by Landlord to Tenant (or shall be deemed advanced by Landlord to Tenant, including, without limitation, any sums expended by Landlord pursuant to Section 6.3(b) thereunder) as of the date of the termination of the Development Agreement; <u>provided</u>, <u>however</u>, if as the result of Landlord exercising its remedies pursuant to Section 6.3(b) of the Development Agreement, the Final Total Hard Cost Amount is not determined as of the Rent Conversion Trigger Date, then (i) Landlord and Tenant shall recalculate the Development Funding Increase upon the determination of such Final Total Hard Cost Amount (the "**Adjusted Development Funding Increase**") and thereafter determine how much Rent would have been due and payable by Tenant commencing on the Rent Conversion Trigger Date through the date of such determination if such Rent had been calculated using the Adjusted Development Funding Increase, and (ii) Tenant shall thereafter promptly pay to Landlord the difference between the Rent actually paid by Tenant for such period and the Rent that should have been paid as determined pursuant to clause (d)(i) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) As applicable during the Term, Rent shall be increased (i) pursuant to Section 10.4 in respect of Capital Improvements funded by Landlord (which increases shall, in each case, be subject to the escalations provided in the foregoing clause (A)), and (ii) to the extent not duplicative of the Rent due and payable under clauses (B) and (C) above, at such other times and in such other amounts as determined in accordance with the Development Agreement. Rent shall be subject to further adjustment as and to the extent provided in Section 15.5.

"<u>Rent Conversion Trigger Date</u>" means the date that is ninety (90) days after the earlier of (a) the determination of the Final Total Hard Cost Amount and (b) the earlier termination of the Development Agreement.

"<u>Representative</u>" means with respect to the lenders or holders under a Debt Agreement, a Person designated as agent or trustee or a Person acting in a similar capacity or as representative for such lenders or holders.

"<u>Restricted Area</u>" means the geographical area that at any time during the Term is within a sixty (60) mile radius of the Facility.

"<u>Restricted Information</u>" has the meaning set forth in Section 23.1(c).

"<u>Restricted Payment</u>" means dividends (in cash, property or obligations) on, or other payments or distributions on account of, or the setting apart of money for a sinking or other analogous fund for, or the purchase, redemption, retirement, repurchase or other acquisition of, any Equity Interests or Equity Rights (other than outstanding securities convertible into Equity Interests) of Tenant, but excluding dividends, payments or distributions paid through the issuance of additional shares of Equity Interests and any redemption, retirement or exchange of any Equity Interest through, or with the proceeds of, the issuance of Equity Interests of Tenant.

"<u>Retail Sales</u>" has the meaning set forth in the definition of Net Revenue.

"<u>SEC</u>" means the United States Securities and Exchange Commission.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

"<u>Senior Lender</u>" has the meaning set forth in Section 17.1(n).

"<u>Solvent</u>" means with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person, on a going-concern basis, is greater than the total amount of liabilities (including contingent liabilities) of such Person, (b) the present fair salable value of the assets of such Person, on a going-concern basis, is not less than the amount that will be required to pay the probable liability of such Person on its debts (including contingent liabilities) as they become absolute and matured, (c) such Person has not incurred, and does not intend to, and does not believe that it will, incur, debts or liabilities beyond such Person's ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person's property would constitute an unreasonably small capital and (e) such Person is "solvent" within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability shall be computed as the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Accounting Standards Codification No. 450).

"<u>Specified Debt Agreement Default</u>" means any event or occurrence under a Debt Agreement or Material Indebtedness that enables or permits the lenders or holders (or Representatives of such lenders or holders) to accelerate the maturity of the Indebtedness outstanding under a Debt Agreement or Material Indebtedness.

"<u>Specified Expenses</u>" means, for any Test Period, (i) Rent incurred for the same Test Period, and (ii) the (1) income tax expense, (2) Consolidated Interest Expense, (3) depreciation and amortization expense, (4) any nonrecurring, unusual, or extraordinary items of income, cost or expense, including but not limited to, (a) any gains or losses attributable to the early extinguishment or conversion of indebtedness, (b) gains or losses on discontinued operations and asset sales, disposals or abandonments and (c) impairment charges or asset write-offs including, without limitation, those related to goodwill or intangible assets, long-lived assets, and investments in debt and equity securities, in each case, pursuant to GAAP, (5) any non-cash items of expense (other than to the extent such non-cash items of expense require an accrual or reserve for future cash expenses (<u>provided</u> that if such accrual or reserve is for contingent items, the outcome of which is subject to uncertainty, such non-cash items of expense may, at the election of the Tenant, be added to net income and deducted when and to the extent actually paid in cash)), (6) any Pre-Opening Expenses, (7) non-cash valuation adjustments, (8) any expenses related to the repurchase of stock options, and (9) expenses related to the grant of stock options, restricted stock, or other equivalent or similar instruments; in the case of each of clauses (1) through (9), of Tenant and the Subsidiaries of Tenant that are Guarantors on a consolidated basis for such period.

"<u>Specified Proceeds</u>" means, for any Test Period, to the extent not otherwise included in Net Revenue, the amount of insurance proceeds (calculated net of any applicable deductible and the reasonable out-of-pocket costs and expenses actually incurred by Tenant, if any, to collect such proceeds) received during such period by Tenant or its Subsidiaries in respect of any Casualty Event; <u>provided</u>, <u>however</u>, that for purposes of this definition, (i) if the Facility had been in operation for at least one complete fiscal quarter the amount of insurance proceeds plus the Net Revenue (excluding such insurance proceeds), if any, attributable to the Facility for such period shall not exceed an amount equal to the Net Revenue attributable to the Facility for the Test Period ended immediately prior to the date of such Casualty Event (calculated on a pro forma annualized basis to the extent the Facility was not operational for the full previous Test Period) and (ii) if the Facility had not been in operation for at least one complete fiscal quarter, the amount of insurance proceeds plus the Net Revenue attributable to the Facility for such period shall not exceed the Net Revenue reasonably projected by Tenant to be derived from the Facility for such period.

"<u>Standard General</u>" means Standard General L.P., a Delaware limited partnership.

"<u>State</u>" means the State of Illinois.

"<u>Structural Elements</u>" means the structural (i.e., load bearing) components of the Leased Improvements, including footings, foundations, exterior structural walls, interior structural columns and other load-bearing elements of the Leased Improvements.

"<u>Subsequent Guaranty</u>" has the meaning set forth in Section 6.4.

"<u>Subsidiary</u>" means, as to any Person, (i) any corporation more than fifty percent (50%) of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time of determination owned by such Person and/or one or more Subsidiaries of such Person, and (ii) any partnership, limited liability company, association, joint venture or other entity in which such person and/or one or more Subsidiaries of such person has more than a fifty percent (50%) equity interest at the time of determination. Unless otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in this Lease shall refer to a Subsidiary or Subsidiaries of Tenant.

"<u>Successor Tenant</u>" has the meaning set forth in Section 36.1.

"<u>Successor Tenant Rent</u>" has the meaning set forth in Section 36.2.

"<u>Suspension Initial Test Period</u>" has the meaning set forth in the definition of Adjusted Revenue.

"<u>Suspension Second Test Period</u>" has the meaning set forth in the definition of Adjusted Revenue.

"<u>Suspension Third Test Period</u>" has the meaning set forth in the definition of Adjusted Revenue.

"<u>Taking</u>" has the meaning set forth in Section 15.1(a).

"<u>Tax Distributions</u>" means, without duplication: (a) with respect to any taxable year for which a Person is treated as a partnership or disregarded entity (other than a disregarded entity described in clause (b)) for U.S. federal or other applicable tax purposes, the payment of pro rata distributions to any direct or indirect owner of such Person with respect to the federal, state and local tax liabilities of any such Person's direct and/or indirect owners (as the case may be) related to their shares of such Person's taxable income, assuming that they were subject to tax at the highest combined U.S. federal, state and local marginal tax rate applicable to any such owner for such taxable year, and (b) with respect to any taxable year for which such Person is treated as a member of a consolidated, combined, or similar group of corporations for tax purposes (or treated as disregarded from such a member), the payment of dividends or other distributions to any direct or indirect parent of such Person that files a consolidated, combined or similar tax return that includes such Person and its Subsidiaries (by virtue of such parent being the common parent of a consolidated, combined or similar tax group of which such Person and/or its Subsidiaries are members) in an amount equal to the portion of the group's tax liability attributable to the income of such Person and its Subsidiaries, which amount shall in any case not exceed the amount that such Person and its Subsidiaries would have been required to pay in respect of federal, state or local taxes (as the case may be) if such Person and its Subsidiaries paid such taxes as a stand-alone taxpayer (or standalone group). Notwithstanding the foregoing, with respect to any Person, substantially all the income of which is reported on the consolidated tax returns of Bally's Corporation, (x) if such Person is a member of such consolidated group, such Person shall be deemed to be a member of a consolidated group with Bally's Corporation as the parent for purposes of this definition and (y) if not, any Tax Distributions under this paragraph related to such person shall be calculated at corporate (and not individual) tax rates.

"<u>Temporary Facility</u>" means that certain Gaming Facility commonly known as Bally's Chicago located at 600 N. Wabash Avenue in Chicago, Illinois and which Gaming Facility is currently operated by an Affiliate of Tenant.

"<u>Tenant</u>" has the meaning set forth in the preamble.

"<u>Tenant Capital Improvement</u>" means a Capital Improvement funded by Tenant, as compared to Landlord.

"<u>Tenant COC</u>" has the meaning set forth in Section 22.2(c)(ii).

"<u>Tenant Parent COC</u>" has the meaning set forth in Section 22.2(c)(i).

"<u>Tenant Representatives</u>" has the meaning set forth in Section 23.4.

"<u>Tenant Subsidiary Guarantor</u>" has the meaning set forth in Section 6.4.

"<u>Tenant's Parent</u>" means (i) initially, Bally's Corporation, and (ii) following the occurrence of the transfer of any direct or indirect interest in Tenant or this Lease (including a Change in Control) that is permitted under this Lease, the Parent Company (if any) of Tenant.

"<u>Tenant's Property</u>" means all assets (other than the Leased Property and property owned by a third party) primarily related to or used in connection with the operation of the business conducted on or about the Leased Property, together with all replacements, modifications, additions, alterations and substitutes therefor.

"<u>Term</u>" has the meaning set forth in Section 1.3.

"<u>Termination Notice</u>" has the meaning set forth in Section 17.1(d).

"<u>Test Period</u>" means with respect to any Person, for any date of determination, the period of the four (4) most recently ended consecutive fiscal quarters of such Person.

"<u>Testing Condition</u>" means a condition that is satisfied as of the date that Tenant's Parent shall no longer have any publicly traded equity security requiring periodic reporting of financial statements in accordance with the rules and regulations of the SEC.

"<u>Transferred Items</u>" has the meaning set forth in Section 36.1.

"<u>Unavoidable Delay</u>" means any of the following events: any pandemic (including, without limitation, COVID-19) or other actual or potential epidemic, contagion or other disease outbreak, which results in a governmental or quasi-governmental order or mandate that directly prohibits Tenant's performance under this Lease, strikes, lock-outs, inability to procure materials, power failure, acts of God, governmental restrictions, enemy action, civil commotion, fire, unavoidable casualty, condemnation or other causes beyond the reasonable control of the party responsible for performing an obligation hereunder; provided that lack of funds shall not be deemed a cause beyond the reasonable control of a party.

"<u>Unrestricted Subsidiary</u>" means each Subsidiary of Tenant's Parent that is an "Unrestricted Subsidiary" (under and as defined in the Deutsche Credit Agreement).

"<u>Unrestricted Subsidiary Guarantor</u>" means each Unrestricted Subsidiary that becomes a Guarantor under any Guaranty.

"<u>Unrestricted Subsidiary Guarantor Release Date</u>" has the meaning set forth in <u>Section 6.4</u>.

"<u>Unsuitable for Its Primary Intended Use</u>" means the state or condition of the Facility such that by reason of damage or destruction, or a partial taking by Condemnation, the Facility cannot, following restoration thereof (to the extent commercially practical), be operated on a commercially practicable basis for its Primary Intended Use, taking into account, among other relevant factors, the amount of square footage and the estimated revenue affected by such damage or destruction.

**ARTICLE III**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1** **<u>Rent</u>.** During the Term, Tenant will pay to Landlord the Rent and Additional Charges in lawful money of the United States of America and legal tender for the payment of public and private debts, in the manner provided in Section 3.3. The Rent during any Lease Year is payable in advance (except that the Development Period Rent is payable in arrears) in consecutive monthly installments on the fifth (5<sup>th</sup>) Business Day of each calendar month during that Lease Year. Unless otherwise agreed by the parties, Rent and Additional Charges shall be prorated as to any partial months at the beginning and end of the Term. The parties agree that any Rent (including any Development Period Rent) that is payable prior to the Rent Conversion Trigger Date shall be allocated to the rental period beginning on the Rent Conversion Trigger Date and ending on the last day of the calendar year that includes the Rent Conversion Trigger Date, and any Rent payable on or subsequent to the Rent Conversion Trigger Date shall be allocated to the period in which such Rent is payable. For avoidance of doubt, zero Rent shall be allocated to any period prior to the Rent Conversion Trigger Date. The above allocation is intended to be a "specific allocation" under Treas. Reg. section 1.467-1(c)(2)(ii)(A). The parties agree that the Development Period Rent payable prior to the Rent Conversion Trigger Date is "fixed rent" within the meaning of Treas. Reg. section 1.467-1(h)(3) because it is fixed and determinable as of the date of Completion at which time the construction of the Leased Improvements is complete and possession of such Leased Improvements fully transfer to Tenant. Notwithstanding anything contained in this Lease to the contrary, in the event that the Facility is closed to the public as a result of a governmental order or mandate due to, or resulting from, any actual, potential, or threatened pandemic, epidemic, contagion or other disease outbreak (including, without limitation, COVID-19) (such order or mandate being, a "**Disease Event Closure Order**") and such closure continues for a period in excess of five (5) consecutive days, then Tenant shall be entitled to defer the payment of any Deferred Rent (as defined herein) until the earlier to occur of (such earlier date being, the "**Deferred Rent Repayment Date**") (i) the fifth (5<sup>th</sup>) anniversary of the Disease Event Closure Order, and (ii) the expiration of the Term or the earlier termination of this Lease. For purposes of this Section 3.1, "**Deferred Rent**" shall be an amount equal to (a) the annual Rent for the Lease Year in which the Facility was closed due to a Disease Event Closure Order, *multiplied*, by (b) a fraction, the numerator of which is the number of days that the Facility was closed to the public as the result of the Disease Event Closure Order through the date that the Disease Event Closure Order is lifted, inclusive, and the denominator of which is 365. Any and all Deferred Rent shall be immediately due and payable on the Deferred Rent Repayment Date and the late payment thereof shall be subject to late charges and interest as set forth under Section 3.2 and shall constitute an Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2** **<u>Late Payment of Rent</u>.** Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent will cause Landlord to incur costs not contemplated hereunder, the exact amount of which is presently anticipated to be extremely difficult to ascertain. Accordingly, if any installment of Rent other than Additional Charges payable to a Person other than Landlord shall not be paid within five (5) days after its due date, Tenant will pay Landlord on demand a late charge equal to the lesser of (a) five percent (5%) of the amount of such installment or (b) the maximum amount permitted by law; <u>provided</u>, <u>however</u>, that in no event shall any late charge be assessed on the full amount of Rent due pursuant to Section 16.3. The parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason of late payment by Tenant. The parties further agree that such late charge is Rent and not interest and such assessment does not constitute a lender or borrower/creditor relationship between Landlord and Tenant. Thereafter, if any installment of Rent other than Additional Charges payable to a Person other than Landlord shall not be paid within ten (10) days after its due date, the amount unpaid, including any late charges previously accrued, shall bear interest at the Overdue Rate from the due date of such installment to the date of payment thereof, and Tenant shall pay such interest to Landlord on demand. The payment of such late charge or such interest shall not constitute waiver of, nor excuse or cure, any default under this Lease, nor prevent Landlord from exercising any other rights and remedies available to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3** **<u>Method of Payment of Rent</u>.** Rent and Additional Charges to be paid to Landlord shall be paid by electronic funds transfer debit transactions through wire transfer of immediately available funds and shall be initiated by Tenant for settlement on or before the Payment Date; <u>provided</u>, <u>however</u>, if the Payment Date is not a Business Day, then settlement shall be made on the next succeeding day which is a Business Day. Landlord shall provide Tenant with appropriate wire transfer information in a Notice from Landlord to Tenant. If Landlord directs Tenant to pay any Rent to any party other than Landlord, Tenant shall send to Landlord simultaneously with such payment, a copy of the transmittal letter or invoice and a check whereby such payment is made or such other evidence of payment as Landlord may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4** **<u>Net Lease.</u>** Landlord and Tenant acknowledge and agree that (i) this Lease is and is intended to be what is commonly referred to as a "net, net, net" or "triple net" lease, and (ii) the Rent shall be paid absolutely net to Landlord, so that this Lease shall yield to Landlord the full amount or benefit of the installments of Rent and Additional Charges throughout the Term with respect to the Facility, all as more fully set forth in Article IV and subject to any other provisions of this Lease which expressly provide for adjustment or abatement of Rent or other charges. If Landlord commences any proceedings for non-payment of Rent, Tenant will not interpose any counterclaim or cross complaint or similar pleading of any nature or description in such proceedings unless Tenant would lose or waive such claim by the failure to assert it. This shall not, however, be construed as a waiver of Tenant's right to assert such claims in a separate action brought by Tenant. The covenants to pay Rent and other amounts hereunder are independent covenants, and Tenant shall have no right to hold back, offset or fail to pay any such amounts for default by Landlord or for any other reason whatsoever, except as provided in Section 3.1.

**ARTICLE IV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1** **<u>Impositions.</u>** (a) Subject to Article XII relating to permitted contests, Tenant shall pay, or cause to be paid, all Impositions before any fine, penalty, interest or cost may be added for non-payment. Tenant shall make such payments directly to the taxing authorities or other applicable third parties entitled to such payment where feasible, and promptly furnish to Landlord copies of official receipts or other satisfactory proof evidencing such payments. Tenant's obligation to pay Impositions shall be absolutely fixed upon the date such Impositions become a lien upon the Leased Property or any part thereof subject to Article XII. If any Imposition may, at the option of the taxpayer, lawfully be paid in installments, whether or not interest shall accrue on the unpaid balance of such Imposition, Tenant may pay the same, and any accrued interest on the unpaid balance of such Imposition, in installments as the same respectively become due and before any fine, penalty, premium, further interest or cost may be added thereto. For the avoidance of doubt, Tenant shall be responsible for the payment of all Impositions that are due and payable as of the Commencement Date regardless as to whether such Impositions are attributable to a period preceding the Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord or GLP shall prepare and file all tax returns and reports as may be required by Legal Requirements with respect to Landlord's net income, gross receipts, franchise taxes and taxes on its capital stock and any other returns required to be filed by or in the name of Landlord (the "**Landlord Tax Returns**"), and Tenant or Tenant's Parent shall prepare and file all other tax returns and reports as may be required by Legal Requirements with respect to or relating to the Leased Property and Leased Improvements (including all Capital Improvements), and Tenant's Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any refund due from any taxing authority in respect of any Imposition paid by or on behalf of Tenant or Tenant's Affiliates, including prior to the Commencement Date, shall be paid over to or retained by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Landlord and Tenant shall, upon request of the other, provide such data as is maintained by the party to whom the request is made with respect to the Leased Property as may be necessary to prepare any required returns and reports. If any property covered by this Lease is classified as personal property for tax purposes, Tenant shall file all personal property tax returns in such jurisdictions where it must legally so file. Landlord, to the extent it possesses the same, and Tenant, to the extent it possesses the same, shall provide the other party, upon request, with cost and depreciation records necessary for filing returns for any property so classified as personal property. Where Landlord is legally required to file personal property tax returns, Tenant shall be provided with copies of assessment notices indicating a value in excess of the reported value in sufficient time for Tenant to file a protest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Billings for reimbursement by Tenant to Landlord of personal property or real property taxes and any taxes or other Impositions due under the Landlord Tax Returns, if and to the extent Tenant is responsible for such taxes or other Impositions under the terms of this Section 4.1, shall be accompanied by copies of a bill therefor and payments thereof which identify the personal property or real property or other tax obligations of Landlord with respect to which such payments are made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Impositions imposed or assessed in respect of the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Landlord and Tenant, whether or not such Imposition is imposed or assessed before or after such termination, and Tenant's obligation to pay its prorated share thereof in respect of a tax-fiscal period during the Term shall survive such termination. Landlord will not voluntarily enter into agreements that will result in additional Impositions without Tenant's consent, which shall not be unreasonably withheld (it being understood that it shall not be reasonable to withhold consent to customary additional Impositions that other property owners of properties similar to the Leased Property customarily consent to in the ordinary course of business); <u>provided</u> Tenant is given reasonable opportunity to participate in the process leading to such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2** **<u>Utilities</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall pay or cause to be paid all charges for electricity, power, gas, oil, water and other utilities used in the Leased Property (including all Capital Improvements), including any such charges that remain outstanding as of the Commencement Date. Tenant shall also pay or reimburse Landlord for all costs and expenses of any kind whatsoever which at any time with respect to the Term hereof with respect to the Facility may be imposed against Landlord by reason of any of the covenants, conditions and/or restrictions affecting the Leased Property or any portion thereof, or with respect to easements, licenses or other rights over, across or with respect to any adjacent or other property which benefits the Leased Property or any Capital Improvement, including any and all costs and expenses associated with any utility, drainage and parking easements. Landlord will not enter into agreements that will encumber the Leased Property without Tenant's consent, which shall not be unreasonably withheld (it being understood that it shall not be reasonable to withhold consent to encumbrances that do not adversely affect the use or future development of the Facility as a Gaming Facility or increase Additional Charges payable under this Lease); <u>provided</u> Tenant is given reasonable opportunity to participate in the process leading to such agreement. Tenant will not enter into agreements that will encumber the Leased Property after the expiration of the Term without Landlord's consent, which shall not be unreasonably withheld (it being understood that it shall not be reasonable to withhold consent to encumbrances that do not adversely affect the value of the Leased Property or the Facility); <u>provided</u> Landlord is given reasonable opportunity to participate in the process leading to such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord has determined that the Leased Improvements, including, without limitation, any future Capital Improvements, should be environmentally sensitive and sustainable. Tenant shall submit to Landlord, upon Landlord's reasonable written request, any energy and utility consumption data and costs as they appear on Tenant's utility bills for purposes of regulatory compliance, benchmarking, energy management, building environmental performance labeling and other related purposes, in a format available to Tenant without additional cost, <u>provided</u>, <u>however</u>, Tenant shall not be required to produce documents or reports not readily available to Tenant or regularly produced by Tenant unless required by Legal Requirements. Whether by present or future law or pursuant to this Lease, Landlord may be obligated to provide data for the amount of utilities consumed and/or the actual carbon, greenhouse gas, utility (including, gas, oil and water) or other environmental emissions, releases, discharges, usages or the like emitted from the Leased Property or to demonstrate compliance with other applicable Legal Requirements, including, without limitation, the number of actual units consumed, by utility type per month, and associated start and end dates for such consumption, and in such case, upon Landlord's reasonable written request, Tenant shall provide Landlord with all such data and documentation relating to the Leased Property that Landlord is required to report to the applicable Governmental Authority or utility provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3** **<u>Impound Account</u>.** At Landlord's option following the occurrence and during the continuation of an Event of Default or a default by Tenant of Section 23.3(d) hereof (to be exercised by thirty (30) days' prior written notice to Tenant); and <u>provided</u> Tenant is not already being required to impound such payments in accordance with the requirements of Section 31.3(b) below, Tenant shall be required to deposit, at the time of any payment of Rent, an amount equal to one-twelfth of the sum of (i) Tenant's estimated annual real and personal property taxes required pursuant to Section 4.1 hereof (as reasonably determined by Landlord), and (ii) Tenant's estimated annual maintenance expenses and insurance premium costs pursuant to Articles IX and XIII hereof (as reasonably determined by Landlord). Such amounts shall be applied to the payment of the obligations in respect of which said amounts were deposited in such order of priority as Landlord shall reasonably determine, on or before the respective dates on which the same or any of them would become delinquent. Such amount shall be deposited in an interest-bearing segregated account with a banking institution and the reasonable cost of such bank for administering such impound account shall be paid by Tenant. Nothing in this Section 4.3 shall be deemed to affect any right or remedy of Landlord hereunder.

**ARTICLE V**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1** **<u>No Termination, Abatement, etc.</u>** Except as otherwise specifically provided in this Lease, Tenant shall remain bound by this Lease in accordance with its terms and shall not seek or be entitled to any abatement, deduction, deferment or reduction of Rent, or set-off against the Rent. Except as may be otherwise specifically provided in this Lease, the respective obligations of Landlord and Tenant shall not be affected by reason of (i) any damage to or destruction of the Leased Property or any portion thereof from whatever cause or any Condemnation of the Leased Property, any Capital Improvement or any portion thereof; (ii) other than as a result of Landlord's willful misconduct or gross negligence, the lawful or unlawful prohibition of, or restriction upon, Tenant's use of the Leased Property, any Capital Improvement or any portion thereof, the interference with such use by any Person or by reason of eviction by paramount title; (iii) any claim that Tenant has or might have against Landlord by reason of any default or breach of any warranty by Landlord hereunder or under any other agreement between Landlord and Tenant or to which Landlord and Tenant are parties; (iv) any bankruptcy, insolvency, reorganization, consolidation, readjustment, liquidation, dissolution, winding up or other proceedings affecting Landlord or any assignee or transferee of Landlord; or (v) for any other cause, whether similar or dissimilar to any of the foregoing, other than a discharge of Tenant from any such obligations as a matter of law. Tenant hereby specifically waives all rights arising from any occurrence whatsoever which may now or hereafter be conferred upon it by law (a) to modify, surrender or terminate this Lease or quit or surrender the Leased Property or any portion thereof, or (b) which may entitle Tenant to any abatement, reduction, suspension or deferment of the Rent or other sums payable by Tenant hereunder except in each case as may be otherwise specifically provided in this Lease. Notwithstanding the foregoing, nothing in this Article V shall preclude Tenant from bringing a separate action against Landlord for any matter described in the foregoing clauses (ii), (iii) or (v) and Tenant is not waiving other rights and remedies not expressly waived herein. The obligations of Landlord and Tenant hereunder shall be separate and independent covenants and agreements and the Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events unless the obligations to pay the same shall be terminated pursuant to the express provisions of this Lease or by termination of this Lease as to all or any portion of the Leased Property other than by reason of an Event of Default. Tenant's agreement that, except as may be otherwise specifically provided in this Lease, any eviction by paramount title as described in item (ii) above shall not affect Tenant's obligations under this Lease, shall not in any way discharge or diminish any obligation of any insurer under any policy of title or other insurance and, to the extent the recovery thereof is not necessary to compensate Landlord for any damages incurred by any such eviction, Tenant shall be entitled to a credit for any sums recovered by Landlord under any such policy of title or other insurance up to the maximum amount paid by Tenant to Landlord under this Section 5.1, and Landlord, upon request by Tenant, shall assign Landlord's rights under such policies to Tenant; <u>provided</u> that such assignment does not adversely affect Landlord's rights under any such policy and <u>provided further</u>, that Tenant shall indemnify, defend, protect and save Landlord harmless from and against any liability, cost or expense of any kind that may be imposed upon Landlord in connection with any such assignment except to the extent such liability, cost or expense arises from the gross negligence or willful misconduct of Landlord.

**ARTICLE VI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1** **<u>Ownership of the Leased Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties hereto covenants and agrees, subject to Section 6.1(c), not to (i) file any income tax return or other associated documents; (ii) file any other document with or submit any document to any governmental body or authority; (iii) enter into any written contractual arrangement with any Person; or (iv) release any financial statements of Tenant, in each case that takes a position other than that this Lease is a "true lease" with Landlord as owner of the Leased Property and Tenant as the tenant of the Leased Property, including (x) treating Landlord as the owner of such Leased Property eligible to claim depreciation deductions under Sections 167 or 168 of the Code with respect to such Leased Property, (y) Tenant reporting its Rent payments as rent expense under Section 162 of the Code, and (z) Landlord reporting the Rent payments as rental income under Section 61 of the Code, in each case except as otherwise required by a change in law or a "determination" within the meaning of Section 1313(a) of the Code (or similar provision of state or local law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Tenant should reasonably conclude that GAAP or the SEC require treatment different from that set forth in Section 6.1(b) for applicable non-tax purposes, then (x) Tenant shall promptly give prior Notice to Landlord, accompanied by a written statement that references the applicable pronouncement that controls such treatment and contains a brief description and/or analysis that sets forth in reasonable detail the basis upon which Tenant reached such conclusion, and (y) notwithstanding Section 6.1(b), Tenant may comply with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Rent is the fair market rent for the use of the Leased Property and was agreed to by Landlord and Tenant on that basis, and the execution and delivery of, and the performance by Tenant of its obligations under, this Lease does not constitute a transfer of all or any part of the Leased Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant waives any claim or defense based upon the characterization of this Lease as anything other than a true lease and as a lease of all of the Leased Property. Tenant stipulates and agrees (1) not to challenge the validity, enforceability or characterization of the lease of the Leased Property as a true lease and/or as a single, unseverable instrument pertaining to the lease of all, but not less than all, of the Leased Property, and (2) not to assert or take or omit to take any action inconsistent with the agreements and understandings set forth in Section 3.4 or this Section 6.1, in each case except as otherwise required by a change in law or a "determination" within the meaning of Section 1313(a) of the Code (or similar provision of state or local law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2** **<u>Ownership of the Tenant Capital Improvements</u>.** Landlord and Tenant acknowledge and agree that, subject to the Development Agreement, a portion of the Chicago Project may be funded in part by Tenant, in which event Landlord and Tenant shall reasonably agree as to which portion of the Chicago Project shall constitute "Tenant Capital Improvements" for purposes of this Lease. Landlord hereby acknowledges and agrees that during the Term, and for the purposes of this Section 6.2, any Tenant Capital Improvements shall be owned in fee by Tenant, as the same may be altered, expanded and/or improved from time to time in accordance with the terms of this Lease, <u>provided</u>, <u>however</u>, Tenant's rights with respect to the Tenant Capital Improvements are subject to all of Tenant's obligations specified in this Lease pertaining to the Leased Property and the Landlord's reversionary interest in such Tenant Capital Improvements as more fully provided herein. Any of Tenant's trade fixtures, or other property that is permanently affixed to the Tenant Capital Improvements at any point in time such that it is an integral part of the Tenant Capital Improvements, shall be deemed a part of the Tenant Capital Improvements and shall not constitute any portion of the Leased Property during the Term for the purposes of this Lease. Subject to Section 10.4, Section 16.2 and Article XXXVI, on the expiration or earlier termination of this Lease, all Tenant Capital Improvements then located on the Land shall automatically vest in, revert to, and become the property of Landlord without requirement of consent or other act of, Tenant and without the necessity of executing a deed, bill of sale, conveyance, or other act or agreement of Tenant, and except to the extent Landlord is required to compensate Tenant in accordance with Section 10.4, or Article XXXVI, without any payment of any kind or nature by Landlord to Tenant or to any other Person, including any Person claiming a lien against all or any portion of Tenant's interest in this Lease, and Tenant shall thereafter have no further rights thereto or interest therein. If the Tenant Capital Improvements revert to Landlord pursuant to the terms of this Lease, if requested by Landlord, Tenant shall, without charge to Landlord, promptly execute, acknowledge, and deliver to Landlord a deed and bill of sale (in form and content acceptable to Landlord and with respect to such Tenant Capital Improvements) that (a) conveys all of Tenant's right, title, and interest in and to such Tenant Capital Improvements remaining on the Land after the termination of this Lease; and (b) conveys or assigns (to the extent conveyable or assignable), as the case may be, all of Tenant's rights and obligations under any plans, records, registers, permits, and all other papers and documents reasonably conveyable or assignable and that may be necessary or appropriate for the proper operation and management of the Tenant Capital Improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3** **<u>Tenant's Property</u>.** Tenant shall, at all times during the entire Term, own (or lease), install and maintain (or cause its Subsidiaries to own (or lease), install and maintain) on the Leased Property adequate and sufficient Tenant's Property, including without limitation, adequate and sufficient furniture, fixtures and equipment, including without limitation, Gaming Equipment, and personal property necessary for the conduct of the Primary Intended Use. Tenant shall maintain (or cause its Subsidiaries to maintain) all of such Tenant's Property in good order, condition and repair, in all cases as shall be necessary and appropriate in order to operate the Facility for the Primary Intended Use in compliance with all applicable licensure and certification requirements and in compliance with all applicable Legal Requirements, Insurance Requirements and Gaming Regulations. If any of Tenant's Property requires replacement in order to comply with the foregoing, Tenant shall replace (or cause a Subsidiary to replace) it with similar property of the same or better quality at Tenant's (or such Subsidiary's) sole cost and expense. Subject to the foregoing, Tenant and its Subsidiaries may sell, transfer, convey or otherwise dispose of Tenant's Property (other than Gaming Licenses and subject to this Section 6.3 and Section 6.4) in their discretion in the ordinary course of its business and Landlord shall have no rights to such Tenant's Property. Tenant shall, upon Landlord's request, from time to time but not more frequently than one time per Lease Year, provide Landlord with a list of the material Tenant's Property located at the Facility. In the case of any such Tenant's Property that is leased (rather than owned) by Tenant (or its Subsidiaries), Tenant shall use commercially reasonable efforts to ensure that the lease agreements pursuant to which Tenant (or its Subsidiaries) leases such Tenant's Property are assignable to third parties in connection with any transfer by Tenant (or its Subsidiaries) to a replacement lessee or operator at the end of the Term. Tenant shall remove all of Tenant's Property from the Leased Property at the end of the Term, except to the extent Tenant has transferred ownership of such Tenant's Property to a Successor Tenant or Landlord. Any Tenant's Property left on the Leased Property at the end of the Term whose ownership was not transferred to a Successor Tenant shall be deemed abandoned by Tenant and shall become the property of Landlord. Notwithstanding anything to the contrary contained herein, the assignment or transfer of Tenant's Property is conditioned upon and subject to compliance with applicable Gaming Regulations, including, without limitation, the receipt of all necessary Gaming Licenses by the designated assignee or transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4** **<u>Guarantors</u>.** (i) Each of Tenant's Subsidiaries (collectively, the "**Tenant Subsidiary Guarantors**"), (ii) each wholly-owned domestic Subsidiary of Tenant's Parent that is, as of the Effective Date, an Unrestricted Subsidiary and listed on <u>Schedule 6.4</u>, (iii) each wholly-owned foreign Subsidiary of Tenant's Parent that is, as of the Effective Date, an Unrestricted Subsidiary if (1) such Subsidiary has a net worth of at least $50,000,000, and (2) such Subsidiary is not prohibited by any applicable law from guaranteeing this Lease, (iv) Bally's Chicago and (v) prior to the Unrestricted Subsidiary Guarantor Release Date, (1) each other wholly-owned domestic Subsidiary of Tenant's Parent that is or becomes an Unrestricted Subsidiary from and after the Effective Date (excluding (x) Bally's Foundation North America, Inc. and (y) until the closing of the transactions described in the definitive transaction agreement disclosed by Tenant's Parent in its current report on Form 8-K dated July 1, 2025, PE Sub Holdings LLC) and (2) each wholly-owned foreign Subsidiary of Tenant's Parent that is or becomes an Unrestricted Subsidiary from and after the Effective Date if (A) such Subsidiary has a net worth of at least $50,000,000, and (B) such Subsidiary is not prohibited by any applicable law from guaranteeing this Lease, in each case shall be a Guarantor under this Lease and shall execute and deliver to the Landlord the Guaranty in the form attached hereto as <u>Exhibit D</u>. The Guarantors as of the Effective Date are set forth on <u>Schedule 6.4</u> attached hereto. If at any time Tenant becomes a "Restricted Subsidiary" under and as defined in the Effective Date Deutsche Credit Agreement and the Bally's Indenture as in effect on the Effective Date, then Tenant shall (a) provide written notice thereof within five (5) Business Days following such occurrence and (b) cause Tenant's Parent to execute and deliver a Guaranty of this Lease and the Development Agreement (the "**Subsequent Guaranty**") in the form attached hereto as <u>Exhibit D</u>. Neither Tenant's Parent nor any Unrestricted Subsidiary Guarantor shall (directly or indirectly) enter into any agreement or make or approve any decision or take any action whereby the effect of such agreement, decision or action (x) restricts such Unrestricted Subsidiary Guarantor's ability to guarantee this Lease or the Development Agreement or (y) restricts Tenant's Parent ability to guarantee this Lease or the Development Agreement (including Tenant's Parent's ability to enter into the Subsequent Guaranty) on or prior to the stated maturity date of the Bally's Revolving Credit Facility as in effect on the Commencement Date, in each case without the Landlord's prior written consent. Upon the execution and delivery of the Subsequent Guaranty (the date of such execution and delivery, the "**Unrestricted Subsidiary Guarantor Release Date**"), each Unrestricted Subsidiary Guarantor shall automatically and immediately be released from the Initial Guaranty without any further action by any Person (provided that upon request by Tenant, Landlord shall deliver instruments of termination reasonably satisfactory to Tenant and Landlord). Further, subject to Landlord's prior written consent, which consent shall be granted in Landlord's sole discretion, upon any Unrestricted Subsidiary Guarantor becoming a "Restricted Subsidiary" under and as defined in the Effective Date Deutsche Credit Agreement and the Bally's Indenture, the Initial Guaranty shall immediately and automatically terminate with respect to such Unrestricted Subsidiary Guarantor without any further action by any Person (provided that upon request by Tenant, Landlord shall deliver instruments of termination reasonably satisfactory to Tenant and Landlord). For the avoidance of doubt, (1) neither Bally's Chicago nor any Tenant Subsidiary Guarantor shall be released from the Initial Guaranty as a result of the occurrence of the Unrestricted Subsidiary Guarantor Release Date and (2) any Subsidiary of Tenant that becomes a party to the Initial Guaranty shall remain a guarantor under the Initial Guaranty with the same force and effect as if originally named as a Guarantor herein and the rights and obligations of each Subsidiary of Tenant party to the Initial Guaranty shall remain in full force and effect notwithstanding the termination and release of the Unrestricted Subsidiary Guarantors under the Initial Guaranty. In addition, if any material Gaming License or other license or other material asset necessary to operate any portion of the Leased Property is owned by a Subsidiary of Tenant, Tenant shall within five (5) Business Days after the date such Subsidiary acquires such Gaming License, other license or other material asset, notify the Landlord thereof and cause such Subsidiary (if it is not already a Guarantor) to become a Guarantor by executing the Guaranty in form and substance reasonably satisfactory to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5** **<u>Refinancing Transaction</u>.** Tenant hereby represents and warrants that the Deutsche Credit Agreement, the Bally's Indenture and the Apollo Note Purchase Agreement are the only Debt Agreements that include a Cross-Default Restriction. Following the Commencement Date, Tenant shall not enter into, or modify or amend any Debt Agreement to impose any Cross Default Restrictions upon Tenant, Tenant's Parent, and their respective Affiliates and Subsidiaries. Tenant shall furnish to Landlord written notice of any Refinancing Transaction within ten (10) days after the closing of such Refinancing Transaction.

**ARTICLE VII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1** **<u>Condition of the Leased Property</u>.** Tenant acknowledges that immediately prior to the Effective Date Tenant was in possession of, and operating, the Leased Property and Tenant acknowledges receipt and delivery of possession of the Leased Property, and confirms that Tenant has examined and otherwise has knowledge of the condition of the Leased Property prior to the execution and delivery of this Lease and has found the same (except as included in the disclosures on <u>Schedule A</u>) to be in good order and repair and, to the best of Tenant's knowledge, free from Hazardous Substances not in compliance with Legal Requirements and satisfactory for its purposes hereunder. Regardless, however, of any examination or inspection made by Tenant and whether or not any patent or latent defect or condition was revealed or discovered thereby, Tenant is leasing the Leased Property "as is" in its present condition and during the Term of this Lease Tenant shall be solely responsible for the repair and maintenance of any condition of the Leased Property in existence on the Effective Date. Tenant waives any claim or action against Landlord in respect of the condition of the Leased Property including, without limitation, the condition of the Leased Improvements, their compliance with Legal Requirements, the presence of Hazardous Substances, if any, and any defects or adverse conditions not discovered or otherwise known by Tenant as of the Commencement Date. **LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED PROPERTY OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, OR AS TO THE NATURE OR QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, OR THE EXISTENCE OF ANY HAZARDOUS SUBSTANCE ON THE LEASED PROPERTY OR ANY PART THEREOF, IT BEING AGREED THAT ALL SUCH RISKS, LATENT OR PATENT, ARE TO BE BORNE SOLELY BY TENANT INCLUDING ALL RESPONSIBILITY AND LIABILITY FOR ANY REMEDIATION AND COMPLIANCE WITH ALL ENVIRONMENTAL LAWS**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2** **<u>Use of the Leased Property</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant shall use or cause to be used the Leased Property and the improvements thereon for its Primary Intended Use. Tenant shall not use the Leased Property or any portion thereof or any Capital Improvement for any use other than the Primary Intended Use without the prior written consent of Landlord, which consent Landlord may withhold in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Tenant shall not commit or suffer to be committed any waste on the Leased Property (including any Capital Improvement thereto) or cause or permit any nuisance thereon or to, except as required by law, take or suffer any action or condition that will diminish the ability of the Leased Property to be used as a Gaming Facility after the expiration or earlier termination of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Tenant shall neither suffer nor permit the Leased Property or any portion thereof to be used in such a manner as (i) might reasonably tend to impair Landlord's title thereto or to any portion thereof, (ii) may make possible a claim of adverse use or possession, or an implied dedication of the Leased Property or any portion thereof, (iii) shall result in the occurrence of a default continuing beyond applicable notice and cure periods (as set forth in the Host Community Agreement) of the Host Community Agreement that shall give the City the right to terminate the Host Community Agreement or (iv) would be reasonably expected to result in the loss, revocation, suspension or termination of the Gaming License.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) From and after Completion (as defined in the Development Agreement) of the Chicago Project, Tenant shall continuously operate the Facility for the Primary Intended Use during the Term; provided, however, that Tenant shall not be deemed to be in breach of such covenant of continuous operation to the extent that any cessation of operations at the Facility is due to any of the following (each of the foregoing, a "**Permitted Go Dark Event**"): (i) any Unavoidable Delay (but only for so long as such Unavoidable Delay remains in effect), (ii) temporary closures necessitated by any Casualty Event or Condemnation, (iii) temporary closures to the extent necessary or reasonably advisable in connection with the making of any Capital Improvements in accordance with the terms and conditions hereof, or (iv) Tenant's election if such cessation would not reasonably be expected to have a material adverse effect on Tenant, the Facility or the Leased Property, taken as a whole, provided that (A) in the case of any closures under clauses (ii) or (iii), such temporary closure shall only be for so long as is reasonably necessary for Tenant to perform its obligations hereunder and (B) in the case of any closures under clauses (iii) or (iv), no Event of Default has occurred and is continuing immediately prior to or after the date that operations are ceased or as a result of such cessation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything contained in this Lease to the contrary, prior to the Opening Date, Tenant shall not (i) commence and/or perform any construction or development activities upon the Development Land, it being understood that no portion of the Chicago Project shall be constructed on the Development Land without the Landlord's prior written consent, and (ii) directly or indirectly (by operation of law or otherwise) transfer, sell, encumber, pledge, assign, hypothecate or sublet all or any part or of, or interest in, the Development Land. From and after the Opening Date, Tenant shall have the right to use the Development Land in accordance with the terms of this Lease; <u>provided</u>, <u>however</u>, that the use of the Development Land (including, without limitation, the construction and development of any structures or other improvements, and/or sublease of the Development Land) for any purpose other than the Primary Intended Use shall require Landlord's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3** **<u>Competing Business.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Tenant's Obligations for Greenfields</u>. Tenant agrees that during the Term, neither Tenant nor any of its Affiliates shall (i) build or otherwise participate in the development of a new Gaming Facility (including a facility that has been shut down for a period of more than twelve (12) months) located within the Restricted Area of the Facility (a "**Greenfield Project**") or (ii) acquire or operate any Competing Facility, unless Tenant shall first offer Landlord the opportunity to include the Greenfield Project or the Competing Facility, as the case may be, as a Leased Property under this Lease on terms to be negotiated by the parties (which terms with respect to Landlord funding the development of any such Greenfield Project shall include the terms set forth in Section 10.4 hereof regarding Capital Improvements). Within thirty (30) days of Landlord's receipt of notice from Tenant providing the opportunity to fund and include as Leased Property under this Lease a Greenfield Project or a Competing Facility, as the case may be, on terms to be negotiated by the parties, Landlord shall notify Tenant as to whether it intends to participate in such Greenfield Project or acquire such Competing Facility, as applicable, and, if Landlord indicates such intent, the parties shall negotiate in good faith the terms and conditions upon which this would be effected, including the terms of any amendment to this Lease and any development, funding or purchase agreement, which Landlord might require. Should Landlord notify Tenant that it does not intend to pursue such Greenfield Project or Competing Facility (or should Landlord decline to notify Tenant of its affirmative response within such thirty (30) day period), or if the parties despite good faith efforts on both sides fail to reach agreement on the terms under which such opportunity would be jointly pursued under this Lease and such new Greenfield Project or Competing Facility, would become a portion of the Leased Property hereunder, in any event, within forty-five (45) days after Landlord's notice to Tenant of Landlord's intent to participate in such Greenfield Project or Competing Facility, then Tenant shall have no further obligation to Landlord with respect to, and may pursue, such Greenfield Project or Competing Facility, as applicable. Notwithstanding anything to the contrary in this Section 7.3(a), Tenant and its Affiliates shall not be restricted under this Section 7.3(a) from expanding the Facility under this Lease (subject to Tenant's compliance with the terms of Section 10.4 and the other provisions of Article X).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Landlord's Obligations for Greenfields</u>. Landlord agrees that during the Term, neither Landlord nor any of its Affiliates shall, without the prior written consent of the Tenant (which consent may be withheld in Tenant's sole discretion), build or otherwise participate in the development of a Greenfield Project within the Restricted Area. Notwithstanding anything to the contrary in this Section 7.3(b), (i) Landlord and its Affiliates shall not be restricted under this Section 7.3(b) from acquiring, financing or providing refinancing for any facility that is in operation or has been in operation at any time during the twelve month period prior to the time in question, and (ii) subject to the provisions of Section 7.3(d) hereof, Landlord and its Affiliates shall not be restricted under this Section 7.3(b) from expanding any Competing Facility existing at the time in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Tenant's Rights Regarding Facility Expansions</u>. Tenant shall be permitted to construct Capital Improvements in accordance with the terms of Article X hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Landlord's Rights Regarding Facility Expansions</u>. Landlord shall be permitted to finance expansions of any Competing Facility within the Restricted Area that is already in existence at any time in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Landlord's Rights to Acquire or Finance Existing Facilities</u>. Landlord shall not be restricted under this Section 7.3 from acquiring or providing any kind of financing or refinancing to any Competing Facility within the Restricted Area that is already in existence at any time in question.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Restrictions Outside of Restricted Area</u>. Each of Landlord and Tenant shall not be restricted from participating in opportunities, including, without limitation, developing, building, purchasing or operating Gaming Facilities, outside the Restricted Area at any time.

**ARTICLE VIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **<u>Representations and Warranties</u>.** Each party represents and warrants to the other that: (i) this Lease and all other documents executed or to be executed by it in connection herewith have been duly authorized and shall be binding upon it; (ii) it is duly organized, validly existing and in good standing under the laws of the state of its formation and is duly authorized and qualified to perform this Lease within the State of Illinois; and (iii) neither this Lease nor any other document executed or to be executed in connection herewith violates the terms of any other agreement of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** **<u>Compliance with Legal and Insurance Requirements, etc.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Article XII regarding permitted contests, Tenant, at its sole cost and expense, shall promptly (a) comply in all material respects with all Legal Requirements, Insurance Requirements and Property Agreements regarding the use, operation, maintenance, repair and restoration of the Leased Property (including all Capital Improvements thereto) and Tenant's Property whether or not compliance therewith may require structural changes in any of the Leased Improvements or interfere with the use and enjoyment of the Leased Property, and (b) procure, maintain and comply in all material respects with all Gaming Regulations and Gaming Licenses, and other authorizations, licenses and permits required for the use of the Leased Property (including all Capital Improvements) and Tenant's Property for the applicable Primary Intended Use and any other use of the Leased Property (including Capital Improvements then being made) and Tenant's Property, and for the proper erection, installation, operation and maintenance of the Leased Property and Tenant's Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Gaming Authority or other regulatory agency, commission, board or other governmental body notifies Tenant that it is in jeopardy, or Tenant has reason to believe that it is in jeopardy, of losing a Gaming License material to the continued operation of the Facility, Tenant shall promptly notify Landlord of the same in writing. In an emergency or in the event of a breach by Tenant of its obligations under this Section 8.2 which is not cured within any applicable cure period, Landlord may, but shall not be obligated to, enter upon the Leased Property and take such reasonable actions and incur such reasonable costs and expenses to effect such compliance as it deems advisable to protect its interest in the Leased Property, and Tenant shall reimburse Landlord for all such reasonable costs and expenses incurred by Landlord in connection with such actions. Tenant covenants and agrees that the Leased Property and Tenant's Property shall not be used for any unlawful purpose. In the event that a Gaming Authority or other regulatory agency, commission, board or other governmental body notifies Tenant that it is in jeopardy of losing a Gaming License material to the continued operation of the Facility, and, assuming no Event of Default has occurred and is continuing, Tenant shall be given reasonable time to address the regulatory issue, after which period (but in all events prior to an actual revocation of such Gaming License) Tenant shall be required to sell (i) if permitted by applicable law, the Gaming License, and to the extent such sale is not permitted by applicable law Tenant shall use reasonable best efforts to transfer the applicable Gaming License or to cause the issuance of a new or replacement Gaming License, pursuant to the procedures permitted by applicable state law and Gaming Regulations, and (ii) Tenant's Property related to the Facility to a successor operator of the Facility determined by Landlord choosing one and Tenant choosing three (for a total of four) potential operators and Landlord indicating the reasonable, market terms under which it would agree to lease the Facility to such potential operators, which in Landlord's reasonable discretion may contain reasonable variations in terms to the extent required to account for credit quality differences among the potential operators (*e.g.*, Landlord may require different letter of credit terms and amounts, but may not set different rent terms). Tenant will then be entitled to auction off Tenant's Property relating to the Facility and Landlord will thereafter be entitled to lease the Facility to the potential successor that is the successful bidder. In the event of a new lease from Landlord to the successor, this Lease shall automatically terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Landlord shall comply with any Gaming Regulations or other regulatory requirements required of it as owner of the Facility taking into account its Primary Intended Use (except to the extent Tenant fulfills or is required to fulfill any such requirements hereunder). In the event that a regulatory agency, commission, board or other governmental body notifies Landlord that it is in jeopardy of failing to comply with any such Gaming Regulation or other regulatory requirements material to the continued operation of the Facility for its Primary Intended Use, Landlord shall be given reasonable time to address the regulatory issue, after which period (but in all events prior to an actual cessation of the use of the Facility for its Primary Intended Use as a result of the failure by Landlord to comply with such regulatory requirements) Landlord shall be required to sell the Leased Property to the highest bidder (and Tenant or any Affiliate of Tenant shall be entitled to be one of the bidders) and this Lease shall remain in effect between Tenant and such successor Landlord; provided that if Tenant is the bidder it shall not be required to agree to lease the Facility. In the event during the period in which Landlord conducts such auction such regulatory agency notifies Landlord and Tenant that Tenant may not pay any portion of the Rent to Landlord, Tenant shall be entitled to fund such amount into an escrow account, to be released to Landlord or the party legally entitled thereto at or upon resolution of such regulatory issues and otherwise on terms reasonably satisfactory to the parties. Notwithstanding anything in the foregoing to the contrary, no transfer of Tenant's Property used in the conduct of gaming (including the purported or attempted transfer of a Gaming License) or the operation of a Gaming Facility for its Primary Intended Use shall be effected or permitted without receipt of all necessary approvals and/or Gaming Licenses in accordance with applicable Gaming Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3** **<u>Zoning and Uses</u>.** Without the prior written consent of Landlord, which shall not be unreasonably withheld unless the action for which consent is sought could adversely affect the Primary Intended Use of the Facility (in which event Landlord may withhold its consent in its sole and absolute discretion), Tenant shall not (i) initiate or support any limiting change in the permitted uses of the Leased Property (or to the extent applicable, limiting zoning reclassification of the Leased Property); (ii) seek any variance under existing land use restrictions, laws, rules or regulations (or, to the extent applicable, zoning ordinances) applicable to the Leased Property or use or permit the use of the Leased Property; (iii) impose or permit or suffer the imposition of any restrictive covenants, easements or encumbrances (other than Permitted Leasehold Mortgages) upon the Leased Property in any manner that adversely affects in any material respect the value or utility of the Leased Property; (iv) execute or file any subdivision plat affecting the Leased Property, or institute, or permit the institution of, proceedings to alter any tax lot comprising the Leased Property; or (v) permit or suffer the Leased Property to be used by the public or any Person in such manner as might make possible a claim of adverse usage or possession or of any implied dedication or easement (<u>provided</u> that the proscription in this clause (v) is not intended to and shall not restrict Tenant in any way from complying with any obligation it may have under applicable Legal Requirements, including, without limitation, Gaming Regulations and the Host Community Agreement, to afford to the public access to the Leased Property).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4** **<u>Compliance with Ground Leases</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Lease, to the extent affecting and solely with respect to the Ground Leased Property, is and shall be subject and subordinate to all of the terms and conditions of each Ground Lease. Tenant hereby acknowledges that Tenant has reviewed and agreed to all of the terms and conditions of each Ground Lease. Tenant hereby agrees that Tenant shall not do, or fail to do, anything that would cause any violation of any Ground Lease. Without limiting the foregoing, (i) Tenant shall pay Landlord on demand as an Additional Charge hereunder all rent required to be paid by, and other monetary obligations of, Landlord as tenant under each Ground Lease (and, at Landlord's option, Tenant shall make such payments directly to the applicable Ground Lessor); <u>provided</u>, <u>however</u>, such Additional Charges payable by Tenant shall exclude any additional costs under any Ground Lease which are caused solely by Landlord after the Commencement Date without consent or fault of or omission by Tenant, (ii) to the extent Landlord is required to obtain the written consent of the lessor under any Ground Lease (each, a "**Ground Lessor**") to alterations of or the subleasing of all or any portion of the Ground Leased Property pursuant to such Ground Lease, Tenant shall likewise obtain such Ground Lessor's written consent to alterations of or the subleasing of all or any portion of the Ground Leased Property (and Landlord will use commercially reasonable efforts to submit such requests to such Ground Lessor and cooperate, at no cost or expense to Landlord, with the reasonable requests of Tenant and such Ground Lessor to facilitate such requests), and (iii) Tenant shall carry and maintain general liability, automobile liability, property and casualty, worker's compensation and employer's liability insurance in amounts and with policy provisions, coverages and certificates as required of Landlord as tenant under each Ground Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of cancellation or termination of any Ground Lease for any reason whatsoever whether voluntary or involuntary (by operation of law or otherwise) prior to the expiration date of this Lease, including extensions and renewals granted thereunder, then, at the applicable Ground Lessor's option, Tenant shall make full and complete attornment to such Ground Lessor with respect to the obligations of Landlord to such Ground Lessor in connection with the Ground Leased Property for the balance of the term of such Ground Lease (notwithstanding that this Lease shall have expired with respect to the Ground Leased Property as a result of the cancellation or termination of such Ground Lease). Tenant's attornment shall be evidenced by a written agreement which shall provide that the Tenant is in direct privity of contract with such Ground Lessor (*i.e.*, that all obligations previously owed to Landlord under this Lease with respect to such Ground Lease or the Ground Leased Property shall be obligations owed to such Ground Lessor for the balance of the term of this Lease, notwithstanding that this Lease shall have expired with respect to the Ground Leased Property as a result of the cancellation or termination of such Ground Lease) and which shall otherwise be in form and substance reasonably satisfactory to such Ground Lessor. Tenant shall execute and deliver such written attornment within thirty (30) days after request by such Ground Lessor. Unless and until such time as an attornment agreement is executed by Tenant pursuant to this Section 8.4(b), nothing contained in this Lease shall create, or be construed as creating, any privity of contract or privity of estate between any Ground Lessor and Tenant. For the avoidance of doubt, if Landlord acquires any Ground Lessor's interest in any Leased Property hereunder, this Lease shall at all times remain in full force and effect with respect to such Leased Property notwithstanding the fact that such Ground Lease may have been terminated as a result thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing contained in this Lease amends, or shall be construed to amend, any provision of any Ground Lease.

**ARTICLE IX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **<u>Maintenance and Repair</u>.** (a) Tenant, at its expense and without the prior consent of Landlord, shall maintain the Leased Property and Tenant's Property, and every portion thereof, and all private roadways, sidewalks and curbs appurtenant to the Leased Property, and which are under Tenant's control in good order and repair (consistent with, or better than, the Applicable Standards) whether or not the need for such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of the Leased Property and Tenant's Property, and, with reasonable promptness, make all reasonably necessary and appropriate repairs thereto of every kind and nature, including those necessary to ensure continuing compliance with the Applicable Standards, all Legal Requirements and Insurance Requirements, if any, whether interior or exterior, structural or non-structural, mechanical or non-mechanical, ordinary or extraordinary, foreseen or unforeseen or arising by reason of a condition existing prior to the Commencement Date. All repairs shall be at least equivalent in quality to the original work. Tenant will not take or omit to take any action the taking or omission of which would reasonably be expected to materially impair the value or the usefulness of the Leased Property or any part thereof or any Capital Improvement thereto for its Primary Intended Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting any other right contained in this Lease, from time to time, Landlord may, or may engage third party experts to, examine and inspect the Leased Property in accordance with Section 24.1 and shall have the right to cause a property condition report (the "**Property Report**") to be prepared in respect of the Leased Property and Leased Improvements (including any Capital Improvements thereto), which Property Report shall be at Landlord's sole cost and expense unless (i) Landlord has a reasonable basis to believe that Tenant is in breach of its obligations under this Article IX or Article X, (ii) such Property Report indicates that Tenant is in breach of its obligations under this Lease, or (iii) Tenant or Landlord has received notice from a Governmental Authority of a violation of Legal Requirements pertaining to the condition of the Leased Property (a "**Repair Violation Notice**"). Landlord shall provide Tenant a copy of any and all Property Reports it obtains in connection with the Leased Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon receipt of written notice from Landlord that there exist any Identified Repairs (a "**Landlord Repair Notice**"), Tenant acknowledges and agrees that Tenant shall be required to perform such Identified Repairs at its sole cost and expense pursuant to this Section 9.1. Other than Life-Safety Repairs, which Tenant shall promptly commence upon receipt of the applicable Landlord Repair Notice, all Identified Repairs shall commence no later than the time period set forth in the Landlord Repair Notice (the "**Outside IR Commencement Date**"), which time period shall be a commercially reasonable time period in light of the Identified Repairs to be performed, but in no event less than the cure period set forth in Section 16.1(p), and following commencement thereof, Tenant shall diligently pursue such Identified Repairs (including the Life-Safety Repairs) to completion. Notwithstanding the foregoing, nothing herein shall be deemed to negate Tenant's obligations to complete any such Identified Repairs within the timeframes dictated by a Governmental Authority in any Repair Violation Notice. All Identified Repairs shall be completed in accordance with the terms of this Lease, including, but not limited to, Article X to the extent that such repairs are integrated into a Capital Improvement project and any requirement to obtain the prior written consent of Landlord with respect to such Identified Repairs. Landlord shall not be liable to Tenant for any information contained in any Property Report nor shall Landlord be liable or responsible for Tenant's failure to take any action recommended in such Property Report. Notwithstanding the foregoing, with respect to any condition classified as a Life-Safety Repair, Tenant shall act promptly to prevent bodily injury or imminent damage to property, including the Leased Property, and Tenant may take such actions as may reasonably be required to render the Leased Property in a safe condition without Landlord's prior written consent; provided, however, the actual repair of such Emergency condition shall remain subject to the requirements of Article X if applicable. The Property Report shall not invalidate or shift any obligations of Tenant to maintain the Leased Property in accordance with this Section 9.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Landlord shall not under any circumstances be required to (i) build or rebuild any improvements on the Leased Property; (ii) make any repairs, replacements, alterations, restorations or renewals of any nature to the Leased Property, whether ordinary or extraordinary, structural or non-structural, mechanical or non-mechanical, foreseen or unforeseen, or to make any expenditure whatsoever with respect thereto; or (iii) maintain the Leased Property in any way. Tenant hereby waives, to the extent permitted by law, the right to make repairs at the expense of Landlord pursuant to any law in effect at the time of the execution of this Lease or hereafter enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing contained in this Lease and no action or inaction by Landlord shall be construed as (i) constituting the consent or request of Landlord, expressed or implied, to any contractor, subcontractor, laborer, materialman or vendor to or for the performance of any labor or services or the furnishing of any materials or other property for the construction, alteration, addition, repair or demolition of or to the Leased Property or any part thereof or any Capital Improvement thereto; or (ii) giving Tenant any right, power or permission to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any claim against Landlord in respect thereof or to make any agreement that may create, or in any way be the basis for, any right, title, interest, lien, claim or other encumbrance upon the estate of Landlord in the Leased Property, or any portion thereof or upon the estate of Landlord in any Capital Improvement thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Without limiting Tenant's obligations to maintain the Leased Property and Tenant's Property under this Lease, within thirty (30) days after the end of each calendar year (commencing with the calendar year in which the fifth (5<sup>th</sup>) anniversary of the Opening Date occurs), Tenant shall provide Landlord with evidence satisfactory to Landlord in the reasonable exercise of Landlord's discretion that Tenant has in such calendar year spent, with respect to the Leased Property and Tenant's Property at the Facility, an aggregate amount equal to at least 1.0% of its actual Net Revenue from the Facility for such calendar year on installation or restoration and repair or other improvement of items at the Facility, which installations, restorations and repairs and other improvements are capitalized in accordance with GAAP with an expected life of not less than three (3) years; <u>provided</u> that, in the event an Unavoidable Delay occurs during the time during which Tenant is required to make the foregoing expenditures and such Unavoidable Delay actually prevents or delays Tenant's performance of such installations, restorations, repairs or other improvements, then the relevant period in which Tenant was obligated to perform such installations, restorations, repairs or other improvements shall be extended, on a day-for-day basis, for the same amount of time that such Unavoidable Delay actually delayed Tenant's ability to perform such installations, restorations, repairs or other improvements. If Tenant fails to make at least the above amount of expenditures and fails within sixty (60) days after receipt of a written demand from Landlord to either (i) cure such deficiency or (ii) obtain Landlord's written approval, in its reasonable discretion, of a repair and maintenance program satisfactory to cure such deficiency, then the same shall be deemed an Event of Default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Tenant shall, upon the expiration or earlier termination of the Term, vacate and surrender the Leased Property (including all Capital Improvements, subject to the provisions of Article X), in each case with respect to the Facility, to Landlord in the condition in which such Leased Property was originally received from Landlord and Capital Improvements were originally introduced to the Facility, except as repaired, rebuilt, restored, altered or added to as permitted or required by the provisions of this Lease (including Section 14.2 and 15.1) and except for ordinary wear and tear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **<u>Encroachments, Restrictions, Mineral Leases, etc.</u>** If any of the Leased Improvements shall, at any time, encroach upon any property, street or right-of-way, or shall violate any restrictive covenant or other agreement affecting the Leased Property, or any part thereof or any Capital Improvement thereto, or shall impair the rights of others under any easement or right-of-way to which the Leased Property is subject, or the use of the Leased Property or any Capital Improvement thereto is impaired, limited or interfered with by reason of the exercise of the right of surface entry or any other provision of a lease or reservation of any oil, gas, water or other minerals, then promptly upon the request of Landlord or any Person affected by any such encroachment, violation or impairment, each of Tenant and Landlord, subject to their right to contest the existence of any such encroachment, violation or impairment, shall protect, indemnify, save harmless and defend the other party hereto from and against fifty percent (50%) of all losses, liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including reasonable attorneys', consultants' and experts' fees and expenses) based on or arising by reason of any such encroachment, violation or impairment; <u>provided</u>, <u>however</u>, Landlord shall have no obligation to protect, indemnify, save harmless or defend Tenant from or against any losses, liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including reasonable attorneys', consultants' and experts' fees and expenses) with respect to any encroachments, violation or impairment that result from the act or omissions of Tenant or its employees, agents and contractors. In the event of an adverse final determination with respect to any such encroachment, violation or impairment, either (a) each of Tenant and Landlord shall be entitled to obtain valid and effective waivers or settlements of all claims, liabilities and damages resulting from each such encroachment, violation or impairment, whether the same shall affect Landlord or Tenant or (b) Tenant at the shared cost and expense of Tenant and Landlord on a 50-50 basis shall make such changes in the Leased Improvements, and take such other actions, as Tenant in the good faith exercise of its judgment deems reasonably practicable, to remove such encroachment or to end such violation or impairment, including, if necessary, the alteration of any of the Leased Improvements, and in any event take all such actions as may be necessary in order to be able to continue the operation of the Leased Improvements for the Primary Intended Use substantially in the manner and to the extent the Leased Improvements were operated prior to the assertion of such encroachment, violation or impairment. Tenant's (and Landlord's) obligations under this Section 9.2 shall be in addition to and shall in no way discharge or diminish any obligation of any insurer under any policy of title or other insurance and, to the extent the recovery thereof is not necessary to compensate Landlord and Tenant for any damages incurred by any such encroachment, violation or impairment, Tenant shall be entitled to fifty percent (50%) of any sums recovered by Landlord under any such policy of title or other insurance up to the maximum amount paid by Tenant under this Section 9.2 and Landlord, upon request by Tenant, shall assign Landlord's rights under such policies to Tenant; <u>provided</u> such assignment does not adversely affect Landlord's rights under any such policy. Landlord agrees to use reasonable efforts to seek recovery under any policy of title or other insurance under which Landlord is an insured party for all losses, liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including reasonable attorneys', consultants' and experts' fees and expenses) based on or arising by reason of any such encroachment, violation or impairment as set forth in this Section 9.2; <u>provided</u>, <u>however</u>, that in no event shall Landlord be obligated to institute any litigation, arbitration or other legal proceedings in connection therewith unless Landlord is reasonably satisfied that Tenant has the financial resources needed to fund such litigation and Tenant and Landlord have agreed upon the terms and conditions on which such funding will be made available by Tenant, including, but not limited to, the mutual approval of a litigation budget.

**ARTICLE X**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1** **<u>Construction of Capital Improvements to the Leased Property – The Chicago Project.</u>** Following the Commencement Date, Tenant shall diligently pursue and complete the construction and development of, and open, the Chicago Project, in accordance with the terms and conditions of the Development Agreement. Landlord and Tenant hereby acknowledge and agree that Section 2.9 of the Development Agreement requires Tenant to use commercially reasonable efforts to assign its interest as subtenant under the Medinah Temple Sublease to Landlord, and following such assignment, Landlord and Tenant shall enter into an amendment to this Lease pursuant to which the Premises (under and as defined in the Medinah Temple Sublease) shall become a part of the Leased Property hereunder. In the event that Tenant fails to comply with the terms of this Section 10.1, which failure results in an Event of Default, Landlord shall be entitled to exercise any and all rights available to it under the terms of this Lease as well as under the Development Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2** **<u>Construction of Capital Improvements to the Leased Property.</u>** From and after the Completion (as defined in the Development Agreement) of the Chicago Project, prior to commencing any Capital Improvement (other than Exempt Capital Improvements), Tenant shall provide Landlord (A) copies of the plans and specifications in respect of all contemplated Capital Improvements if plans and specifications would customarily be prepared in connection with Capital Improvements of a similar type, scope and scale, which plans and specifications shall be prepared in a high-grade professional manner and shall adequately demonstrate: (i) compliance with all applicable Legal Requirements; (ii) that such Capital Improvements are of equal or better quality than the existing Leased Improvements they are improving, altering or modifying; and (iii) if such Capital Improvement is a Permitted Alteration (as defined below), that such Capital Improvement does not have an adverse effect on the use of the Leased Property for its Primary Intended Use, and (B) a written description of such Capital Improvement (including projected cost of construction, anticipated commencement date and projected completion date), and periodically provide updated documentation and information as Landlord may reasonably request.

Tenant shall not commence any Capital Improvement, including, without limitation, any Capital Improvements which are reasonably required for Tenant to avail itself of any tax abatement or incentive pursuant to, or are otherwise reasonably required so that Tenant may comply with, any written agreement between Tenant and a governmental or quasi-governmental authority having jurisdiction over the Leased Property in effect as of the Commencement Date, without the prior written consent of Landlord, (not to be unreasonably withheld), except the following Capital Improvements shall not require Landlord's prior written consent: (i) Exempt Capital Improvements, and (ii) other Capital Improvements that (1) are not Major Alterations, (2) are of equal or better quality than the existing Leased Improvements they are improving, altering or modifying, (3) do not have an adverse effect on the use of the Leased Property for the Primary Intended Use, and (4) comply with all requirements set forth in Section 10.3 (this <u>clause (ii)</u> being "**Permitted Alterations**"). Notwithstanding the foregoing, no Capital Improvement shall be permitted without Landlord's consent if such Capital Improvement will result in the Leased Property becoming a "limited use" property for purposes of United States federal income taxes.

Following a review of the information provided by Tenant pursuant to this Section 10.1 above, for those Capital Improvements for which Landlord consent is required, Landlord may reasonably request additional information prior to determining if such project will be approved. For the avoidance of doubt, it shall be reasonable for Landlord to condition its approval of any Capital Improvement for which Landlord's consent is required upon any or all of the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such construction shall be effected pursuant to detailed plans and specifications approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of Capital Improvements that are Major Alterations, if such Capital Improvement is of a type that would reasonably be expected to require the services of an architect or engineer in connection with customary construction practices for projects of similar size, scope and complexity, such construction shall be conducted under the supervision of a licensed architect or engineer selected by Tenant and approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of Capital Improvements that are Major Alterations that cost more than Ten Million Dollars ($10,000,000), upon request by Landlord, Landlord's receipt, from the general contractor and major subcontractor(s) of a performance and payment bond (or, if Tenant elects in lieu of performance and payment bond covering any major subcontractor, Sub-guard insurance, which policy shall be in form reasonably satisfactory to Landlord and which shall include a financial interest endorsement naming Landlord as a beneficiary) for the full value of such construction, which such bond shall name Landlord as an additional obligee and otherwise be in form and substance and issued by a Person reasonably satisfactory to Landlord; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the case of Capital Improvements that are Major Alterations that cost more than Ten Million Dollars ($10,000,000), such construction shall not be undertaken unless Tenant demonstrates to the reasonable satisfaction of Landlord the financial ability to complete the construction without materially adversely affecting its cash flow position or financial viability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3** **<u>Construction Requirements for All Capital Improvements</u>.** Whether or not Landlord's review and approval is required, all Capital Improvements (including Exempt Capital Improvements) shall comply with the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Such construction shall not be commenced until Tenant shall have procured and paid for all municipal and other governmental permits and authorizations required to be obtained prior to such commencement, including those permits and authorizations required pursuant to any Gaming Regulations, and Landlord shall join in the application for such permits or authorizations whenever such action is necessary; <u>provided</u>, <u>however</u>, that (i) any such joinder shall be at no cost or expense to Landlord; and (ii) any plans required to be filed in connection with any such application which require the approval of Landlord as hereinabove provided shall have been so approved by Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Other than Exempt Capital Improvements, (i) such construction shall not and, in the case of Major Alterations of a type that would reasonably be expected to require the services of an architect or engineer in connection with customary construction practices for projects of similar size, scope and complexity, Tenant's licensed architect or engineer shall certify to Landlord that such architect or engineer believes that the design of such construction (as illustrated through the applicable corresponding construction documents) shall not, impair the structural strength of any component of the Facility or overburden the electrical, water, plumbing, HVAC or other building systems of any such component in a manner that would violate applicable building codes or prudent industry practices, and (ii) Tenant's general contractor, or the general manager of the Leased Property if there is no general contractor, shall certify to Landlord that, in such person's opinion, such construction is in compliance with the applicable design and corresponding construction documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If such Capital Improvement is a Major Alteration and such Major Alteration is of a type that would reasonably be expected to require the services of an architect or engineer in connection with customary construction practices for projects of similar size, scope and complexity, Tenant's licensed architect or engineer shall certify to Landlord that such architect or engineer believes that the detailed plans and specifications conform to, and comply with, in all material respects all applicable building, subdivision and zoning codes, laws, ordinances and regulations imposed by all governmental authorities having jurisdiction over the Leased Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During and following completion of such construction, the parking and other amenities which are located at the Facility or on the Land shall remain adequate for the operation of the Facility for its Primary Intended Use and in no event shall such parking be less than that which is required by applicable Legal Requirements (including any variances with respect thereto); <u>provided</u>, <u>however</u>, with Landlord's prior consent and at no additional expense to Landlord, (i) to the extent additional parking is not already a part of a Capital Improvement, Tenant may construct additional parking on the Land in accordance with this Article X; or (ii) Tenant may acquire or lease off-site parking to serve the Facility as long as such parking shall be reasonably proximate to, and dedicated to, or otherwise made available to serve the Facility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All work done in connection with such construction shall be done promptly and using materials and in a manner that results in such Capital Improvement being in a condition and quality that is at least as good as the condition and quality of the remaining areas of the Facility (assuming that Tenant has complied in all material respects with obligations to maintain the Facility in accordance with the Applicable Standards) and in conformity with all Legal Requirements, including, without limitation, any applicable minority or women owned business requirements and Insurance Requirements, if any; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If typically recommended to be obtained in accordance with customary and prudent industry standards or otherwise obtained by Tenant in connection with such construction, promptly following the completion of construction (other than construction relating to an Exempt Capital Improvement), Tenant shall deliver to Landlord "as built" drawings of such Capital Improvements, certified as accurate by the licensed architect or engineer selected by Tenant to supervise such work, and copies of any new or revised certificates of occupancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4** **<u>Landlord's Right of First Offer to Fund</u>.** Tenant may request that Landlord fund or finance the construction and acquisition of any Capital Improvement that constitutes a Major Alteration and/or a Long-Lived Assets (along with reasonably related fees and expenses, such as title fees, costs of permits, legal fees and other similar transaction related costs) if the cost of such Capital Improvements constituting a Major Alteration or Long-Lived Assets is expected to be in excess of the product of (i) $5,000,000 and (ii) the CPI Increase. In connection with Tenant's request Tenant shall provide to Landlord any information about such Capital Improvements which Landlord may reasonably request (including any specifics regarding the terms upon which Tenant will be seeking financing for such Capital Improvements). Landlord may, but shall be under no obligation to, provide the funds necessary to meet the request. Within ten (10) Business Days of receipt of a request to fund a proposed Capital Improvement pursuant to this Section 10.4, Landlord shall notify Tenant as to whether it will fund all or a portion of such proposed Capital Improvement and, if so, the terms and conditions upon which it would do so (including the terms with respect to any increases in Rent hereunder due to such Capital Improvements). If Landlord agrees to fund such proposed Capital Improvement, Tenant shall have ten (10) Business Days to accept or reject Landlord's funding proposal. If Landlord declines to fund a proposed Capital Improvement (or declines to provide Tenant written notice within such ten (10) Business Day period of the terms of its proposal to fund such Capital Improvements), Tenant may thereafter secure outside financing or utilize then existing available financing for such Capital Improvement within a six-month period, after which six-month period (if Tenant has not secured outside financing or determined to utilize then existing available financing) Tenant may again request that Landlord fund or finance the construction and acquisition of such Capital Improvement. If Tenant constructs a Capital Improvement with its then existing available financing or outside financing obtained in accordance with this Section 10.4, except as may otherwise be expressly provided in this Lease to the contrary, (i) during the Term, such Capital Improvements shall be deemed part of the Leased Property and the Facility solely for the purpose of calculating Net Revenues hereunder and shall for all other purposes be Tenant's Property (for such period of time, such Capital Improvements are referred to as "Tenant Capital Improvements") and (ii) following expiration or termination of the Term, shall be either (A) at the option of Landlord, purchased by Landlord for its then fair market value or (B) if not purchased by Landlord, Tenant shall be entitled to either remove such Tenant Capital Improvements, provided that the Leased Property is restored in a manner reasonably satisfactory to Landlord, or receive fair value for such Tenant Capital Improvements in accordance with Article XXXVI; provided, however, if Tenant fails to find a purchaser for fair market value and Tenant does not elect to remove such Tenant Capital Improvements in accordance with this clause (B), then such Tenant Capital Improvement shall automatically be deemed a part of the Leased Property for all purposes and be surrendered by Tenant to Landlord, all at no cost to Landlord; and provided, further, any Tenant Capital Improvements constructed in connection with the Chicago Project shall not be removed by Tenant. If Landlord agrees to fund a proposed Capital Improvement and Tenant accepts the terms thereof, such Capital Improvements shall be deemed part of the Leased Property and the Facility for all purposes at all times.

**ARTICLE XI**

**ARTICLE XII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1** **<u>Permitted Contests</u>.** Tenant, upon prior written notice to Landlord, on its own or in Landlord's name, at Tenant's expense, may contest, by appropriate legal proceedings conducted in good faith and with due diligence, the amount, validity or application, in whole or in part, of any licensure or certification decision (including pursuant to any Gaming Regulation), Imposition, Legal Requirement, Insurance Requirement, lien, attachment, levy, encumbrance, charge or claim; <u>provided</u>, <u>however</u>, that (i) in the case of an unpaid Imposition, lien, attachment, levy, encumbrance, charge or claim, the commencement and continuation of such proceedings shall suspend the collection thereof from Landlord and from the Leased Property or any Capital Improvement thereto; (ii) neither the Leased Property or any Capital Improvement thereto, the Rent therefrom nor any part or interest in either thereof would be in any danger of being sold, forfeited, attached or lost pending the outcome of such proceedings; (iii) in the case of a Legal Requirement, neither Landlord nor Tenant would be in any danger of civil or criminal liability for failure to comply therewith pending the outcome of such proceedings; (iv) if any such contest shall involve a sum of money or potential loss in excess of Five Hundred Thousand Dollars ($500,000), upon request of Landlord, Tenant shall deliver to Landlord an opinion of counsel reasonably acceptable to Landlord to the effect set forth in clauses (i), (ii) and (iii) above, to the extent applicable (it being agreed that the matters set forth in clause (i) can be addressed by Tenant paying the contested amount prior to any such contest); (v) in the case of a Legal Requirement, Imposition, lien, encumbrance or charge, Tenant shall give such reasonable security as may be required by Landlord to prevent any sale or forfeiture of the Leased Property or any Capital Improvement thereto or the Rent by reason of such non-payment or noncompliance; (vi) in the case of an Insurance Requirement, the coverage required by Article XIII shall be maintained; (vii) Tenant shall keep Landlord reasonably informed as to the status of the proceedings; and (viii) if such contest be finally resolved against Landlord or Tenant, Tenant shall promptly pay the amount required to be paid, together with all interest and penalties accrued thereon, or comply with the applicable Legal Requirement or Insurance Requirement. Landlord, at Tenant's expense, shall execute and deliver to Tenant such authorizations and other documents as may reasonably be required in any such contest, and, if reasonably requested by Tenant or if Landlord so desires, Landlord shall join as a party therein. The provisions of this Article XII shall not be construed to permit Tenant to contest the payment of Rent or any other amount (other than Impositions or Additional Charges which Tenant may from time to time be required to impound with Landlord) payable by Tenant to Landlord hereunder. Tenant shall indemnify, defend, protect and save Landlord harmless from and against any liability, cost or expense of any kind that may be imposed upon Landlord in connection with any such contest and any loss resulting therefrom, except in any instance where Landlord opted to join and joined as a party in the proceeding despite Tenant's having sent written notice to Landlord of Tenant's preference that Landlord not join in such proceeding.

**ARTICLE XIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1** **<u>General Insurance Requirements</u>.** During the Term, Tenant shall at all times keep the Leased Property, and all property located in or on the Leased Property, including Capital Improvements, the Fixtures and Tenant's Property, insured with the kinds and amounts of insurance described below. Each element of insurance described in this Article XIII shall be maintained with respect to the Leased Property and Tenant's Property and operations thereon. Such insurance shall be written by companies permitted to conduct business in the State of Illinois. All third party liability type policies must name Landlord as an "additional insured." All property policies shall name Landlord as "loss payee" for its interests in the Facility. All business interruption policies shall name Landlord as "loss payee" with respect to Rent only. Property losses shall be payable to Landlord and/or Tenant as provided in Article XIV. In addition, the policies, as appropriate, shall name as an "additional insured" and/or "loss payee" each Permitted Leasehold Mortgagee and as an "additional insured" or "loss payee" the holder of any mortgage, deed of trust or other security agreement ("**Facility Mortgagee**") securing any indebtedness or any other Encumbrance placed on the Leased Property in accordance with the provisions of Article XXXI ("**Facility Mortgage**") by way of a standard form of mortgagee's loss payable endorsement. Except as otherwise set forth herein, any property insurance loss adjustment settlement shall require the written consent of Landlord, Tenant, and each Facility Mortgagee (to the extent required under the applicable Facility Mortgage Documents) unless the amount of the loss net of the applicable deductible is less than Two Million Five Hundred Thousand Dollars ($2,500,000) in which event no consent shall be required. Evidence of insurance shall be deposited with Landlord and, if requested, with any Facility Mortgagee(s). The insurance policies required to be carried by Tenant hereunder shall insure against all the following risks with respect to the Facility:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Loss or damage by fire, vandalism, collapse and malicious mischief, extended coverage perils commonly known as "All Risk," and all physical loss perils normally included in such All Risk insurance, including, but not limited to, sprinkler leakage and windstorm, in an amount not less than the insurable value on a Maximum Foreseeable Loss (as defined below in Section 13.2) basis and including a building ordinance coverage endorsement; <u>provided</u>, that Tenant shall have the right (i) to limit maximum insurance coverage for loss or damage by earthquake (including earth movement) to a minimum amount of One Hundred Million Dollars ($100,000,000) or as may be reasonably requested by Landlord and commercially available, and (ii) to limit maximum insurance coverage for loss or damage by windstorm (including but not limited to named windstorms) to a minimum amount of One Hundred Million Dollars ($100,000,000) or as may be reasonably requested by Landlord and commercially available, <u>provided</u>, <u>however</u>, if during the Term of this Lease Tenant carries insurance coverage with limits higher than specified herein, Landlord shall be loss payee as to the full coverage limits carried by Tenant; <u>provided</u>, <u>further</u>, that in the event the premium cost of any or all of earthquake, flood, windstorm (including named windstorm) or terrorism coverages are available only for a premium that is more than 2.5 times the average premium paid by Tenant (or prior operator of the Facility) over the preceding three years for the insurance policy covering flood, windstorm (including named windstorm) or terrorism contemplated by this Section 13.1(a), then Tenant shall be entitled and required to purchase the maximum insurance coverage it deems most efficient and prudent to purchase and Tenant shall not be required to spend additional funds to purchase additional coverages insuring against such risks; and <u>provided</u>, <u>further</u>, that some property coverages might be sub-limited in an amount less than the Maximum Foreseeable Loss as long as the sub-limits are commercially reasonable and prudent as deemed by Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Loss or damage by explosion of steam boilers, pressure vessels or similar apparatus, now or hereafter installed in the Facility, in such limits with respect to any one accident as may be reasonably requested by Landlord from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Flood (when any of the improvements comprising the Leased Property is located in whole or in part within a designated 100-year flood plain area) in an amount not less than the greater of (i) probable maximum loss of a 250 year event, and (ii) One Hundred Million Dollars ($100,000,000), and such other hazards and in such amounts as may be customary for comparable properties in the area;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Loss of rental value in an amount not less than twelve (12) months' Rent payable hereunder or business interruption in an amount not less than twelve (12) months of income and normal operating expenses including 90-days ordinary payroll and Rent payable hereunder with an extended period of indemnity coverage of at least ninety (90) days necessitated by the occurrence of any of the hazards described in Sections 13.1(a), 13.1(b) or 13.1(c), <u>provided</u> that Tenant may self-insure solely for the insurance contemplated under this Section 13.1(d);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Claims for personal injury or property damage under a policy of commercial general liability insurance with amounts not less than One Hundred Million Dollars ($100,000,000) each occurrence and One Hundred Million Dollars ($100,000,000) in the annual aggregate, <u>provided</u>, <u>however</u>, if during the Term of this Lease Tenant carries insurance coverage with limits higher than specified herein, Landlord shall be an additional insured as to the full coverage limits carried by Tenant, and that such requirements may be satisfied through the purchase of a primary general liability policy and excess liability policies; <u>provided</u>, <u>however</u>, if it would be commercially reasonable to reduce such coverage limits the Landlord and Tenant shall discuss such reduced limits in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) During such time as Tenant is constructing any improvements, Tenant, at its sole cost and expense, shall carry, or cause to be carried (i) workers' compensation insurance and employers' liability insurance covering all persons employed in connection with the improvements in statutory limits, (ii) a completed operations endorsement to the commercial general liability insurance policy referred to above, (iii) builder's risk insurance, completed value form (or its equivalent), covering all physical loss, in an amount and subject to policy conditions satisfactory to Landlord, and (iv) such other insurance, in such amounts, as Landlord deems reasonably necessary to protect Landlord's interest in the Leased Property from any act or omission of Tenant's contractors or subcontractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2** **<u>Maximum Foreseeable Loss</u>.** The term "**Maximum Foreseeable Loss**" shall mean the largest monetary loss within one area that may be expected to result from a single fire with protection impaired, the control of the fire mainly dependent on physical barriers or separations and a delayed manual firefighting by public and/or private fire brigades. If Landlord reasonably believes that the Maximum Foreseeable Loss has increased at any time during the Term, it shall have the right (unless Tenant and Landlord agree otherwise) to have such Maximum Foreseeable Loss redetermined by an impartial national insurance company reasonably acceptable to both parties (the "**Impartial Appraiser**"), or, if the parties cannot agree on an Impartial Appraiser, then by an Expert appointed in accordance with Section 34.1 hereof. The determination of the Impartial Appraiser (or the Expert, as the case may be) shall be final and binding on the parties hereto, and Tenant shall forthwith adjust the amount of the insurance carried pursuant to this Article XIII to the amount so determined by the Impartial Appraiser (or the Expert, as the case may be), subject to the approval of the Facility Mortgagee, as applicable. Each party shall pay one-half (1/2) of the fee, if any, of the Impartial Appraiser. If Landlord pays the Impartial Appraiser, fifty percent (50%) of such costs shall be Additional Charges hereunder and if Tenant pays such Impartial Appraiser, fifty percent (50%) of such costs shall be a credit against the next Rent payment hereunder. If Tenant has undertaken any structural alterations or additions to the Leased Property having a cost or value in excess of Twenty Five Million Dollars ($25,000,000), Landlord may at Tenant's expense have the Maximum Foreseeable Loss redetermined at any time after such improvements are made, regardless of when the Maximum Foreseeable Loss was last determined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3** **<u>Additional Insurance</u>.** In addition to the insurance described above, Tenant shall maintain such additional insurance upon notice from Landlord as may be reasonably required from time to time by any Facility Mortgagee and shall further at all times maintain adequate workers' compensation coverage and any other coverage required by Legal Requirements for all Persons employed by Tenant on the Leased Property in accordance with Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.4** **<u>Waiver of Subrogation</u>.** All insurance policies carried by either party covering the Leased Property or Tenant's Property, including, without limitation, contents, fire and liability insurance, shall expressly waive any right of subrogation on the part of the insurer against the other party. Each party, respectively, shall pay any additional costs or charges for obtaining such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.5** **<u>Policy Requirements</u>.** All of the policies of insurance referred to in this Article XIII shall be written in form reasonably satisfactory to Landlord and any Facility Mortgagee and issued by insurance companies with a minimum policyholder rating of "A-" and a financial rating of "VII" in the most recent version of Best's Key Rating Guide, or a minimum rating of "BBB" from Standard & Poor's or equivalent. If Tenant obtains and maintains the general liability insurance described in Section 13.1(e) above on a "claims made" basis, Tenant shall provide continuous liability coverage for claims arising during the Term. In the event such "claims made" basis policy is canceled or not renewed for any reason whatsoever (or converted to an "occurrence" basis policy), Tenant shall either obtain (a) "tail" insurance coverage converting the policies to "occurrence" basis policies providing coverage for a period of at least three (3) years beyond the expiration of the Term, or (b) an extended reporting period of at least three (3) years beyond the expiration of the Term. Tenant shall pay all of the premiums therefor, and deliver certificates thereof to Landlord prior to their effective date (and with respect to any renewal policy, prior to the expiration of the existing policy), and in the event of the failure of Tenant either to effect such insurance in the names herein called for or to pay the premiums therefor, or to deliver such certificates thereof to Landlord, at the times required, Landlord shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor, in which event the cost thereof, together with interest thereon at the Overdue Rate, shall be repayable to Landlord upon demand therefor. Tenant shall obtain, to the extent available on commercially reasonable terms, the agreement of each insurer, by endorsement on the policy or policies issued by it, or by independent instrument furnished to Landlord, that it will give to Landlord thirty (30) days' (or ten (10) days' in the case of non-payment of premium) written notice before the policy or policies in question shall be altered, allowed to expire or cancelled. Notwithstanding any provision of this Article XIII to the contrary, Landlord acknowledges and agrees that the coverage required to be maintained by Tenant may be provided under one or more policies with various deductibles or self-insurance retentions by Tenant or its Affiliates, subject to Landlord's approval not to be unreasonably withheld. Upon written request by Landlord, Tenant shall provide Landlord copies of the property insurance policies when issued by the insurers providing such coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.6** **<u>Increase in Limits</u>.** If, from time to time after the Commencement Date, Landlord determines in the exercise of its reasonable business judgment that the limits of the personal injury or property damage-public liability insurance then carried pursuant to Section 13.1(e) hereof are insufficient, Landlord may give Tenant Notice of acceptable limits for the insurance to be carried; <u>provided</u> that in no event will Tenant be required to carry insurance in an amount which exceeds the product of (i) the amounts set forth in Section 13.1(e) hereof and (ii) the CPI Increase; and subject to the foregoing limitation, within ninety (90) days after the receipt of such Notice, the insurance shall thereafter be carried with limits as prescribed by Landlord until further increase pursuant to the provisions of this Section 13.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.7** **<u>Blanket Policy</u>.** Notwithstanding anything to the contrary contained in this Article XIII, Tenant's obligations to carry the insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by Tenant; <u>provided</u> that the requirements of this Article XIII (including satisfaction of the Facility Mortgagee's requirements and the approval of the Facility Mortgagee) are otherwise satisfied, and <u>provided further</u> that Tenant maintains specific allocations acceptable to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.8** **<u>No Separate Insurance</u>.** Tenant shall not, on Tenant's own initiative or pursuant to the request or requirement of any third party, (i) take out separate insurance concurrent in form or contributing in the event of loss with that required in this Article XIII to be furnished by, or which may reasonably be required to be furnished by, Tenant or (ii) increase the amounts of any then existing insurance by securing an additional policy or additional policies, unless all parties having an insurable interest in the subject matter of the insurance, including in all cases Landlord and all Facility Mortgagees, are included therein as additional insureds and the loss is payable under such insurance in the same manner as losses are payable under this Lease. Notwithstanding the foregoing, nothing herein shall prohibit Tenant from insuring against risks not required to be insured hereby, and as to such insurance, Landlord and any Facility Mortgagee need not be included therein as additional insureds, nor must the loss thereunder be payable in the same manner as losses are payable hereunder except to the extent required to avoid a default under the Facility Mortgage.

**ARTICLE XIV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.1** **<u>Property Insurance Proceeds</u>.** Subject to Section 14.5 of this Lease, all proceeds (except business interruption not allocated to rent expenses) payable by reason of any property loss or damage to the Leased Property, or any portion thereof, under any property policy of insurance required to be carried hereunder shall be paid to an escrow account held by a third party depositary reasonably acceptable to Landlord and Tenant (pursuant to an escrow agreement acceptable to the parties and intended to implement the terms hereof), and made available to Tenant upon request for the reasonable out-of-pocket costs of preservation, stabilization, emergency restoration, business interruption, reconstruction and repair, as the case may be, of any damage to or destruction of the Leased Property, or any portion thereof; <u>provided</u>, <u>however</u>, that the portion of such proceeds that are attributable to Tenant's obligation to pay Rent shall be applied against Rents due by Tenant hereunder; and <u>provided</u>, <u>further</u>, that if the total amount of proceeds payable net of the applicable deductibles is One Million Dollars ($1,000,000) or less, and if no Event of Default has occurred and is continuing, the proceeds shall be paid directly to Tenant and, subject to the limitations set forth in this Article XIV used for the repair of any damage to the Leased Property, it being understood and agreed that Tenant shall have no obligation to rebuild any Tenant Capital Improvement, <u>provided</u> that the Leased Property is rebuilt in a manner substantially similar to the condition in which it existed prior to the related casualty or otherwise in a manner reasonably satisfactory to Landlord. Any excess proceeds of insurance remaining after the completion of the restoration or reconstruction of the Leased Property to substantially the same condition as existed immediately before the damage or destruction and with materials and workmanship of like kind and quality and to Landlord's reasonable satisfaction shall be provided to Tenant within fifteen (15) days after such restoration or reconstruction has been completed. All salvage resulting from any risk covered by insurance for damage or loss to the Leased Property shall belong to Tenant. Tenant shall have the right to prosecute and settle insurance claims, <u>provided</u> that Tenant shall consult with and involve Landlord in the process of adjusting any insurance claims under this Article XIV and any final settlement with the insurance company shall be subject to Landlord's consent, such consent not to be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.2** **<u>Tenant's Obligations Following Casualty</u>.** (a) If the Facility and/or any Tenant Capital Improvements to the Facility are damaged, whether or not from a risk covered by insurance carried by Tenant, except as otherwise provided herein, (i) Tenant shall restore such Leased Property (excluding any Tenant Capital Improvement, it being understood and agreed that Tenant shall not be required to repair any Tenant Capital Improvement, <u>provided</u> that the Leased Property is rebuilt in a manner reasonably satisfactory to Landlord), to substantially the same condition as existed immediately before such damage and (ii) such damage shall not terminate this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Tenant restores the affected Leased Property and the cost of the repair or restoration exceeds the amount of proceeds received from the insurance required to be carried hereunder, Tenant shall provide Landlord with evidence reasonably acceptable to Landlord that Tenant has available to it any excess amounts needed to restore the Facility. Such excess amounts necessary to restore the Facility shall be paid by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If Tenant has not restored the affected Leased Property and Gaming operations have not commenced or recommenced, as applicable, by the date that is the third anniversary of the date of any casualty, all remaining insurance proceeds shall be paid to and retained by Landlord free and clear of any claim by or through Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event neither Landlord nor Tenant is required or elects to repair and restore the Leased Property, all insurance proceeds, other than proceeds reasonably attributed to any Tenant Capital Improvements (and, subject to no Event of Default having occurred and being continuing, any business interruption proceeds in excess of Tenant's Rent obligations hereunder), which proceeds shall be and remain the property of Tenant, shall be paid to and retained by Landlord free and clear of any claim by or through Tenant except as otherwise specifically provided below in this Article XIV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.3** **<u>No Abatement of Rent</u>.** This Lease shall remain in full force and effect and Tenant's obligation to pay the Rent and all other charges required by this Lease shall remain unabated during the period required for adjusting insurance, satisfying Legal Requirements, repair and restoration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.4** **<u>Waiver</u>.** Tenant waives any statutory rights of termination which may arise by reason of any damage or destruction of the Leased Property but such waiver shall not affect any contractual rights granted to Tenant under this Article XIV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.5** **<u>Insurance Proceeds Paid to Facility Mortgagee</u>.** Notwithstanding anything herein to the contrary, in the event that Landlord obtains any Facility Mortgage, the terms of such Facility Mortgage shall provide that any insurance proceeds (excluding business interruption proceeds, which shall continue to be payable to Landlord in payment of Rent) may be held by such Facility Mortgagee and shall be applied to the restoration of the Leased Property and/or disbursed to Tenant to permit Tenant to restore the Leased Property, in the manner required by Section 14.2 and other applicable provisions of this Lease and may not be applied by such Facility Mortgagee to the indebtedness secured by the Facility Mortgage, <u>provided</u> that Tenant satisfies each of the following conditions to the reasonable satisfaction of Landlord and such Facility Mortgagee: (a) at the time of the related casualty, there shall exist no Event of Default; (b) the Leased Property affected by such casualty shall be capable of being restored to the condition required by Section 14.2; (c) Tenant shall demonstrate to Landlord's and such Facility Mortgagee's reasonable satisfaction Tenant's ability to pay the Rent coming due during such repair or restoration period (after taking into account proceeds from business interruption insurance carried by Tenant); (d) Tenant shall have provided to Landlord and such Facility Mortgagee all of the following: (i) an architect's contract with an architect reasonably acceptable to Landlord and such Facility Mortgagee; (ii) complete plans and specifications for the restoration of the affected portions of the Leased Property, which plans and specifications shall cause the Leased Property to be restored or reconstructed to the condition required under Section 14.2; <u>provided</u>, <u>however</u>, Tenant agrees to incorporate Landlord's reasonable comments to such plans and specifications; (iii) fixed-price or guaranteed maximum cost construction contracts with contractors reasonably acceptable to Landlord and such Facility Mortgagee for completion of the restoration work in accordance with the aforementioned plans and specifications; (iv) such additional funds (if any) as are necessary from time to time, in Landlord's and such Facility Mortgagee's reasonable opinion, to complete the restoration pursuant to the plans and specifications and in the condition required under Section 14.2; and (v) copies of all permits, licenses and approvals necessary to complete the restoration in accordance with the plans and specifications and all Legal Requirements; (e) Tenant shall, promptly following the related casualty, diligently pursue all items required pursuant to clause (d) above and, after obtaining and providing the same to Landlord and any Facility Mortgagee, shall promptly commence and diligently pursue such work to completion; (f) Tenant shall complete (and shall provide to Landlord and any Facility Mortgagee such documentation evidencing the same) the restoration on or before the earliest to occur of (i) three (3) years after the date of the related casualty, and (ii) the expiration of the Term (<u>provided</u>, <u>however</u>, in the event that such restoration or reconstruction cannot be reasonably completed prior to the expiration of the Term, the deadline imposed under this subclause (f) shall include any properly exercised Renewal Term); (g) the Property and the use thereof after the restoration will be in compliance with all applicable Legal Requirements; (h) Tenant shall promptly deliver to Landlord and any Facility Mortgagee all certificates of occupancy, lien waivers and such other documentation reasonably requested by Landlord or any Facility Mortgagee in connection with the restoration and reconstruction of the Leased Property; and (i) Tenant agrees to comply with any commercially reasonable draw or other disbursement requirements imposed by any such Facility Mortgagee.

**ARTICLE XV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.1** **<u>Condemnation</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Total Taking</u>. If the Leased Property is totally and permanently taken by Condemnation (a "**Taking**"), this Lease shall terminate as of the day before the Date of Taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Partial Taking</u>. If a portion of the Leased Property of, or any Tenant Capital Improvements to, the Facility are taken by Condemnation, this Lease shall remain in effect if the Facility is not thereby rendered Unsuitable for its Primary Intended Use, but if the Facility is thereby rendered Unsuitable for its Primary Intended Use, this Lease shall terminate as of the day before the Date of Taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restoration</u>. If there is a partial Taking of the Leased Property of, or any Tenant Capital Improvements to, the Facility and this Lease remains in full force and effect with respect to the Facility, Landlord shall make available to Tenant the portion of the Award applicable to restoration of the Leased Property (excluding any Tenant Capital Improvements, it being understood and agreed that Tenant shall not be required to repair or restore any Tenant Capital Improvements, <u>provided</u> that the Leased Property is restored in a manner reasonably satisfactory to Landlord and, whether or not Tenant elects to restore such Tenant Capital Improvements, the portion of such Award attributable thereto shall also be paid to Tenant), and Tenant shall accomplish all necessary restoration whether or not the amount provided by the Condemnor for restoration is sufficient and the Rent shall be reduced by such amount as may be agreed upon by Landlord and Tenant or, if they are unable to reach such an agreement within a period of thirty (30) days after the occurrence of the Taking, then the Rent for the Facility shall be proportionately reduced, based on the proportion of the Facility that was subject to the partial Taking and pursuant to the formula set forth in Section 15.5 hereof. Tenant shall restore such Leased Property (as nearly as possible under the circumstances) to a complete architectural unit of the same general character and condition as such Leased Property existing immediately prior to such Taking.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.2** **<u>Award Distribution</u>.** Except as set forth below and except to the extent of restoration proceeds to be made available to Tenant as provided in Section 15.1(c) hereof, the entire Award shall belong to and be paid to Landlord. Tenant shall, however, be entitled to pursue its own claim with respect to the Taking for Tenant's lost profits value and moving expenses and, the portion of the Award, if any, allocated to any Tenant Capital Improvements (subject to Tenant's restoring the Leased Property not subject to a Taking in a manner reasonably satisfactory to Landlord) and Tenant's Property shall be and remain the property of Tenant free of any claim thereto by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.3** **<u>Temporary Taking</u>.** The taking of the Leased Property, or any part thereof, shall constitute a taking by Condemnation only when the use and occupancy by the taking authority has continued for longer than 180 consecutive days. During any shorter period, which shall be a temporary taking, all the provisions of this Lease shall remain in full force and effect and the Award allocable to the Term shall be paid to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.4** **<u>Condemnation Awards Paid to Facility Mortgagee</u>.** Notwithstanding anything herein to the contrary, in the event that any Facility Mortgagee is entitled to any Award, or any portion thereof, under the terms of any Facility Mortgage or related financing agreement, such Award shall be applied, held and/or disbursed in accordance with the terms of the Facility Mortgage or related financing agreement. In the event that the Facility Mortgagee elects to apply the Award to the indebtedness secured by the Facility Mortgage in the case of a Taking as to which the restoration provisions apply (or the related financing agreement requires such application), Landlord shall either (i) within ninety (90) days of the notice from the Facility Mortgagee make available to Tenant for restoration of such Leased Property funds (either through refinance or otherwise) equal to the amount applied by the Facility Mortgagee or applicable to restoration of the Leased Property and shall pay to Tenant any amount of the Award allocated to Tenant Capital Improvements, or (ii) sell to Tenant the portion of the Leased Property consisting of the Facility that is not subject to the Taking in exchange for a payment equal to the greater of (1) the difference between (a) the value of the Facility immediately prior to such Taking, based on the average fair market value of similar real estate in the areas surrounding the Facility, and (b) the amount of the Award retained by the Facility Mortgagee, and (2) the value of the remaining portion of the Facility after such Taking, based on the average fair market value of similar real estate in the areas surrounding the Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.5** **<u>Termination of Lease; Abatement of Rent</u>.** In the event this Lease is terminated with respect to the affected portion of the Leased Property as a result of a partial Taking (or pursuant to Section 15.4 hereof as a result of a Facility Mortgagee electing to apply a Award to the indebtedness secured by the Facility Mortgage), this Lease shall remain in effect with respect to the remainder of the Leased Property; provided, however, the Rent due hereunder from and after the effective date of such termination shall be equitably reduced by a percentage equal to the percentage the portion of the Leased Property taken bears to the entirety of the Leased Property immediately preceding such partial Taking (taking into account the location and materiality of the land subject to the partial Taking in relation to the operation of the Facility) as reasonably determined by Landlord and Tenant, which Rent adjustment shall commence with the first rent payment date following the effective date of such partial Taking.

**ARTICLE XVI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.1** **<u>Events of Default</u>.** Any one or more of the following shall constitute an "**Event of Default**"**:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) Tenant shall fail to pay any installment
 of Rent within four (4) Business Days of when due and such failure is not cured
 by Tenant within three (3) Business Days after notice from Landlord of Tenant's
 failure to pay such installment of Rent when due (and such notice of failure from Landlord
 may be given any time after such installment is four (4) Business Days late);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Tenant shall fail on any two separate occasions
 in the same Fiscal Year to pay any installment of Rent within four (4) Business Days
 of when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Reserved; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Tenant shall fail to pay any Additional
 Charge within five (5) Business Days after notice from Landlord of Tenant's failure
 to make such payment of such Additional Charge when due (and such notice of failure from
 Landlord may be given any time after such payment is more than one (1) Business Day
 late);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) a default shall occur under any Guaranty and such default is not cured within any applicable notice and cure period set forth therein or, if no notice or cure periods are provided therein, within fifteen (15) days after notice from Landlord (or in the case of a breach of Paragraph 9 of the Guaranty, the cure periods provided herein with respect to such action or omission);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) Tenant or any Guarantor shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) become insolvent, or generally fail to pay,
 or admit in writing in any legal proceeding its inability to pay, its debts generally as
 they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) file a petition in bankruptcy or a petition
 to take advantage of any insolvency act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) make an assignment for the benefit of
 its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) consent to the appointment of a receiver
 of itself or of the whole or any substantial part of its property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) file a petition or answer seeking reorganization
 or arrangement under the United States bankruptcy laws or any other applicable law or statute
 of the United States of America or any state thereof pertaining to debtor relief or insolvency;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) take any action to authorize, or in furtherance
 of, any of the foregoing adopting any resolution or otherwise authorizing any action to approve
 any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Tenant or any Guarantor shall be adjudicated as bankrupt or a court of competent jurisdiction shall enter an order or decree appointing, with or without the consent of Tenant or any Guarantor, a trustee, receiver, liquidator, sequestrator, custodian, or other officer having similar powers over Tenant or any Guarantor or of the whole or substantially all of the Tenant's or any Guarantor's property, or approving a petition filed against Tenant or any Guarantor seeking liquidation, reorganization or arrangement of Tenant or any Guarantor under the United States bankruptcy laws or any other applicable law or statute of the United States of America or any state thereof, and such judgment, order or decree shall not be discharged, vacated or set aside or stayed within sixty (60) days from the date of the entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Tenant or any Guarantor shall be liquidated, dissolved or wound down or shall have taken any actions to authorize, or in furtherance of, a liquidation, dissolution or wind-down (except that any Guarantor may be liquidated or dissolved into another Guarantor or the Tenant or so long as its assets are distributed following such liquidation or dissolution to such other Guarantor or Tenant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the estate or interest of Tenant in the Leased Property or any part thereof shall be levied upon or attached in any proceeding relating to more than $1,000,000 and the same shall not be vacated, discharged or stayed pending appeal (or bonded or otherwise similarly secured payment) within the later of ninety (90) days after commencement thereof or thirty (30) days after receipt by Tenant of notice thereof from Landlord; <u>provided</u>, <u>however</u>, that such notice shall be in lieu of and not in addition to any notice required under applicable law and the foregoing shall not apply to the lien of real estate Taxes on the Leased Property to the extent that such Taxes are not delinquent or are being contested in accordance with the provisions of Section 12.1 of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Tenant voluntarily ceases operations for its Primary Intended Use at the Facility (except in connection with a Permitted Go Dark Event) and such cessation would reasonably be expected to have a material adverse effect on Tenant, the Facility, or on the Leased Property, in each case, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any of the representations or warranties made by Tenant hereunder or by any Guarantor in a Guaranty proves to be untrue when made in any material respect which materially and adversely affects Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any event or condition occurs that (1) results in any Material Indebtedness of Tenant or any Guarantor becoming due prior to its stated maturity or enables or permits (with all applicable grace periods, if any, having expired) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity or exercise any other remedy (other than any prepayment, repurchase, or redemption, arising out of or relating to a change of control or asset sale or any redemption, repurchase, conversion or settlement with respect to any Indebtedness convertible into Equity Interests pursuant to its terms unless such redemption, repurchase, conversion or settlement results from a default thereunder or an event that would otherwise constitute an Event of Default, provided that failure to consummate any such required prepayment, redemption, repurchase, conversion or settlement under any Material Indebtedness shall constitute an Event of Default), or (2) the Tenant or any Guarantor shall fail to pay the principal of any Material Indebtedness at the stated final maturity thereof (provided that this Section 16.1(i) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness if such sale or transfer is not prohibited under this Lease (and to the extent Landlord's consent is required hereunder, such consent has been obtained prior to the occurrence of such sale or transfer) and under the document providing for such Indebtedness);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) the Gaming License is at any time terminated, revoked, or suspended, and, provided that such termination, revocation or suspension is reasonably susceptible to be cured within a thirty (30) day period, has remained terminated or revoked or suspended for more than thirty (30) days, or (ii) any applicable license or other agreements material to the Facility's operation for its Primary Intended Use are at any time terminated or revoked or suspended for more than thirty (30) days (and causes cessation of gaming activity at the Facility) and such termination, revocation or suspension is not stayed pending appeal and would reasonably be expected to have a material adverse effect on Tenant, the Facility, or on the Leased Property, taken as a whole; <u>provided</u> that, the natural expiration of Tenant's authority to use the Gaming License to conduct gaming activity at the Temporary Facility in accordance with its terms shall not constitute a termination, revocation or suspension of the Gaming License for purposes of this Section 16.1(j) so long as the Gaming License with respect to the Facility remains in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) except to a permitted assignee pursuant to Section 22.2 or a permitted subtenant or Subsidiary that joins as a Guarantor to the Guaranty pursuant to Section 23.3, or with respect to the granting of a permitted pledge hereunder to a Permitted Leasehold Mortgagee, the sale or transfer, without Landlord's consent, of all or any portion of any Gaming License or similar certificate or license relating to the Leased Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Tenant or any Guarantor, by its acts or omissions, causes the occurrence of a default under any provision (to the extent Tenant has knowledge of such provision and Tenant's or such Guarantor's obligations with respect thereto) of any Facility Mortgage, related documents or obligations thereunder by which Tenant is bound in accordance with Section 31.1 or has agreed under the terms of this Lease to be bound, which default is not cured within the applicable time period, if the effect of such default is to cause, or to permit the holder or holders of that Facility Mortgage or Indebtedness secured by that Facility Mortgage (or a trustee or agent on behalf of such holder or holders), to cause, that Facility Mortgage (or the Indebtedness secured thereby) to become or be declared due and payable (or redeemable) prior to its stated maturity (excluding in any case any default related to the financial performance of Tenant or any Guarantor);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) (i) a breach by Tenant of Section 23.3(a) hereof for two consecutive Test Periods ending on the last day of two consecutive fiscal quarters or (ii) a breach of Sections 23.3(d), (e), (f), or (g) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the occurrence of a Minimum RCF Covenant Failure or a Net Leverage Covenant Failure, it being understood that, notwithstanding anything to the contrary in this Section 16.1 (including Section 16.1(p)), no breach or default under Section 23.3(b) or Section 23.3(c)(i) shall constitute a default or Event of Default hereunder except to the extent a Minimum RCF Covenant Failure or a Net Leverage Covenant Failure occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) from and after the occurrence of a Refinancing Transaction, (i) an "Event of Default" shall have occurred under and as defined in Bally's Lease 1 or (ii) an "Event of Default" shall have occurred under and as defined in Bally's Lease 2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) if Tenant shall fail to observe or perform any other term, covenant or condition of this Lease and such failure is not cured by Tenant within thirty (30) days after written notice thereof from Landlord, unless such failure cannot with due diligence be cured within a period of thirty (30) days, in which case such failure shall not be deemed to be an Event of Default if Tenant proceeds promptly and with due diligence to cure the failure and diligently completes the curing thereof within one hundred twenty (120) days after such notice from Landlord; <u>provided</u>, <u>however</u>, that such notice shall be in lieu of and not in addition to any notice required under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) if Tenant or any Guarantor shall fail to pay, bond, escrow or otherwise similarly secure payment of one or more final judgments aggregating in excess of the product of (i) $100 million and (ii) the CPI Increase (and only to the extent not covered by insurance), which judgments are not discharged or effectively waived or stayed for a period of 45 consecutive days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) an assignment of Tenant's interest in this Lease (including pursuant to a Change in Control) shall have occurred without the consent of Landlord to the extent such consent is required under Article XXII or Tenant is otherwise in default of the provisions set forth in Section 22.1 below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) the occurrence of a "Developer Default" under the Development Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) a breach of Section 6.4 or Section 6.5 that is not cured by Tenant within fifteen (15) days after the earlier of (i) any officer of Tenant becomes aware of such breach and (ii) written notice thereof from Landlord. For the purposes of subclause (i) Tenant shall provide Landlord prompt written notice upon Tenant's knowledge of a breach of Section 6.4 and Section 6.5, but in no event shall Tenant's cure of such breach be delayed by or conditioned on Tenant's delivery of or Landlord's receipt of any such notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) a breach by Tenant of the Host Community Agreement that continues beyond the expiration of notice and cure periods such that the City is permitted to exercise (or has exercised) its right to terminate the Host Community Agreement.

No Event of Default (other than a failure to make payment of money) shall be deemed to exist under this Section 16.1 during any time the curing thereof is prevented by an Unavoidable Delay, <u>provided</u> that upon the cessation of the Unavoidable Delay, Tenant remedies the default without further delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.2** **<u>Certain Remedies</u>.** If an Event of Default shall have occurred and be continuing, Landlord may (a) terminate this Lease by giving Tenant no less than ten (10) days' notice of such termination and the Term shall terminate and all rights of Tenant under this Lease shall cease, (b) seek damages as provided in Section 16.3 hereof, and/or (c) exercise any other right or remedy at law or in equity available to Landlord as a result of any such Event of Default, including, without limitation, the right to exercise any powers of attorney granted to Landlord hereunder, provided, however, that if any Event of Default described in Section 16.1(c), Section 16.1(d) or Section 16.1(e) has occurred (collectively, the "**Insolvent Events**"), this Lease shall immediately terminate without notice or demand of any kind. Tenant shall pay as Additional Charges all costs and expenses incurred by or on behalf of Landlord, including reasonable attorneys' fees and expenses, as a result of any Event of Default hereunder. If an Event of Default shall have occurred and be continuing, whether or not this Lease has been terminated pursuant to the first sentence of this Section 16.2, Tenant shall, to the extent permitted by law (including applicable Gaming Regulations), if required by Landlord to do so, immediately surrender to Landlord possession of all or any portion of the Leased Property (including any Tenant Capital Improvements) as to which Landlord has so demanded and quit the same and Landlord may, to the extent permitted by law (including applicable Gaming Regulations), enter upon and repossess such Leased Property by reasonable force, summary proceedings, ejectment or otherwise, and, to the extent permitted by law (including applicable Gaming Regulations), may remove Tenant and all other Persons and any of Tenant's Property from such Leased Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.3** **<u>Damages</u>.** None of (i) the termination of this Lease, (ii) the repossession of the Leased Property (including any Tenant Capital Improvements to the Facility), (iii) the failure of Landlord to relet the Leased Property or any portion thereof, (iv) the reletting of all or any portion of the Leased Property, or (v) the inability of Landlord to collect or receive any rentals due upon any such reletting, shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive any such termination, repossession or reletting. Landlord and Tenant agree that Landlord shall have no obligation to mitigate Landlord's damages under this Lease. If any such termination of this Lease occurs (whether or not Landlord terminates Tenant's right to possession of the Leased Property), Tenant shall forthwith pay to Landlord all Rent due and payable under this Lease to and including the date of such termination. Thereafter:

Tenant shall forthwith pay to Landlord, at Landlord's option, as and for liquidated and agreed current damages for the occurrence of an Event of Default, either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the worth at the time of award of the unpaid
 Rent which had been earned at the time of termination to the extent not previously paid by
 Tenant under this Section 16.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the worth at the time of award of the amount
 by which the unpaid Rent which would have been earned after termination until the time of
 award exceeds the amount of such rental loss that Tenant proves was in fact avoided or could
 have been reasonably avoided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the worth at the time of award of the
 amount by which the unpaid Rent for the balance of the Term after the time of award exceeds
 the amount of such rental loss that Tenant proves was in fact avoided or could be reasonably
 avoided; *plus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other amount necessary to compensate
 Landlord for all the detriment proximately caused by Tenant's failure to perform its
 obligations under this Lease or which in the ordinary course of things would be likely to
 result therefrom; <u>provided</u>, <u>however</u>, no compensation shall be due for consequential
 damages or diminution in value of the Land or the buildings resulting from the Event of Default; <u>provided</u>, <u>further</u>, that Tenant shall be responsible for consequential damages
 resulting solely from Tenant's holding over and remaining in all or any portion of
 the Leased Property following the expiration or earlier termination of this Lease and first
 accruing after the date that is six (6) months following such termination.

As used in clauses (i) and (ii) above, the "worth at the time of award" shall be computed by allowing interest at the Overdue Rate. As used in clause (iii) above, the "worth at the time of award" shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of New York at the time of award plus one percent (1%) and reducing such amount by the portion of the unpaid Rent that Tenant proves could be reasonably avoided.

or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if Landlord chooses not to terminate Tenant's right to possession of the Leased Property (whether or not Landlord terminates this Lease), each installment of said Rent and other sums payable by Tenant to Landlord under this Lease as the same becomes due and payable, together with interest at the Overdue Rate from the date when due until paid, and Landlord may enforce, by action or otherwise, any other term or covenant of this Lease (and Landlord may at any time thereafter terminate Tenant's right to possession of the Leased Property and seek damages under subparagraph (A) hereof, to the extent not already paid for by Tenant under this subparagraph (B)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.4** **<u>Receiver</u>.** Upon the occurrence and continuance of an Event of Default, and upon commencement of proceedings to enforce the rights of Landlord hereunder, but subject to any limitations of applicable law, Landlord shall be entitled, as a matter of right, to the appointment of a receiver or receivers acceptable to Landlord of the Leased Property and of the revenues, earnings, income, products and profits thereof, pending the outcome of such proceedings, with such powers as the court making such appointment shall confer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.5** **<u>Waiver</u>.** If Landlord initiates judicial proceedings or if this Lease is terminated by Landlord pursuant to this Article XVI, Tenant waives, to the extent permitted by applicable law, (i) any right of redemption, re-entry or repossession; and (ii) the benefit of any laws now or hereafter in force exempting property from liability for rent or for debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.6** **<u>Application of Funds</u>.** Any payments received by Landlord under any of the provisions of this Lease during the existence or continuance of any Event of Default which are made to Landlord rather than Tenant due to the existence of an Event of Default shall be applied to Tenant's obligations in the order which Landlord may reasonably determine or as may be prescribed by the laws of the State of Illinois.

**ARTICLE XVII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.1** **<u>Permitted Leasehold Mortgagees</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Requirements</u>. Tenant may, on one or more occasions without Landlord's prior consent, (directly or indirectly) mortgage, pledge or otherwise encumber Tenant's estate in and to the Leased Property (the "**Leasehold Estate**") or pledge its right, title and interest under this Lease and/or Equity Interests in Tenant or its direct or indirect equity owners as security under any Debt Agreement secured thereby; <u>provided</u> that, prior to the Opening Date, Tenant may not, without Landlord's prior written consent, so mortgage, pledge or otherwise encumber the Leasehold Estate or pledge its right, title and interest under this Lease and/or Equity Interests in Tenant or its direct or indirect equity owners other than pursuant to a Permitted Leasehold Mortgage granted to a Permitted Leasehold Mortgagee on the terms and conditions set forth in this <u>Section 17.1(a)</u>; <u>provided</u>, <u>further</u>, that, no Person shall be entitled to the rights and protections afforded to a Permitted Leasehold Mortgagee or considered a Permitted Leasehold Mortgagee unless (1) such Person is a Permitted Leased Mortgagee or has otherwise been approved by Landlord to receive the benefits of a Permitted Leasehold Mortgagee, (2) such Person delivers to Landlord a written agreement (in form and substance reasonably satisfactory to Landlord) providing (i) that (unless this Lease has been terminated) such Permitted Leasehold Mortgagee and any lenders, noteholders or other investors for whom it acts as representative, agent or trustee, will not use or dispose of any Gaming License for use at a location other than at the Facility to which such Gaming License relates as of the date such Person becomes a Permitted Leasehold Mortgagee, and (ii) an express acknowledgement that, in the event of the exercise by the Permitted Leasehold Mortgagee of its rights under the Permitted Leasehold Mortgage, (a) the Permitted Leasehold Mortgagee shall be required to (except for a transfer that meets the requirements of Section 22.2(c)) secure the approval of Landlord for the replacement of Tenant with respect to the affected portion of the Leased Property and contain the Permitted Leasehold Mortgagee's acknowledgment that such approval may be granted or withheld by Landlord in accordance with the provisions of Article XXII of this Lease, and (b) prior to the Opening Date, it (or its nominee) shall have accepted and assumed all of the performance of this Lease (unless a New Lease is executed pursuant to the terms of this Article XVII) and the Development Agreement, (3) the underlying Permitted Leasehold Mortgage includes an express acknowledgement that any exercise of remedies thereunder that would affect the Leasehold Estate shall be subject to the terms of this Lease, including, without limitation the requirement that, prior to the Opening Date, it (or its nominee) shall have accepted and assumed all of the performance of this Lease (unless a New Lease is executed pursuant to the terms of this Article XVII) and the Development Agreement, and (4) Tenant provides Landlord with written notice of such Permitted Leasehold Mortgage together with a true copy of such Permitted Leasehold Mortgage and the name and address of the Permitted Leasehold Mortgagee. In the event of any assignment of a Permitted Leasehold Mortgage or in the event of a change of address of a Permitted Leasehold Mortgagee or of an assignee of such Mortgage, written notice of the new name and address shall be provided to Landlord. Any mortgagee of Tenant's Leasehold Estate must meet the definition of a Permitted Leasehold Mortgagee and satisfy the requirements of this Section 17.1(a) prior to receiving the rights as such under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Acknowledgement of Permitted Leasehold Mortgagee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If Tenant shall, on one or more occasions, mortgage Tenant's Leasehold Estate to a Permitted Leasehold Mortgagee in compliance with Section 17.1(a) above, Landlord and Tenant agree that, following the satisfaction of the requirements set forth in Section 17.1(a), the provisions of this Section 17.1 shall apply in respect to each such Permitted Leasehold Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Landlord shall promptly upon receipt of all information and documentation required by Section 17.1(a) above acknowledge by an executed and notarized instrument receipt thereof and either confirm the status of the Permitted Leasehold Mortgagee as such or, in the alternative, notify the Tenant and the Permitted Leasehold Mortgagee of the rejection of such items as not conforming with the provisions of this Section 17.1 and specify the specific basis of such rejection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) After Landlord has received the items required by Section 17.1(a) above, the Tenant, upon being requested to do so by Landlord, shall with reasonable promptness provide Landlord with copies of the note or other obligation secured by such Permitted Leasehold Mortgage and of any other documents pertinent to the Permitted Leasehold Mortgage as specified by the Landlord. If requested to do so by Landlord, Tenant shall thereafter also provide the Landlord from time to time with a copy of each amendment or other modification or supplement to such instruments. All recorded documents shall be accompanied by the appropriate recording stamp or other certification of the custodian of the relevant recording office as to their authenticity as true and correct copies of official records and all nonrecorded documents shall be accompanied by a certification by Tenant that such documents are true and correct copies of the originals. From time to time upon being requested to do so by Landlord, Tenant shall also notify Landlord of the date and place of recording and other pertinent recording data with respect to such instruments as have been recorded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Default Notice</u>. Landlord, upon providing Tenant any notice of: (i) default under this Lease or (ii) a termination of this Lease, shall at the same time provide a copy of such notice to every Permitted Leasehold Mortgagee for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof. No such notice by Landlord to Tenant shall be deemed to have been duly given unless and until a copy thereof has been sent, in the manner prescribed in Section 35.1 of this Lease, to every Permitted Leasehold Mortgagee for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof. From and after such notice has been sent to a Permitted Leasehold Mortgagee, such Permitted Leasehold Mortgagee shall have the same period, with respect to its remedying any default or acts or omissions which are the subject matter of such notice or causing the same to be remedied, as is given Tenant after the giving of such notice to Tenant, plus in each instance, the additional periods of time specified in subsections (d) and (e) of this Section 17.1 to remedy, commence remedying or cause to be remedied the defaults or acts or omissions which are the subject matter of such notice specified in any such notice. Landlord shall accept such performance by or at the instigation of such Permitted Leasehold Mortgagee as if the same had been done by Tenant. Tenant authorizes each Permitted Leasehold Mortgagee (to the extent such action is authorized under the applicable Debt Agreement) to take any such action at such Permitted Leasehold Mortgagee's option and does hereby authorize entry upon the premises by the Permitted Leasehold Mortgagee for such purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notice to Permitted Leasehold Mortgagee</u>. Anything contained in this Lease to the contrary notwithstanding, if any default shall occur which entitles Landlord to terminate this Lease, Landlord shall have no right to terminate this Lease on account of such default unless, following the expiration of the period of time given Tenant to cure such default or the act or omission which gave rise to such default, Landlord shall notify every Permitted Leasehold Mortgagee for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof of Landlord's intent to so terminate at least thirty (30) days in advance of the proposed effective date of such termination if such default is capable of being cured by the payment of money, and at least ninety (90) days in advance of the proposed effective date of such termination if such default is not capable of being cured by the payment of money ("**Termination Notice**"). The provisions of subsection (e) below of this Section 17.1 shall apply if, during such thirty (30) or ninety (90) days (as the case may be) Termination Notice period, any Permitted Leasehold Mortgagee shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) notify Landlord of such Permitted Leasehold Mortgagee's desire to nullify such Termination Notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) pay or cause to be paid all Rent, Additional Charges, and other payments (i) then due and in arrears as specified in the Termination Notice to such Permitted Leasehold Mortgagee and (ii) which may become due during such thirty (30) or ninety (90) day (as the case may be) period (as the same may become due); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) comply or in good faith, with reasonable diligence and continuity, commence to comply with all nonmonetary requirements of this Lease then in default and reasonably susceptible of being complied with by such Permitted Leasehold Mortgagee, <u>provided</u>, <u>however</u>, that such Permitted Leasehold Mortgagee shall not be required during such ninety (90) day period to cure or commence to cure any default consisting of Tenant's failure to satisfy and discharge any lien, charge or encumbrance against the Tenant's interest in this Lease or the Leased Property, or any of Tenant's other assets junior in priority to the lien of the mortgage or other security documents held by such Permitted Leasehold Mortgagee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) during such thirty (30) or ninety (90) day period, the Permitted Leasehold Mortgagee shall respond, with reasonable diligence, to requests for information from Landlord as to the Permitted Leasehold Mortgagee's (and related lenders') intent to pay such Rent and other charges and comply with this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Procedure on Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If Landlord shall elect to terminate this Lease by reason of any Event of Default of Tenant that has occurred and is continuing, and a Permitted Leasehold Mortgagee shall have proceeded in the manner provided for by subsection (d) of this Section 17.1, the specified date for the termination of this Lease as fixed by Landlord in its Termination Notice shall be extended for a period of six (6) months; <u>provided</u> that such Permitted Leasehold Mortgagee shall, during such six-month period (and during the period of any continuance referred to in subsection 17.1(e)(ii) below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) pay or cause to be paid the Rent, Additional Charges and other monetary obligations of Tenant under this Lease as the same become due, and continue its good faith efforts to perform or cause to be performed all of Tenant's other obligations under this Lease, excepting (A) obligations of Tenant to satisfy or otherwise discharge any lien, charge or encumbrance against Tenant's interest in this Lease or the Leased Property or any of Tenant's other assets junior in priority to the lien of the mortgage or other security documents held by such Permitted Leasehold Mortgagee and (B) past nonmonetary obligations then in default and not reasonably susceptible of being cured by such Permitted Leasehold Mortgagee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if not enjoined or stayed pursuant to a bankruptcy or insolvency proceeding or other judicial order, diligently continue to pursue acquiring or selling Tenant's interest in this Lease and the Leased Property by foreclosure of the Permitted Leasehold Mortgage or other appropriate means and diligently prosecute the same to completion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If at the end of such six (6) month period such Permitted Leasehold Mortgagee is complying with subsection 17.1(e)(i) above, this Lease shall not then terminate, and the time for completion by such Permitted Leasehold Mortgagee of its proceedings shall continue (<u>provided</u> that for the time of such continuance, such Permitted Leasehold Mortgagee is in compliance with subsection 17.1(e)(i) above) (x) so long as such Permitted Leasehold Mortgagee is enjoined or stayed pursuant to a bankruptcy or insolvency proceeding or other judicial order and if so enjoined or stayed, thereafter for so long as such Permitted Leasehold Mortgagee proceeds to complete steps to acquire or sell Tenant's interest in this Lease by foreclosure of the Permitted Leasehold Mortgage or by other appropriate means with reasonable diligence and continuity but not to exceed twelve (12) months after the Permitted Leasehold Mortgagee is no longer so enjoined or stayed from prosecuting the same and in no event longer than twenty-four (24) months from the date of Landlord's initial notification to Permitted Leasehold Mortgagee pursuant to Section 17.1(d) hereof, and (y) if such Permitted Leasehold Mortgagee is not so enjoined or stayed, thereafter for so long as such Permitted Leasehold Mortgagee proceeds to complete steps to acquire or sell Tenant's interests in this Lease by foreclosure of the Permitted Leasehold Mortgage or by other appropriate means with reasonable diligence and continuity but not to exceed twelve (12) months from the date of Landlord's initial notification to Permitted Leasehold Mortgagee pursuant to Section 17.1(d) hereof. Nothing in this subsection (e) of this Section 17.1, however, shall be construed to extend this Lease beyond the original term thereof as extended by any options to extend the term of this Lease properly exercised by Tenant or a Permitted Leasehold Mortgagee in accordance with Section 1.4, nor to require a Permitted Leasehold Mortgagee to continue such foreclosure proceeding after the default has been cured. If the default shall be cured pursuant to the terms and within the time periods allowed in subsections (d) and (e) of this Section 17.1 and the Permitted Leasehold Mortgagee shall discontinue such foreclosure proceedings, this Lease shall continue in full force and effect as if Tenant had not defaulted under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If a Permitted Leasehold Mortgagee is complying with subsection 17.1(e)(i) of this Section 17.1, upon the acquisition of Tenant's Leasehold Estate herein by a Discretionary Transferee this Lease shall continue in full force and effect as if Tenant had not defaulted under this Lease, <u>provided</u> that such Discretionary Transferee cures all outstanding defaults that can be cured through the payment of money and all other defaults that are reasonably susceptible of being cured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For the purposes of this Section 17.1, the making of a Permitted Leasehold Mortgage shall not be deemed to constitute an assignment or transfer of this Lease nor of the Leasehold Estate hereby created, nor shall any Permitted Leasehold Mortgagee, as such, be deemed to be an assignee or transferee of this Lease or of the Leasehold Estate hereby created so as to require such Permitted Leasehold Mortgagee, as such, to assume the performance of any of the terms, covenants or conditions on the part of the Tenant to be performed hereunder; but the purchaser at any sale of this Lease (including a Permitted Leasehold Mortgagee if it is the purchaser at foreclosure) and of the Leasehold Estate hereby created in any proceedings for the foreclosure of any Permitted Leasehold Mortgage, or the assignee or transferee of this Lease and of the Leasehold Estate hereby created under any instrument of assignment or transfer in lieu of the foreclosure of any Permitted Leasehold Mortgage, shall (x) be subject to Article XXII hereof (including the requirement that such purchaser assume the performance of the terms, covenants or conditions on the part of the Tenant to be performed hereunder and meet the qualifications of Discretionary Transferee or be reasonably consented to by Landlord in accordance with Section 22.2(a) hereof) and (y) assume the performance of the terms, covenants or conditions on the part of the Tenant to be performed under the Development Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any Permitted Leasehold Mortgagee or other acquirer of the Leasehold Estate of Tenant pursuant to foreclosure, assignment in lieu of foreclosure or other proceedings in accordance with the requirements of Section 22.2(c) of this Lease may, upon acquiring Tenant's Leasehold Estate, without further consent of Landlord, sell and assign the Leasehold Estate in accordance with the requirements of Section 22.2(c) of this Lease and enter into Permitted Leasehold Mortgages in the same manner as the original Tenant, subject to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Notwithstanding any other provisions of this Lease, any sale of this Lease and of the Leasehold Estate hereby created in any proceedings for the foreclosure of any Permitted Leasehold Mortgage, or the assignment or transfer of this Lease and of the Leasehold Estate hereby created in lieu of the foreclosure of any Permitted Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment of this Lease and of the Leasehold Estate hereby created to the extent that the successor tenant under this Lease is a Discretionary Transferee and the transfer otherwise complies with the requirements of Section 22.2(c) of this Lease or the transferee is reasonably consented to by Landlord in accordance with Section 22.2(a) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>New Lease</u>. In the event of the termination of this Lease other than due to a default as to which the Permitted Leasehold Mortgagee had the opportunity (without legal impediment) to, but did not, cure the default as set forth in Sections 17.1(d) and 17.1(e) above, including pursuant to the disaffirmance or rejection of this Lease by Tenant in a bankruptcy, Landlord shall provide each Permitted Leasehold Mortgagee with written notice that this Lease has been terminated ("**Notice of Termination**"), together with a statement of all sums which would at that time be due under this Lease but for such termination, and of all other defaults, if any, then known to Landlord. Landlord agrees to enter into a new lease ("**New Lease**") of the Leased Property with such Permitted Leasehold Mortgagee or its Permitted Leasehold Mortgagee Designee (in each case if a Discretionary Transferee) or any other transferee permitted to be assigned this Lease without consent of the Landlord pursuant to Section 22.2(c)(iv), for the remainder of the term of this Lease, effective as of the date of termination, at the rent and additional rent, and upon the terms, covenants and conditions (including all options to renew but excluding requirements which have already been fulfilled) of this Lease, <u>provided</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Such Permitted Leasehold Mortgagee or its Permitted Leasehold Mortgagee Designee shall make a binding, written, irrevocable commitment to Landlord for such New Lease within thirty (30) days after the date such Permitted Leasehold Mortgagee receives Landlord's Notice of Termination of this Lease given pursuant to this Section 17.1(f);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such Permitted Leasehold Mortgagee or its Permitted Leasehold Mortgagee Designee shall pay or cause to be paid to Landlord at the time of the execution and delivery of such New Lease, any and all sums which would at the time of execution and delivery thereof be due pursuant to this Lease but for such termination and, in addition thereto, all reasonable expenses, including reasonable attorney's fees, which Landlord shall have incurred by reason of such termination and the execution and delivery of the New Lease and which have not otherwise been received by Landlord from Tenant or other party in interest under Tenant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Such Permitted Leasehold Mortgagee or its Permitted Leasehold Mortgagee Designee shall agree to remedy any of Tenant's defaults of which said Permitted Leasehold Mortgagee was notified by Landlord's Notice of Termination (or in any subsequent notice) and which can be cured through the payment of money or are reasonably susceptible of being cured by Permitted Leasehold Mortgagee or its Permitted Leasehold Mortgagee Designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>New Lease Priorities</u>. If more than one Permitted Leasehold Mortgagee shall request a New Lease pursuant to subsection 17.1(f)(i) of this Section 17.1, Landlord shall enter into such New Lease with the Permitted Leasehold Mortgagee whose mortgage is senior in lien, or with its Permitted Leasehold Mortgagee Designee acting for the benefit of such Permitted Leasehold Mortgagee prior in lien foreclosing on Tenant's interest in this Lease. Landlord, without liability to Tenant or any Permitted Leasehold Mortgagee with an adverse claim, may rely upon a title insurance policy issued by a reputable title insurance company as the basis for determining the appropriate Permitted Leasehold Mortgagee who is entitled to such New Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Permitted Leasehold Mortgagee Need Not Cure Specified Defaults</u>. Nothing herein contained shall require any Permitted Leasehold Mortgagee as a condition to its exercise of the right hereunder to cure any default of Tenant not reasonably susceptible of being cured by such Permitted Leasehold Mortgagee or its Permitted Leasehold Mortgagee Designee (including but not limited to the default referred to in Sections 16.1(c), (d), (e), (f) (if the levy or attachment is in favor of such Permitted Leasehold Mortgagee (<u>provided</u> such levy is extinguished upon foreclosure or similar proceeding or in a transfer in lieu of any such foreclosure) or is junior to the lien of such Permitted Leasehold Mortgagee and would be extinguished by the foreclosure of the Permitted Leasehold Mortgage that is held by such Permitted Leasehold Mortgagee), (i) (as related to the Indebtedness secured by a Permitted Leasehold Mortgage that is junior to the lien of the Permitted Leasehold Mortgagee and such junior lien would be extinguished by the foreclosure of the Permitted Leasehold Mortgage that is held by such Permitted Leasehold Mortgagee), (m) (if such "Event of Default" under Bally's Lease 1 or Bally's Lease 2, as applicable, is not susceptible of being cured by such Permitted Leasehold Mortgagee (including because the Permitted Leasehold Mortgagee is not a "Permitted Leasehold Mortgagee" under Bally's Lease 1 or Bally's Lease 2, as applicable)) or (q) (if the judgment is in favor of a Permitted Leasehold Mortgagee other than a Permitted Leasehold Mortgagee holding a Permitted Leasehold Mortgage that is senior to the lien of such Permitted Leasehold Mortgagee) and any other sections of this Lease which may impose conditions of default not susceptible to being cured by a Permitted Leasehold Mortgagee or a subsequent owner of the Leasehold Estate through foreclosure hereof), in order to comply with the provisions of Sections 17.1(d) and 17.1(e), or as a condition of entering into the New Lease provided for by Section 17.1(f).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Casualty Loss</u>. A standard mortgagee clause naming each Permitted Leasehold Mortgagee for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof may be added to any and all insurance policies required to be carried by Tenant hereunder on condition that the insurance proceeds are to be applied in the manner specified in this Lease and the Permitted Leasehold Mortgage shall so provide; except that the Permitted Leasehold Mortgage may provide a manner for the disposition of such proceeds, if any, otherwise payable directly to the Tenant (but not such proceeds, if any, payable jointly to the Landlord and the Tenant or to the Landlord, to the Facility Mortgagee or to a third-party escrowee) pursuant to the provisions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Arbitration; Legal Proceedings</u>. Landlord shall give prompt notice to each Permitted Leasehold Mortgagee (for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof) of any arbitration or legal proceedings between Landlord and Tenant involving obligations under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Notices</u>. Notices from Landlord to the Permitted Leasehold Mortgagee for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof shall be provided in the method provided in Section 35.1 hereof to the address furnished Landlord pursuant to Section 17.1(a) hereof, and those from the Permitted Leasehold Mortgagee to Landlord shall be mailed to the address designated pursuant to the provisions of Section 35.1 hereof. Such notices, demands and requests shall be given in the manner described in this Section 17.1 and in Section 35.1 and shall in all respects be governed by the provisions of those sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Limitation of Liability</u>. Notwithstanding any other provision hereof to the contrary, (i) Landlord agrees that any Permitted Leasehold Mortgagee's liability to Landlord in its capacity as Permitted Leasehold Mortgagee hereunder howsoever arising shall be limited to and enforceable only against such Permitted Leasehold Mortgagee's interest in the Leasehold Estate and such Permitted Leasehold Mortgagee's interest in such other collateral granted to such Permitted Leasehold Mortgagee to secure the obligations under its Debt Agreement to the extent such other collateral is acquired by such Permitted Leasehold Mortgagee by foreclosure or in lieu of foreclosure; <u>provided</u>, <u>however</u>, if necessary to satisfy the Landlord's claim the Permitted Leasehold Mortgagee shall use diligent efforts to foreclose or acquire by a deed in lieu of such foreclosure such other collateral granted to such Permitted Leasehold Mortgagee, and (ii) each Permitted Leasehold Mortgagee agrees that Landlord's liability to such Permitted Leasehold Mortgagee hereunder howsoever arising shall be limited to and enforceable only against Landlord's interest in the Leased Property, and no recourse against Landlord shall be had against any other assets of Landlord whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Sale Procedure</u>. If an Event of Default shall have occurred and be continuing, the Permitted Leasehold Mortgagee for which notice has been properly provided to Landlord pursuant to Section 17.1(a) hereof with the most senior lien on the Leasehold Estate (a "**Senior Lender**"), to the extent permitted under the Debt Agreement secured by the Permitted Leasehold Mortgage of such Senior Lender, shall have the right to make all determinations and agreements on behalf of Tenant under Article XXXVI (including, without limitation, requesting that the sale process described in Article XXXVI be commenced, the determination and agreement of the Gaming Assets FMV, the Successor Tenant Rent, and the potential Successor Tenants that should be included in the process, and negotiation with such Successor Tenants), in each case, in accordance with and subject to the terms and provisions of Article XXXVI, including without limitation the requirement that Successor Tenant meet the qualifications of Discretionary Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Third Party Beneficiary</u>. Each Permitted Leasehold Mortgagee (for so long as such Permitted Leasehold Mortgagee holds a Permitted Leasehold Mortgage) is an intended third-party beneficiary of this Article XVII entitled to enforce the same as if a party to this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.2** **<u>Landlord's Right to Cure Tenant's Default</u>.** If Tenant shall fail to make any payment or to perform any act required to be made or performed hereunder when due or within any cure period provided for herein, Landlord, without waiving or releasing any obligation or default, may, but shall be under no obligation to, upon prior written notice to Tenant specifying the default to be cured and that it is curing such default under this Section 17.2 make such payment or perform such act for the account and at the expense of Tenant, and may, to the extent permitted by law, enter upon the Leased Property for such purpose and take all such action thereon as, in Landlord's opinion, may be necessary or appropriate therefor. No such entry shall be deemed an eviction of Tenant. All sums so paid by Landlord and all costs and expenses, including reasonable attorneys' fees and expenses, so incurred, together with interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Landlord, shall be paid by Tenant to Landlord on demand as an Additional Charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.3** **<u>Landlord's Right to Cure Debt Agreement</u>.** Tenant agrees to use commercially reasonable efforts to include in any agreement related to Material Indebtedness and any Debt Agreement (or the principal or controlling agreement relating to such Material Indebtedness or series of related Debt Agreements) obtained by or entered into by Tenant after the Commencement Date a provision requiring the lender or lenders thereunder (or the Representatives of such lenders) to provide a copy to Landlord of any notices issued by such lender or lenders thereunder or the Representative of such lenders to Tenant of a Specified Debt Agreement Default. In addition, Tenant agrees to use commercially reasonable efforts to include in any such agreement related to Material Indebtedness and any Debt Agreement (or the principal or controlling agreement relating to such Material Indebtedness or series of related Debt Agreements) a provision with the effect that should Tenant fail to make any payment or to perform any act required to be made or performed under an agreement related to Material Indebtedness or under the Debt Agreement when due or within any cure period provided for therein (if any), Landlord may, subject to applicable Gaming Regulations and the terms hereof, upon prior written notice to Tenant specifying the default and that it is curing such default under this Section 17.3, cure any such default by making such payment to the applicable lenders or Representative or otherwise performing such acts within the cure period thereunder (if any) for the account of Tenant, to the extent such default is susceptible to cure by Landlord; <u>provided</u> that Landlord's right to cure such default shall not be any greater than the rights of the obligors under such Material Indebtedness or Debt Agreement to cure such default. Landlord and Tenant agree that all sums so paid by Landlord and all costs and expenses, including reasonable attorneys' fees and expenses, so incurred, together with interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred by Landlord, shall be for the account of Tenant and paid by Tenant to Landlord on demand.

**ARTICLE XVIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.1** **<u>Sale of the Leased Property</u>.** Landlord shall not voluntarily sell all or portions of the Leased Property (including via entering into a merger transaction other than a merger transaction with GLP or an Affiliate of GLP) during the Term without the prior written consent of Tenant, which consent may not be unreasonably withheld. Notwithstanding the foregoing, Tenant's consent shall not be required for (A) any transfer to a Facility Mortgagee contemplated under Article XXXI hereof which may include, without limitation, a transfer by foreclosure brought by the Facility Mortgagee or a transfer by deed in lieu of foreclosure (and the first subsequent sale by such Facility Mortgagee to the extent the Facility Mortgagee has been diligently attempting to expedite such first subsequent sale from the time it initiated foreclosure proceedings taking into account the interest of such Facility Mortgagee to maximize the proceeds of such sale), (B) a sale by Landlord of all of the Leased Property to a single buyer or group of buyers, other than to an operator, or an Affiliate of such an operator, of Gaming Facilities (<u>provided</u> that Landlord shall be permitted to sell all of the Leased Property to a real estate investment trust even if such real estate investment trust is an Affiliate of such an operator), (C) a merger transaction or sale by Landlord or GLP involving the Facility, other than with an operator, or an Affiliate of an operator, of Gaming Facilities (<u>provided</u> that Landlord or GLP shall be permitted to merge with or sell all of the Leased Property to a real estate investment trust even if such real estate investment trust is an Affiliate of an operator), (D) a sale/leaseback transaction by Landlord with respect to the Leased Property for financing purposes, (E) any sale of all or a portion of the Leased Property or the Facility that does not change the identity of the Landlord hereunder, including without limitation a participating interest in Landlord's interest under this Lease or a sale of Landlord's reversionary interest in the Leased Property, or (F) a sale or transfer to an Affiliate of GLP or a joint venture entity in which GLP or its Affiliate is the managing member or partner. Any sale by Landlord of all or any portion of the Leased Property pursuant to this Section 18.1 shall be subject in each instance to all of the rights of Tenant under this Lease and, to the extent necessary, any purchaser or successor Landlord and/or other controlling persons must be approved by all applicable gaming regulatory agencies to ensure that there is no material impact on the validity of any of the Gaming Licenses or the ability of Tenant to continue to use the Facility for Gaming activities in substantially the same manner as immediately prior to Landlord's sale. In the event that the City's consent is required to sell, assign or otherwise transfer the Leased Property pursuant to Section 41.14 below, then Tenant shall use its commercially reasonable efforts to cooperate and assist Landlord with obtaining the City's consent thereto. Notwithstanding anything contained in this Lease to the contrary, but subject to Section 41.14, upon the occurrence of an Event of Default, in addition to all other rights and remedies afforded to Landlord under this Lease or at law or in equity, Landlord shall have the right to sell the Development Land to any Person (other than to an operator, or an Affiliate of such an operator, of Gaming Facilities (<u>provided</u> that Landlord shall be permitted to sell the Development Land to a real estate investment trust even if such real estate investment trust is an Affiliate of such an operator)) and upon such terms and conditions as Landlord shall so desire, in each case without the prior written approval of Tenant.

**ARTICLE XIX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.1** **<u>Holding Over</u>.** If Tenant shall for any reason remain in possession of the Leased Property after the expiration or earlier termination of the Term without the consent, or other than at the request, of Landlord, such possession shall be as a month-to-month tenant during which time Tenant shall pay as Rent each month the monthly Rent applicable to the prior Lease Year for the Facility multiplied by (A) 150% for the first three months of such holdover and (B) 200% for any succeeding months of such holdover, together with all Additional Charges and all other sums payable by Tenant pursuant to this Lease. During such period of month-to-month tenancy, Tenant shall be obligated to perform and observe all of the terms, covenants and conditions of this Lease, but shall have no rights hereunder other than the right, to the extent given by law to month-to-month tenancies, to continue its occupancy and use of the Leased Property of, and/or any Tenant Capital Improvements to, the Facility. Nothing contained herein shall constitute the consent, express or implied, of Landlord to the holding over of Tenant after the expiration or earlier termination of this Lease.

**ARTICLE XX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.1** **<u>Risk of Loss</u>.** The risk of loss or of decrease in the enjoyment and beneficial use of the Leased Property as a consequence of the damage or destruction thereof by fire, the elements, casualties, thefts, riots, wars or otherwise, or in consequence of foreclosures, attachments, levies or executions (other than by Landlord and Persons claiming from, through or under Landlord) is assumed by Tenant, and except as otherwise provided herein no such event shall entitle Tenant to any abatement of Rent.

**ARTICLE XXI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.1** **<u>General Indemnification</u>.** In addition to the other indemnities contained herein, and notwithstanding the existence of any insurance carried by or for the benefit of Landlord or Tenant, and without regard to the policy limits of any such insurance, Tenant shall protect, indemnify, save harmless and defend Landlord from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses, including reasonable attorneys', consultants' and experts' fees and expenses, imposed upon or incurred by or asserted against Landlord by reason of: (i) except to the extent caused solely as a result of Landlord's gross negligence or willful misconduct, any accident, injury to or death of Persons or loss of or damage to property occurring on or about the Leased Property or adjoining sidewalks under the control of Tenant; (ii) any use, misuse, non-use, condition, maintenance or repair by Tenant of the Leased Property; (iii) any failure on the part of Tenant to perform or comply with any of the terms of this Lease; (iv) the non-performance of any of the terms and provisions of any and all existing and future subleases of the Leased Property to be performed by any party thereunder; (v) any claim for malpractice, negligence or misconduct committed by any Person on or working from the Leased Property; and (vi) the violation by Tenant of any Legal Requirement. Any amounts which become payable by Tenant under this Article XXI shall be paid within ten (10) days after liability therefor is determined by a final non appealable judgment or settlement or other agreement of the parties, and if not timely paid shall bear interest at the Overdue Rate from the date of such determination to the date of payment. Tenant, at its sole cost and expense, shall contest, resist and defend any such claim, action or proceeding asserted or instituted against Landlord. For purposes of this Article XXI, any acts or omissions of Tenant, or by employees, agents, assignees, contractors, subcontractors or others acting for or on behalf of Tenant (whether or not they are negligent, intentional, willful or unlawful), shall be strictly attributable to Tenant.

**ARTICLE XXII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.1** **<u>Subletting and Assignment</u>.** Tenant shall not, without Landlord's prior written consent, which, except as specifically set forth herein, may be withheld in Landlord's sole and absolute discretion, voluntarily or by operation of law assign (which term includes any transfer, sale, encumbering, pledge or other transfer or hypothecation) this Lease, sublet all or any part of the Leased Property or engage the services of any Person (other than an Affiliate of Tenant that becomes or is also a Guarantor) for the management or operation of the Facility (<u>provided</u> that the foregoing shall not restrict a transferee of Tenant from retaining a manager necessary for such transferee's satisfying the requirement set forth in clause (a)(1) of the definition of "Discretionary Transferee"). Tenant acknowledges that Landlord is relying upon the expertise of Tenant in the operation of the Facility and that Landlord entered into this Lease with the expectation that Tenant would remain in and operate the Facility during the entire Term and for that reason, except as set forth herein, Landlord retains sole and absolute discretion in approving or disapproving any assignment or sublease. Any Change in Control shall constitute an assignment of Tenant's interest in this Lease within the meaning of this Article XXII and the provisions requiring consent contained herein shall apply.

Notwithstanding anything contained herein to the contrary, Tenant hereby acknowledges and agrees that if Tenant's Parent (or its Subsidiaries and/or Affiliates) seeks to assign (excluding, for purposes of this sentence, any assignment pursuant to a Permitted Leasehold Mortgage, a Foreclosure Assignment or a Foreclosure COC (each as defined in the applicable Bally's Lease)), directly or indirectly, the Bally's Leases prior to the Rent Conversion Trigger Date, Landlord shall have the right to require that Tenant assign its interest in this Lease to the assignee of the Bally's Leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.2** **<u>Permitted Assignments</u>.** Notwithstanding the foregoing, and subject to Section 40.1, provided that, except in the case of Section 22.2(c)(iv), there is no Event of Default then continuing, Tenant may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with Landlord's prior written consent, which consent shall not be unreasonably withheld, allow to occur or undergo a Change in Control (including without limitation a transfer or assignment of this Lease to any third party in conjunction with a sale by Tenant of all or substantially all of Tenant's assets relating to the Facility);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) without Landlord's prior written consent, following the Rent Conversion Trigger Date, assign this Lease or sublease the Leased Property to Tenant's Parent, a wholly-owned Subsidiary of Tenant's Parent or a wholly-owned Subsidiary of Tenant if all of the following are first satisfied: (w) such Affiliate becomes a party to the Guaranty as a Guarantor and in the case of an assignment of this Lease, becomes party to and bound by this Lease; (x) Tenant remains fully liable hereunder; (y) the use of the Leased Property continues to comply with the requirements of this Lease; and (z) Landlord in its reasonable discretion shall have approved the form and content of all documents for such assignment or sublease and received an executed counterpart thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) without Landlord's prior written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) undergo a Change in Control of the type referred to in clauses (ii)(a) or (ii)(b) of the definition of Change in Control (such Change in Control, a "**Tenant Parent COC**") if (1) a Person acquiring such beneficial ownership or control is a Discretionary Transferee and (2) the Parent Company of such Discretionary Transferee, if any, has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord or, if such Discretionary Transferee does not have a Parent Company, such Discretionary Transferee has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) undergo a Change in Control whereby a Person acquires beneficial ownership and control of 100% of the Equity Interests in Tenant in connection with a Change in Control that does not constitute a Tenant Parent COC or a Foreclosure COC (such Change in Control, a "**Tenant COC**") if (1) such Person is a Discretionary Transferee, (2) the Parent Company of such Discretionary Transferee, if any, has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord or, if such Discretionary Transferee does not have a Parent Company, such Discretionary Transferee has become a Guarantor and provided a Guaranty on terms reasonably satisfactory to Landlord, and (3) the Adjusted Revenue to Rent Ratio with respect to the Facility (determined at the proposed effective time of the Change in Control) for the then most recently preceding four (4) fiscal quarters for which financial statements are available is at least 1.4:1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) following the Rent Conversion Trigger Date, assign this Lease to any Person in an assignment that does not constitute a Foreclosure Assignment if (1) such Person is a Discretionary Transferee, (2) such Discretionary Transferee agrees in writing to assume the obligations of the Tenant under this Lease without amendment or modification other than as provided below, (3) the Parent Company of such Discretionary Transferee, if any, has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord or, if such Discretionary Transferee does not have a Parent Company, such Discretionary Transferee has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord, and (4) the Adjusted Revenue to Rent Ratio with respect to the Facility (determined at the proposed effective time of the assignment) for the then most recently preceding four (4) fiscal quarters for which financial statements are available is at least 1.4:1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent such Permitted Leasehold Mortgagee or Permitted Leasehold Mortgagee Designee is in compliance with the requirements of ARTICLE XVII applicable to it (including the requirements to cure any Events of Default that such Permitted Leasehold Mortgagee is required to cure in accordance therewith) (A) assign this Lease by way of foreclosure of the Leasehold Estate, an assignment-in-lieu of foreclosure to any Person or an assignment (by sale or through a plan of reorganization) pursuant to any applicable bankruptcy or insolvency law to any Person, (any such assignment, a "**Foreclosure Assignment**") or (B) undergo a Change in Control whereby a Person acquires beneficial ownership and control of 100% of the Equity Interests in Tenant as a result of the purchase at a foreclosure on a permitted pledge of, or an assignment (by sale or through a plan of reorganization) pursuant to any applicable bankruptcy or insolvency law to any Person of, the Equity Interests in Tenant or an assignment in lieu of such foreclosure (a "**Foreclosure COC")** or (C) effect the first subsequent sale or assignment of the Leasehold Estate or Change in Control after a Foreclosure Assignment or a Foreclosure COC whereby a Person so acquires the Leasehold Estate or beneficial ownership and control of 100% of the Equity Interests in Tenant or the Person who acquired the Leasehold Estate in connection with the Foreclosure Assignment, in each case, effected by a Permitted Leasehold Mortgagee or a Permitted Leasehold Mortgagee Foreclosing Party, to the extent such Permitted Leasehold Mortgagee or Permitted Leasehold Mortgagee Designee has been diligently attempting to expedite such first subsequent sale from the time it has initiated foreclosure proceedings taking into account the interest of such Permitted Leasehold Mortgagee or Permitted Leasehold Mortgagee Designee in maximizing the proceeds of such disposition if (1) such Person is a Discretionary Transferee, (2) in the case of any Foreclosure Assignment, if such Discretionary Transferee is not a Permitted Leasehold Mortgagee Designee such Discretionary Transferee agrees in writing to assume the obligations of the Tenant under this Lease and the Development Agreement without amendment or modification other than as provided below (which written assumption, in the case of a Permitted Leasehold Mortgagee Foreclosing Party, may be made by a Subsidiary of a Permitted Leasehold Mortgagee or a Permitted Leasehold Mortgagee Designee) and (3) if such Discretionary Transferee is not a Permitted Leasehold Mortgagee Foreclosing Party, the Parent Company of such Discretionary Transferee, if any, has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord or, if such Discretionary Transferee does not have a Parent Company, such Discretionary Transferee has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord; provided, however, for the avoidance of doubt, nothing in this Section 22.2(c)(iv) shall be construed as, or deemed, a waiver of, such Permitted Leasehold Mortgagee's obligations to assume this Lease and the Development Agreement pursuant to Section 17.1 in connection with the exercise of its remedies under the applicable Permitted Leasehold Mortgage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) undergo a Change in Control of the type referred to in clause (i) of the definition of Change in Control (such Change in Control, a "**OCR COC**") if the transfer satisfies the following requirements: (i) following the consummation of the OCR COC, no Permitted Holder shall beneficially own, directly or indirectly 51% or more of the Equity Interests in Tenant's Parent or hold the voting power to appoint a majority of the board of directors or equivalent body of Tenant's Parent (collectively, a beneficial interest of at least 51% of the Equity Interests in Tenant's Parent and the voting power to appoint a majority of the board of directors or equivalent body of Tenant's Parent being hereinafter the "**Controlling Interest**"), (ii) the Controlling Interest is transferred to a single Person that is a Discretionary Transferee, and (iii) the Parent Company of such Discretionary Transferee, if any, has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord or, if such Discretionary Transferee does not have a Parent Company, such Discretionary Transferee has become a Guarantor and provided a Guaranty on terms substantially similar to the Guaranty or otherwise reasonably satisfactory to Landlord;

<u>provided</u> that no such Change in Control or assignment referred to in this Section 22.2(c) shall be permitted without Landlord's prior written consent unless, and in which case such consent shall not be unreasonably withheld, (A) the use of the Leased Property at the time of such Change in Control or assignment and immediately after giving effect thereto is permitted by Section 7.2 hereof, and (B) Landlord in its reasonable discretion shall have approved the form and content of all documents for such assignment and assumption and received an executed counterpart thereof (<u>provided</u> no such approval shall be required in the case of a Tenant Parent COC or a Tenant COC, so long as (A) Tenant remains obligated under this Lease and the Guaranty remains in effect except with respect to any release permitted thereunder, (B) the requirements for a Guaranty from the Parent Company or Discretionary Transferee under clause (i) or (ii) above are met, and (C) any modifications to this Lease required pursuant to the next succeeding paragraph are made); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) without Landlord's prior written consent, pledge or mortgage its Leasehold Estate to a Permitted Leasehold Mortgagee and permit a pledge of the equity interests in Tenant to be pledged to a Permitted Leasehold Mortgagee in accordance with Section 17.1.

Upon the effectiveness of any Change in Control or assignment permitted pursuant to this Section 22.2, such Discretionary Transferee (and, if applicable, its Parent Company) and Landlord shall make such amendments and other modifications to this Lease as are reasonably requested by either party to give effect to such Change in Control or assignment and such technical amendments as may be necessary or appropriate in the reasonable opinion of such requesting party in connection with such Change in Control or assignment including, without limitation, changes to the definition of Change in Control to substitute the Parent Company (or, if the Discretionary Transferee does not have a Parent Company, the Discretionary Transferee) for Tenant's Parent therein and in the provisions of this Lease regarding delivery of financial statements and other reporting requirements with respect to Tenant's Parent. After giving effect to any such Change in Control or assignment, unless the context otherwise requires, references to Tenant and Tenant's Parent hereunder shall be deemed to refer to the Discretionary Transferee or its Parent Company, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.3** **<u>Permitted Sublease Agreements</u>.** Notwithstanding the provisions of Section 22.1, but subject to compliance with the provisions of this Section 22.3 and of Section 40.1, (a) provided that no Event of Default shall have occurred and be continuing, Tenant shall be permitted to sublease the entirety of the Leased Property, including the Gaming operations, to a wholly-owned Subsidiary that becomes a Guarantor by executing the Guaranty in form and substance reasonably satisfactory to Landlord and (b) provided that no Event of Default shall have occurred and be continuing, Tenant may enter into any sublease agreement (including any management agreement or similar agreements with sports betting and/or online Gaming operators) with respect to all or any portion (including any portion formerly used for gaming purposes, provided that any sublease agreement for Gaming operations (but not any management agreement or similar agreement, in each case, with sports betting and/or online Gaming operators) shall be subject to clause (a) above) of the Facility without the prior written consent of Landlord, <u>provided, further</u> that, (i) all sublease agreements under this Section 22.3 are made in furtherance of the Primary Intended Use; and (ii) any sublease with respect to all or substantially all of the Facility shall be subject to the prior written consent of Landlord (in its sole discretion). After an Event of Default has occurred and while it is continuing, Landlord may collect rents from any subtenant and apply the net amount collected to the Rent, but no such collection shall be deemed (i) a waiver by Landlord of any of the provisions of this Lease, (ii) the acceptance by Landlord of such subtenant as a tenant or (iii) a release of Tenant from the future performance of its obligations hereunder. If reasonably requested by Tenant in connection with a sublease permitted under clause (b) above, Landlord and such sublessee shall enter into a subordination, non-disturbance and attornment agreement with respect to such sublease in a form reasonably satisfactory to Landlord (and if a Facility Mortgage is then in effect, Landlord shall use reasonable efforts to cause the Facility Mortgagee to enter into such subordination, non-disturbance and attornment agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.4** **<u>Required Assignment and Subletting Provisions</u>.** Any assignment and/or sublease must provide (but, in the case of a sub-sublease, with appropriate adjustments for the sub-sublease context) that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a sublease, it shall be subject and subordinate to all of the terms and conditions of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the use of the Facility (or portion thereof) shall not conflict with any Legal Requirement or any other provision of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) except as otherwise provided herein, no subtenant or assignee shall be permitted to further sublet all or any part of the applicable Leased Property or assign this Lease or its sublease except insofar as the same would be permitted if it were a sublease by Tenant under this Lease (it being understood that any subtenant under Section 22.3(a) that is a wholly-owned Subsidiary of Tenant may pledge and mortgage its subleasehold estate (or allow the pledge of its equity interests) to a Permitted Leasehold Mortgagee that has a security interest in the Leasehold Estate of Tenant and such Permitted Leasehold Mortgagee shall have the right to foreclose upon such interest in accordance with the foreclosure of Tenant's interest in accordance with Section 17.1 hereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a sublease, in the event of cancellation or termination of this Lease for any reason whatsoever or of the surrender of this Lease (whether voluntary, involuntary or by operation of law) prior to the expiration date of such sublease, including extensions and renewals granted thereunder, then, subject to Article XXXVI and without affecting the provisions of any subordination, non-disturbance and attornment agreement entered into between Landlord and the applicable subtenant, at Landlord's option, the subtenant shall make full and complete attornment to Landlord for the balance of the term of the sublease, which attornment shall be evidenced by an agreement in form and substance satisfactory to Landlord and which the subtenant shall execute and deliver within five (5) days after request by Landlord and the subtenant shall waive the provisions of any law now or hereafter in effect which may give the subtenant any right of election to terminate the sublease or to surrender possession in the event any proceeding is brought by Landlord to terminate this Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in the event the subtenant receives a written notice from Landlord stating that this Lease has been cancelled, surrendered or terminated, then, subject to Article XXXVI, the subtenant shall thereafter be obligated to pay all rentals accruing under said sublease directly to Landlord (or as Landlord shall so direct); all rentals received from the subtenant by Landlord shall be credited against the amounts owing by Tenant under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.5** **<u>Costs</u>.** Tenant shall reimburse Landlord for Landlord's reasonable costs and expenses incurred after the Commencement Date in conjunction with the processing and documentation of any assignment, subletting or management arrangement, including reasonable attorneys', architects', engineers' or other consultants' fees whether or not such sublease, assignment or management agreement is actually consummated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.6** **<u>No Release of Tenant's Obligations; Exception</u>.** No assignment (other than a permitted transfer pursuant to 22.2(a) (but solely with respect to the transfer or assignment of this Lease to any third-party in conjunction with the sale by Tenant of all or substantially all of Tenant's assets), Section 22.2(c)(iii) or Section 22.2(c)(iv)(A) or Section 22.2(c)(iv)(C), in connection with a sale or assignment of the Leasehold Estate), subletting or management agreement shall relieve Tenant of its obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder. The liability of Tenant and any immediate and remote successor in interest of Tenant (by assignment or otherwise), and the due performance of the obligations of this Lease on Tenant's part to be performed or observed, shall not in any way be discharged, released or impaired by any (i) stipulation which extends the time within which an obligation under this Lease is to be performed, (ii) waiver of the performance of an obligation required under this Lease that is not entered into for the benefit of Tenant or such successor, or (iii) failure to enforce any of the obligations set forth in this Lease, <u>provided</u> that Tenant shall not be responsible for any additional obligations or liability arising as the result of any modification or amendment of this Lease by Landlord and any assignee of Tenant that is not an Affiliate of Tenant.

**ARTICLE XXIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.1** **<u>Officer's Certificates and Financial Statements</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Officer's Certificates</u>. Each of Landlord and Tenant shall, at any time and from time to time upon receipt of not less than ten (10) Business Days' prior written request from the other party hereto, furnish an Officer's Certificate certifying (i) that this Lease is unmodified and in full force and effect, or that this Lease is in full force and effect as modified and setting forth the modifications; (ii) the Rent and Additional Charges payable hereunder and the dates to which the Rent and Additional Charges payable have been paid; (iii) that the address for notices to be sent to the party furnishing such Officer's Certificate is as set forth in this Lease (or, if such address for notices has changed, the correct address for notices to such party); (iv) whether or not, to its actual knowledge, such party or the other party hereto is in default in the performance of any covenant, agreement or condition contained in this Lease (together with back-up calculation and information reasonably necessary to support such determination) and, if so, specifying each such default of which such party may have knowledge; (v) that Tenant is in possession of the Leased Property (other than portions that are subleased or assigned to third parties in accordance with this Lease); (vi) calculations illustrating Tenant's compliance with the financial covenants set forth in Section 23.3 which may be disclosed by Landlord in public filings; and (vii) responses to such other questions or statements of fact as such other party, any ground or underlying landlord, any purchaser or any current or prospective Facility Mortgagee or Permitted Leasehold Mortgagee shall reasonably request. Landlord's or Tenant's failure to deliver such statement within such time shall constitute an acknowledgement by such failing party that, to such party's knowledge, (x) this Lease is unmodified and in full force and effect except as may be represented to the contrary by the other party; (y) the other party is not in default in the performance of any covenant, agreement or condition contained in this Lease; and (z) the other matters set forth in such request, if any, are true and correct. Any such certificate furnished pursuant to this Article XXIII may be relied upon by the receiving party and any current or prospective Facility Mortgagee, Permitted Leasehold Mortgagee, ground or underlying landlord or purchaser of the Leased Property. Each Guarantor or Tenant, as the case may be, shall deliver a written notice to Landlord within two (2) Business Days of obtaining knowledge of the occurrence of a default hereunder. Such notice shall include a detailed description of the default and the actions such Guarantor or Tenant has taken or shall take, if any, to remedy such default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Statements</u>. Tenant shall furnish the following statements to Landlord:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Within sixty-five (65) days after the end of Tenant's Parent's Fiscal Years (commencing with the Fiscal Year ending December 31, 2025) or concurrently with the filing by Tenant's Parent of its annual report on Form 10-K with the SEC, whichever is earlier: (x) Tenant's Parent's Financial Statements; (y) a certificate, executed by the chief financial officer or treasurer of the Tenant's Parent (a) certifying that, to such person's knowledge after due inquiry, no default has occurred under this Lease or, if such person has knowledge after due inquiry that a default has occurred, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto and (b) setting forth the calculation of the financial covenants set forth in Section 23.3 hereof in reasonable detail as of such Fiscal Year (in each case, to the extent such financial covenants were in effect as of the last day of such Fiscal Year); and (z) a report with respect to Tenant's Parent's Financial Statements from Tenant's Parent's accountants, which report shall be unqualified as to going concern and scope of audit of Tenant's Parent and its Subsidiaries (excluding any qualification as to going concern relating to any debt maturities in the twelve month period following the date of such audit or any projected financial performance or covenant default in any Material Indebtedness or this Lease in such twelve month period) and shall provide in substance that (a) such consolidated financial statements present fairly the consolidated financial position of Tenant's Parent and its Subsidiaries as at the dates indicated and the results of their operations and cash flow for the periods indicated in conformity with GAAP and (b) that the examination by Tenant's Parent's accountants in connection with such Financial Statements has been made in accordance with generally accepted auditing standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Within forty-five (45) days (or if requested by Landlord in writing as a result of any regulator (including, but not limited to, the SEC) requiring such information to be included in Landlord's financial statements, or if Tenant's Parent does not publicly file its annual report, within thirty (30) days) after the end of each of the first three (3) fiscal quarters of the Tenant's Parent's Fiscal Year (commencing with the fiscal quarter ending September 30, 2025) or concurrently with the filing by Tenant's Parent of its quarterly report on Form 10-Q with the SEC, whichever is earlier, a copy of Tenant's Parent's Financial Statements for such period, together with a certificate, executed by the chief financial officer or treasurer of Tenant's Parent (a) certifying that no default has occurred or, if such a default has occurred, specifying the nature and extent thereof and any corrective action taken or proposed to be taken with respect thereto, (b) setting forth the calculation of the financial covenants set forth in Section 23.3 hereof in reasonable detail as of such quarter (in each case, to the extent such financial covenants were in effect as of the last day of such fiscal quarter) and (c) certifying that such Financial Statements fairly present, in all material respects, the financial position and results of operations of Tenant's Parent and its Subsidiaries on a consolidated basis in accordance with GAAP (subject to normal year-end audit adjustments and the absence of footnotes);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Promptly following Landlord's request from time to time, (a) a one-year forecast of Tenant's income statement and balance sheets covering the next four calendar quarters, (b) five-year forecasts of Tenant's income statement and balance sheet covering such quarterly and annual periods as may be reasonably requested by Landlord, and, if applicable, in a format consistent with Tenant's Parent's quarterly and annual financial statements delivered pursuant to clauses (i) and (ii) above, as applicable, and such additional financial information and projections as may be reasonably requested by Landlord in connection with syndications, private placements, or public offerings of GLP's or Landlord's debt securities or loans or equity or hybrid securities and (c) such additional information and unaudited quarterly financial information concerning the Leased Property and Tenant as Landlord or GLP may require for its ongoing filings with the SEC under both the Securities Act and the Securities Exchange Act of 1934, as amended, including, but not limited to 10-Q Quarterly Reports, 10-K Annual Reports and registration statements to be filed by Landlord or GLP during the Term of this Lease, the Internal Revenue Service (including in respect of GLP's qualification as a "real estate investment trust" (within the meaning of Section 856(a) of the Code)) and any other federal, state or local regulatory agency with jurisdiction over GLP or its Subsidiaries subject to Section 23.1(c) below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Within thirty-five (35) days after the end of each calendar month, a copy of Tenant's income statement for such month and Tenant's balance sheet as of the end of such month (which may be subject to quarterly and year-end adjustments and the absence of footnotes) summarizing such month with quarter to date and year to date totals with specificity to enable Landlord to confirm the Adjusted Revenue to Rent Ratio; <u>provided</u>, <u>however</u>, that with respect to each calendar quarter, Tenant shall provide such financial reports for the final month thereof as soon as is reasonably practicable following the closing of the books for such month and in sufficient time so that Landlord or its Affiliate is able to include the operational results for the entire quarter in its current Form 10-Q or Form 10-K (or supplemental report filed in connection therewith);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) In the event that (1) Tenant's Parent is no longer subject to the periodic reporting requirements of the Exchange Act and (2) Landlord has notified Tenant in writing that GLP's asset concentration with Tenant's Parent is "significant" (within the meaning of Section 2340 of the SEC's Division of Corporation Finance Financial Reporting Manual or any successor provision), then Tenant's Parent shall provide audited financial statements upon Landlord's reasonable request, from time to time, and in any event no later than ninety (90) days after the end of each Fiscal Year, together with (x) any and all necessary consents from Tenant's Parent and its independent accounting firm for the public filing of any such audited financial statements by GLP and the incorporation of such financial statements into GLP's periodic reports and registrations statements filed with the SEC, (y) an agreement by Tenant's Parent to engage only PCAOB-certified accountants for preparation of its audited financial statements, and (z) an agreement by Tenant's Parent to cause its independent accounting firm to provide customary comfort letters and consents for any and all capital market transactions entered into by GLP, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Within three (3) Business Days after the end of each calendar month, a statement of all costs and expenses due and payable under any Ground Lease, including, without limitation, any ground rent, prepaids and payables, real estate taxes, operating expenses and other lease expenses and payments in relation to such Ground Lease that Tenant is paying on behalf of Landlord pursuant to Section 8.4 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Within forty five (45) days after the end of each of the first three (3) fiscal quarters of each Fiscal Year and sixty five (65) days after the end of each Fiscal Year the Adjusted Revenue to Rent Ratio, which may be disclosed by Landlord in public filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Prompt Notice to Landlord of any action, proposal or investigation by any agency or entity, or complaint to such agency or entity (any of which is called a "**Proceeding**"), known to Tenant, the result of which Proceeding would reasonably be expected to be to revoke or suspend or terminate or modify in a way adverse to Tenant, or fail to renew or fully continue in effect, any license or certificate or operating authority pursuant to which Tenant carries on any part of the Primary Intended Use of all or any portion of the Leased Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Commencing upon the Completion of the Chicago Project, as soon as it is prepared and in no event later than sixty (60) days after the end of each Fiscal Year, a capital and operating budget for the Facility for the Fiscal Year in which it is delivered; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Tenant further agrees to provide the financial and operational reports to be delivered to Landlord under this Lease in such electronic format(s) as may reasonably be required by Landlord from time to time in order to (i) facilitate Landlord's internal financial and reporting database and (ii) permit Landlord to calculate any rent, fee or other payments due under Ground Leases. Tenant also agrees that Landlord shall have audit rights with respect to such information to the extent required to confirm Tenant's compliance with the Lease terms (including, without limitation, calculation of Net Revenues).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restricted Information</u>. Notwithstanding the foregoing provisions of Section 23.1, Tenant shall not be obligated (1) to provide information that is subject to the quality assurance immunity or is subject to attorney-client privilege or the attorney work product doctrine or (2) to provide information or assistance that could give Landlord or its Affiliates a "competitive" advantage with respect to markets in which GLP, Landlord or any of Landlord's Affiliates and Tenant, Tenant's Parent or any of Tenant's Affiliates might be competing at any time ("**Restricted Information**"), it being understood that Restricted Information shall not include revenue and expense information relevant to Landlord's calculation and verification of Tenant's compliance with Section 23.3(a) hereof, provided that the foregoing information shall be provided on a portfolio wide (as opposed to Facility by Facility) basis, except where required by Landlord to be able to make submissions to, or otherwise to comply with requirements of, gaming authorities and other regulatory authorities, in which case such additional information (including Facility by Facility performance information) will be provided by Tenant to Landlord to the extent so required (provided that Landlord shall in such instance first execute a nondisclosure agreement in a form reasonably satisfactory to Tenant with respect to such information). Landlord shall retain audit rights with respect to Restricted Information to the extent required to confirm Tenant's compliance with the Lease terms (and GLP's compliance with SEC, Internal Revenue Service and other legal and regulatory requirements) and <u>provided</u> that appropriate measures are in place to ensure that only Landlord's auditors and outside attorneys (and not Landlord or GLP or any of Landlord's other Affiliates) are provided access to such information. In addition, Landlord shall not disclose any Restricted Information to any Person or any employee, officer or director of any Person (other than GLP or a Subsidiary of Landlord) that directly or indirectly owns or operates any gaming business or is a competitor of Tenant, Tenant's Parent or any Affiliate of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.2** **<u>Confidentiality; Public Offering Information</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties recognize and acknowledge that they may receive certain Confidential Information of the other party. Each party agrees that neither such party nor any of its Related Persons acting on its behalf shall, during or within five (5) years after the term of the termination or expiration of this Lease, directly or indirectly use any Confidential Information of the other party or disclose Confidential Information of the other party to any Person for any reason or purpose whatsoever, except as reasonably required in order to comply with the obligations and otherwise as permitted under the provisions of this Lease. Notwithstanding the foregoing, in the event that a party or any of its Related Persons is requested or becomes legally compelled (pursuant to any legal, governmental, administrative or regulatory order, authority or process) to disclose any Confidential Information of the other party, it will, to the extent reasonably practicable and not prohibited by law, provide the party to whom such Confidential Information belongs prompt written notice of the existence, terms or circumstances of such event so that the party to whom such Confidential Information belongs may seek a protective order or other appropriate remedy or waive compliance with the provisions of this Section 23.2(a). In the event that such protective order or other remedy is not obtained or the party to whom such Confidential Information belongs waives compliance with this Section 23.2(a), the party compelled to disclose such Confidential information will furnish only that portion of the Confidential Information or take only such action as, based upon the advice of its legal counsel, is legally required and will use commercially reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any Confidential Information so furnished. The party compelled to disclose the Confidential Information shall cooperate with any action reasonably requested by the party to whom such Confidential Information belongs to obtain a protective order or other reliable assurance that confidential treatment will be accorded to the Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in Section 23.2(a), Tenant specifically agrees that Landlord may include financial information and such information concerning the operation of the Facility (1) which is approved by Tenant in its sole discretion, (2) which is publicly available, (3) the Adjusted Revenue to Rent Ratio, or (4) the inclusion of which is approved by Tenant in writing, which approval may not be unreasonably withheld, in offering memoranda or prospectuses or confidential information memoranda, or similar publications or marketing materials, rating agency presentations, investor presentations or disclosure documents in connection with syndications, private placements or public offerings of GLP's or Landlord's securities or loans or securities or loans of any direct or indirect parent entity of Landlord, and any other reporting requirements under applicable federal and state laws, including those of any successor to Landlord, <u>provided</u> that, with respect to matters permitted to be disclosed solely under this clause (4), the recipients thereof shall be obligated to maintain the confidentiality thereof pursuant to Section 23.2(a) or pursuant to confidentiality provisions substantially similar thereto and to comply with all federal, state and other securities laws applicable with respect to such information. Unless otherwise agreed by Tenant, neither Landlord nor GLP shall revise or change the wording of information previously publicly disclosed by Tenant or Tenant's Affiliates and furnished to Landlord or GLP or any direct or indirect parent entity of Landlord pursuant to Section 23.1 or this Section 23.2 and Landlord's Form 10-Q or Form 10-K (or supplemental report filed in connection therewith) shall not disclose the operational results of the Facility prior to Tenant's Parent's, Tenant's or its Affiliate's public disclosure thereof so long as Tenant's Parent, Tenant or such Affiliate reports such information in a timely manner consistent with historical practices and SEC disclosure requirements. Tenant agrees to provide such other reasonable information and, if necessary, participation in road shows and other presentations at Landlord's or GLP's sole cost and expense, with respect to Tenant and its Leased Property to facilitate a public or private debt or equity offering or syndication by Landlord or GLP or any direct or indirect parent entity of Landlord or GLP or to satisfy GLP's or Landlord's SEC disclosure requirements or the disclosure requirements of any direct or indirect parent entity of Landlord or GLP. In this regard, Landlord shall provide to Tenant a copy of any information prepared by Landlord to be published, and Tenant shall have a reasonable period of time (not to exceed three (3) Business Days) after receipt of such information to notify Landlord of any corrections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.3** **<u>Financial Covenants</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Tenant on a consolidated basis with respect to the Facility shall maintain an Adjusted Revenue to Rent Ratio as determined on the last day of any fiscal quarter on a cumulative basis for the preceding Test Period (commencing with the Initial Test Period) of at least 1.35:1, unless each of the following is satisfied: (i) the Net Leverage Ratio as of such last day is equal to or less than 5.5:1, (ii) a Refinancing Transaction has occurred and (iii) Tenant has delivered the duly executed Subsequent Guaranty to Landlord, then Tenant shall maintain an Adjusted Revenue to Rent Ratio of at least 1.2:1 for such preceding Test Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the last day of each fiscal quarter (commencing with the first fiscal quarter ending after the Testing Condition is satisfied), the Consolidated Total Net Leverage Ratio (as defined in and calculated in accordance with the Effective Date Deutsche Credit Agreement) of Tenant's Parent and its Restricted Subsidiaries (as defined in the Effective Date Deutsche Credit Agreement) as of the last day of such fiscal quarter shall not exceed the greater of (x) a ratio that is 0.25:1 greater than the Consolidated Total Net Leverage Ratio (as defined in and calculated in accordance with the Effective Date Deutsche Credit Agreement) as of the date on which the Testing Condition was satisfied, which date shall be reasonably determined by Landlord and Tenant's Parent, and (y) 7.25:1 (the "**Net Leverage Covenant**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Following the Commencement Date and until the occurrence of the Opening Date, (i) Tenant's Parent shall maintain undrawn capacity under the Bally's Revolving Credit Facility, as of the last day of each fiscal quarter in an amount equal to or greater than the Minimum Undrawn Amount at such time (the "**Minimum RCF Capacity**") and (ii) at all times Tenant's Parent shall have the right to apply the proceeds of any loans drawn under such Minimum RCF Capacity towards the development and construction of the Chicago Project (collectively, the "**Minimum RCF Covenant**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Promptly upon the occurrence of a Covenant Trigger, (1) if such Covenant Trigger occurs prior to the commencement of the Lincoln Open Call Period (as defined in the Contribution Agreement), then the Lincoln Open Call Period shall automatically be deemed to have commenced as of the date such Covenant Trigger occurred (Tenant hereby acknowledging that such commencement of the Lincoln Open Call Period prior to October 1, 2026, shall not change the expiration of the Lincoln Open Call Period, which shall remain open and not end until December 31, 2026), (2) if upon the occurrence of such Covenant Trigger, Landlord or its Affiliates do not have the right to consummate the Lincoln Contribution, then a Covenant Failure and an immediate Event of Default pursuant to Section 16.1(n) shall exist and (3) if upon the occurrence of such Covenant Trigger, Landlord or its Affiliates have the right to consummate the Lincoln Contribution (as defined in the Contribution Agreement), then a Covenant Failure shall not occur if either of the following conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) Landlord provides written notice to Tenant that it wishes to exercise such right and complete the Lincoln Contribution, (B) the Lincoln Contribution shall have occurred within ninety (90) days after the delivery of such written notice; <u>provided</u>, <u>however</u>, in no event shall the consent of any lender to any Contributor Party (as defined in the Contribution Agreement) nor the amendment of any financing arrangement with respect to any Contributor Party constitute a condition precedent to the consummation of the Lincoln Contribution, and (C) Tenant and/or its Affiliates use the Lincoln Net Sales Proceeds (1) to repay Indebtedness of Tenant's Parent and the repayment of such Indebtedness results in a cure of the applicable Covenant Trigger (determined in the same manner as Section 23.3(d)(ii)), and/or (2) to fund the performance of any labor or services or the furnishing of any materials or other property for the construction of the Chicago Project, provided, that, in such instance, Tenant shall submit to Landlord within thirty (30) days of the end of each fiscal quarter occurring after the consummation of the Lincoln Contribution, a sources and uses statement (together with such additional information requested by Landlord from time to time) evidencing that Tenant has applied the applicable portion of the Lincoln Net Sales Proceeds in accordance with this <u>clause (2)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (A) Landlord provides written notice to Tenant that Landlord does not elect, in its sole discretion, to complete the Lincoln Contribution, and (B) within the thirty (30) days after the delivery of such written notice, Tenant shall have cured the applicable Covenant Trigger as follows: (1) Tenant's Parent issues Equity Interests or receives proceeds of capital contributions or indebtedness and the proceeds of such issuance, capital contributions or indebtedness are applied in whole or in part to the repayment of indebtedness of Tenant's Parent and its Subsidiaries (including outstanding loans under the Bally's Revolving Credit Facility), (2) following such repayment (and after giving pro forma effect thereto) (x) the Consolidated Total Net Leverage Ratio (as defined in and calculated in accordance with the Effective Date Deutsche Credit Agreement) and/or (y) the undrawn capacity under the Bally's Revolving Credit Facility, as applicable, are recalculated, and (3) such recalculation (after giving pro forma effect to such repayment) reflects that Tenant's Parent would have been in compliance with the Net Leverage Covenant and/or the Minimum RCF Covenant, as applicable, with respect to the applicable fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event that Tenant does not satisfy at any time the Adjusted Revenue to Rent Ratio as set forth in Section 23.3(a) above, (1) prior to the Unrestricted Subsidiary Guarantor Release Date, neither Tenant nor any Guarantors (other than Tenant's Subsidiaries and any Unrestricted Subsidiary Guarantor that is a Subsidiary of any other Unrestricted Subsidiary Guarantor) shall and (2) from and after the Unrestricted Subsidiary Guarantor Release Date, Tenant's Parent shall not, make any Restricted Payment (except Tax Distributions) until Tenant is in compliance with such ratio in a subsequent period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (1) Prior to the Unrestricted Subsidiary Guarantor Release Date, neither Tenant nor any Guarantors (other than Tenant's Subsidiaries and any Unrestricted Subsidiary Guarantor that is a Subsidiary of any other Unrestricted Subsidiary Guarantor) shall and (2) from and after the Unrestricted Subsidiary Guarantor Release Date, Tenant's Parent shall not, make any Restricted Payment (except Tax Distributions) during any Covenant Suspension Period; provided that, this Section 23.3(f) shall not apply if Tenant would have been in compliance with Section 23.3(a) above as of the last day of the most recently ended fiscal quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Until the Unrestricted Subsidiary Guarantor Release Date, no Unrestricted Subsidiary Guarantor (other than Tenant's Subsidiaries and any Unrestricted Subsidiary Guarantor that is a Subsidiary of any other Unrestricted Subsidiary Guarantor) shall make any Restricted Payment (except Tax Distributions) without the prior written consent of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.4** **<u>Landlord Obligations</u>.** Landlord acknowledges and agrees that certain of the information contained in the Financial Statements may be non-public financial or operational information with respect to Tenant, Tenant's Parent and/or the Leased Property. Landlord further agrees (i) to maintain the confidentiality of such non-public information; <u>provided</u>, <u>however</u>, that notwithstanding the foregoing and notwithstanding anything to the contrary in Section 23.2(a) hereof or otherwise herein, Landlord shall have the right to share such information with GLP and their respective officers, employees, directors, Facility Mortgagee, agents and lenders party to material debt instruments entered into by GLP or Landlord, actual or prospective arrangers, underwriters, investors or lenders with respect to Indebtedness or Equity Interests that may be issued by GLP or Landlord, rating agencies, accountants, attorneys and other consultants (the "**Landlord Representatives**"), <u>provided</u> that each such Landlord Representative is advised of the confidential nature of such information and agrees, to the extent such information is not publicly available, to maintain the confidentiality thereof pursuant to Section 23.2(a) or pursuant to confidentiality provisions substantially similar thereto and to comply with all federal, state and other securities laws applicable with respect to such information and (ii) that neither it nor any Landlord Representative shall be permitted to engage in any transactions with respect to the stock or other equity or debt securities or syndicated loans of Tenant or Tenant's Parent based on any such non-public information provided by or on behalf of Landlord or GLP (<u>provided</u> that this provision shall not govern the provision of information by Tenant or Tenant's Parent). In addition to the foregoing, Landlord agrees that, upon request of Tenant, it shall from time to time provide such information as may be reasonably requested by Tenant with respect to Landlord's capital structure and/or any financing secured by this Lease or the Leased Property in connection with Tenant's review of the treatment of this Lease under GAAP. In connection therewith, Tenant agrees to maintain the confidentiality of any such non-public information; <u>provided</u>, <u>however</u>, Tenant shall have the right to share such information with Tenant's Parent and their respective officers, employees, directors, Permitted Leasehold Mortgagees, agents and lenders party to material debt instruments entered into by Tenant or Tenant's Parent, actual or prospective arrangers, underwriters, investors or lenders with respect to Indebtedness or Equity Interests that may be issued by Tenant or Tenant's Parent, rating agencies, accountants, attorneys and other consultants (the "**Tenant Representatives**") so long as such Tenant Representative is advised of the confidential nature of such information and agrees, to the extent such information is not publicly available, (i) to maintain the confidentiality thereof pursuant to Section 23.2(a) or pursuant to confidentiality provisions substantially similar thereto and to comply with all federal, state and other securities laws applicable with respect to such information and (ii) not to engage in any transactions with respect to the stock or other equity or debt securities or syndicated loans of GLP or Landlord based on any such non-public information provided by or on behalf of Tenant or Tenant's Parent (<u>provided</u> that this provision shall not govern the provision of information by Landlord or GLP).

**ARTICLE XXIV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.1** **<u>Landlord's Right to Inspect</u>.** Upon reasonable advance notice to Tenant and subject to the rights of hotel guests and subtenants under subleases, Tenant shall permit Landlord and its authorized representatives to inspect the Leased Property during usual business hours. Landlord shall take care to minimize disturbance of the operations on the Leased Property, except in the case of emergency. For avoidance of doubt, Landlord shall not be permitted to access any areas of the Leased Property to the extent access to such areas requires a Gaming License or other approval pursuant to applicable Gaming Regulations without the prior and express consent of the Gaming Authority with jurisdiction over the applicable Leased Property.

**ARTICLE XXV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.1** **<u>No Waiver</u>.** No delay, omission or failure by Landlord or Tenant to insist upon the strict performance of any term hereof or to exercise any right, power or remedy hereunder and no acceptance of full or partial payment of Rent by Landlord during the continuance of any default or Event of Default, shall impair any such right or constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this Lease, which shall continue in full force and effect with respect to any other then existing or subsequent breach.

**ARTICLE XXVI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.1** **<u>Remedies Cumulative</u>.** To the extent permitted by law, each legal, equitable or contractual right, power and remedy of Landlord now or hereafter provided either in this Lease or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power and remedy and the exercise or beginning of the exercise by Landlord of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Landlord of any or all of such other rights, powers and remedies.

**ARTICLE XXVII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.1** **<u>Acceptance of Surrender</u>.** No surrender to Landlord of this Lease or of any Leased Property or any part thereof, or of any interest therein, shall be valid or effective unless agreed to and accepted in writing by Landlord, and no act by Landlord or any representative or agent of Landlord, other than such a written acceptance by Landlord, shall constitute an acceptance of any such surrender.

**ARTICLE XXVIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.1** **<u>No Merger</u>.** There shall be no merger of this Lease or of the leasehold estate created hereby by reason of the fact that the same Person may acquire, own or hold, directly or indirectly, (i) this Lease or the leasehold estate created hereby or any interest in this Lease or such leasehold estate and (ii) the fee estate in the Leased Property.

**ARTICLE XXIX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.1** **<u>Conveyance by Landlord</u>.** If Landlord or any successor owner of the Leased Property shall convey the Leased Property in accordance with Section 18.1 and the other terms of this Lease other than as security for a debt, and the grantee or transferee expressly assumes all obligations of Landlord arising after the date of the conveyance, Landlord or such successor owner, as the case may be, shall thereupon be released from all future liabilities and obligations of the Landlord under this Lease arising or accruing from and after the date of such conveyance or other transfer and all such future liabilities and obligations shall thereupon be binding upon the new owner.

**ARTICLE XXX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.1** **<u>Quiet Enjoyment</u>.** So long as Tenant shall pay the Rent as the same becomes due and shall fully comply with all of the terms of this Lease and fully perform its obligations hereunder, Tenant shall peaceably and quietly have, hold and enjoy the Leased Property for the Term, free of any claim or other action by Landlord or anyone claiming by, through or under Landlord, but subject to all liens and encumbrances of record as of the Commencement Date or thereafter provided for in this Lease or consented to by Tenant. No failure by Landlord to comply with the foregoing covenant shall give Tenant any right to cancel or terminate this Lease or abate, reduce or make a deduction from or offset against the Rent or any other sum payable under this Lease, or to fail to perform any other obligation of Tenant hereunder. Notwithstanding the foregoing, Tenant shall have the right, by separate and independent action to pursue any claim it may have against Landlord as a result of a breach by Landlord of the covenant of quiet enjoyment contained in this Article XXX or any other covenant of Landlord set forth in this Lease.

**ARTICLE XXXI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.1** **<u>Landlord's Financing</u>.** Without the consent of Tenant, Landlord may from time to time, directly or indirectly, create or otherwise cause to exist any Facility Mortgage upon the Leased Property or any portion thereof or interest therein; <u>provided</u>, <u>however</u>, if Tenant has not consented to any such Facility Mortgage entered into by Landlord after the Commencement Date, Tenant's obligations with respect thereto shall be subject to the limitations set forth in Section 31.3. This Lease is and at all times shall be subject and subordinate to any such Facility Mortgage which may now or hereafter affect the Leased Property or any portion thereof or interest therein and to all renewals, modifications, consolidations, replacements, restatements and extensions thereof or any parts or portions thereof; <u>provided</u>, <u>however</u>, that the subjection and subordination of this Lease and Tenant's leasehold interest hereunder to any Facility Mortgage shall be conditioned upon the execution by the holder of each Facility Mortgage and delivery to Tenant of a nondisturbance and attornment agreement substantially in the form attached hereto as <u>Exhibit E</u> and with respect to any Facility Mortgage on any vessel or barge, Landlord shall be required to deliver such nondisturbance and attornment agreement to Tenant from each holder of a Facility Mortgage on such vessel or barge prior to the recording or registration of such Facility Mortgage on such vessel or barge in a manner that would, or the enforcement of remedies thereunder would, affect or disturb the rights of Tenant under this Lease or the provisions of Article XVII which benefit any Permitted Leasehold Mortgagee, in the case of any Permitted Leasehold Mortgagee (<u>provided</u> that upon the request of Landlord such nondisturbance and attornment agreement shall also incorporate subordination provisions referenced above, as contemplated below, and be in substantially the form attached hereto as <u>Exhibit F</u>, and be executed by Tenant as well as Landlord), which will bind such holder of such Facility Mortgage and its successors and assigns as well as any person who acquires any portion of the Leased Property in a foreclosure or similar proceeding or in a transfer in lieu of any such foreclosure or a successor owner of the Leased Property (each, a "**Foreclosure Purchaser**") and which provides that so long as there is not then outstanding and continuing an Event of Default under this Lease, the holder of such Facility Mortgage, and any Foreclosure Purchaser shall disturb neither Tenant's leasehold interest or possession of the Leased Property in accordance with the terms hereof, nor any of its rights, privileges and options, and shall give effect to this Lease, including the provisions of Article XVII which benefit any Permitted Leasehold Mortgagee (as if such Facility Mortgagee or Foreclosure Purchaser were the landlord under this Lease (it being understood that if an Event of Default has occurred and is continuing at such time such parties shall be subject to the terms and provisions hereof concerning the exercise of rights and remedies upon such Event of Default including the provisions of Articles XVI and XXXVI)). In connection with the foregoing and at the request of Landlord, Tenant shall promptly execute a subordination, nondisturbance and attornment agreement, in form and substance substantially in the form of <u>Exhibit F</u> or otherwise reasonably satisfactory to Tenant, and the Facility Mortgagee or prospective Facility Mortgagee, as the case may be, which will incorporate the terms set forth in the preceding sentence. Except for the documents described in the preceding sentences, this provision shall be self-operative and no further instrument of subordination shall be required to give it full force and effect. If, in connection with obtaining any Facility Mortgage for the Leased Property or any portion thereof or interest therein, a Facility Mortgagee or prospective Facility Mortgagee shall request (A) reasonable cooperation from Tenant, Tenant shall provide the same at no cost or expense to Tenant, it being understood and agreed that Landlord shall be required to reimburse Tenant for all such costs and expenses so incurred by Tenant, including, but not limited to, its reasonable attorneys' fees, or (B) reasonable amendments or modifications to this Lease as a condition thereto, Tenant hereby agrees to execute and deliver the same so long as any such amendments or modifications do not (i) increase Tenant's monetary obligations under this Lease, (ii) adversely increase Tenant's non-monetary obligations under this Lease in any material respect, or (iii) diminish Tenant's rights under this Lease in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.2** **<u>Attornment</u>.** If Landlord's interest in the Leased Property or any portion thereof or interest therein is sold, conveyed or terminated upon the exercise of any remedy provided for in any Facility Mortgage Documents (or in lieu of such exercise), or otherwise by operation of law: (a) subject to the requirements of applicable Gaming Regulations, at the request and option of the new owner or superior lessor, as the case may be, Tenant shall attorn to and recognize the new owner or superior lessor as Tenant's "landlord" under this Lease or enter into a new lease substantially in the form of this Lease with the new owner or superior lessor, and Tenant shall take such actions to confirm the foregoing within ten (10) days after request; and (b) the new owner or superior lessor shall not be (i) liable for any act or omission of Landlord under this Lease occurring prior to such sale, conveyance or termination; (ii) subject to any offset, abatement or reduction of rent because of any default of Landlord under this Lease occurring prior to such sale, conveyance or termination; (iii) bound by any previous modification or amendment to this Lease or any previous prepayment of more than one month's rent, unless such modification, amendment or prepayment shall have been approved in writing by such Facility Mortgagee (to the extent such approval was required at the time of such amendment or modification or prepayment under the terms of the applicable Facility Mortgage Documents) or, in the case of such prepayment, such prepayment of rent has actually been delivered to such new owner or superior lessor or in either case, such modification, amendment or prepayment occurred before Landlord provided Tenant with notice of the Facility Mortgage and the identity and address of the Facility Mortgagee; or (iv) liable for any security deposit or other collateral deposited or delivered to Landlord pursuant to this Lease unless such security deposit or other collateral has actually been delivered to such new owner or superior lessor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.3** **<u>Compliance with Facility Mortgage Documents</u>**. (a) Tenant acknowledges that any Facility Mortgage Documents executed by Landlord or any Affiliate of Landlord may impose certain obligations on the "borrower" or other counterparty thereunder to comply with or cause the operator and/or lessee of the Facility to comply with all representations, covenants and warranties contained therein relating to the Facility and the operator and/or lessee of the Facility, including, covenants relating to (i) the maintenance and repair of the Facility; (ii) maintenance and submission of financial records and accounts of the operation of the Facility and related financial and other information regarding the operator and/or lessee of the Facility and the Facility itself; (iii) the procurement of insurance policies with respect to the Facility; and (iv) without limiting the foregoing, compliance with all applicable Legal Requirements relating to the Facility and the operation of the business thereof. For so long as any Facility Mortgages encumber the Leased Property or any portion thereof or interest therein, Tenant covenants and agrees, at its sole cost and expense and for the express benefit of Landlord, to operate the Facility in compliance with the terms and conditions of this Lease for the benefit of Landlord so that Landlord is in compliance with such representations, warranties and covenants under such Facility Mortgage, as the same apply to the Leased Property, and to timely perform all of the obligations of Tenant under this Lease relating thereto. To the extent that any of the duties and obligations of Landlord under such Facility Mortgage are beyond Tenant's obligations under this Lease or may not properly be performed by Tenant, Tenant shall cooperate with and assist Landlord, at Landlord's expense, in the performance thereof (other than payment of any indebtedness evidenced or secured thereby); <u>provided</u>, <u>however</u>, notwithstanding the foregoing, (A) this Section 31.3(a) shall not be deemed to, and shall not, impose on Tenant obligations which (i) increase Tenant's monetary obligations under this Lease, (ii) adversely increase Tenant's non-monetary obligations under this Lease in any material respect, or (iii) diminish Tenant's rights or remedies under this Lease in any material respect and (B) in the event of a conflict between the obligations, duties, rights and/or remedies of Tenant hereunder or under the Facility Mortgage Documents, this Lease shall govern. For purposes of the foregoing, any proposed implementation of new financial covenants shall be deemed to diminish Tenant's rights under this Lease in a material respect (it being understood that Landlord may agree to such financial covenants in any Facility Mortgage Documents and such financial covenants will not impose obligations on Tenant). If any new Facility Mortgage Documents to be executed by Landlord or any Affiliate of Landlord would impose on Tenant any obligations under this Section 31.3(a), Landlord shall provide copies of the same to Tenant for informational purposes (but not for Tenant's approval) prior to the execution and delivery thereof by Landlord or any Affiliate of Landlord; <u>provided</u>, <u>however</u>, that neither Landlord nor its Affiliates shall enter into any new Facility Mortgage Documents imposing obligations on Tenant with respect to impounds that are more restrictive than obligations imposed on Tenant pursuant to this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting or expanding Tenant's obligations pursuant to Section 31.3(a), during the Term of this Lease, Tenant acknowledges and agrees that, except as expressly provided elsewhere in this Lease, it shall undertake at its own cost and expense the performance of any and all repairs, replacements, capital improvements, maintenance items and all other requirements relating to the condition of the Facility that are required by any Facility Mortgage Documents or by Facility Mortgagee, and Tenant shall be solely responsible and hereby covenants to fund and maintain any and all impound, escrow or other reserve or similar accounts required under any Facility Mortgage Documents as security for or otherwise relating to any operating expenses of the Facility, including any capital repair or replacement reserves and/or impounds or escrow accounts for taxes or insurance premiums (each a "**Facility Mortgage Reserve Account**"); <u>provided</u>, <u>however</u>, this Section 31.3(b) shall not (i) increase Tenant's monetary obligations under this Lease, (ii) adversely increase Tenant's non-monetary obligations under this Lease in any material respect, (iii) diminish Tenant's rights or remedies under this Lease in any material respect, or (iv) impose obligations to fund such reserve or similar accounts in excess of amounts required under this Lease in respect of reserve or similar accounts under the circumstances required under this Lease; and <u>provided</u>, <u>further</u>, that any amounts which Tenant is required to fund into a Facility Mortgage Reserve Account with respect to satisfaction of any repair or replacement reserve requirements imposed by a Facility Mortgagee or Facility Mortgage Documents shall be credited on a dollar for dollar basis against the mandatory expenditure obligations of Tenant for the Facility under Section 9.1(e) and, if Landlord defaults under such Facility Mortgage and such amounts funded into a Facility Mortgage Reserve Account are applied by the Facility Mortgagee for purposes other than their intended purposes for such operating expenses, such amounts shall be credited on a dollar for dollar basis against Rents next coming due. During the Term of this Lease and <u>provided</u> that no Event of Default shall have occurred and be continuing hereunder, Tenant shall, subject to the terms and conditions of such Facility Mortgage Reserve Account and the requirements of the Facility Mortgagee(s) thereunder (and the related Facility Mortgage Documents), have access to and the right to apply or use (including for reimbursement) to the same extent as Landlord all monies held in each such Facility Mortgage Reserve Account for the purposes and subject to the limitations for which such Facility Mortgage Reserve Account is maintained, and Landlord agrees to reasonably cooperate with Tenant in connection therewith. Landlord hereby acknowledges that funds deposited by Tenant in any Facility Mortgage Reserve Account are the property of Tenant and Landlord is obligated to return the portion of such funds not previously released to Tenant within fifteen (15) days following the earlier of (x) the expiration or earlier termination of this Lease, (y) the maturity or earlier prepayment of the applicable Facility Mortgage and obligations secured thereby, or (z) an involuntary prepayment or deemed prepayment arising out of the acceleration of the amounts due to a Facility Mortgagee or secured under a Facility Mortgage as a result of the exercise of remedies under the applicable Facility Mortgage or Facility Mortgage Documents; <u>provided</u>, <u>however</u>, that the foregoing shall not be deemed or construed to limit or prohibit Landlord's right to bring any damage claim against Tenant for any breach of its obligations under this Lease that may have resulted in the loss of any impound funds held by a Facility Mortgagee.

**ARTICLE XXXII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.1** **<u>Hazardous Substances</u>.** Tenant shall not allow any Hazardous Substance to be located in, on, under or about the Leased Property or incorporated in the Facility; <u>provided</u>, <u>however</u>, that Hazardous Substances may be located, brought, kept, stored, used or disposed of in, on or about the Leased Property in quantities and for purposes similar to those located, brought, kept, used or disposed of in, on or about similar facilities used for purposes similar to the Primary Intended Use or in connection with the construction of facilities similar to the Facility or to the extent in existence at the Facility and which are located, brought, kept, stored, used and disposed of in strict compliance with Legal Requirements. Tenant shall not allow the Leased Property to be used as a waste disposal site or for the manufacturing, handling, storage, distribution or disposal of any Hazardous Substance other than in the ordinary course of the business conducted at the Leased Property and in compliance with applicable Legal Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.2** **<u>Notices</u>.** Tenant shall provide to Landlord, within five (5) Business Days after Tenant's receipt thereof, a copy of any written notice, or notification from any governmental or quasi-governmental authority or other Person with respect to (i) any violation of any Legal Requirement relating to the presence or release of Hazardous Substances located in, on, or under the Leased Property; (ii) any material enforcement, cleanup, removal, or other governmental or regulatory action instituted, completed or threatened with respect to the Leased Property; (iii) any claim made or threatened by any Person against Tenant with respect to the Leased Property relating to damage, contribution, cost recovery, compensation, loss, or injury resulting from or claimed to result from any Hazardous Substance; and (iv) any reports made to any federal, state or local environmental agency arising out of or in connection with any Hazardous Substances in, on, under or removed from the Leased Property, including any complaints, notices or assertions of violations in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.3** **<u>Remediation</u>.** If Tenant becomes aware of a violation of any Environmental Law relating to the presence or release of any Hazardous Substance in, on or under the Leased Property, or if Tenant, Landlord or the Leased Property becomes subject to any order of any federal, state or local governmental agency to repair, close, detoxify, decontaminate, clean, perform corrective action or otherwise remediate ("**Remediate**") the Leased Property, Tenant shall promptly notify Landlord of such event and, at its sole cost and expense, cure such violation or effect such repair, closure, detoxification, decontamination, cleanup, corrective action or other remediation ("**Remediation**") to the extent required pursuant to Environmental Law; provided that Remediation is required only to the extent as is required or necessary to attain compliance with minimum remedial standards applicable under Environmental Law, employing where applicable risk-based remedial standards and institutional or engineering controls, where such standards or controls would not unreasonably interfere with the operation and use of the Leased Property for purposes similar to the Primary Intended Use, <u>provided</u>, <u>further</u>, that Landlord shall have the right to review and approve in accordance with Section 11.1 any encumbrances to be placed upon the Leased Property in connection with any Remediation undertaken by Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.4** **<u>Indemnity by Tenant</u>.** Tenant shall indemnify, defend, protect, save, hold harmless, and reimburse Landlord for, from and against any and all costs, losses (including, losses of use), liabilities, damages, assessments, lawsuits, deficiencies, demands, claims and expenses (collectively, "**Environmental Costs**") (whether or not arising out of third-party claims and regardless of whether liability without fault is imposed, or sought to be imposed, on Landlord) incurred in connection with, arising out of, resulting from or incident to, directly or indirectly, before (except to the extent first discovered after the end of the Term) or during (but not after) the Term or such portion thereof during which the Leased Property is leased to Tenant, (i) the production, use, generation, storage, treatment, transporting, disposal, discharge, release or other handling or disposition of any Hazardous Substances from, in, on, under or about the Leased Property (collectively, "**Handling**"), including the effects of such Handling of any Hazardous Substances on any Person or property within or outside the boundaries of the Leased Property, (ii) the presence of any Hazardous Substances present or located in, on, under or about the Leased Property and (iii) the violation of any Environmental Law. "**Environmental Costs**" include costs of Remediation (including costs of response, removal, containment and cleanup), investigation, design, engineering and construction, damages (including actual but excluding consequential damages or loss of value) for personal injuries and for injury to, destruction of or loss of property or natural resources, relocation or replacement costs, penalties, fines, charges or expenses, reasonable attorney's fees, expert fees, consultation fees, and court costs, and all amounts paid in investigating, defending or settling any of the foregoing.

Without limiting the scope or generality of the foregoing, Tenant expressly agrees that, in the event of a breach by Tenant in its obligations under this Article XXXII that is not cured within any applicable notice and cure period, Tenant shall reimburse Landlord for any and all reasonable costs and expenses incurred by Landlord in connection with, arising out of, resulting from or incident to, directly or indirectly, before (with respect to any period of time in which Tenant or its Affiliate was in possession and control of the applicable Leased Property) or during (but not after) the Term or such portion thereof during which the Leased Property is leased to Tenant of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in investigating any and all matters relating to the Handling of any Hazardous Substances, in, on, from, under or about the Leased Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in bringing the Leased Property into compliance with all Legal Requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in Remediating any Hazardous Substances used, stored, generated, released or disposed of in, on, from, under or about the Leased Property or off-site other than in the ordinary course of the business conducted at the Leased Property and in compliance with applicable Legal Requirements.

If any claim is made by Landlord for reimbursement for Environmental Costs incurred by it hereunder, Tenant agrees to pay such claim promptly, and in any event to pay such claim within sixty (60) calendar days after receipt by Tenant of written notice thereof and any amount not so paid within such sixty (60) calendar day period shall bear interest at the Overdue Rate from the date due to the date paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.5** **<u>Environmental Inspections</u>.** In the event Landlord has a reasonable basis to believe that Tenant is in breach of its obligations under this Article XXXII, Landlord shall have the right, from time to time, during normal business hours, subject to the rights of subtenants and hotel guests at the Leased Property and upon not less than five (5) days written notice to Tenant, except in the case of an emergency in which event no notice shall be required, to conduct an inspection of the Leased Property to determine the existence or presence of Hazardous Substances on or about the Leased Property. Landlord shall have the right to enter and inspect the Leased Property (upon not less than ten (10) days written notice to Tenant for invasive testing except in the case of emergency when no advance notice shall be required; provided, that Landlord shall provide notice to Tenant within a reasonable period thereafter), conduct any testing, sampling and analyses it deems necessary and shall have the right to inspect Hazardous Substances brought into the Leased Property; provided that, except in the case of emergency or during the occurrence and continuance of an Event of Default, Landlord shall use commercially reasonable efforts to cause any such testing, sampling and analyses to be performed in such a manner so as to reasonably minimize any interference with the operations and occupancy of the Leased Property and to reasonably minimize any disturbance to guests of Tenant. Landlord may, in its discretion, retain such experts to conduct the inspection, perform the tests referred to herein, and to prepare a written report in connection therewith. All reasonable costs and expenses incurred by Landlord under this Section 32.5 shall be paid on demand as Additional Charges by Tenant to Landlord. Failure to conduct an environmental inspection or to detect unfavorable conditions if such inspection is conducted shall in no fashion be intended as a release of any liability for environmental conditions subsequently determined to be associated with or to have occurred during Tenant's tenancy. To the extent Tenant may be liable pursuant to this Article XXXII, Tenant shall remain liable for any environmental condition related to or having occurred during its tenancy regardless of when such conditions are discovered and regardless of whether or not Landlord conducts an environmental inspection at the termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.6** **<u>Survival</u>**. The obligations set forth in this Article XXXII shall survive the expiration or earlier termination of this Lease.

**ARTICLE XXXIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.1** **<u>Memorandum of Lease</u>**. Landlord and Tenant shall enter into one or more short form memoranda of this Lease, in form suitable for recording in each county or other applicable location in which the Leased Property is located. Tenant shall pay all costs and expenses of recording any such memorandum and shall fully cooperate with Landlord in removing from record any such memorandum upon the expiration or earlier termination of the Term with respect to the Facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.2** **<u>Tenant Financing.</u>** If, in connection with granting any Permitted Leasehold Mortgage or entering into a Debt Agreement, Tenant shall reasonably request (A) reasonable cooperation from Landlord, Landlord shall provide the same at no cost or expense to Landlord, it being understood and agreed that Tenant shall be required to reimburse Landlord for all such costs and expenses so incurred by Landlord, including, but not limited to, its reasonable out-of-pocket attorneys' fees, or (B) reasonable amendments or modifications to this Lease as a condition thereto, Landlord hereby agrees to execute and deliver the same so long as any such amendments or modifications do not (i) increase Landlord's monetary obligations under this Lease, (ii) adversely increase Landlord's non-monetary obligations under this Lease in any material respect, (iii) diminish Landlord's rights under this Lease in any material respect, (iv) adversely impact the value of the Leased Property or (v) adversely impact Landlord's (or any Affiliate of Landlord's) tax treatment or position.

**ARTICLE XXXIV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**34.1** **<u>Expert Valuation Process</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that the opinion of an "Expert" is required under this Lease and Landlord and Tenant have not been able to reach agreement on such Person after at least ten (10) days of good faith negotiations, then either party shall each have the right to seek appointment of the Expert by the "Appointing Authority," as defined below, by writing to the Appointing Authority, copying the other party, and asking it to serve as the Appointing Authority and appoint the Expert. The Appointing Authority shall appoint an Expert who is independent of the parties and has at least ten (10) years of experience valuing commercial real estate and/or in leasing or other matters, as applicable with respect to any of the matters to be determined by the Expert and in the geographic area where the Leased Property is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The "**Appointing Authority**" shall be (i) the Institute for Conflict Prevention and Resolution (also known as, and shall be defined herein as, the "**CPR Institute**"), unless it is unable to serve, in which case the Appointing Authority shall be (ii) the American Arbitration Association ("**AAA**") under its Arbitrator Select Program for non-administered arbitrations or whatever AAA process is in effect at the time for the appointment of arbitrators in cases not administered by the AAA, unless it is unable to serve, in which case (iii) the parties shall have the right to apply to any court of competent jurisdiction to appoint an Appointing Authority or an Expert in accordance with the court's power to appoint arbitrators. The CPR Institute and the AAA shall each be considered unable to serve if it no longer exists, or if it no longer provides neutral appointment services, or if it does not confirm (in form or substance) that it will serve as the Appointing Authority within thirty (30) days after receiving a written request from either Landlord or Tenant to serve as the Appointing Authority, or if, despite agreeing to serve as the Appointing Authority, it does not confirm its Expert appointment within sixty (60) days after receiving such written request. The Appointing Authority's appointment of the Expert shall be final and binding upon the parties. The Appointing Authority shall have no power or authority except to appoint the Expert, and no rules of the Appointing Authority shall be applied to the valuation or other determination of the Expert other than the rules necessary for the appointment of the Expert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Once the Expert is finally selected, either by agreement of the parties or by confirmation to the parties from the Appointing Authority, the Expert will determine the matter in question, by proceeding as follows:

In the case of an Expert required for any other purpose, including without limitation under Section 13.2 and Section 36.2(a) hereof, each of Landlord and Tenant shall have a period of ten (10) days to submit to the Expert its position as to the Maximum Foreseeable Loss, as to the replacement cost of the Facility as of the date of the expiration of this Lease and as to the appropriate per annum yield for leases between owners and operators of Gaming Facilities at the time in question (or as to any other matter to be resolved by an Expert hereunder), as the case may be, and any materials each of Landlord and Tenant wishes the Expert to consider when determining such Maximum Foreseeable Loss, replacement cost of the Facility and the appropriate per annum yield for leases between owners and operators of Gaming Facilities (or as to any other matter to be resolved by an Expert hereunder), and the Expert will then make the relevant determination, by a "baseball arbitration" proceeding with the Expert limited to awarding only one or the other of the two positions submitted (and not any position in between or other compromise or ruling not consistent with one of the two positions submitted, except that in the case of a determination in respect of a dispute under Section 36.2(a), the Expert in its discretion may choose the position of one party with respect to the replacement cost of the Facility as of the date of the expiration of this Lease and the position of the other party with respect to the appropriate per annum yield for leases between owners and operators of Gaming Facilities at the time in question), which shall then be binding on the parties hereto. The Expert, in his or her sole discretion, shall consider any and all materials that he or she deems relevant, except that there shall be no live hearings and the parties shall not be permitted to take discovery. The Expert may submit written questions or information requests to the parties, and the parties may respond with written materials within a time frame agreed by the parties or, absent agreement by the parties, set by the Expert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All communications between a party and either the Appointing Authority or the Expert shall also be copied to the other party. The parties shall cooperate in good faith to facilitate the valuation or other determination by the Expert.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The costs of any Appointing Authority or Expert engaged with respect to any issue under Section 34.1(c) of this Lease shall be borne by the party against whom the Expert rules on such issue. If Landlord pays such Expert or Appointing Authority and is the prevailing party, such costs shall be Additional Charges hereunder and if Tenant pays such Expert or Appointing Authority and is the prevailing party, such costs shall be a credit against the next Rent payment hereunder.

**ARTICLE XXXV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**35.1** **<u>Notices</u>.** Any notice, request or other communication to be given by any party hereunder shall be in writing and shall be sent by registered or certified mail, postage prepaid and return receipt requested, by hand delivery or express courier service, by facsimile or email transmission or by an overnight express service to the following address:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To Tenant: | Bally's Chicago Operating Company, LLC<br> c/o Bally's Corporation<br> 100 Westminster Street<br> Providence, RI 02903<br> Attention: Craig Eaton<br> Email: Craig@ballys.com |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a copy to:<br> (that shall not<br> constitute notice) | Latham & Watkins LLP<br> 12670 High Bluff Drive<br> San Diego, CA 92130<br> Attention: Sony Ben-Moshe<br> Facsimile No.: (858) 523-5450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To Landlord: | GLP Capital, L.P.<br> c/o Gaming and Leisure Properties, Inc.<br> 845 Berkshire Blvd., Suite 200<br> Wyomissing, Pennsylvania 19610<br> Attention: Chief Executive Officer<br> Facsimile: (610) 401-2901 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And with copy to<br> (which shall not<br> constitute notice): | Goodwin Procter LLP<br> 100 Northern Avenue<br> Boston, Massachusetts 02210<br> Attention: Erin M. Claywell<br> Facsimile: (617) 801-8796 |

---

or to such other address as either party may hereafter designate. Notice shall be deemed to have been given on the date of delivery if such delivery is made on a Business Day, or if not, on the first Business Day after delivery. If delivery is refused, Notice shall be deemed to have been given on the date delivery was first attempted. Notice sent by facsimile or email transmission shall be deemed given upon written confirmation (including via facsimile or email) from the recipient that such Notice was received at the number or email specified above or in a Notice to the sender.

**ARTICLE XXXVI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.1** **<u>Transfer of Tenant's Property and Operational Control of the Facility</u>.** Upon the written request (an "**End of Term Gaming Asset Transfer Notice**") of Landlord either immediately prior to or in connection with the expiration or earlier termination of the Term (the "**End of Term Notice Deadline**"), or of Tenant in connection with a termination of this Lease that occurs (i) either on the last date of the Initial Term or the last date of any Renewal Term, or (ii) in the event Landlord exercises its right to terminate this Lease or repossess the Leased Property in accordance with the terms of this Lease and, <u>provided</u> that, in each of the foregoing clauses (i) or (ii), Tenant complies with the provisions of Section 36.3, Tenant shall transfer (or cause to be transferred) upon the expiration of the Term, or as soon thereafter as Landlord shall request, the business operations (which shall include a one (1) year transition license for tradenames and trademarks used at the Facility) conducted by Tenant and its Subsidiaries at the Facility (including, for the avoidance of doubt, all Tenant Capital Improvements (other than those purchased by Landlord in accordance with Section 10.4) and all other Tenant's Property relating to the Facility other than tradenames and trademarks, but including all customer lists and all other Facility specific information and assets) (such business operations, Tenant Capital Improvements and other Tenant's Property, the "**Transferred Items**") to a successor lessee or operator (or lessees or operators) of the Facility (collectively, the "**Successor Tenant**") (it being understood and agreed that there shall be no restriction on Landlord or any Affiliate of Landlord from being the Successor Tenant) designated pursuant to Section 36.2 for consideration to be received by Tenant (or its Subsidiaries) from the Successor Tenant in an amount equal to the fair market value of the Transferred Items (the "**Gaming Assets FMV**") as negotiated and agreed by Tenant and the Successor Tenant; <u>provided</u>, <u>however</u>, that in the event an End of Term Gaming Asset Transfer Notice is delivered hereunder, then notwithstanding the expiration or earlier termination of the Term, until such time that Tenant transfers the Transferred Items to a Successor Tenant, Tenant shall (or shall cause its Subsidiaries to) continue to (and Landlord shall permit Tenant to maintain possession of the Leased Property to the extent necessary to) operate the Facility in accordance with the applicable terms of this Lease and the course and manner in which Tenant (or its Subsidiaries) has operated the Facility prior to the end of the Term (including, but not limited to, the payment of Rent hereunder). If Tenant and a potential Successor Tenant designated by Landlord cannot agree on the Gaming Assets FMV within a reasonable time not to exceed thirty (30) days after receipt of an End of Term Gaming Asset Transfer Notice hereunder, then such Gaming Assets FMV shall be determined, and Tenant's transfer of the Transferred Items to a Successor Tenant in consideration for a payment in such amount shall be determined and transferred, in accordance with the provisions of Section 36.2. In the event that an End of Term Gaming Asset Transfer Notice is not delivered to Landlord or Tenant, as applicable prior to the expiration of the End of Term Notice Deadline, Tenant shall remove all of Tenant's Property from the Leased Property and surrender the Leased Property to Landlord in the condition required pursuant to Section 9.1(g) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.2** **<u>Determination of Successor Tenant and Gaming Assets FMV</u>.** If not effected pursuant to Section 36.1, then the determination of the Gaming Assets FMV and the transfer of the Transferred Items to a Successor Tenant in consideration for the Gaming Assets FMV shall be effected by (i) first, determining in accordance with Section 36.2(a) the rent that Landlord would be entitled to receive from Successor Tenant assuming a lease term of ten (10) years (the "**Successor Tenant Rent**") pursuant to a lease agreement containing substantially the same terms and conditions of this Lease (other than, in the case of a new lease at the end of the final Renewal Term, the terms of this Article XXXVI, which will not be included in such new lease), (ii) second, identifying and designating in accordance with the terms of Section 36.2(b), a pool of qualified potential Successor Tenants (each, a "**Qualified Successor Tenant**") (it being understood and agreed that there shall be no restriction on Landlord or any Affiliate of Landlord from being a potential Qualified Successor Tenant) prepared to lease the Facility at the Successor Tenant Rent and to bid for the Transferred Items, and (iii) third, in accordance with the terms of Section 36.2(c), determining the highest price a Qualified Successor Tenant would agree to pay for the Transferred Items and setting such highest price as the Gaming Assets FMV in exchange for which Tenant shall be required to transfer the Transferred Items and designating the relevant Qualified Successor Tenant as the Successor Tenant, following which Tenant will transfer the Transferred Items to the Successor Tenant in exchange for an amount equal to the Gaming Assets FMV and Landlord will enter into a lease with such Qualified Successor Tenant otherwise on substantially the same terms and conditions of this Lease (other than, in the case of a new lease at the end of the final Renewal Term, the terms of this Article XXXVI, which will not be included in such new lease) through the remaining term of this Lease (assuming that this Lease will not have terminated prior to its natural expiration at the end of the final Renewal Term) or ten (10) years, whichever is greater for a rent calculated pursuant to Section 36.2(a) hereof. Notwithstanding anything in the contrary in this Article XXXVI, the transfer of the Transferred Items will be conditioned upon the Successor Tenant obtaining the Gaming Licenses or the approval of the applicable regulatory agencies of the transfer of the Gaming Licenses and any other gaming assets to the Successor Tenant and/or the issuance of new gaming licenses as required by applicable Gaming Regulations and the relevant regulatory agencies both with respect to operating and suitability criteria, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Determining Successor Tenant Rent</u>. Landlord and Tenant shall first attempt to agree on the amount of Successor Tenant Rent that Landlord will be entitled to receive for a term of ten (10) years and pursuant to a lease containing substantially the same terms and conditions of this Lease (other than, in the case of a new lease at the end of the final Renewal Term, the terms of this Article XXXVI, which will not be included in such new lease). If Landlord and Tenant cannot agree on the Successor Tenant Rent amount within a reasonable time not to exceed sixty (60) days after receipt of an End of Term Gaming Asset Transfer Notice hereunder, then the Successor Tenant Rent shall be set as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for the period preceding the last day of the calendar month in which the thirty-fifth (35<sup>th</sup>) anniversary of the Commencement Date occurs, then the annual Successor Tenant Rent shall be an amount equal to the annual Rent that would have accrued under the terms of this Lease for such period (assuming this Lease will have not been terminated prior to its natural expiration); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for the period following the last day of the calendar month in which the thirty-fifth (35<sup>th</sup>) anniversary of the Commencement Date occurs, then the Successor Tenant Rent shall be calculated in the same manner as Rent is calculated under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Designating Potential Successor Tenants</u>. Landlord will select one and Tenant will select three additional (for a total of up to four) potential Qualified Successor Tenants prepared to lease the Facility for the Successor Tenant Rent, each of whom must meet the criteria established for a Discretionary Transferee (and none of whom may be Tenant or an Affiliate of Tenant (it being understood and agreed that there shall be no restriction on Landlord or any Affiliate of Landlord from being a potential Qualified Successor Tenant), except in the case of termination of this Lease on the last day of the calendar month in which the thirty-fifth (35<sup>th</sup>) anniversary of the Commencement Date occurs). Landlord and Tenant must designate their proposed Qualified Successor Tenants within ninety (90) days after receipt of an End of Term Gaming Asset Transfer Notice hereunder. In the event that Landlord or Tenant fails to designate such party's allotted number of potential Qualified Successor Tenants, the other party may designate additional potential Qualified Successor Tenants such that the total number of potential Qualified Successor Tenants does not exceed four; provided that, in the event the total number of potential Qualified Successor Tenants is less than four, the transfer process will still proceed as set forth in Section 36.2(c) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Determining Gaming Assets FMV</u>. Tenant will have a three (3) month period to negotiate an acceptable sales price for the Transferred Items with one of the Qualified Successor Tenants, which three (3) month period will commence immediately upon the conclusion of the steps set forth above in Section 36.2(b). If Tenant does not reach an agreement prior to the end of such three (3) month period, Landlord shall conduct an auction for the Transferred Items among the four potential Qualified Successor Tenants, and Tenant will be required to transfer the Transferred Items to the highest bidder. The Gaming Assets FMV shall be the amount agreed pursuant to the first sentence of this paragraph or the highest bid received pursuant to the second sentence of this paragraph, as applicable, and the Successor Tenant shall be the Qualified Successor Tenant with which an agreement is reached pursuant to the first sentence of this paragraph or the highest bidder pursuant to the second sentence of this paragraph, as applicable. Notwithstanding anything contained herein to the contrary, if Landlord is designated as the Successor Tenant, then Landlord shall have the right to offset any sums due and owing to Landlord by Tenant under this Lease (including, but not limited to, any amounts arising under Article XVI) against the amount to be paid by Landlord to Tenant for the Transferred Items; provided, however, if it is disputed whether any such sums are due and owing to Landlord pursuant to the terms and provisions of the Lease at the time of the closing of the transfer of the Transferred Items, then an amount equal to one hundred percent (100%) of the disputed amounts shall be withheld from the amount to be paid by Landlord to Tenant at such closing and shall be held in escrow (pursuant to an escrow agreement in form mutually satisfactory to Landlord and Tenant) pending resolution of such dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.3** **<u>Operation Transfer</u>.** Upon designation of a Successor Tenant (pursuant to either Section 36.1 or 36.2, as the case may be), Tenant shall reasonably cooperate and take all actions reasonably necessary (including providing all reasonable assistance to Successor Tenant (including if Landlord is the Successor Tenant)) to effectuate the transfer of the Transferred Items and operational control of the Facility to Successor Tenant in an orderly manner so as to minimize to the maximum extent possible any disruption to the continued orderly operation of the Facility for the Primary Intended Use, provided that notwithstanding the expiration or earlier termination of the Term and anything to the contrary herein, until such time that Tenant transfers the Transferred Items and operational control of the Facility to a Successor Tenant (including if Landlord is the Successor Tenant) in accordance with the provisions of this Article XXXVI, Tenant shall (or shall cause its Subsidiaries to) continue to (and Landlord shall permit Tenant to maintain possession of the Leased Property to the extent necessary to) operate the Facility in accordance with the applicable terms of this Lease and the course and manner in which Tenant (or its Subsidiaries) has operated the Facility prior to the end of the Term (including, but not limited to, the payment of Rent hereunder). Concurrently with the transfer of the Transferred Items to Successor Tenant, Landlord and Successor Tenant shall execute a new lease in accordance with the terms as set forth in the final clause of the first sentence of Section 36.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**36.4** **<u>Power of Attorney</u>.** In addition to the remedies afforded to Landlord under Section 16.1, Tenant shall execute any and all documentation reasonably requested by Landlord necessary to satisfy Tenant's obligations set forth in this Article XXXVI and otherwise take all steps as are necessary or advisable to effectuate a transfer of the Transferred Items to a Successor Tenant in accordance with this Article XXXVI, and Tenant hereby grants to Landlord a power of attorney, coupled with an interest, to execute such documents and otherwise take all steps as are necessary or advisable to effectuate such a transfer of the Transferred Items to a Successor Tenant; <u>provided</u>, <u>however</u>, Landlord shall not exercise such power of attorney unless (i) Tenant failed to execute and return such documentation within thirty (30) days of Landlord's written request therefor except in the event of an Insolvency Event, in which case Landlord shall be authorized to exercise such power of attorney effective immediately, without notice or demand of any kind, and (ii) if the provisions of this Article XXXVI are triggered in connection with the exercise of Landlord's remedies for an Event of Default, then if Tenant has not taken any requested action or executed any requested documents within five (5) Business Days after Landlord's written request.

**ARTICLE XXXVII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**37.1** **<u>Attorneys' Fees</u>.** If Landlord or Tenant brings an action or other proceeding against the other to enforce or interpret any of the terms, covenants or conditions hereof or any instrument executed pursuant to this Lease, or by reason of any breach or default hereunder or thereunder, the party prevailing in any such action or proceeding and any appeal thereupon shall be paid all of its costs and reasonable outside attorneys' fees incurred therein, which amounts shall be paid within thirty (30) days following such prevailing party's written request therefor if the payment of such amounts are not otherwise incorporated into the terms of any judgement, order or decisions issued in connection therewith. In addition to the foregoing and other provisions of this Lease that specifically require Tenant to reimburse, pay or indemnify against Landlord's attorneys' fees, Tenant shall pay, as Additional Charges, all of Landlord's reasonable outside attorneys' fees incurred in connection with the enforcement of this Lease (except to the extent provided above), including reasonable attorneys' fees incurred in connection with the review, negotiation or documentation of any subletting, assignment, or management arrangement or any consent requested in connection therewith, and the collection of past due Rent.

**ARTICLE XXXVIII**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**38.1** **<u>Brokers</u>.** Tenant warrants that it has not had any contact or dealings with any Person or real estate broker which would give rise to the payment of any fee or brokerage commission in connection with this Lease, and Tenant shall indemnify, protect, hold harmless and defend Landlord from and against any liability with respect to any fee or brokerage commission arising out of any act or omission of Tenant. Landlord warrants that it has not had any contact or dealings with any Person or real estate broker which would give rise to the payment of any fee or brokerage commission in connection with this Lease, and Landlord shall indemnify, protect, hold harmless and defend Tenant from and against any liability with respect to any fee or brokerage commission arising out of any act or omission of Landlord.

**ARTICLE XXXIX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**39.1** **<u>Anti-Terrorism Representations</u>.** Tenant hereby represents and warrants that neither Tenant, nor, to the knowledge of Tenant, any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury ("**OFAC**"); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App. § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: "List of Specially Designated Nationals and Blocked Persons" (collectively, "**Prohibited Persons**"). Tenant hereby represents and warrants to Landlord that no funds tendered to Landlord by Tenant under the terms of this Lease are or will be directly or indirectly derived from activities that may contravene U.S. federal, state or international laws and regulations, including anti-money laundering laws. If the foregoing representations are untrue at any time during the Term and Landlord suffers actual damages as a result thereof, an Event of Default will be deemed to have occurred, without the necessity of notice to Tenant.

Tenant will not during the Term of this Lease knowingly engage in any transactions or dealings, or knowingly be otherwise associated with, any Prohibited Persons in connection with the use or occupancy of the Leased Property. A breach of the representations contained in this Section 39.1 by Tenant as a result of which Landlord suffers actual damages shall constitute a material breach of this Lease and shall entitle Landlord to any and all remedies available hereunder, or at law or in equity.

**ARTICLE XL**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**40.1** **<u>GLP REIT Protection</u>.** (a) The parties hereto intend that Rent and other amounts paid by Tenant hereunder will qualify as "rents from real property" within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto and this Lease shall be interpreted consistent with this intent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything contained in this Lease to the contrary notwithstanding, Tenant shall not without Landlord's advance written consent (which consent shall not be unreasonably withheld) (i) sublet, assign or enter into a management arrangement for the Leased Property on any basis such that the rental or other amounts to be paid by the subtenant, assignee or manager thereunder would be based, in whole or in part, on any formula such that any portion of any amount received by Landlord would fail to qualify as "rents from real property" within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto; (ii) furnish or render any services to the subtenant, assignee or manager or manage or operate the Leased Property so subleased, assigned or managed; (iii) sublet, assign or enter into a management arrangement for the Leased Property to any Person (other than a "taxable REIT subsidiary" (within the meaning of Section 856(l) of the Code) of GLP) in which Landlord or GLP owns an interest, directly or indirectly (by applying constructive ownership rules set forth in Section 856(d)(5) of the Code); or (iv) sublet, assign or enter into a management arrangement for the Leased Property in any other manner which could cause any portion of the amounts received by Landlord pursuant to this Lease or any sublease to fail to qualify as "rents from real property" within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto, or which could cause any other income of Landlord to fail to qualify as income described in Section 856(c)(2) of the Code. The requirements of this Section 40.1(b) shall likewise apply to any further subleasing by any subtenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Anything contained in this Lease to the contrary notwithstanding, the parties acknowledge and agree that Landlord, in its sole discretion, may assign this Lease or any interest herein to another Person (including without limitation, a "taxable REIT subsidiary" (within the meaning of Section 856(l) of the Code)) in order to maintain Landlord's status as a "real estate investment trust" (within the meaning of Section 856(a) of the Code); <u>provided</u>, <u>however</u>, Landlord shall be required to (i) comply with any applicable legal requirements related to such transfer and (ii) give Tenant notice of any such assignment; and <u>provided</u>, <u>further</u>, that any such assignment shall be subject to all of the rights of Tenant hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Anything contained in this Lease to the contrary notwithstanding, upon request of Landlord, Tenant shall cooperate with Landlord in good faith and at no cost or expense to Tenant, and provide such documentation and/or information as may be in Tenant's possession or under Tenant's control and otherwise readily available to Tenant as shall be reasonably requested by Landlord in connection with verification of GLP's "real estate investment trust" (within the meaning of Section 856(a) of the Code) compliance requirements. Anything contained in this Lease to the contrary notwithstanding, Tenant shall take such reasonable action as may be requested by Landlord from time to time in order to ensure compliance with the Internal Revenue Service requirement that Rent allocable for purposes of Section 856 of the Code to personal property, if any, at the beginning and end of a calendar year does not exceed fifteen percent (15%) of the total Rent due hereunder as long as such compliance does not (i) increase Tenant's monetary obligations under this Lease or (ii) materially and adversely increase Tenant's nonmonetary obligations under this Lease or (iii) materially diminish Tenant's rights under this Lease.

**ARTICLE XLI**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.1** **<u>Survival</u>.** Anything contained in this Lease to the contrary notwithstanding, all claims against, and liabilities and indemnities of Tenant or Landlord arising prior to the expiration or earlier termination of the Term shall survive such expiration or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.2** **<u>Severability</u>.** If any term or provision of this Lease or any application thereof shall be held invalid or unenforceable, the remainder of this Lease and any other application of such term or provision shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.3** **<u>Non-Recourse; Consequential Damages</u>.** Tenant specifically agrees to look solely to the Leased Property for recovery of any judgment from Landlord (and Landlord's liability hereunder shall be limited solely to its interest in the Leased Property, and no recourse under or in respect of this Lease shall be had against any other assets of Landlord whatsoever). It is specifically agreed that (a) no constituent partner or shareholder in Landlord or officer or employee of Landlord shall ever be personally liable for any such judgment or for the payment of any monetary obligation to Tenant and (b) no shareholder that is an individual, officer or employee of Tenant shall ever be personally liable for any such judgment or for payment of any monetary obligation to Landlord. The provision contained in the foregoing sentence is not intended to, and shall not, limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord, or any action not involving the personal liability of Landlord. Furthermore, except as otherwise expressly provided herein, in no event shall either party ever be liable to the other party for any indirect or consequential damages suffered by the claiming party from whatever cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.4** **<u>Successors and Assigns</u>.** This Lease shall be binding upon Landlord and its successors and assigns and, subject to the provisions of Article XXII, upon Tenant and its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.5** **<u>Governing Law</u>.** THIS LEASE WAS NEGOTIATED IN THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY. ACCORDINGLY, IN ALL RESPECTS THIS LEASE (AND ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OR CONFLICTS OF LAW) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA, EXCEPT THAT ALL PROVISIONS HEREOF RELATING TO THE CREATION OF THE LEASEHOLD ESTATE AND ALL REMEDIES SET FORTH IN ARTICLE XVI RELATING TO RECOVERY OF POSSESSION OF THE LEASED PROPERTY (SUCH AS AN ACTION FOR UNLAWFUL DETAINER, IN REM ACTION OR OTHER SIMILAR ACTION) SHALL BE CONSTRUED AND ENFORCED ACCORDING TO, AND GOVERNED BY, THE LAWS OF THE STATE OF ILLINOIS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.6** **<u>Waiver of Trial by Jury</u>.** EACH OF LANDLORD AND TENANT ACKNOWLEDGES THAT IT HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTION OF THE UNITED STATES AND THE STATE OF ILLINOIS. EACH OF LANDLORD AND TENANT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS LEASE (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR (ii) IN ANY MANNER CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF LANDLORD AND TENANT WITH RESPECT TO THIS LEASE (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREINAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; EACH OF LANDLORD AND TENANT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT EITHER PARTY MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS CONCLUSIVE EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.7** **<u>Amendment and Restatement; Entire Agreement</u>.** This Lease hereby amends and restates and replaces the Existing Lease in its entirety and this Lease and the Exhibits and Schedules attached hereto together with the Development Agreement constitute the entire and final agreement of the parties with respect to the subject matter hereof and may not be changed or modified except by an agreement in writing signed by the parties and, with respect to the provisions set forth in Section 40.1, no such change or modification shall be effective without the explicit reference to such section by number and paragraph. Landlord and Tenant hereby agree that all prior or contemporaneous oral understandings, agreements or negotiations relative to the leasing of the Leased Property, including without limitation the Existing Lease, are merged into and revoked by this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.8** **<u>Headings</u>.** All titles and headings to sections, subsections, paragraphs or other divisions of this Lease are only for the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other contents of such sections, subsections, paragraphs or other divisions, such other content being controlling as to the agreement among the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.9** **<u>Counterparts</u>.** This Lease may be executed in any number of counterparts, each of which shall be a valid and binding original, but all of which together shall constitute one and the same instrument. The words "execution," "execute," "signed," "signature," and words of like import in or related to any document to be signed in connection with this Lease and the transactions contemplated hereby shall be deemed to include electronic signatures, which shall be of the same legal effect, validity or enforceability as a manually executed signature to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act or any other similar state laws based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.10** **<u>Interpretation</u>.** Both Landlord and Tenant have been represented by counsel and this Lease and every provision hereof has been freely and fairly negotiated. Consequently, all provisions of this Lease shall be interpreted according to their fair meaning and shall not be strictly construed against any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.11** **<u>Time of Essence</u>.** TIME IS OF THE ESSENCE OF THIS LEASE AND EACH PROVISION HEREOF IN WHICH TIME OF PERFORMANCE IS ESTABLISHED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.12** **<u>Further Assurances</u>.** The parties agree to promptly sign all documents reasonably requested to give effect to the provisions of this Lease. In addition, Landlord agrees to, at Tenant's sole cost and expense, reasonably cooperate with all applicable gaming authorities in connection with the administration of their regulatory jurisdiction over Tenant's Parent, Tenant and their respective Subsidiaries, including the provision of such documents and other information as may be requested by such gaming authorities relating to Tenant's Parent, Tenant or any of their respective Subsidiaries or to this Lease and which are within Landlord's reasonable control to obtain and provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.13** **<u>Gaming Regulations</u>.** (a) Notwithstanding anything to the contrary in this Lease, this Lease and any agreement formed pursuant to the terms hereof are subject to: (i) the Gaming Regulations; and (ii) the laws involving the sale, distribution and possession of alcoholic beverages (the "**Liquor Laws**"). Without limiting the foregoing, each of Tenant, Landlord, and each of Tenant's or Landlord's successors and assigns acknowledges that (i) it is subject to being called forward by (a) the Gaming Authority or (b) any governmental authority enforcing the Liquor Laws (the "**Liquor Authority**"), in each of their discretion, for licensing or a finding of suitability or to file or provide other information, and (ii) all rights, remedies and powers under this Lease and any agreement formed pursuant to the terms hereof, including with respect to the entry into and ownership and operation of the Gaming Facilities, and the possession or control of Gaming Equipment, alcoholic beverages or a gaming or liquor license, may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of the Gaming Regulations and Liquor Laws and only to the extent that required approvals (including prior approvals) are obtained from the requisite governmental authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Lease or any agreement formed pursuant to the terms hereof, each of Tenant, Landlord, and each of Tenant's or Landlord's successors and assigns agrees to cooperate with each Gaming Authority and each Liquor Authority in connection with the administration of their regulatory jurisdiction over the parties hereto, including, without limitation, the provision of such documents or other information as may be requested by any such Gaming Authorities and/or Liquor Authorities relating to Tenant, Landlord, Tenant's or Landlord's successors and assigns or to this Lease or any agreement formed pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**41.14** **<u>Host Community Agreement</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For so long as the Host Community Agreement shall remain in effect, this Lease is subject in all respects to the Host Community Agreement. Upon Tenant's receipt of a Default Notice (as such term is defined in the Host Community Agreement), Tenant shall promptly notify Landlord of Tenant's receipt of such Default Notice and provide a copy of such Default Notice to Landlord. Landlord shall have the right, but not the obligation, to cure any and all breaches by Tenant under the Host Community Agreement prior to the expiration of any applicable notice and cure periods under the Host Community Agreement; <u>provided</u>, that the City's refusal to accept such cure from Landlord shall not constitute a breach by Tenant of this sentence; <u>provided</u>, <u>however</u>, Tenant acknowledges and agrees that any breach by Tenant of the Host Community Agreement that continues beyond the expiration of notice and cure periods such that the City is permitted to exercise (or has exercised) its right to terminate the Host Community Agreement constitutes an Event of Default under Section 16.1(u).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord and Tenant agree (i) to provide the City with written notice of any Material Modification (as hereinafter defined) requested by Landlord or Tenant, and (ii) upon providing the other party with any written notice of default under, or termination of, this Lease, to concurrently deliver a copy of such notice to the City. All notices to be delivered to the City pursuant to this Section 41.14(b) shall be delivered in accordance with Section 35.1 of this Lease to the following address (or to such other address as the City may hereafter designate in writing to Landlord and Tenant):

To the City: Mayor<br> City of Chicago<br> 121 N. LaSalle Street, 5th Floor<br> Chicago, Illinois 60602

with copies to: Office of the Chief Financial Officer<br> City of Chicago<br> 121 N. LaSalle Street, Room 700<br> Chicago, Illinois 60602

and

Corporation Counsel<br> City of Chicago<br> 121 N. LaSalle Street, Room 600<br> Chicago, Illinois 60602

and

Cezar M. Froelich, Esq.<br> Kimberly M. Copp, Esq.<br> Taft Stettinius & Hollister LLP<br> 111 E. Wacker Drive, Suite 2600<br> Chicago, Illinois 60601

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Lease to the contrary (including Article XVIII), for so long as the Host Community Agreement remains in effect, Landlord shall not sell, assign or otherwise Transfer (as defined in the Host Community Agreement) all or any portion of the Leased Property without the prior written consent of the City to the extent that the City's consent to so sell, assign or otherwise Transfer (as defined in the Host Community Agreement) the Leased Property is required under the Host Community Agreement. Landlord and Tenant acknowledge that the City has confirmed that (i) any merger, consolidation, reorganization, business combination, joint venture, share or equity interest sale, exchange or other disposition, recapitalization, restructuring, consolidation or other material corporate transaction with respect to Landlord and/or Gaming and Leisure Properties Inc., and/or all (or substantially all) of the assets of either of the foregoing, each in accordance with applicable law, will not be the basis for any claim by the City that Landlord has breached the Host Community Agreement and (ii) the issuance and/or trading of the publicly traded securities of Gaming and Leisure Properties Inc. and/or the issuance or transfer of limited partnership interests in Landlord, each in accordance with applicable law, will not be the basis for any claim by the City that Landlord has breached the Host Community Agreement. Landlord agrees that, as provided under the Host Community Agreement, Landlord, having been recognized as a Mortgagee (as defined in the Host Community Agreement) under the Host Community Agreement, or any Nominee (as defined in the Host Community Agreement) of Landlord, shall upon termination of this Lease or the sooner termination of Tenant's right to possession of the Leased Property assume the obligations of "Developer" under the Host Community Agreement (except as otherwise provided in Section 4.9(f) of the Host Community Agreement) and, in addition, following any such event, shall obtain the City's consent to any Casino Manager engaged by Landlord or Landlord's Nominee. Landlord and Tenant acknowledge that, notwithstanding the terms of the Host Community Agreement, the City has agreed that any such Nominee of Landlord need not hold title to the Project (as defined in the Host Community Agreement) to assume the obligations of "Developer" under the Host Community Agreement and the City shall accept performance by such Nominee of the obligations of "Developer" under the Host Community Agreement, but such Nominee must have the right to use, enter upon or possess the Leased Property pursuant to an agreement between Landlord and such Nominee, provided that, in all cases, (x) if such agreement is a lease of all or any portion of the Leased Property by Landlord to such Nominee, then such lease shall require the prior written consent of the City, and (y) Landlord shall also assume, and shall be solely or jointly and severally liable with such Nominee for the performance of, the obligations of "Developer" under the Host Community Agreement. For the avoidance of doubt, any termination of the Host Community Agreement shall not in itself result in the termination of this Lease (provided, however, that such termination may result in an Event of Default under this Lease). For so long as the Host Community Agreement remains in effect, (A) the City is an intended third-party beneficiary of this Section 41.14 and is entitled to enforce the same as if a party to this Lease, (B) this Section 41.14 shall not be amended or modified without the prior written consent of the City, and (C) this Section 41.14 shall survive the expiration or termination of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this Lease, "<u>Host Community Agreement</u>" means that certain Host Community Agreement, dated as of June 9, 2022, by and between Tenant and the City, as the same may be amended, modified or amended and restated from time to time. Nothing contained in this Lease shall limit, or be deemed to negate, the obligations of the parties set forth in the Host Community Agreement. Landlord and Tenant acknowledge and agree that Tenant shall not amend the Host Community Agreement in any manner that materially adversely affects Landlord's interest in the Leased Property or Tenant's ability to comply with the terms of this Lease, in each case, without the prior written consent of Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Lease to the contrary, Landlord and Tenant acknowledge and agree that any amendments or modifications to this Lease that are the Material Modifications (as hereinafter defined) shall require the prior written consent of the City, and any such amendment or modification shall be null and void and of no force and effect unless and until such prior written consent has been so obtained. "<u>Material Modifications</u>" means any amendment or modification to any provisions in this Lease that have, or would be reasonably expected to have, a material adverse effect on the City's rights and remedies under the Host Community Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that the Host Community Agreement imposes obligations upon Tenant that are more stringent than are required pursuant to the terms of this Lease, Tenant shall be obligated to comply with the more stringent provisions set forth in the Host Community Agreement.

[SIGNATURES ON FOLLOWING PAGE(S)]

**IN WITNESS WHEREOF**, this Lease has been executed by Landlord and Tenant as of the date first written above.

**<u>LANDLORD</u>** **:**

GLP CAPITAL, L.P.,

a Pennsylvania limited partnership

---

| | |
|:---|:---|
| By: | /s/ Brandon J. Moore |
| Name: | Brandon J. Moore |
| Title: | President, Chief Operating Officer, and Secretary |

---

[Signature Page to Lease]

**<u>TENANT</u>** **<u>:</u>**

BALLY'S CHICAGO OPERATING COMPANY, LLC,<br> a Delaware limited liability company

---

| | |
|:---|:---|
| By: | /s/ Ameet Patel |
| Name: | Ameet Patel |
| Title: | President |

---

[Signature Page to Lease]

## Exhibit 10.21

**Exhibit 10.21**

***Execution Version***

**DEVELOPMENT AGREEMENT**

This **DEVELOPMENT AGREEMENT** (this "**Agreement**") is entered into as of July 17, 2025 (the "**Effective Date**") by and between **GLP Capital, L.P.**, a Pennsylvania limited partnership ("**Owner**"), and **Bally's Chicago Operating Company, LLC**, a Delaware limited liability company (together with its successors and permitted assigns, "**Developer**" and, together with Owner, each a "**Party**" and, collectively, the "**Parties**").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Owner and Developer are parties to that certain Lease, dated as of the date hereof (as amended, restated, modified, and/or supplemented in accordance with its terms, the "**Lease**"), pursuant to which Owner leases to Developer certain Leased Property (as defined in the Lease) located in Chicago, Illinois.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Developer wishes to construct certain new improvements on the Property and Owner wishes to commit to fund certain costs incurred to construct such new improvements, all in accordance with the terms and conditions set forth in this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1. **<u>Definitions</u>**. Capitalized terms used in this Agreement and not otherwise defined herein are defined in <u>Section 1</u> hereof or, if not defined in this <u>Section 1</u>, are defined in the Lease. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, (i) the terms defined in this Section 1 have the meanings assigned to them in this Section and include the plural as well as the singular; (ii) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; (iii) all references in this Agreement to designated "Sections" and other subdivisions are to the designated Sections and other subdivisions of this Agreement; (iv) the word "including" shall have the same meaning as the phrase "including, without limitation," and other similar phrases; (v) the words "herein," "hereof" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision; (vi) all Exhibits, Schedules and other attachments annexed to the body of this Agreement are hereby deemed to be incorporated into and made an integral part of this Lease; and (vii) the word "or" is not exclusive.

"**Advance**" shall mean any advance of Owner's Commitment by Owner to Developer pursuant to this Agreement.

"**Affiliate**" shall mean with respect to any corporation, limited liability company, or partnership, any person which, directly or indirectly, controls or is controlled by or is under common control with such corporation, limited liability company or partnership. For the purposes of this definition, "control" (including the correlative meanings of the terms "controlled by" and "under common control with"), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, through the ownership of voting securities, partnership interests or other equity interests.

"**Agreement**" shall have the meaning set forth in the preamble hereto.

"**Architect**" shall mean HKS, Inc., together with any successor, replacement or additional architect for the Project engaged by (or on behalf of) Developer and approved by Owner (such approval not to be unreasonably withheld, conditioned or delayed).

"**Budget**" shall mean the most recent budget for the development, construction, Completion and Opening of the Project that has been approved by Owner, such approval not to be unreasonably withheld, conditioned or delayed, as revised from time to time to reflect modifications permitted pursuant to <u>Section 2.5</u>, Permitted Change Orders, and other Change Orders which are approved by Owner in writing (such approval not to be unreasonably withheld, conditioned or delayed), and which shall, among other things, specify whether each item identified therein constitutes a hard cost or soft cost.

"**Business Day**" shall mean any day other than a Saturday, Sunday or any other day on which federal government offices in New York, New York, Wyomissing, Pennsylvania or Chicago, Illinois are closed or any day on which banking institutions located in New York, New York, Wyomissing, Pennsylvania or Chicago, Illinois are required or authorized by law or executive order to close.

"**Casualty**" shall mean any casualty, damage, destruction or injury, by fire or otherwise, to all or any portion of the Property.

"**Casualty Amount**" shall have the meaning set forth in <u>Section 2.7(b)</u>.

"**Change Order**" shall mean any amendment, supplement, change or other modification (of whatever nature or form) to (1) the Plans and Specifications, (2) the Budget or (3) any Construction Agreement.

"**Collateral**" shall mean, collectively, all of Developer's right, title and interest in and to the General Contractor Agreement, each Construction Agreement, the Construction Permits and each of the other Contracts, Licenses and Permits.

"**Commitment Cap**" shall mean $940,000,000.00, as such amount may be increased up to the Final Total Hard Cost Amount if so elected by Owner.

"**Complete**" and "**Completion**" shall mean (i) the completion of construction of all New Improvements that comprise the Project (including all "punch list items", and any warranty work then outstanding at the time of final sign-off of the punch list items) in a good and workmanlike manner, on a lien-free basis, free from known defect, in accordance with all applicable Requirements in all material respects, (ii) the issuance of all Permits required for the operation of the Project for its Primary Intended Use (as defined in the Lease), (iii) delivery to Owner of the Completion Evidence (or the delivery thereof has been waived by Owner in writing), (iv) satisfaction of all construction and completion obligations set forth in any Project Agreements and/or Permits and (v) satisfaction of the conditions set forth in Section 3.3(b). For the avoidance of doubt, to the extent the Project is pursued in a series of phases, the term "Completion" shall refer to the Completion of all such phases.

"**Completion Evidence**" shall mean: (i) a certificate in a form reasonably satisfactory to Owner and addressed to Owner from the Architect certifying to the final completion of the Project in accordance with the Plans and Specifications then in effect, including all "punch list items"; (ii) copies of all Permits required for the operation of the Project for its Primary Intended Use, all in full force and effect and beyond any applicable notice or objection period and, solely as to any Gaming Approvals, subject to such reasonable and customary conditions as are common in the Gaming industry; (iii) complete "as-built" plans and specifications for the Project's New Improvements certified as accurate by the Architect who supervised such work, and copies of all certificates of occupancy for each portion of the Project requiring such a certificate to be issued to the extent required by Legal Requirements; (iv) an ALTA "as-built" survey in a form reasonably acceptable and certified to Owner; and (v) such other evidence of completion (including, without limitation, lien waivers) as reasonably requested by, and reasonably satisfactory to, Owner.

"**Construction Agreement**" shall mean, individually and/or collectively, as the context may require, any contract between Developer, an Affiliate of Developer, Architect, Engineer or General Contractor, on the one hand, and any other Work Provider, on the other hand, including, without limitation, each agreement with any Architect, Engineer or other Design Professional, the General Contractor Agreement and any other Trade Contract.

"**Construction Consultant**" shall mean Cummings Group.

"**Construction Consultant Certificate**" shall mean a certificate or report of Construction Consultant based upon a site observation of the Project made by Construction Consultant not more than twenty (20) days prior to the date of the applicable Advance, in which Construction Consultant shall in substance (and, in each case, in its reasonable opinion) (i) verify that the portion of the New Improvements completed as of the date of such site observation have been completed in all material respects in accordance with all Legal Requirements and the Plans and Specifications; (ii) state its estimate of (1) the percentages of the construction of the New Improvements completed as of the date of such site observation on the basis of work in place as part of the New Improvements and the Budget, (2) the hard costs actually incurred for work in place as part of the New Improvements as of the date of such site observation, and (3) the sum necessary to complete construction of the New Improvements in accordance with the Plans and Specifications; (iii) state that each Milestone can be achieved on or before the applicable Milestone Date (taking into account Construction Consultant's determination of actual or potential accelerated progress that may be achieved by Developer thereafter); and (iv) state that in its opinion there exists no Deficiency (or, if there exists any Deficiency, identify the other actions that Developer has taken in accordance with <u>Section 2.4(c)</u>).

"**Construction Permits**" shall mean, individually and/or collectively, as the context may require, all authorizations, consents and approvals, licenses and permits given or issued by Governmental Authorities which are required for the demolition of the Current Improvements and as required for the construction and development of the New Improvements in accordance with all Legal Requirements and the Plans and Specifications, and for the performance and observance of all obligations and agreements of Developer contained herein relating to the development and construction of the New Improvements.

"**Construction Requirements**" shall have the meaning set forth in <u>Section 2.3</u>.

"**Construction Schedule**" shall have the meaning set forth in <u>Section 2.2(h)</u>.

"**Contracts, Licenses and Permits**" shall mean, collectively, all permits, licenses, franchises, compliances, certificates, consents and approvals (including, without limitation, all Gaming Approvals and approvals from Governmental Authorities), general intangibles, agreements and contracts (including, without limitation, all Construction Agreements, Project Agreements, contractor agreements, subcontractor agreements, service contracts), instruments, insurance policies, warranties, guaranties, indemnities, appraisals, engineering, environmental, soils, insurance and other reports and studies, tenant lists, books, records, correspondence, files and advertising materials, and other documents, now or hereafter obtained, produced or entered into, as the case may be, pertaining to the construction, use, occupancy, possession, management, maintenance, ownership, or otherwise in respect of the Project and/or the Property.

"**Cost Savings**" shall mean, so long as the specific work that is the subject of a Line Item shall be verified by Owner to have been satisfied without the expenditure of the entire amount allocated in the Budget to such Line Item, the difference (if positive) between the amount of such Line Item in the Budget and the amount so expended for such Line Item as demonstrated to the reasonable satisfaction of Owner.

"**Costs**" shall mean all direct and indirect costs and expenses of designing, inspecting, remediating, renovating, constructing and developing the Project to Completion (including all hard costs and soft costs) and Opening.

"**Current Improvements**" shall mean all improvements, buildings, structures, and fixtures currently located on or affixed to the Property as of the date hereof.

"**Default**" shall have the meaning set forth in <u>Section 3.3(a)(14).</u>

"**Deficiency**" shall mean, at any given time (whether prior to the Initial Advance or at any time thereafter), and from time to time, the amount by which (i) the sum of the following, without duplication, (A) the balance of the Owner's Commitment yet to be advanced by Owner pursuant to this Agreement, in each case only to the extent that there are remaining Costs to which such unadvanced amounts are permitted to be applied pursuant to this Agreement, *<u>plus</u>* (B) Developer's Funds, is less than (ii) the Estimated Cost of Construction.

"**Definitive Document Event of Default**" shall mean the occurrence of any breach or default by Developer under any of the Definitive Documents after the expiration of any applicable cure period.

"**Definitive Document Parties**" shall mean, collectively, Bally's KC, Shreveport Contributor, Bally's Management, Bally's Corporation, Lincoln Contributor, Tiverton Contributor and Biloxi Contributor.

"**Definitive Documents**" shall mean, collectively, and as each of the following may be amended, restated, modified, and/or supplemented from time to time, (i) this Agreement, (ii) the Lease, (iii) that certain Contribution Agreement, dated as of December 16, 2024, by and among Bally's Kansas City, LLC, a Missouri limited liability company ("**Bally's KC**"), Premier Entertainment Shreveport, LLC, a Louisiana limited liability company ("**Shreveport Contributor**"), Bally's Management Group, LLC, a Delaware limited liability company ("**Bally's Management**"), Bally's Corporation and Owner, and (iv) that certain Contribution Agreement, dated as of September 6, 2022, by and among UTGR, LLC, a Delaware limited liability (f/k/a UTGR, Inc., a Delaware corporation) ("**Lincoln Contributor**"), Twin River-Tiverton, LLC, a Delaware limited liability company ("**Tiverton Contributor**"), Premier Entertainment Biloxi LLC, a Delaware limited liability company ("**Biloxi Contributor**"), Bally's Management, Bally's Corporation and Owner, as amended by that certain First Amendment to Contribution Agreement, dated as of December 23, 2022, as further amended by that certain Second Amendment to Contribution Agreement, dated as of May 13, 2023, and as further amended by that certain Third Amendment to Contribution Agreement, dated as of December 16, 2024.

"**Design Professionals**" shall mean, individually and/or collectively, as the context may require, all architects, engineers, consultants and similar professionals engaged by or on behalf of Developer, any Affiliate of Developer, Architect, Engineer or General Contractor in connection with the design of the Project, including without limitation, each Architect and each Engineer.

"**Determination Period**" shall have the meaning set forth in <u>Section 5.2</u>.

"**Developer**" shall have the meaning set forth in the preamble hereto.

"**Developer Default**" shall have the meaning set forth in <u>Section 6.1</u>.

"**Developer Parent**" shall mean Tenant's Parent (as defined in the Lease).

"**Developer Party**" shall mean Developer, each Guarantor, and Developer Parent.

"**Developer's Funds**" shall mean all cash, cash equivalents and other amounts to which Developer has unrestricted access and which may be applied to pay Costs to Complete the Project, all as reasonably confirmed by Owner, and which, without limitation, may include (i) cash and cash equivalents on hand of Developer, (ii) anticipated funds from the expected IPO, and (iii) availability under Developer Parent's revolving credit facility which, at the time of determination, may be applied to the Project in compliance with such revolving credit facility, in each case as reasonably confirmed by Owner.

"**Development Firm**" shall have the meaning set forth in <u>Section 5.4</u>.

"**Development Period Rent**" shall mean an amount, calculated as of the last day of each calendar month and paid in arrears on the immediately succeeding date on which Rent (as defined in the Lease) is due and payable pursuant to the Lease, which is the product of (i) the arithmetic average of the total outstanding amount of Project Funding that has been advanced by Owner to Developer as of each day of such calendar month, *<u>multiplied by</u>* (ii) the actual number of days elapsed in such calendar month divided by 365 or 366, as applicable, *<u>multiplied by</u>* (iii) 8.50%.

"**Draw Request**" shall have the meaning set forth in <u>Section 3.2</u>.

"**Early Works Agreements**" shall mean, collectively, that certain (i) Early Works Agreement dated as of July 12, 2023, by and between Developer and Chicago Community Builders Collective, (ii) Early Works Agreement dated as of May 28, 2024 by and between Developer and Chicago Community Builders Collective, (iii) Early Works Agreement dated April 19, 2024 by and between Developer and the Chicago Community Builders Collective, and (iv) Early Works Agreement dated August 5, 2024 by and between Developer and the Chicago Community Builders Collective, together with any amendments, modifications, supplements, change orders or change directives thereto.

"**Embargoed Person**" shall have the meaning set forth in <u>Exhibit D</u>.

"**Engineer**" shall mean each of Magnusson Klemencic Associates, V3 Companies, GEI Consultants, Globetrotters Engineering Corporation, IMEG Corporation and ECS Midwest, together with any successor or additional engineers engaged by (or on behalf of) Developer to perform any civil, structural, mechanical, electrical and/or soil engineering services with respect to all or any portion of the Project and approved by Owner (such approval not to be unreasonably withheld, conditioned or delayed).

"**Environmental Condition**" shall mean any condition with respect to soil, surface water, groundwater, land, stream sediments, surface or subsurface strata, ambient air and any environmental medium on, at or under any portion of the Property, that could or does result in any Losses relating to Hazardous Substances under Environmental Laws to or against Developer or Owner, including, without limitation, any such condition resulting from construction of the Project and/or any activity or operation formerly conducted by any Person on or off any portion of the Property.

"**Environmental Laws**" shall mean any and all applicable federal, state, county, municipal and local laws, statutes, ordinances, rules, regulations, guidances, policies, orders, codes, decrees or judgments, whether statutory or common law, as amended from time to time, now or hereafter in effect, or promulgated, pertaining to the environment, public health and safety and industrial hygiene, including, without limitation, (i) the use, generation, manufacture, production, storage, release, discharge, disposal, handling, treatment, removal, decontamination, cleanup, transportation or regulation of any Hazardous Substance, (ii) greenhouse gas, carbon energy, utility (including, gas, oil and water) or other environmental emissions, releases, discharges, usage limits or the like that are applicable to the Leased Property, and (iii) the Clean Air Act, the Clean Water Act, the Toxic Substances Control Act, the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act, the Federal Insecticide, Fungicide, Rodenticide Act, the Safe Drinking Water Act and the Occupational Safety and Health Act.

"**Environmental Liability**" shall mean any and all liabilities (including, without limitation, all reasonable fees, disbursements and expenses of counsel, expert and consulting fees and costs of investigations and feasibility studies and responding to requests for information or documents, clean-up, corrective action or remediation fees or costs), fines, penalties, restitution and monetary sanctions, interest, direct or indirect, known or unknown, absolute or contingent, past, present or future, resulting from any claim or demand, by any Person or Governmental Authority, under, pursuant to or relating to any Environmental Law, or arising from or relating to Environmental Conditions relating to the Property.

"**Estimated Cost of Construction**" shall mean, at any given time (whether prior to the Initial Advance or at any time thereafter), and from time to time, with respect to all Line Items in the Budget and in the aggregate, a good faith estimate made from time to time by Developer (and verified by Owner, in consultation with its Construction Consultant) of the actual remaining sum which will be required (x) to cause Completion and to pay all unpaid Costs in connection therewith, in each case, through the Opening Date and (y) to pay all operating and carrying costs and Opening expenses of the Property through the Opening Date (which, for the avoidance of doubt shall include, without limitation, real estate taxes and assessments, insurance premiums, charges imposed on the Property by state, local and federal authorities, entitlement costs and the costs of utilities, but which shall not include the cost of Development Period Rent due hereunder or other Rent due under the Lease. The Estimated Cost of Construction shall take into account all costs and expenses of construction that have been paid and which are to be paid by Developer hereunder, with such allowances for reserves and contingencies as Owner shall deem appropriate (but not greater than the required reserves and contingencies hereunder). For the avoidance of doubt, Estimated Cost of Construction shall not include debt financing costs not set forth in the Budget.

"**Final Funding**" shall have the meaning set forth in <u>Section 5.5</u>.

"**Final Total Hard Cost Amount**" shall have the meaning set forth in <u>Section 5.4</u>.

"**Gaming**" shall mean casino, racetrack, racing, racino, video lottery terminal or other gambling activities, including, but not limited to, the operation of slot machines, video lottery terminals, table games, pai gow poker, pari-mutuel wagering, lottery, online betting, sports wagering or other applicable types of wagering.

"**Gaming Approvals**" shall mean all licenses, permits, approvals, authorizations, registrations, findings of suitability, franchises, entitlements, waivers and exemptions issued or required to be issued by any Gaming Authority necessary for or relating to the execution of and performance under this Agreement and/or the conduct of activities by any Party hereto or any of its affiliates, including, without limitation, the development, construction, and completion of the Project and the operation thereof.

"**Gaming Authority**" shall mean those federal, state, local and other governmental, regulatory, permitting, licensing and administrative authorities, agencies, boards and officials responsible for, or involved in, the regulation of Gaming or similar activities or the sale of liquor and alcoholic beverages in the State of Illinois, and all state and local regulatory, permitting and licensing bodies with authority over Gaming and liquor in the State of Illinois and its political subdivisions.

"**Gaming Equipment**" shall mean any and all gaming devices, gaming device parts inventory and other related gaming equipment and supplies used in connection with the operation of a casino (including, without limitation, gaming tables, cards, dice, chips, tokens, player tracking systems, cashless wagering systems, electronic betting systems, interactive gaming systems, inter-casino linked systems, on-line slot metering systems, and associated equipment), in each case, used or usable in the Gaming operations conducted at the Property.

"**General Contractor**" shall mean Chicago Community Builder's Collective, and/or such other general contractor selected by Developer and approved by Owner (such approval not to be unreasonably withheld, conditioned or delayed).

"**General Contractor Agreement**" shall mean (i) that certain Agreement Between Developer and Contractor, to be entered into between Developer and General Contractor, together with (a) any "GMP Amendment" contemplated under the General Contractor Agreement, if any, (b) any other documentation executed by and between Developer and General Contractor evidencing or relating to the guaranteed maximum price thereunder and (c) any guaranty of General Contractor's obligations under the General Contractor Agreement provided by any Person, and (ii) any general contractor or other agreement which may be entered into by (or on behalf of) Developer for the Project with any successor or additional or other General Contractor to the extent approved by Owner (such approval not to be unreasonably withheld, conditioned or delayed), as each of the foregoing in clauses (i) and (ii) may be amended, replaced, supplemented or otherwise modified from time to time in accordance with the terms hereof.

"**Governmental Authority**" shall mean any Gaming Authority or domestic, federal, territorial, state or local government, governmental authority or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including, without limitation, any agency, department, board, branch, commission or instrumentality of any of the foregoing or any court, arbitrator or similar tribunal or forum, having jurisdiction over the Property.

"**Governmental Order**" shall mean any award, decision, injunction, judgment, order, ruling, subpoena or verdict entered, issued, made or rendered by any court, administrative agency, or other Governmental Authority or by any arbitrator.

"**Guarantor**" shall mean each party that delivers a Joinder.

"**Hazardous Activity**" shall mean the distribution, generation, handling, importing, management, manufacturing, processing, production, refinement, Release, storage, transfer, transportation, treatment or use of Hazardous Substances in, on, under, about or from the Property or any part thereof into the environment.

"**Hazardous Substances**" shall mean, collectively, any petroleum, petroleum product or by product, polychlorinated biphenyls, asbestos, lead-based paint, mold or any other contaminant, pollutant or hazardous or toxic substance, material or waste regulated or listed pursuant to any Environmental Law.

"**Host Community Agreement**" shall mean that certain Host Community Agreement dated as of June 9, 2022 by and between Developer and the City of Chicago, Illinois, as may be amended, replaced, supplemented or otherwise modified from time to time in accordance with the terms thereof.

"**Initial Advance**" shall mean the first Advance to be made pursuant to this Agreement.

"**Insurance Requirements**" shall have the meaning set forth in <u>Section 2.3(g)</u>.

"**Joinder**" shall mean, individually or collectively as the context may require, the Joinder attached to this Agreement that is executed and delivered on the date hereof and any Joinder in the form attached to this Agreement that may be delivered at any time thereafter, in each case, in accordance with Section 8.26.

"**Lease**" shall have the meaning set forth in the recitals hereto.

"**Lease Event of Default**" shall mean the occurrence of any "Event of Default" under the Lease by Developer.

"**Legal Requirements**" shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, policies, guidance, codes, orders, regulations, ordinances, permits, licenses, covenants, conditions, restrictions, judgments, decrees and injunctions (including common law, Environmental Laws, and the Host Community Agreement) to the extent applicable to any portion of the Property, and shall include, without limitation, all building, land use, entitlement, zoning, and Environmental Laws, rules and regulations.

"**Liens**" shall have the meaning set forth in <u>Section 2.1</u>.

"**Line Item**" shall mean a line item of cost or expense set forth in the Budget, as the same may be adjusted in compliance with <u>Section 2.5</u>.

"**Losses**" shall have the meaning set forth in <u>Section 8.1</u>.

"**Material Adverse Effect**" shall mean any event, change, development, occurrence, circumstance or effect that has had or could reasonably be expected to have a material adverse effect, whether individually or in the aggregate, on: (i) the assets, business, financial condition or long-term results of the operation of the business at the Project, taken as a whole; (ii) the ability of Developer, the Guarantors, and the Definitive Document Parties to timely perform their respective obligations hereunder; and/or (iii) the ability of Developer to timely complete the construction of the Project in accordance with this Agreement and the Lease.

"**Material Contract**" shall mean the Host Community Agreement and each agreement relating to the construction or development of the Project between Developer and a Material Design Professional or a Material Trade Contractor.

"**Material Design Professional**" shall mean, individually and/or collectively, as the context may require, (i) Architect, (ii) Engineer, and (iii) any other Design Professionals who have an agreement relating to the Project requiring payments thereunder by or on behalf of Developer which exceed Five Million Dollars ($5,000,000); <u>provided</u> that, for purposes of this definition, multiple agreements with a single counterparty, or any Affiliate thereof, as the case may be, shall be deemed to constitute a single agreement for the purposes of determining whether such counterparty constitutes a Material Design Professional hereunder.

"**Material Subcontractor**" shall mean, individually and/or collectively, as the context may require, Trade Contractors who (i) have an agreement relating to the Project (as contracted by the General Contractor, Design Professionals or any party other than Developer) requiring payments thereunder by or on behalf of Developer which exceed Three Million Dollars ($3,000,000) or (ii) have been engaged for the purpose of, *inter alia*, performing any testing or providing any inspection reports (even if the amount to be paid to such Trade Contractor under this clause (ii) is less than Three Million Dollars ($3,000,000)); <u>provided</u> that, for purposes of this definition, multiple agreements with a single counterparty, or any Affiliate thereof, as the case may be, shall be deemed to constitute a single agreement for the purposes of determining whether such counterparty constitutes a Material Subcontractor hereunder.

"**Material Trade Contractor**" shall mean each of the following (i) the General Contractor, and (ii) any Trade Contractor with whom Developer has a direct agreement relating to the Project under which the aggregate contract price, whether initially or thereafter by virtue of any Change Order or Change Orders, is equal to or in excess of Five Million Dollars ($5,000,000) (<u>provided</u> that, for purposes of this definition, multiple agreements with a single Trade Contractor, or any Affiliate thereof, as the case may be, shall be deemed to constitute a single agreement for the purposes of determining whether such counterparty constitutes a Material Trade Contractor hereunder).

"**Milestone**" shall mean the development and construction milestones described on <u>Exhibit A</u>.

"**Milestone Dates**" shall mean the deadlines for the achievement of the Milestones listed on <u>Exhibit A</u>; provided that, such deadlines shall be equitably extended as a result of Unavoidable Delays, Permitted Change Orders and other Change Orders permitted in accordance with the terms hereof.

"**New Improvements**" shall mean all buildings, structures, fixtures, and other improvements of every kind which are hereafter constructed, erected, and/or located on or annexed to the Property or its existing improvements, including, without limitation, all improvements, alterations and/or modifications to or of any Current Improvements, as applicable.

"**New York UCC**" shall have the meaning set forth in Section 2.8(a).

"**Obligations**" shall have the meaning set forth in the Joinder.

"**OFAC**" shall have the meaning set forth in <u>Exhibit D</u>.

"**Open**" and "**Opening**" shall mean the opening of the entirety of the Project to the public for the operation of the Project for the Primary Intended Use in accordance with the Requirements, which, for the avoidance of doubt, shall require Developer to incorporate all equipment, machinery, fixtures, furniture, finishes, and other items of property, including, without limitation, Gaming Equipment and all components thereof, that are required for the opening and operation of the entirety of the Project for the Primary Intended Use.

"**Opening Date**" of the Project shall mean the first date upon which Opening has occurred.

"**Operating Permits**" shall mean, individually and/or collectively, as the context may require, all authorizations, consents and approvals given by, and licenses and permits issued by, Governmental Authorities which are required for the ownership, use and occupancy of the Property in accordance with all Legal Requirements, and for the performance and observance of all obligations and agreements of Developer contained herein, including, for the avoidance of doubt, Developer's satisfaction of all Requirements, or in the Lease that relate to the ownership, use and occupancy of the Property, including (without limitation) the ownership, use and occupancy of the New Improvements following the Opening Date.

"**Owner**" shall have the meaning set forth in the preamble hereto.

"**Owner Default**" shall have the meaning set forth in <u>Section 6.4</u>.

"**Owner Indemnified Parties**" shall mean Owner, Owner Parent, and their respective direct and indirect agents, trustees, shareholders, partners, members, directors, officers, employees, agents and representatives, and the heirs, legal representatives, successors and assigns of each of the foregoing.

"**Owner Parent**" shall mean Gaming and Leisure Properties, Inc.

"**Owner's Commitment**" shall have the meaning set forth in <u>Section 3.1</u>.

"**Owner's Commitment Conditions**" shall have the meaning set forth in <u>Section 3.1</u>.

"**Party**" or "**Parties**" shall have the meaning set forth in the preamble hereto.

"**Permits**" shall mean, as to the Project and/or Property, all permits, registrations, findings of suitability, licenses, zoning rights, entitlements, variances, exemptions, certificates of occupancy, orders and approvals issued by Governmental Authorities (including all Gaming Approvals) required for the development, construction and Completion of the Project and the operation of the Project in each case in accordance with all applicable Legal Requirements and/or the ownership, maintenance and operation of the Property for its Primary Intended Use in accordance with all applicable Legal Requirements, including, without limitation, (1) such permits, registrations, findings of suitability, licenses, variances, exemptions, certificates of occupancy, orders and approvals as are currently in place for the Property and/or the current operation thereof; (2) any development agreement, indemnity, surety or performance bonds or other similar assurances to any Governmental Authority in connection with the obtaining of entitlements or other governmental approvals for the Project; (3) any easements, approvals, utility connection permits, or requirements to obtain utilities and access; (4) any subdivision or parcel map required in connection with any development, sale, lease or financing; (5) any approvals required under Environmental Laws; (6) all approvals required by any Governmental Authority with jurisdiction over the Project; (7) if applicable, final, unqualified and unconditional certificates of occupancy (or the local equivalent) required to permit the occupancy of the Project; and (8) any other approvals required in connection with the development, construction and Completion of all or any portion of the Project and the operation of the Project.

"**Permitted Assignment**" shall have the meaning set forth in <u>Section 6.1(i)</u>.

"**Permitted Change Order**" shall mean a Change Order meeting each of the following requirements: (1) the amount involved for any one Change Order is (i) less than Five Hundred Thousand Dollars ($500,000) and (ii) the total amount of all Change Orders, including such Change Order, is less than Five Million Dollars ($5,000,000) in the aggregate (whether an increase or decrease and without offset); (2) the change will not violate any Requirements or Gaming Regulations; (3) the change will not adversely affect in any material respect the permitted uses or other entitlements associated with the Project; (4) the change will not adversely affect in any material respect the scope, quality, appearance, functionality, cost of operating, expected lifespan or utility of the Project or any component thereof; (5) the change could not be reasonably expected to materially delay the anticipated Opening Date; (6) the change could not be reasonably expected to adversely impact any Gaming Approval necessary for the operation of the Project for its Primary Gaming Use and will not require a revised submission or approval to or from the Gaming Authority that has not already been submitted or approved, as applicable; (7) in the case of a Change Order with respect to a Material Contract, such Change Order will not result in the termination of such Material Contract; and (8) the change will not result in a loss in any coverage under the Owner's Title Policy, including, without limitation, the coverage provided by any land under development endorsements.

"**Person**" shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other form of entity.

"**Plan**" shall have the meaning set forth in <u>Exhibit D</u>.

"**Plans and Specifications**" shall mean all plans, specifications, renderings, and other drawings (including, without limitation, shop drawings) for the development, construction, Completion and Opening of the New Improvements that have been approved by Owner, such approval not to be unreasonably withheld, conditioned or delayed, and which shall include, without limitation, a description of the materials, equipment and fixtures necessary for the Completion and Opening of the New Improvements, together with any other architectural, structural, foundation and elevator plans and specifications prepared by the Architect and/or Engineers and incorporated in the plans and specifications by the Architect, and any mechanical, electrical, plumbing and fire protection plans and specifications prepared by any Person retained or to be retained by Developer, Architect, or General Contractor, as revised from time to time to reflect Permitted Change Orders and other Change Orders permitted in accordance with the terms hereof.

"**Proceedings**" shall have the meaning set forth in <u>Section 3.3(a)(11)</u>.

"**Proceeds**" shall have the meaning set forth in <u>Section 2.7(b)</u>.

"**Prohibited Persons**" shall have the meaning set forth in <u>Exhibit D</u>.

"**Project**" shall mean the planning, supervision, administration, coordination, development, construction, and Completion of the New Improvements at the Property in accordance with this Agreement for the operation thereof for the Primary Intended Use, which shall in all events include all development and construction obligations required pursuant to the Requirements. For the avoidance of doubt, to the extent the Project is pursued in a series of phases, the term "Project" shall mean all such phases.

"**Project Agreements**" shall mean any and all leases, rental agreements, sale agreements, builder contracts, development agreements, construction agreements, architect agreements, engineering agreements, development, construction and/or engineering management agreements, operating agreements, loan agreements, mortgages, deeds of trust, security instruments, easement agreements, restrictive covenants, construction contracts, agreements with Governmental Authorities, and any other agreements encumbering, affecting or otherwise relating to the Project, the Property or any portion thereof.

"**Project Funding**" shall mean amounts which are advanced by Owner to Developer for the development, construction and/or Completion of the Project in accordance with this Agreement.

"**Project Funding Amount**" shall initially be zero ($0.00) and shall increase by the principal amount of each Advance (excluding the Final Funding) made by Owner to Developer in accordance with this Agreement.

"**Property**" shall mean the real property or properties described in <u>Exhibit B</u> to the Lease.

"**Release**" shall mean, with respect to Hazardous Substances, any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, disposing or dumping into soil, surface waters, groundwater, land, stream sediments, surface or subsurface strata, ambient air or any environmental medium at, or under any portion of the Property.

"**Requirements**" shall mean the terms and conditions of this Agreement, the Budget, the Plans and Specifications, all Project Agreements, all Insurance Requirements, the Host Community Agreement, all Legal Requirements and all Permits, collectively.

"**Retainage**" shall mean, subject to <u>Section 3.3(d)</u>, the greater of (a) the actual amount to be held back from a Trade Contractor pursuant to its Trade Contract and (b) the amount required to be held back from a Trade Contractor pursuant to the General Contractor Agreement.

"**Second Determination Period**" shall have the meaning set forth in <u>Section 5.4</u>.

"**Stored Materials**" shall have the meaning set forth in <u>Section 3.3(f)</u>.

"**Subsidiary**" shall mean, as to any Person, (i) any corporation more than fifty percent (50%) of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time of determination owned by such Person and/or one or more Subsidiaries of such Person, and (ii) any partnership, limited liability company, association, joint venture or other entity in which such person and/or one or more Subsidiaries of such person has more than a fifty percent (50%) equity interest at the time of determination.

"**Temporary Property Lease**" shall mean that certain Sublease Agreement, dated as of November 28, 2022, among Medinah Holdings, LLC, an Illinois limited liability company, as landlord, Medinah Building LLC, an Illinois limited liability company, as sublandlord, and Developer, as subtenant, as amended, restated, modified, and/or supplemented from time to time.

"**Term Sheet**" shall mean that certain Binding Term Sheet, by and between Owner and Bally's Corporation, dated July 11, 2024, as amended, restated, modified, and/or supplemented in accordance with its terms from time to time.

"**Termination Date**" shall mean the first date upon which all of the following have occurred: (i) Completion of the entirety of the Project, (ii) the Opening Date, (iii) Owner has made the Final Funding to Developer in accordance with <u>Section 5</u> of this Agreement, (iv) Developer's obligations under <u>Sections 4.2(ii)</u> and <u>(iii)</u> have been satisfied and Development Period Rent has converted to the Development Funding Increase (as defined in the Lease) and (v) Developer has fully satisfied each of its obligations under this Agreement (other than inchoate indemnity or other obligations which, by their terms, survive termination of this Agreement).

"**Title Company**" shall mean Fidelity National Title Insurance Company.

"**Title Policy**" shall mean that certain owner's policy of title insurance to be issued by the Title Company with respect to the Property. Owner shall deliver a copy of the Title Policy to Developer promptly after the issuance thereof.

"**Total Hard Cost Amount**" shall have the meaning set forth in <u>Section 5.1</u>.

"**Total Hard Cost Certification**" shall have the meaning set forth in <u>Section 5.1</u>.

"**Total Hard Cost Objection Notice**" shall have the meaning set forth in <u>Section 5.3</u>.

"**Trade Contract**" shall mean any agreement, contract or purchase order entered into pursuant to which the counterparty agrees to provide labor, materials, equipment and/or services (excluding design and consulting services) in connection with the construction of the New Improvements.

"**Trade Contractor**" shall mean any Person that is a contractor, sub-contractor, supplier or provider of labor, materials, equipment and/or services (excluding design and consulting services) in connection with the construction of the New Improvements, as the case may be, under a Trade Contract (including, for the avoidance of doubt, the General Contractor).

"**Transfer**" (and its correlative terms) shall mean any sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, option grant or other transfer or disposal, or agreement to do any of the foregoing, in each case, directly or indirectly, voluntarily or involuntarily, by operation of law, merger, consolidation or otherwise, and whether or not for consideration.

"**Unavoidable Delay**" shall mean any of the following events: any pandemic (including, without limitation, COVID-19) or other actual or potential epidemic, contagion or other disease outbreak, which results in a governmental or quasi-governmental order or mandate that directly prohibits Developer's performance under this Agreement, regional or nationwide strikes and lock-outs, inability to procure materials, power failure (but excluding failure of auxiliary power sources contemplated by the construction plan), acts of God (such as earthquake, tornado, flood, hurricane, snow, ice, etc.), governmental restrictions, enemy action, terrorism, acts of sabotage, insurrection, civil commotion, fire, casualty, condemnation, Legal Requirements enacted after the date hereof, Governmental Orders issued or occurring after the date hereof or delay in excess of thirty (30) days by any Governmental Authority in issuing Permits after timely submission of required documents and payment of fees therefor, or other causes beyond the reasonable control of the party (or such party's controlled agents, contractors or subcontractors) responsible for performing the applicable obligation hereunder; provided that neither lack of funds nor changes in the pricing of materials and/or services shall be deemed a cause beyond the reasonable control of a party.

"**Work Provider**" shall mean any General Contractor, Architect, Engineer, other design professional, Trade Contractor or other Person (other than the Owner and the Developer) performing work or services in connection with the development, construction and/or equipping of the Project or any part thereof.

"**Zoning Documents**" shall mean, collectively, the agreements set forth in <u>Schedule 2(v)</u> and any other documents relating to Developer's right to utilize and enjoy any development rights appurtenant, or otherwise relating to, the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with the terms hereof.

2. **<u>Project Development</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Project Development</u>. Developer hereby agrees to plan, supervise, administer, coordinate, develop, construct, Complete and Open the Project (including the New Improvements required by the Host Community Agreement), free and clear of liens, encumbrances, attachments, title retention agreements, and/or claims for liens ("**Liens**") for materials supplied and/or for labor and services performed in connection with the construction of the Project's New Improvements (subject to <u>Section 2.3(h)</u>), with diligence and continuity (subject to Unavoidable Delay), in a good and workmanlike manner, subject to and in accordance with the terms of this Agreement, the Construction Schedule (subject to Unavoidable Delay), and all other Requirements in all material respects at Developer's sole cost and expense (subject to Owner's Commitment set forth below and the terms of this Agreement applicable thereto). Developer shall: (i) timely pay all costs and expenses in connection with the development, construction, Completion and Opening of the Project (subject to Owner's Commitment set forth below and the terms of this Agreement applicable thereto), (ii) fully and faithfully discharge its obligations and responsibilities under this Agreement in a first class manner; (iii) devote sufficient time and attention to ensure the full, prompt, and professional discharge of its duties under this Agreement; (iv) perform its obligations under this Agreement in a timely manner in accordance with all Requirements in all material respects; and (v) perform (or use commercially reasonable efforts to cause to be performed by the Work Providers) all duties that are customarily included in a construction project that contemplates the construction of hospitality and Gaming facilities, and, at the request of either Party, the Parties shall use good faith efforts to confirm such additional obligations in detail and make other conforming changes to this Agreement in an amendment hereto as reasonably necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>New Improvements</u>. Developer shall not commence the construction of any New Improvements without first obtaining Owner's prior written approval thereof (which approval shall not be unreasonably withheld, conditioned or delayed), it being agreed by the Parties that it shall be reasonable for Owner to condition such approval upon Owner's receipt, review and approval (which approval shall not be unreasonably withheld, conditioned or delayed) of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A description in reasonable detail of the proposed New Improvements, which shall include, among other
things, the use or uses to which such New Improvements will be put;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A budget for the development, construction, Completion and Opening of the Project, which shall, among
other things, specify whether each Line Item identified therein constitutes a hard cost or soft cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Plans and Specifications for such New Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A "Sources and Uses" statement, certified as true, correct and complete by an authorized officer
of Developer, in a form reasonably acceptable to Owner, identifying all prior and anticipated sources of financing for the development,
construction and Opening of all such New Improvements, and such other evidence as may be reasonably requested by Owner to evidence the
availability to Developer of funding through the estimated Opening Date of all such New Improvements for the Project beyond Owner's
Commitment pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The identity of, and Developer's agreement (if applicable and then available) with, each General
Contractor, Architect, Engineer, Material Design Professional, Material Trade Contractor and Material Subcontractor that Developer has
engaged (or intends to engage, or which will be engaged by General Contractor) for development and construction of such New Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Copies of all Project Agreements and Permits obtained or entered into by Developer in connection such
New Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) A summary of all other Project Agreements and Permits which shall be required for Developer to cause the
Opening of such New Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) A projected schedule for the execution and/or receipt of all Project Agreements and Permits referred to
in clause (g) above, the progress of the development and construction, and projected Opening of the New Improvements setting forth
(i) the monthly projected Advances throughout the construction period and (ii) a construction progress schedule reflecting,
among other things, the anticipated dates of completion of and the timing of disbursements of incremental amounts of the Line Items of
the Budget, all in such form and containing such details as Owner shall reasonably require and in all events incorporating the achievement
of all Milestones by the applicable Milestone Dates (the "**Construction Schedule** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Minority business enterprise and women's business enterprise projections and any variance to requirements
or commitments to the obligations in the Host Community Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) An executed Assignment of Contracts, Licenses and Permits in the form attached hereto as <u>Exhibit B</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) A Consent Agreement in the form attached hereto as <u>Exhibit C-1</u>, <u>Exhibit C-2</u> or <u>Exhibit C-3</u>, as applicable, from each General Contractor, Architect, Engineer, Material Design Professional and Material Trade
Contractor that Developer has engaged directly for development and construction of such New Improvements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Such other information as Owner may reasonably request in connection with the construction of such New
Improvements.

Owner may request at any time an update to all materials described above, and Developer shall provide such updated materials promptly following any such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Construction Requirements</u>. Developer shall comply at all times with the following requirements in connection with the development, construction and Opening of all New Improvements (collectively, the "**Construction Requirements**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each General Contractor, Architect, Engineer, Material Design Professional,
Material Subcontractor and Material Trade Contractor that will conduct the development and construction of such New Improvements, and
all agreements with any of the foregoing (and all amendments, supplements, and/or modifications thereto), other than with respect to Material
Subcontractors, shall be subject to the prior written approval of Owner, which approval shall not be unreasonably withheld, conditioned
or delayed. Developer shall promptly deliver to Owner a copy of each material written notice, report, and/or estimate received or delivered
by it under each such agreement. Each such agreement shall remain in full force and effect at all times after the initial execution and
delivery thereof, except as otherwise permitted by this Agreement or upon termination in the ordinary course upon completion of the work
contemplated thereby. Developer may not surrender, terminate, cancel or enter into any such agreement without the prior written
approval of Owner (except for a termination in the ordinary course upon completion of the work contemplated thereby), which approval shall
not be unreasonably withheld, conditioned or delayed. Developer hereby acknowledges and agrees that Owner shall be identified as an "owner's
representative" in each General Contractor Agreement. Notwithstanding anything to the contrary set forth in this Agreement, and
for the avoidance of doubt, the General Contractor Agreement for the Project must be a newly executed agreement between Developer and
General Contractor and may not be executed as a change order to the Early Works Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Plans and Specifications pursuant to which such development, construction and Opening are to be conducted
and completed (together with all amendments, modifications, supplements, and/or change orders thereto or thereof) shall be subject to
the prior written approval of Owner, which approval shall not be unreasonably withheld, conditioned or delayed; <u>provided</u>, <u>however</u>,
that Developer shall be entitled to make changes to the Plans and Specifications that constitute Permitted Change Orders upon prior written
notice to, but without the prior approval of, Owner, it being acknowledged and agreed by Developer that Developer may not implement any
Change Order which does not constitute a Permitted Change Order without the prior written consent of Owner, which such consent shall not
be unreasonably withheld, conditioned or delayed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Such construction shall not be commenced until Developer shall have procured and paid for all applicable
Permits required to be obtained prior to such commencement, including those Permits required pursuant to any Gaming Regulations, if any,
and Owner shall join in the application for such Permits whenever such action is necessary; <u>provided</u>, <u>however</u>, that (i) any
such joinder shall be at no cost, expense or potential liability to Owner; and (ii) any Plans and Specifications required to be filed
in connection with any such application which require the approval of Owner as hereinabove provided shall have been so approved by Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Such construction shall not be commenced until Owner has received from the General Contractor, Material
Subcontractor and each Material Trade Contractor any performance and payment bond that is required pursuant to the terms of the General
Contractor Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No New Improvements will result in the Property becoming a "limited use" property for United
States federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Such construction shall not be commenced until Developer has caused the Architect to certify to Owner
that it believes that the Plans and Specifications conform to, and comply with, all applicable building, subdivision and zoning codes,
laws, ordinances and regulations imposed by all Governmental Authorities having jurisdiction over the Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) During such time as Developer is constructing any New Improvements, Developer, at its sole cost and expense,
shall carry, or cause to be carried, the insurance policies, in such amounts and limits, as listed on <u>Exhibit E</u> and such other
insurance, in such amounts and limits, as Owner reasonably determines is necessary to protect the Property from any act or omission of
Developer's contractors or subcontractors (collectively, the "**Insurance Requirements** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The terms and conditions of Sections 11.1 and 12.1 of the Lease are hereby incorporated by reference and
shall apply to the development, construction, and Opening of all New Improvements for the Project under this Agreement, *mutatis mutandis*,
and Developer shall comply with the terms and conditions of Sections 11.1 and 12.1 of the Lease as if fully set forth herein as applicable
to all New Improvements and Developer's obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All work done in connection with such construction shall be done promptly (subject to Unavoidable Delay)
and in conformity in all material respects with all Requirements, including, without limitation, any applicable minority or women-owned
business Legal Requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Developer shall provide prior notice to Owner of, and an opportunity for a representative of Owner to
be present for and a participant in, all scheduled meetings, conference calls, and video conferences between Developer and all third party
contractors and professionals engaged by or on behalf of Developer in connection with the development and construction of the Project
and Developer shall endeavor in good faith in all instances (other than in the case of an emergency) to provide Owner with the opportunity
to participate in all other material calls and meetings between Developer and all third party contractors and professionals, engaged by
or on behalf of Developer in connection with the development and construction of the Project; and Owner is hereby permitted to engage
directly with all such third party contractors and professionals without the consent of Developer (<u>provided</u> that Owner shall endeavor
to provide prior notice to Developer of any such engagement if reasonable under the circumstances, as well as an opportunity for a representative
of Developer to participate in such engagement with Developer and such third party contractors and professionals, so long as Developer
makes a representative thereof reasonably available);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Except with respect to Permitted Change Orders, without Owner's consent (such consent not to be
unreasonably withheld), Developer shall not (i) cancel or terminate any Material Contract or consent to or accept any cancellation
or termination thereof (other than (x) any expiration upon completion of its term in accordance with its terms and (y) following
(1) the occurrence and continuance of an event of default thereunder (other than by Developer) and after all applicable cure periods
have expired or (2) a material breach of any Material Contract (other than by Developer) which has not been remedied within a commercially
reasonable period), (ii) amend, modify or change in any manner any term or condition of any Material Contract which either (x) results
in a change to the material terms thereof or (y) could reasonably be expected to adversely affect the interests of Owner (whether
in Owner's capacity under this Agreement and/or the Lease or in the event Owner assumes such Material Contract in the future), (iii) grant
any material consent, waiver or approval under any Material Contract, (iv) take any other action in connection with any Material
Contract, including assigning or transferring its rights thereunder, that would impair the value of the interest or rights of Developer
thereunder or hereunder or that would impair or adversely affect, the rights or interests of Owner, notwithstanding the foregoing to the
contrary, or (v) prior to the Opening Date, waive any material rights under, or otherwise amend, modify, terminate or supplement,
the Host Community Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Except to the extent otherwise permitted by the terms of this Agreement, Developer will at all times abide
by, perform and discharge in all material respects all obligations, covenants, agreements and conditions to be performed by Developer,
and use commercially reasonable efforts to cause Developer's counterparty's compliance with all of its covenants, obligations
and agreements, if any, under the Material Contracts (including, the obligation to pay all sums due thereunder) and, subject to the terms
and conditions of this Agreement, will use all commercially reasonable efforts to (i) secure or enforce all of its rights under the
Material Contracts, and (ii) secure the performance of each and every material obligation, covenant, condition, and agreement to
be performed by the contracting party under all Material Contracts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Developer shall give prompt notice to Owner of any default notice issued by any Governmental Authority
or any other party with respect to any of the Material Contracts together with an accurate and complete copy of any such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Project Funding Balancing and Deficiency</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Developer shall furnish, or cause to be furnished, to Owner on or before thirty (30) days after the end of each calendar month, a construction progress statement as of the end of such calendar month (which statement may be included in a Draw Request) containing the following items: (i) a reconciliation by Developer of the progress of the construction of the New Improvements in accordance with the Construction Schedule and a projection of such progress through to the Opening Date of the New Improvements, (ii) a reconciliation by Developer of the actual hard costs and soft costs in accordance with the Budget showing the percentage of completion of each Line Item in the Budget together with a projection of each Line Item through to the Opening Date of the New Improvements, and (iii) an updated Estimated Cost of Construction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owner will not be required to make Advances pursuant to the provisions of this Agreement for more than the amount of any Line Item in the Budget, unless amounts from other Line Items have previously been reallocated in accordance with <u>Section 2.5</u> hereof, or any of the actions set forth in <u>Section 2.4(c)</u> below are taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that Owner shall determine that there exists any Deficiency, Owner shall deliver notice of such determination to Developer and thereafter Owner will not be obligated to make any Advances under this Agreement unless, within ten (10) Business Days of receipt of such notice of determination, Developer shall take one or more of the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) establish in Owner's reasonable discretion that, contrary to Owner's prior determination,
no Deficiency then exists;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) reallocate amounts from Cost Savings and/or any Line Item designated as 'contingency' pursuant
to <u>Section 2.5</u> hereof such that the aggregate sum of the Deficiency is reduced to zero; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) make one or more payments on account of Costs (hard costs or soft costs) until the Deficiency has been
reduced to zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Budget Reallocations; Cost Savings; Contingency</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Developer may only modify the Budget (i) in accordance with <u>clause (b)</u> of this <u>Section 2.5</u> and (ii) to reflected Permitted Change Orders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Developer shall have the right, in its reasonable discretion, to revise the Budget from time to time to reallocate amounts allocated to any Line Item in the Budget to any other Line Item in the Budget, or to any cost incurred or reasonably anticipated by Developer to be incurred in connection with the New Improvements for which there is no Line Item in the Budget, if, and to the extent, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the source of such reallocation is (A) contingency Line Item amounts or (B) Cost Savings which
do not result in a diminishment or reduction in any material respect in the quality, scope or functionality of the New Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the reallocation does not include reallocating amounts from any portion of the Line Items for Rent (including
Development Period Rent), fees and other expenses payable to Owner hereunder, or any portion of the Line Items for amounts payable by
Developer in its capacity as tenant under the Lease (e.g., taxes, other governmental charges, and insurance premiums);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Owner is advised in writing of the proposed Line Item reallocation and has a reasonable opportunity to
review the same with Developer and to obtain from Developer such documentation regarding the need for such reallocation as Owner shall
reasonably require prior to the next succeeding Draw Request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Budget is not, and may not reasonably be expected to be, increased in the aggregate as a result or
consequence of any such reallocation, unless, after giving effect thereto and any actions of the type contemplated by <u>Section 2.4(c)</u> to
be taken by Developer in connection therewith, no Deficiency would exist;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) other than with respect to reallocations of contingency Line Item amounts, no one reallocation exceeds
fifteen (15) percent of the Line Item that is increased and aggregate reallocations do not exceed ten (10) percent of the aggregate
budgeted Costs, unless Developer has received the prior written consent of Owner with respect thereto (such consent not to be unreasonably
withheld, conditioned or delayed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the "Hard Costs contingency" (or equivalent) Line Item may only be utilized to cover overruns
among Line Items for hard costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the "Soft Costs contingency" (or equivalent) Line Item may only be utilized to cover overruns
among Line Items for soft costs or hard costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) with respect to reallocations of contingency Line Item amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at all times prior to the Opening Date: (1) the "Hard Costs contingency" Line Item shall remain equal to or greater than seven percent (7%) of the then-remaining Hard Costs to be incurred through Completion, (2) the "Soft Costs contingency" Line Item shall remain equal to or greater than fifteen percent (15%) of the then-remaining Soft Costs to be incurred through Completion, and (3) the "general contingency" Line Item shall remain equal to or greater than three and a half percent (3.5%) of the then-remaining Hard Costs to be incurred through Completion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no reallocation shall increase a Budget Line Item by more than fifteen percent (15%) of the initial amount budgeted therefor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the total amount of contingency used or reallocated, expressed as a percentage of the total contingency available in the Budget, shall not exceed the percentage of completion, as of such date of determination, of the New Improvements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Developer complies with the other terms and conditions of this <u>Section 2.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the conditions for reallocating Line Items in the Budget as set forth in this <u>Section 2.5</u> are not met, Developer may not reallocate any amounts in the Budget from any Line Item to any other Line Item without first obtaining
the prior written consent of Owner (such consent not to be unreasonably withheld, conditioned or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Horizontal Work</u>. Without limiting Developer's obligation to pay all costs of developing, constructing and Completing the Project (subject to Owner's Commitment set forth below and the terms of this Agreement applicable thereto), the Parties acknowledge and agree that Developer shall pay all demolition, grading, excavation, site preparation, and other hard costs of Project construction that do not result in the construction of actual improvements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Casualty and Insurance Proceeds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notification</u>. Developer shall promptly notify Owner in writing upon obtaining knowledge of the
occurrence of any Casualty to the Property or any portion thereof. In addition, each such notice shall set forth such good faith estimate
of the cost of repairing or restoring such Casualty in reasonable detail if the same is then available and, if not, as soon thereafter
as it can reasonably be provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Proceeds</u>. In the event of any Casualty prior to Completion, Developer
does hereby assign to Owner all of Developer's right, title and interest in and to all compensation, awards, proceeds, damages,
claims, insurance recoveries, causes, rights of action (whether accrued prior to or after the date hereof) and payments which Developer
may receive or to which Developer is or may become entitled with respect to the Property or any part thereof other than payments received
in connection with any loss of rental value or business interruption insurance (collectively, "**Proceeds**") in
connection with any such Casualty to the Property or any part thereof and, subject to the terms of this <u>Section 2.7(b)</u>, all
such Proceeds shall be paid to an escrow account held by a third party depositary reasonably acceptable to Owner and Developer (the "**Casualty Escrow Agent**") (pursuant to an escrow agreement acceptable to the parties and intended to implement the terms of this Agreement),
and made available to Developer upon request for the reasonable out-of-pocket costs of preservation, stabilization, emergency restoration,
business interruption, reconstruction and repair, as the case may be, of any damage to or destruction of the Property, or any portion
thereof; <u>provided</u>, <u>however</u>, that the portion of such Proceeds that are attributable to Developer's obligation to pay
Rent under the Lease shall be applied against Rents due by Developer thereunder; and <u>provided</u>, <u>further</u>, that if the total
amount of Proceeds payable net of the applicable deductibles is One Million Dollars ($1,000,000) or less, and if no Developer Default
has occurred and is continuing, the Proceeds shall be paid directly to Developer and used for the repair of any damage to the Property,
provided that the Property is rebuilt in a manner substantially similar to the condition in which it existed prior to the related casualty
or otherwise in a manner reasonably satisfactory to Owner. Notwithstanding the foregoing or anything else in this Agreement or the Lease
to the contrary, in the event the total amount of Proceeds payable net of deductibles is Twenty-Five Million Dollars ($25,000,000) or
higher in connection with any Casualty to the Property or any part thereof prior to Completion ()"**Major Casualty Proceeds** "),
such Major Casualty Proceeds shall be delivered or directed to Owner by Developer and shall be held and disbursed by Owner in the same
manner, and subject to the same conditions, as Owner's Commitment is to be disbursed pursuant to the terms and conditions set forth
in this Agreement (it being understood and agreed that the disbursement of Major Casualty Proceeds shall not constitute an additional
Advance or Project Funding). Developer shall, in good faith and in a commercially reasonable manner, file and prosecute the adjustment,
compromise or settlement of any claim for Proceeds and, subject to Developer's right to receive the direct payment of any Proceeds
as herein provided, shall cause the same to be paid directly to an account of the Casualty Escrow Agent in accordance with the provisions
of this Agreement. Except upon the occurrence and during the continuance of a Developer Default, Developer may settle any insurance claim
with respect to Proceeds which does not exceed Ten Million Dollars ($10,000,000) (the "**Casualty Amount** "). Whether or
not a Developer Default shall have occurred and be continuing, if a Casualty could result in Proceeds in excess of the Casualty Amount,
Owner and Developer will jointly engage a public adjuster acceptable to Owner; <u>provided</u>, <u>however</u>, that Owner shall have
the right to approve any final determination of such joint adjuster and any settlement which might result in any Proceeds in excess of
the Casualty Amount. If a Developer Default shall have occurred and be continuing, or if Developer fails to file and/or prosecute any
insurance claim for a period of fifteen (15) Business Days following Developer's receipt of written notice from Owner, Developer
hereby irrevocably empowers Owner, in the name of Developer as its true and lawful attorney-in-fact, to file and prosecute such claim
(including settlement thereof) with counsel satisfactory to Owner and to collect and to make receipt for any such payment, all at Developer's
expense. In the event of a conflict between the terms of the Lease and this <u>Section 2.7(b)</u>, the terms set forth in this <u>Section 2.7(b)</u> shall
control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restoration; Availability of Proceeds</u>. Notwithstanding any terms of the Lease to the contrary,
if any New Improvements are damaged, whether or not from a risk covered by insurance carried by Developer, then Developer shall promptly
restore such New Improvements to substantially the same (or better) condition and quality that existed prior to such damage in accordance
with this Agreement at Developer's sole cost and expense and this Agreement shall remain in full force and effect and Developer
shall perform such restoration in accordance with the terms and conditions set forth in this Agreement. If the anticipated cost of such
repair and restoration exceeds the amount of proceeds from the insurance required to be carried hereunder and/or under the Lease actually
received and held by Owner pursuant and subject to the terms of this <u>Section 2.7</u>, then Developer shall provide Owner with
evidence reasonably acceptable to Owner that Developer has available to it any excess amounts needed to restore the New Improvements to
substantially the same condition as existed immediately before such damage in accordance with the terms and conditions set forth in this
Agreement. All amounts necessary to so restore the New Improvements, subject to Owner's obligation to disburse Proceeds in accordance
with the terms of this <u>Section 2.7(c)</u> shall be paid by Developer. Prior to Completion, disbursements of Proceeds to Developer
hereunder shall be made from time to time to enable Developer to satisfy its restoration obligations under this <u>Section 2.7(c)</u> as
if such Proceeds constituted an unused portion of the Commitment Cap and shall be subject to all of the requirements set forth in this
Agreement with respect to Advances, including, without limitation, the conditions to the disbursement thereof set forth in <u>Section 3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Creation of Security Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. Developer hereby grants to Owner, to
secure the payment and performance in full of all of the terms and obligations set forth in this Agreement, including Completion of the
Project and Opening, a continuing first-lien security interest in, and pledges to Owner, the Collateral, wherever located, whether now
owned or hereafter acquired or arising, and all proceeds and products thereof. Developer shall not, without obtaining the prior written
consent of Owner, further pledge, assign or grant any security interest in the Collateral, except for non-consensual liens and security
interests granted by applicable law. This instrument constitutes a "Security Agreement" as that term is defined in the Uniform
Commercial Code of the State of New York (the "**New York UCC** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authorization to File Financing Statements; Further Assurances</u>. Developer hereby authorizes Owner
to file financing statements, without notice to Developer, with all jurisdictions deemed necessary or appropriate by Owner to perfect
or protect Owner's interest or rights hereunder, including a notice that any disposition of the Collateral in violation of this
Agreement, by either Developer or any other Person, shall be deemed to violate the rights of Owner under the New York UCC. Such financing
statements may indicate the Collateral in a manner consistent with the definition of "Collateral" hereunder, or as being of
an equal or lesser scope, or with greater detail, all in Owner's discretion. Developer agrees that at any time and from time to
time, at the expense of Developer, Developer will promptly execute and deliver all further instruments and documents, and take all further
action, which may be necessary, or that Owner may reasonably request, in order to perfect and protect any security interest granted or
purported to be granted hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination</u>. If this Agreement is terminated before the Termination Date (other than in accordance
with <u>Section 6.5)</u>, Owner's security interest in the Collateral shall continue until the Opening Date of the Project
and Developer's satisfaction of Developer's Cost Obligations (other than inchoate indemnity or other obligations which, by
their terms, survive termination of this Agreement). Upon the earliest of (i) the Termination Date, (ii) the Opening Date of
the Project and Developer's satisfaction of Developer's Cost Obligations (other than inchoate indemnity or other obligations
which, by their terms survive) and at such time as each of Developer's obligations under <u>Sections 4.2(ii)</u> and <u>(iii)</u> have
been satisfied and Development Period Rent has converted to Development Funding Increase (as defined in the Lease), and (iii) termination
of this Agreement in accordance with the terms of <u>Section 6.5</u>, Owner's security interest on the Collateral shall automatically
and immediately be terminated without further action by either party and all rights therein shall revert to Developer. Upon such termination,
and from time to time thereafter, Owner shall, at the sole cost and expense of Developer, execute and deliver such instruments, documents
and filings Developer reasonably requests to evidence such termination and release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>Assignment of Temporary Property Lease</u>. Developer, in its capacity as tenant under the Temporary Property Lease, shall (a) use commercially reasonable efforts to obtain all third party consents required to assign the Temporary Property Lease to Owner and to amend the Lease to add the Temporary Property Lease thereto as part of the "Leased Property" thereunder and (b) upon receipt of such consents, effectuate such assignment and amendment (all pursuant to documentation reasonably acceptable to Owner).

3. **<u>Funding Commitment; Advances; Development Period Rent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Funding Commitment</u>. In the event that Owner delivers its written approval of Developer's construction of any New Improvements in accordance with <u>Section 2.2</u> hereof, then Owner shall be committed to fund hard costs of construction of New Improvements actually incurred by Developer, including (i) hard costs incurred by Developer prior to the date hereof and (ii) through the use of funds in the hard cost contingency Line Item of the Budget, in accordance with, and subject to, the terms and conditions set forth in this Agreement ("**Owner's Commitment**"), including, without limitation, the following terms and conditions (collectively, "**Owner's Commitment Conditions**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Owner shall only be obligated to fund amounts which are intended to be applied toward, and Developer shall
apply amounts funded by Owner pursuant to this <u>Section 3</u> toward, (i) hard costs of construction of New Improvements which
are included within the Budget and constructed in accordance with the Plans and Specifications, and (ii) the hard cost contingency
Line Item of the Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owner's commitment pursuant to this <u>Section 3</u> to fund the payment of hard costs incurred
to construct New Improvements for the Project shall be limited to the Commitment Cap;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary set forth in this Agreement, Owner's Commitment shall automatically
and immediately expire upon, and Owner shall have no obligation to fund any amounts requested by Developer after, the occurrence of a
Developer Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No portion of any Advance may be repaid or returned to Owner under any circumstances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) From and after the first Advance under this Agreement, all hard costs of construction of the New Improvements
shall be paid continuously utilizing Owner's Commitment, and Developer may not pay any hard costs of construction of any New Improvements
with any funds other than Owner's Commitment (in each case, unless Owner fails to fund Owner's Commitment in accordance with
this Agreement), until the earlier of (i) all New Improvements are Complete and (ii) all of Owner's Commitment has been
advanced in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Draw Process</u>. In the event that Developer wishes at any time for Owner to fund all or any portion of Owner's Commitment for the Project, Developer shall deliver written notice to Owner requesting such funding (a "**Draw Request**"). Developer may deliver no more than one (1) Draw Request per calendar month. Advances shall be made only on the first Business Day of a calendar month. Each Draw Request, together with all other deliverables required under this Agreement for the making of any Advance, shall be delivered by the fifteenth (15<sup>th</sup>) day of the calendar month immediately preceding the date on which Developer has requested that the applicable Advance be made (e.g., for an Advance that Developer requests be funded on September 1, the Draw Request therefor, together with all other deliverables required under this Agreement for the making of such Advance, shall be provided to Owner no later than August 15<sup>th</sup>). In order to be effective, a Draw Request shall (i) identify the specific amount requested, which shall be no less than Five Million Dollars ($5,000,000.00) for each Draw Request (other than the final Draw Request for the Project, which may be more or less than Five Million Dollars ($5,000,000.00)), (ii) identify the total amount of outstanding Project Funding (including the requested Advance) for the Project, (iii) include a certification from Developer that all of Owner's Commitment that has been funded to the date of such Draw Request has been, and the Advance requested by such Draw Request shall be, applied towards hard costs actually incurred in the construction of New Improvements, (iv) specify the amount of any Retainage previously withheld and which has then become payable by Developer, and (v) include or be accompanied by the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a duly executed, completed and itemized Application and Certificate for Payment in the form of AIA Document
No. G702 (including AIA Form G703 as an attachment thereto), or similar form reasonably approved by Owner, containing the executed
certification from Architect with respect to the General Contractor's AIA Form G702 and G703 and the General Contractor as
to the accuracy of the same, together with all invoices relating to all items of cost covered thereby and further accompanied by a cost
breakdown showing the cost of work on, and the cost of materials incorporated into, the New Improvements to the date of the requisition.
The cost breakdown shall also show the percentage of completion of each Line Item in the Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in connection with any Advance in respect of which all or portions thereof shall be applied to the final
payment to a Trade Contractor, a duly executed, completed and itemized Contractor's Affidavit of Payment of Debt and Claim in the
form of AIA Document No. G706 from each Trade Contractor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each of the following to the extent applicable: (A) a duly executed lien waiver in a form reasonably
acceptable to Owner from each Trade Contractor (other than the General Contractor), in each case, for work performed and goods, labor
and materials supplied for which payment has been received (i.e. a "trailing lien waiver") (which may be conditioned only
on payment from the applicable Advance), (B) a duly executed lien waiver substantially in a form reasonably acceptable to Owner from
the General Contractor for work performed and goods, labor and materials supplied for which payment thereof is requested in such Draw
Request (which may be conditioned on payment from the applicable Advance), and (C) with respect to any request for final payment
from a Trade Contractor, duly executed lien waivers in a form reasonably acceptable to Owner from such Trade Contractor, for work performed
and goods, labor and materials supplied for which payment thereof is requested in such Draw Request, in each case, excluding any such
parties whose lien rights or liens have been bonded over in a manner (and with a bond provider) satisfactory to Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) current requisitions for payment from (A) all Material Trade Contractors, and (B) to the extent
the same are delivered to the General Contractor, any subcontractors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a list of (A) all Trade Contracts and (B) any other Trade Contracts that have been provided
to Developer by the General Contractor, in each case, executed since the date of the then last preceding Advance, and a true and complete
copy of each such Trade Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a list of all Change Orders then to date and a list of all pending Change Orders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) evidence reasonably satisfactory to Owner that the full amount of the portion of the proceeds of the then
last preceding Advance have been paid out in full to the Persons with respect to whom such Advance was made and otherwise in accordance
with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if the Construction Schedule has been updated following the prior delivery thereof to Owner, an updated
Construction Schedule;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a Construction Consultant Certificate; <u>provided</u> that, Owner shall use commercially reasonable efforts
to cause the Construction Consultant to timely deliver each Construction Consultant Certificate or otherwise provide written notice to
the Owner and the Developer as to the reasons that it cannot provide such Construction Consultant Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) an updated version of the Sources and Uses statement delivered pursuant to <u>Section 2.2(d)</u> identifying
all prior and anticipated sources of financing for the development, construction, Completion and Opening of all New Improvements, and
such other evidence as may be reasonably requested by Owner to evidence the availability to Developer of funding for the development,
construction, Completion and Opening of all New Improvements for the Project within the Budget beyond Owner's Commitment pursuant
to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) to the extent not previously provided, any information, documents and/or Permits reasonably requested
by Owner to confirm that Developer will be able to use the New Improvements upon the Opening Date thereof in accordance with the Primary
Intended Use; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) to the extent not previously delivered by Developer to Owner, a list and true and correct copies of all
Plans and Specifications, Project Agreements, and Permits (in each case together with all amendments, supplements, and/or other modifications
thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Terms Governing Advances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conditions Precedent to Advances</u>. The following conditions shall be satisfied by Developer prior to each Advance by Owner, as determined by Owner in its reasonable discretion, unless otherwise specified below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Definitive Documents</u>. With respect to the Initial Advance only, all of the Definitive Documents
shall have been signed, or, if any such agreement cannot be signed without regulatory approval required under applicable Legal Requirements
and such regulatory approval is the sole condition precedent to the signing of such agreement, such agreement is in final form and has
been submitted for such regulatory approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Consent to Lease</u>. With respect to the Initial Advance only, Owner shall have received a consent
from the City of Chicago with respect to the Host Community Agreement in the form attached hereto as <u>Exhibit F</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Construction Permits</u>. Owner shall have received (i) a list of all Permits then in effect and
(ii) evidence reasonably satisfactory to Owner that all Permits, to the extent then required, have been obtained and remain in full
force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Draw Request</u>. Owner shall have received a complete executed Draw Request for such Advance in accordance
with the requirements of <u>Section 3.2</u>, together with all required attachments and deliverables relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>Owner's Commitment Conditions</u>. Developer shall be in compliance with all Owner's Commitment
Conditions and, if reasonably requested by Owner, shall provide documentary evidence of such compliance that is reasonably satisfactory
to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Construction Requirements</u>. Developer shall be in compliance with all Construction Requirements
and, if reasonably requested by Owner, shall provide documentary evidence of such compliance that is reasonably satisfactory to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>Notices</u>. All notices required by any Governmental Authority or by any applicable Legal Requirements
or any Project Agreement to be filed or delivered at any time in connection with the construction of the New Improvements shall have been
filed or delivered to the extent so required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) <u>Expenses</u>. Developer shall have paid or reimbursed Owner, Owner Parent and each of Owner's
consultant for all costs, fees, premiums, expenses, and other amounts for which Developer is responsible pursuant to the terms of this
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) <u>Plans and Specifications</u>. Owner shall have received and approved in accordance with this Agreement
any additions, amendments, supplements or other modifications to the Plans and Specifications (if any) (to the extent such approval is
required under this Agreement). Owner shall have received a list identifying the Plans and Specifications and any and all amendments made
thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) <u>Budget</u>. Owner shall have received any amendments, supplements or other modifications to the Budget
(if any), and no changes to the Budget shall have been made to the immediately prior Budget delivered by Developer to Owner other than
changes permitted pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) <u>Proceedings</u>. There shall exist no actions, suits, arbitrations, claims,
attachments, proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization or other proceedings (collectively,
 "**Proceedings** "), pending or threatened, against or filed by any Developer Party (or any of their applicable affiliates)
that could reasonably be expected to materially and adversely affect Developer's and/or the Guarantors' ability to perform
their respective obligations under this Agreement or materially delay or increase the cost of development, construction and Opening of
the Project; provided that Owner has not, directly or indirectly, solicited, directed or encouraged any such Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) <u>Injunctions</u>. No injunction, judgment, order, decree, ruling or charge shall be in effect under
any action, suit or proceeding before any court or quasi-judicial or administrative agency of any federal, state, local or foreign jurisdiction
or before any arbitrator that (A) prevents entrance into this Agreement and/or consummation of any of the transactions contemplated
by this Agreement or (B) could reasonably be expected to cause any of the transactions contemplated by this Agreement to be rescinded
following consummation, provided that Owner has not, directly or indirectly, solicited, directed or encouraged any such action, suit or
proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) <u>Searches</u>. Developer shall provide Owner, at Developer's sole cost and expense, with customary
title, lien and judgment searches covering the Project reasonably satisfactory to Owner without any additional encumbrances, liens, covenants,
conditions or restrictions, except those that are expressly permitted under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) <u>Defaults; Material Adverse Effect</u>. On the date that Developer delivers the applicable Draw Request
and on the date of such Advance, no Developer Default shall be ongoing and no default, condition, or state of facts shall exist which,
with the passage of time or the giving of notice or both, would constitute a Developer Default (a "**Default** "), and no
Material Adverse Effect shall have occurred and be continuing, in each case, as determined by Owner in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) <u>Milestones</u>. On the date of such Advance, no event shall have occurred that would reasonably be
expected to result in Developer being unable to achieve any Milestone by the applicable Milestone Date, as reasonably determined by Owner
in consultation with Developer and the Construction Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16) <u>Definitive Documents</u>. Each Definitive Document shall be in full force and effect and no default
shall have occurred thereunder by Developer and/or any Affiliate thereof as determined by Owner in its sole and absolute discretion; <u>provided</u>, <u>however</u>, that if any Definitive Document has not been signed and the sole condition precedent to the signing of such Definitive
Document is receipt of a regulatory approval required under applicable Legal Requirements, then the foregoing condition shall be deemed
satisfied if such Definitive Document is in final form and has been submitted for such regulatory approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17) <u>Project Funding Balancing</u>. Owner shall not be obligated to make any Advance unless Owner is reasonably
satisfied that the terms and conditions set forth in <u>Section 2.4</u> have been satisfied and remain satisfied as of the applicable
date of such Advance by Developer (or waived in writing by Owner in its sole discretion).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18) <u>Representations and Warranties</u>. On the date of such Advance, the representations and warranties
made by each Developer Party in this Agreement (including any Joinders) to which it is a party shall be true and correct in all material
respects (except to the extent that such representation or warranty contains a materiality or similar qualifier, in which event, such
representation or warranty shall be true and correct) on and as of the date of such Advance (except to the extent stated to relate to
a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects (or if such
representation or warranty contains a materiality or similar qualifier, such representation or warranty shall be true and correct) as
of such earlier date) with the same effect as if made on and as of such date, except for any changes in facts or circumstances occurring
since the date of this Agreement that do not (i) constitute a Default or Developer Default or were not caused by the occurrence of
a Default or Developer Default or (ii) result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19) <u>Owner's Construction Consultant</u>. Developer shall have complied with all reasonable requests
from Owner's Construction Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20) <u>Temporary Property Lease</u>. Developer shall have delivered written requests for consent to the assignment
of the Temporary Property Lease to Owner and to the amendment of the Lease to add the Temporary Property Lease as part of the "Leased
Property" under the Lease to all parties from which such consent is required prior to effectuating such assignment of the Temporary
Property Lease and amendment of the Lease, and shall have provided reasonably satisfactory evidence to Owner that Developer has used commercially
reasonable efforts to obtain all such consents following the delivery of such written requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Additional Conditions Precedent to Completion</u>. In addition to the conditions precedent set forth in the definition of "Completion", the following conditions shall be satisfied by Developer, with respect to each phase of the Project, in order to achieve "Completion", as determined by Owner in its reasonable discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Approval by Construction Consultant</u>. Owner and Construction Consultant shall have received evidence
reasonably acceptable to them, or otherwise be reasonably satisfied, that Completion has occurred, together with all Completion Evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Certificates of Architect</u>. Owner shall have received a certificate of completion with respect to
the work under the General Contractor Agreement certified by the Architect and reasonably confirmed by Construction Consultant which confirms
that Completion has occurred in accordance with the Plans and Specifications in all material respects and in accordance with all Requirements
in all material respects, including all "punch list items" with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Certificates of Occupancy; Permits</u>. Owner shall have received either a permanent certificate of
occupancy or a temporary certificate of occupancy for the Project, together with all Permits from all applicable Governmental Authorities
required at such time for the use and operation of the Project for its Primary Intended Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Final Lien Waivers and Release/Evidence of Payment</u>. Owner shall have received from Developer (i) duly
executed final lien waivers in a form reasonably acceptable to Owner from General Contractor and any other Trade Contractors for work
performed and goods, labor and materials supplied or the statutory period(s) within which valid mechanic's liens, materialmen's
liens, lien affidavits and/or stop notices may be recorded and/or served shall have expired, excluding any such parties whose lien rights
or liens have been bonded over in a manner (and with a bond provider) satisfactory to Owner; and (ii) evidence of payment from each
Trade Contractor with whom the General Contractor has a direct agreement indicating that such Trade Contractor has been paid in full for
all work performed and for goods, labor and materials supplied, in each case, in form and substance reasonably acceptable to Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) <u>AIA G704</u>. Owner shall have received completed AIA Form G704 from the Architect as to the Project
(and not merely a portion of the Project).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) <u>Requirements</u>. Developer shall have furnished to Owner evidence reasonably satisfactory to Owner
that the New Improvements are in compliance, in all material respects, with all Requirements, including, but not limited to, Gaming Laws,
zoning regulations and building restrictions, environmental requirements, occupational safety and health requirements and similar Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) <u>Violations</u>. Developer shall have furnished to Owner a certificate from Developer, certifying that
(i) no written notices from any Governmental Authority of any claimed material violations of applicable Legal Requirements arising
from the construction of the New Improvements which have not been cured were served upon Developer or, to Developer's actual knowledge,
the General Contractor or any subcontractor or their respective agents or representatives and (ii) Developer is not aware of any
circumstances which could give rise to the issuance of any such notice of claimed violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Direct Advances</u>. Owner shall have the right (but not the obligation), to make any or all Advances directly or through the Title Company to any Work Provider to whom payment is due, including, without limitation, Owner's counsel, servicer and Owner's Construction Consultant to pay their respective fees and expenses, and any other agent of Owner to pay its fees and expenses incurred in connection with the New Improvements which Developer is obligated hereunder to pay. Subject to the execution and delivery of an escrow letter which shall be reasonably acceptable to Owner, such direct Advances may be made through the Title Company. Such direct Advances also may be made by wire transfer or check payable to the Person to whom an Advance is to be made. The execution of this Agreement by Developer shall, and hereby does, constitute an irrevocable direction and authorization to so disburse the Advances as set forth above. No further direction or authorization from Developer shall be necessary or required for such direct Advances and all such Advances shall satisfy pro tanto the obligations of Owner hereunder and shall be deemed to have been made directly to Developer, regardless of the disposition thereof by any Work Provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Retainage</u>. Each Advance shall be reduced by the Retainage, if any, applicable to the hard costs to be paid with such Advance. The portion of any Retainage that relates to work or materials supplied by any Trade Contractor in connection with the New Improvements will, upon request, be disbursed to Developer subject to satisfaction (or waiver by Owner in its sole discretion) of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) No Developer Default has occurred and is continuing and all other conditions to an Advance under this
Agreement are then satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) such Retainage is actually payable pursuant to the applicable Trade Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Partial Advances</u>. If any or all conditions precedent to making an Advance have not been satisfied on the date requested for such Advance, Owner may, at its option, waive so many of such conditions precedent as Owner may elect. Owner may, however, without waiving any of its rights or remedies, disburse that portion, if any, of the requested Advance for which all of the conditions precedent have been satisfied or waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Stored Materials</u>. Owner shall not be required to disburse any portion of Owner's Commitment for any materials, equipment, machinery or other personal property not yet incorporated into the Project (the "**Stored Materials**"), unless the following conditions are satisfied or waived, as reasonably determined by Owner, at Developer's sole cost and expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Developer shall deliver to Owner bills of sale or other evidence reasonably satisfactory to Owner of the
cost of, and, subject to the payment therefor, Developer's title in and to such Stored Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Developer delivers to Owner delivery slips or such other evidence of the delivery of such Stored Materials
to the Property (or such other location in accordance with the provisions of this <u>Section 3.3(f)</u>). The Stored Materials are
identified as belonging to the Property and Developer, are segregated so as to adequately give notice to all third parties of Developer's
title in and to such materials, and are components in substantially final form ready for incorporation into the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Stored Materials are stored at the Property or at such other third party owned and operated site as
Owner shall reasonably approve (which storage facility shall allow Owner and the Construction Consultant access to such Stored Materials),
and are protected against theft and damage in a manner reasonably satisfactory to Owner, including, if requested by Owner, storage in
a bonded warehouse in the county in which the Property is located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Stored Materials will be paid for in full with the funds to be disbursed and all lien rights or claims
of the supplier of Stored Materials will be released upon full payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the Stored Materials are insured for an amount equal to their replacement costs in accordance with this
Agreement (and such insurance shall name Owner as loss payee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the Construction Consultant has approved the aggregate cost of Stored Materials stored in accordance with
this <u>Section 3.3(f)</u> and, if required by Owner, the Construction Consultant shall certify that it has inspected such Stored
Materials and they are in good condition and suitable for use in connection with the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Owner has approved, in a prior writing and subject to such terms and conditions as Owner may specify in
its reasonable discretion, the use of any Advance made for any deposit or for materials in fabrication; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) the aggregate cost of Stored Materials at any one time shall not exceed Fifty Million Dollars ($50,000,000).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Development Period Rent</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to all amounts that are due and payable to Owner pursuant to the Lease, Developer shall pay to Owner the Development Period Rent, as such amount may increase over time as the amount of Project Funding increases. Development Period Rent shall constitute an increase in Rent and be paid in accordance with and subject to the terms of the Lease in the same manner and at the same time that Rent is payable and paid pursuant to the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Developer hereby acknowledges that late payment by Developer to Owner of Development Period Rent will cause Owner to incur costs not contemplated hereunder, the exact amount of which is presently anticipated to be extremely difficult to ascertain. Accordingly, if any installment of Development Period Rent shall not be paid within five (5) days after its due date, Developer will pay Owner on demand a late charge equal to the lesser of (a) five percent (5%) of the amount of such installment or (b) the maximum amount permitted by applicable Legal Requirements. The Parties agree that this late charge represents a fair and reasonable estimate of the costs that Owner will incur by reason of late payment by Developer. The Parties further agree that such late charge is Development Period Rent and not interest and such assessment does not constitute a lender or borrower/creditor relationship between Owner and Developer. The payment of such late charge shall not constitute waiver of, nor excuse or cure, any Developer Default under this Agreement, nor prevent Owner from exercising any other rights and remedies available to Owner.

4. **<u>Ownership of New Improvements; Development Period Rent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Ownership of New Improvements</u>. All New Improvements which are constructed utilizing Owner's Project Funding, as well as all Stored Materials that are purchased utilizing Owner's Project Funding ("**Owner Stored Materials**"), shall at all times be owned by Owner as they are constructed (and, as to Stored Materials, at the earliest point in time that ownership of such Stored Materials may transfer to the purchaser thereof) and shall automatically and immediately be deemed part of the "Leased Property" owned by Owner and leased to Developer under the Lease for all purposes thereunder. Developer shall take all actions reasonably required by Owner to confirm that fee title to all such New Improvements (including any newly acquired land for the Project) and Owner Stored Materials, free and clear of all Liens, is vested in Owner, without any additional cost or expense to Owner (or for an amount of consideration approved by Owner to the extent necessary to render such vesting enforceable). The Parties will work together in good faith to identify specific portions of New Improvements and Owner Stored Materials that shall be owned by Developer (in its capacity as tenant under the Lease) as "Tenant Capital Improvements" under the Lease proportionately based on the relative amounts that each Party has paid or advanced for the Completion of such New Improvements, it being agreed that, following the Completion and Opening of the entirety of the Project, the Parties currently intend (but shall not be obligated) to distinguish between New Improvements owned by Owner and New Improvements owned by Developer first by allocating a portion of the New Improvements that constitute the hotel component of the Project to Developer downward from the top of such hotel component.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Development Period Rent</u>. Upon the Rent Conversion Trigger Date (as defined in the Lease), (i) Developer's obligation to pay Development Period Rent shall automatically cease, (ii) Developer shall pay to Owner all Development Period Rent which has accrued but remains unpaid as of the Rent Conversion Trigger Date (as defined in the Lease), (iii) Developer shall pay to Owner all other amounts which may be due and owing, but unpaid, to Owner in connection with the Project and Developer's obligations hereunder as of such date, and (iv) Developer shall thereafter be required to pay the Development Funding Increase (as defined in the Lease) pursuant to and in accordance with the terms of the Lease, which shall constitute an increase in Rent and shall be paid in the same manner and at the same time that Rent is payable pursuant to the Lease.

5. **<u>Final Funding</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Total Hard Cost Certification</u>. Within thirty (30) days following the later of the Opening Date and the date of Completion of the Project, Developer shall deliver to Owner a written certification (the "**Total Hard Cost Certification**"), in reasonable detail and accompanied by supporting documentation and all Completion Evidence (to the extent not previously provided by Developer), of Developer's good faith estimate of the total amount of hard costs actually incurred by Developer in connection with the development, construction, Completion, and Opening of all New Improvements (the "**Total Hard Cost Amount**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Determination Period</u>. During the thirty (30) day period following Owner's receipt of Developer's Total Hard Cost Certification (the "**Determination Period**"), Owner and Developer shall cooperate in good faith to determine the Total Hard Cost Amount that is agreed upon by each such Party. During the Determination Period, Developer shall provide to Owner all information in the possession or reasonable control of Developer and/or each Affiliate of Developer and/or each Architect, Engineer or General Contractor as Owner may reasonably request in connection Owner's calculation of the Total Hard Cost Amount, including, without limitation, any and all invoices, billing statements, requisitions, lien releases and waivers, and other instruments and information as reasonably requested by Owner (other than any such information subject to attorney-client privilege or binding confidentiality restrictions). In addition, Developer shall grant to Owner reasonable access to Developer's personnel, accountants and other representatives as Owner may reasonably request in connection Owner's calculation of the Total Hard Cost Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Total Hard Cost Objection Notice</u>. Upon or prior to the expiration of the Determination Period, Owner may deliver written notice (a "**Total Hard Cost Objection Notice**") to Developer objecting to the Total Hard Cost Amount identified in Developer's Total Hard Cost Certification and setting forth Owner's calculation of the Total Hard Cost Amount. Any such Total Hard Cost Objection Notice shall specify in reasonable detail those calculations, items or amounts in Developer's Total Hard Cost Certification as to which Owner disagrees, and Owner shall be deemed to have agreed with all other calculations, items and amounts contained in Developer's Total Hard Cost Certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Determination of Final Total Hard Cost Amount</u>. If a Total Hard Cost Objection Notice shall be duly delivered pursuant to <u>Section 5.3</u>, Owner and Developer shall, during the five (5) Business Days after such delivery (the "**Second Determination Period**"), use their respective commercially reasonable efforts, in good faith, to reach agreement on the disputed calculations, items or amounts included in the Total Hard Cost Objection Notice in order to determine a Total Hard Cost Amount that is approved by each Party. If, prior to the expiration of the Second Determination Period, Owner and Developer are unable to reach agreement as to all of the disputed calculations, items or amounts set forth in the Total Hard Cost Objection Notice and each approve a final Total Hard Cost Amount, then Owner and Developer shall promptly thereafter cause a third-party development firm reasonably acceptable to each Party (the "**Development Firm**") to review this Agreement and the remaining disputed calculations, items or amounts for the purpose of calculating the Total Hard Cost Amount (it being understood that, in making such calculations, the Development Firm shall be functioning as an expert and not as an arbitrator). In making such calculations, the Development Firm shall consider only those calculations, items or amounts in the Total Hard Cost Certification as to which Owner has specifically disagreed (which have not been subsequently resolved in writing by Owner and Developer). Owner and Developer shall instruct the Development Firm to deliver to Owner and Developer, as promptly as practicable (but in any case no later than twenty (20) days from the expiration of the Second Determination Period), a report setting forth such calculations and the Development Firm's final calculation of the Total Hard Cost Amount. Owner and Developer will provide the Development Firm with all documents and information in their possession or control that is reasonably requested by it as promptly as reasonably practicable (other than any such information subject to attorney-client privilege, or binding confidentiality restrictions). The Development Firm will be instructed to grant Owner and Developer the opportunity to state their points of view, and, upon request by Owner and Developer, the Development Firm will conduct a hearing on any disputed items or amounts as to which Owner and Developer have not reached written agreement. All submissions by Owner and Developer to the Development Firm will be in writing and will be delivered simultaneously to the other Party, and there will be no *ex parte* communication with the Development Firm, except as otherwise consented to in writing by the other party. The costs, fees and expenses of the Development Firm will be borne by Owner and Developer equally. As used herein, "**Final Total Hard Cost Amount**" shall be the Total Hard Cost Amount that is mutually agreed upon by Owner and Developer or that is finally determined by the Development Firm pursuant to this <u>Section 5.4</u>, as applicable. Owner and Developer each shall, and shall use commercially reasonable efforts to cause their respective representatives to, cooperate and assist in the conduct of the review and dispute resolution process provided for in this <u>Section 5.4</u>, including by Developer making available books, records, work papers and personnel of Developer to the extent necessary (other than any such information subject to attorney-client privilege, or binding confidentiality restrictions). The process set forth in this <u>Section 5.4</u> will be the sole and exclusive remedy of Owner and Developer (and their respective Affiliates) for any disputes related to the determination of the Total Hard Cost Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Final Funding</u>. Within five (5) days following the determination of the Final Total Hard Cost Amount, Owner shall deliver an Advance (the "**Final Funding**") to Developer (which, for the avoidance of doubt, Developer shall be obligated to accept) equal to the lesser of: (x) the unfunded portion of the Commitment Cap (if any) and (y) the Final Total Hard Cost Amount *<u>less</u>* the Project Funding Amount as of the date of such Advance. For illustrative purposes only: (i) if the Final Total Hard Cost Amount is $900,000,000, then (x) if the Project Funding Amount already equals $900,000,000, then the Final Funding shall be zero, and (y) if the Project Funding Amount is $870,000,000, then the Final Funding shall equal $30,000,000; and (ii) if the Final Total Hard Cost Amount is $970,000,000, then (x) if the Project Funding Amount already equals or exceeds the Commitment Cap (assuming the Commitment Cap remains $940,000,000), then the Final Funding shall be zero, and (y) if the Project Funding Amount is less than the Commitment Cap (assuming the Commitment Cap remains $940,000,000), then the Final Funding shall equal the unfunded portion of the Commitment Cap (e.g., if the Project Funding Amount is $930,000,000, then the Final Funding shall equal $10,000,000).

6. **<u>Defaults</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Developer Defaults</u>. Any one or more of the following shall constitute a "**Developer Default**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) Developer shall fail to pay any installment of Development Period Rent within four (4) Business Days of when due, and such failure is not cured by Developer within ten (10) Business Day after notice from Owner of Developer's failure to pay such installment of Development Period Rent when due (and such notice of failure from Owner may be given any time after such installment is more than four (4) Business Days late);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If Developer shall have failed on any two separate occasions in the same Fiscal Year to pay any installment of Development Period Rent within four (4) Business Days of when due and Owner shall have provided notice thereof to Developer in accordance with <u>Section 6.1(a)(i)</u> above, any subsequent failure by Developer in the same Fiscal Year to pay any installment of Development Period Rent within four (4) Business Days of when due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Developer shall fail to pay any other amounts due hereunder within four (4) Business Days of when due and such failure is not cured by Developer within ten (10) Business Days after notice from Owner of Developer's failure to make such payment of such amounts when due (and such notice of failure from Owner may be given any time after such payment is more than four (4) Business Days late);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a default shall occur under any Joinder and such default is not cured within any applicable notice and
cure period set forth therein or, if no notice or cure periods are provided therein, within fifteen (15) days after notice from Owner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Developer Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) admit in writing in a legal proceeding its inability to pay its debts generally as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) file a petition in bankruptcy or a petition to take advantage of any insolvency act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) make an assignment for the benefit of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) file a petition or answer seeking reorganization or arrangement under the United States bankruptcy laws
or any other applicable law or statute of the United States of America or any state thereof pertaining to debtor relief or insolvency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Developer Party shall be adjudicated as bankrupt or a court of competent jurisdiction shall enter
an order or decree appointing, without the consent of such Developer Party, a receiver of such Developer Party or of the whole or substantially
all of such Developer Party's property, or approving a petition filed against such Developer Party seeking reorganization or arrangement
of such Developer Party under the United States bankruptcy laws or any other applicable law or statute of the United States of America
or any state thereof, and such judgment, order or decree shall not be discharged, vacated or set aside or stayed within sixty (60)
days from the date of the entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any Developer Party shall be liquidated or dissolved (except that any Guarantor may be liquidated or dissolved
into another Guarantor or the Developer or so long as its assets are distributed following such liquidation or dissolution to another
Guarantor or Developer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if any certification, representation or warranty made by Developer or any Guarantor herein or in any Joinder
or in any report, certificate, financial statement or other instrument, agreement or document furnished to Owner shall have been false
or misleading in any material respect as of the date the representation or warranty was made (or deemed remade); <u>provided</u>, <u>however</u>,
that if such representation or warranty which was false or misleading in any material respect is, by its nature, curable and is not reasonably
likely (during the cure period specified in this <u>clause (f)</u>) to have a Material Adverse Effect, and such representation and warranty
was not, to Developer's or Guarantor's actual knowledge (as applicable), false or misleading in any material respect when
made, then the same shall not constitute a Developer Default unless Developer or such Guarantor (as applicable) has not cured the same
within ten (10) Business Days after receipt by Developer of notice from Owner in writing of such breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any Permit material to the development, construction, and Opening of the Project is at any time terminated
or revoked or suspended for more than thirty (30) days and such termination, revocation or suspension is not stayed pending appeal and
could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if Developer shall fail to observe or perform any other term, covenant or condition of this Agreement
(including, but not limited to, failure to deliver a Total Hard Cost Certification as required by the terms of <u>Section 5.1</u> hereof) and such failure is not cured by Developer within thirty (30) days after notice thereof from Owner, unless such failure cannot
with due diligence be cured within a period of thirty (30) days, in which case such failure shall not be deemed to be a Developer Default
if Developer proceeds promptly and with due diligence to cure the failure and diligently completes the curing thereof within one hundred
twenty (120) days after such notice from Owner; <u>provided</u>, <u>however</u>, that such notice shall be in lieu of and not in addition
to any notice required under applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if Developer's interest in this Agreement and/or any of the New Improvements owned by Developer
shall be Transferred without Owner's prior written consent, whether or not any such transaction is permitted with respect to the
Lease, other than to a Permitted Leasehold Mortgagee in accordance with the terms of the Lease (1) to which Developer, as tenant
under the Lease, has granted a Permitted Leasehold Mortgage on the Leasehold Estate (as defined in the Lease) in each case in accordance
with the terms of the Lease, and (2) that has acknowledged and agreed in a writing upon which Owner shall be entitled to rely as
an expressly identified third party beneficiary that, upon its (or its nominee's) foreclosure upon the Leasehold Estate (or upon
the consummation of any transfer in lieu of such a foreclosure), it (or such other foreclosing party or other beneficiary of any transfer
in lieu of such a foreclosure) shall automatically be deemed to have accepted and assumed all of Developer's interest and obligations
under this Agreement (a "**Permitted Assignment** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) following commencement of the Project, if construction of the Project ceases, is abandoned, or is discontinued
for a period of thirty (30) or more consecutive days, other than due to Unavoidable Delays;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the occurrence of any Lease Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the occurrence of any Definitive Document Event of Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the failure of Developer to achieve the Milestones by the applicable Milestone Dates.

No Developer Default (other than a failure to make payment of money) shall be deemed to exist under this <u>Section 6.1</u> during any time the performance or curing thereof (provided an applicable cure period is expressly provided herein) is prevented by an Unavoidable Delay, <u>provided</u> that, upon the cessation of the Unavoidable Delay (and any other applicable Unavoidable Delay), Developer proceeds promptly and with due diligence to perform such requirement or cure the default (provided an applicable cure period is expressly provided herein and was available at the time the Unavoidable Delay prevented such cure).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Certain Remedies</u>. If a Developer Default shall have occurred and be continuing, Developer hereby agrees that Owner may elect any or all of the following remedies, in addition to any and all rights and remedies that may be available to Owner at law or in equity, any or all of which may be exercised at any time and from time to time whether or not Owner has exercised any of its other rights or remedies: (a) terminate this Agreement by giving Developer written notice thereof, in which case this Agreement shall terminate and all rights of Owner and Developer under this Agreement shall cease immediately upon the delivery of such written notice; (b) seek damages; (c) terminate the Lease and exercise any remedies available to Owner (as lessor) thereunder; (d) declare that all amounts then due and payable by Developer to Owner under this Agreement are immediately due and payable and must be paid, reimbursed and/or returned (as applicable) by Developer to Owner upon demand; and/or (e) exercise any other remedy provided for in this Agreement including the construction-related remedies set forth in <u>Section 6.3</u>. Any such actions taken by Owner shall be cumulative and concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as Owner may determine in its sole discretion, to the fullest extent permitted by applicable Legal Requirements, without impairing or otherwise affecting the other rights and remedies of Owner permitted by applicable Legal Requirements, equity or contract or as set forth herein. Without limiting the generality of the foregoing, Developer agrees that if a Developer Default is continuing, (i) Owner is not subject to any "one action" or "election of remedies" law or rule (to the extent applicable), and (ii) all liens and other rights, remedies or privileges provided to Owner shall remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Construction-Related Remedies.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Right to Stop Disbursing Funds</u>. In addition to any other rights and remedies which Owner may have pursuant to this Agreement or pursuant to law or in equity, and without limitation thereof, (i) while a Default or Developer Default exists, Owner may decline to make all or any portion of any Advances as Owner may elect and/or (ii) while a Developer Default exists, at the option of Owner, any and all obligations of Owner under this Agreement shall cease and terminate; <u>provided</u>, <u>however</u>, Owner may make all or any portion of any Advance while such Default or Developer Default may exist without thereby becoming obligated to make all or a portion of any other or further Advance or waiving Owner's right to exercise any of Owner's rights and remedies with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Right to Complete</u>. In addition to any other rights and remedies which Owner may have under this Agreement or pursuant to law or in equity, and without limitation thereof, after the occurrence and during the continuance of any Developer Default, notwithstanding anything to the contrary set forth herein or in the Lease, Owner may, subject to applicable Gaming Regulations, enter upon the Property and into possession of the Property (and, subject to applicable Gaming Regulations, exclude Developer and any other Persons therefrom) and cause Opening of the New Improvements in accordance with the Plans and Specifications in all material respects, with such changes therein as Owner may from time to time reasonably deem appropriate, and take all actions required to reach the Opening Date all at the sole cost and risk of Developer. In such instance, Developer, as tenant, shall pay to Owner, on an ongoing basis and from time to time, as damages resulting from termination of the Lease by Developer as "Tenant" under the Lease, within five (5) days of receipt of written demand therefor, the aggregate costs, without duplication, to (i) achieve the Opening Date of the Project in accordance with the terms of this Agreement and in compliance with all applicable Legal Requirements and Construction Permits, free and clear of all Liens, whether or not such costs are included in the applicable budget for the Project, and (ii) pay all soft costs in connection with Completion and Opening of the Project as contemplated by the immediately foregoing clause (i), whether or not budgeted therefor (collectively, "**Developer's Cost Obligations**") which are actually incurred by Owner <u>less</u> the undisbursed amount of the Commitment Cap allocated to such costs. Notwithstanding the foregoing and for the avoidance of doubt, Developer's Cost Obligations shall be reduced by the amount, if any, recovered by Owner or actually paid by a Successor Tenant (as defined in the Lease) that are specifically for costs that would otherwise be Developer's Costs Obligations following an operation transfer in accordance with Section 36.3 of the Lease. Owner shall have the right, at any and all times, in its sole discretion, to discontinue any work commenced by Owner with respect to the construction of the New Improvements or to change any course of action undertaken by it and shall not be bound by any limitations or requirements of time whether set forth herein or otherwise. After the occurrence and during the continuance of any Developer Default, Owner shall have the right and power (but shall not be obligated) to assume all or any portion of the obligations of Developer under any or all Project Agreements as Owner may elect and to take over and use all or any part or parts of the labor, materials, supplies and equipment contracted for by or on behalf of Developer, whether or not previously incorporated into the Property. In connection with any portion of the construction of the New Improvements undertaken by Owner pursuant to the provisions of this <u>Section 6.3(b)</u>, Owner may do any or all of the following as Owner, in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) engage builders, general contractors, general and trade contractors, suppliers, architects, engineers,
inspectors and others, including, for the avoidance of doubt, under the Contracts, Licenses and Permits, for the purpose of furnishing
labor, materials, equipment and fixtures in connection with the Completion and Opening of the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) amend, modify or terminate any then-existing contracts between Developer and any of the persons described
in the preceding <u>clause (1)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) pay, settle or compromise all bills or claims which may become Liens against the Property, or which have
been or may be incurred in any manner in connection with the construction of the New Improvements or for the discharge of liens, encumbrances
or defects in the title of the Property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) take such other action (including the employment of watchmen and the taking of other measures to protect
the Property) or refrain from acting under this Agreement as Owner may in its sole and absolute discretion from time to time determine
without any limitation whatsoever, subject to applicable Legal Requirements, including Gaming Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Owner Default</u>. Any one or more of the following shall constitute an "**Owner Default**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A court of competent jurisdiction has determined that Owner has failed to disburse any Advance of Owner's
Commitment as and when required under this Agreement within thirty (30) days following written notice from Developer demanding payment
of such Advance (for the avoidance of doubt, a Draw Request shall not be deemed a written demand under this <u>Section 6.4(a)</u>); <u>provided</u>, <u>however</u>, in the event Owner withholds any Advance due to (i) the occurrence of a Developer Default, or (ii) Owner's
good faith belief or determination that the terms and conditions precedent to an Advance have not been timely satisfied by Developer,
including, without limitation, as set forth in <u>Sections 3.2</u>, <u>Section 3.3</u> or <u>Article 5</u>, such failure
to fund shall not constitute an Owner Default hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Owner shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) admit in writing in a legal proceeding its inability to pay its debts generally as they become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) file a petition in bankruptcy or a petition to take advantage of any insolvency act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) make an assignment for the benefit of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) file a petition or answer seeking reorganization or arrangement under the United States bankruptcy laws
or any other applicable law or statute of the United States of America or any state thereof pertaining to debtor relief or insolvency;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Owner shall be adjudicated as bankrupt or a court of competent jurisdiction shall enter an order or decree
appointing, without the consent of Owner, a receiver of Owner or of the whole or substantially all of Owner's property, or approving
a petition filed against Owner seeking reorganization or arrangement of Owner under the United States bankruptcy laws or any other applicable
law or statute of the United States of America or any state thereof, and such judgment, order or decree shall not be discharged, vacated
or set aside or stayed within sixty (60) days from the date of the entry thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Owner Default Remedies</u>. Without limiting any other rights and remedies available to Developer, if an Owner Default shall have occurred and be continuing, Owner hereby agrees that Developer may elect to terminate this Agreement by giving Developer written notice thereof, in which case (i) this Agreement shall terminate and all rights of Owner and Developer under this Agreement shall cease immediately upon the delivery of such written notice (other than inchoate indemnity or other obligations which, by their terms, survive termination of this Agreement), and (ii) Development Period Rent shall automatically and immediately convert to the Development Funding Increase (as defined in the Lease) upon the delivery of such written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Remedies Not Exclusive.</u> Except as may otherwise be expressly provided in this Agreement: (1) the rights and remedies of Owner and Developer under this Agreement shall not be mutually exclusive; (2) the exercise of one or more of the rights and remedies under this Agreement shall not preclude the exercise of any other right or remedy under this Agreement, at law or in equity; and (3) damages at law may not be an adequate remedy for a breach or threatened breach of this Agreement and in the event of a breach or threatened breach of any provision hereunder, the respective rights and obligations hereunder shall be enforceable by specific performance, injunction or other equitable remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <u>Action Upon Termination</u>. Upon the termination (whether by expiration of time or otherwise) of this Agreement, Developer shall, to the extent Owner terminates the Lease as permitted by the terms of <u>Section 6.2</u> of this Agreement, promptly (1) surrender and deliver to Owner any space at the Property, clean and free of debris and Developer's (and/or its agent's and/or contractor's) personal property, (2) deliver to Owner or to Owner's designee any amounts funded by Owner to Developer as Project Funding hereunder which have not yet been expended by Developer, (3) deliver to Owner all Project Agreements, books and records, software, data, reports (including any of the foregoing stored on computers or diskettes), Plans and Specifications, Permits, receipts for deposits, unpaid bills, canceled checks, bank statements, paid bills and all other records, papers, documents and keys which relate to the Project which are in Developer's possession or control, and (4) furnish all such information and take all such action as Owner shall reasonably require (including cooperating with a new developer for such time as may be required by Owner) to effectuate an orderly, efficient and systematic transfer of Developer's duties and obligations under this Agreement (with respect to the Project) to Owner or a new Person designated by Owner. Developer shall deliver to Owner a final accounting (prepared in accordance with the terms of this Agreement) of the Project up to and including the effective date of the termination within fifteen (15) days after such effective date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 <u>Attorney-in-Fact</u>. Developer irrevocably appoints Owner as its true and lawful attorney-in-fact to do, in its name or otherwise, solely during the continuance of a Developer Default, any and all acts and to execute any and all documents that are necessary or desirable for the purpose of exercising and perfecting any and all rights and remedies available to Owner under this Agreement, at law and/or in equity, including, without limitation, such rights and remedies available to Owner pursuant to this <u>Section 6</u> (and the above powers granted to Owner are coupled with an interest and shall be irrevocable).

7. **<u>Representations and Warranties</u>**. Each Party hereby makes the representations and warranties set forth on <u>Exhibit D</u> attached hereto.

8. **<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>General Indemnification</u>. In addition to the other indemnities contained herein, and notwithstanding the existence of any insurance carried by or for the benefit of Owner or Developer, and without regard to the policy limits of any such insurance, Developer shall protect, indemnify, save harmless and defend Owner and the Owner Indemnified Parties from and against all liabilities, obligations, losses, claims, damages, penalties, causes of action, costs and expenses, including reasonable attorneys', consultants' and experts' fees and expenses (collectively, "**Losses**"), imposed upon or incurred by or asserted against Owner by reason of: (i) any accident, injury to or death of Persons or loss of or damage to property occurring on or about the Property or adjoining sidewalks under the control of Developer; (ii) any use, misuse, non-use, condition, maintenance or repair by Developer of the Property; (iii) any failure on the part of Developer to perform or comply with any of the terms of this Agreement; (iv) any claim for malpractice, negligence or misconduct committed by any Person on or working from the Property; (v) the violation by Developer of any Legal Requirement; and/or (vi) any Developer Party's breach of any of its representations and/or warranties set forth in Section 7 of this Agreement, in each case, except to the extent it is determined by a court of competent jurisdiction, beyond right of appeal, that (x) such Losses arose out of the gross negligence or willful misconduct of Owner or such Owner Indemnified Parties or (y) to the extent that Owner's material breach is the direct and sole cause of such Losses. Any amounts which become payable by Developer under this <u>Section 8.1</u> shall be paid within ten (10) days after liability therefor is determined by a final non appealable judgment or settlement or other agreement of the Parties, and if not timely paid shall bear interest at the Overdue Rate from the date of such determination to the date of payment. Developer, at its sole cost and expense, shall contest, resist and defend any such claim, action or proceeding asserted or instituted against Owner. For purposes of this <u>Section 8.1</u>, any acts or omissions of Developer, or by employees, agents, assignees, contractors, subcontractors or others acting for or on behalf of Developer (whether or not they are negligent, intentional, willful or unlawful), shall be strictly attributable to Developer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Expenses</u>. Developer covenants and agrees to pay or, if Developer fails to pay, to reimburse Owner within ten (10) days of receipt of written notice from Owner for all outside attorneys' fees (including the evaluation of any consent request hereunder) and the reasonable cost of Owner's Construction Consultant incurred by Owner in connection with the negotiation and administration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Risk of Loss</u>. The risk of loss or of decrease in the enjoyment and beneficial use of any New Improvements as a consequence of the damage or destruction thereof by fire, the elements, casualties, thefts, riots, wars or otherwise, or in consequence of foreclosures, attachments, levies or executions (other than by Owner and Persons claiming from, through or under Owner) is assumed by Developer, and no such event shall entitle Developer to any abatement of Development Period Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Owner's Right to Inspect</u>. Upon reasonable advance notice to Developer, Developer shall, subject to Gaming Regulations, permit Owner and its authorized representatives to inspect the Property during usual business hours. Owner shall take care to minimize disturbance of the operations of the Property, except in the case of emergency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>No Waiver</u>. No delay, omission or failure by Owner to insist upon the strict performance of any term hereof or to exercise any right, power or remedy hereunder shall impair any such right or constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this Agreement, which shall continue in full force and effect with respect to any other then existing or subsequent breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Remedies Cumulative</u>. To the extent permitted by law, each legal, equitable or contractual right, power and remedy of Owner now or hereafter provided either in this Agreement or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power and remedy and the exercise or beginning of the exercise by Owner of any one or more of such rights, powers and remedies shall not preclude the simultaneous or subsequent exercise by Owner of any or all of such other rights, powers and remedies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Conveyance by Owner</u>. If Owner or any successor owner of the Property shall convey the Property in accordance with the terms of this Agreement other than as security for a debt, and the grantee or transferee expressly assumes all obligations of Owner arising after the date of the conveyance, Owner or such successor owner, as the case may be, shall thereupon be released from all future liabilities and obligations of the Owner under this Agreement arising or accruing from and after the date of such conveyance or other transfer and all such future liabilities and obligations shall thereupon be binding upon the new owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Notices</u>. Any notice, request or other communication to be given by any Party hereunder shall be in writing and shall be sent by registered or certified mail, postage prepaid and return receipt requested, by hand delivery or express courier service, by email, or by an overnight express service to the following address:

To Developer: c/o Bally's Corporation 100 Westminster Street Providence, RI 02903 Attention: Craig Eaton Email: Craig@ballys.com

With a copy to: (that shall not constitute notice) Latham & Watkins LLP 12670 High Bluff Drive San Diego, CA 92130 Attention: Sony Ben-Moshe

To Owner: GLP Capital, L.P. c/o Gaming and Leisure Properties, Inc. 845 Berkshire Blvd., Suite 200 Wyomissing, Pennsylvania 19610 Attention: Brandon J. Moore, Esq. Email: bmoore@glpropinc.com

With copy to: (that shall not constitute notice) Greenberg Traurig, LLP One International Place, Suite 2000 Boston, Massachusetts 02110 Attention: Benjamin Hittman, Esq. Email: ben.hittman@gtlaw.com

or to such other address as either Party may hereafter designate. Notice shall be deemed to have been given on the date of delivery if such delivery is made on a Business Day, or if not, on the first Business Day after delivery. If delivery is refused, notice shall be deemed to have been given on the date delivery was first attempted. Any notice, request or other communication to be given by any Party hereunder may be given by such Party's counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.9 <u>Attorneys' Fees</u>. If Owner or Developer brings an action or other proceeding against the other to enforce or interpret any of the terms, covenants or conditions hereof or any instrument executed pursuant to this Agreement, or by reason of any breach or default hereunder or thereunder, the Party prevailing in any such action or proceeding, and any appeal thereupon shall be paid all of its costs and reasonable outside attorneys' fees incurred therein. In addition to the foregoing and other provisions of this Agreement that specifically require Developer to reimburse, pay or indemnify against Owner's attorneys' fees, Developer shall pay all of Owner's reasonable outside attorneys' fees incurred in connection with the enforcement of this Agreement (except to the extent provided above), including reasonable attorneys' fees incurred in connection with any consent requested in connection therewith and the collection of past due Development Period Rent and Owner's Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.10 <u>Survival</u>. Anything contained in this Agreement to the contrary notwithstanding, all claims against, and liabilities and indemnities of Developer or Owner arising prior to the expiration or earlier termination of the term of this Agreement shall survive such expiration or termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.11 <u>Severability</u>. If any term or provision of this Agreement or any application thereof shall be held invalid or unenforceable, the remainder of this Agreement and any other application of such term or provision shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.12 <u>Governing Law</u>. THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY. ACCORDINGLY, IN ALL RESPECTS THIS AGREEMENT (AND ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.13 <u>Waiver of Trial by Jury</u>. EACH OF OWNER AND DEVELOPER ACKNOWLEDGES THAT IT HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTION OF THE UNITED STATES AND THE STATE OF NEW YORK. EACH OF OWNER AND DEVELOPER HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR (ii) IN ANY MANNER CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF OWNER AND DEVELOPER WITH RESPECT TO THIS AGREEMENT (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREINAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; EACH OF OWNER AND DEVELOPER HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT EITHER PARTY MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS CONCLUSIVE EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14 <u>Entire Agreement</u>. This Agreement, and the Exhibits and Schedules attached hereto, together with the Lease, constitute the entire and final agreement of the Parties with respect to the subject matter hereof and may not be amended or modified except by an agreement in writing signed by the Parties. Owner and Developer hereby agree that all prior or contemporaneous written or oral understandings, agreements or negotiations relative to the development of the Project, including, without limitation, the portions of the Term Sheet relative to the development of the Project, are merged into and revoked by this Agreement and the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15 <u>Headings</u>. All titles and headings to sections, subsections, paragraphs or other divisions of this Agreement are only for the convenience of the Parties and shall not be construed to have any effect or meaning with respect to the other contents of such sections, subsections, paragraphs or other divisions, such other content being controlling as to the agreement among the Parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.16 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be a valid and binding original, but all of which together shall constitute one and the same instrument. The words "execution," "execute," "signed," "signature," and words of like import in or related to any document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, which shall be of the same legal effect, validity or enforceability as a manually executed signature to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act or any other similar state laws based on the Uniform Electronic Transactions Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.17 <u>Interpretation</u>. Both Owner and Developer have been represented by counsel and this Agreement and every provision hereof has been freely and fairly negotiated. Consequently, all provisions of this Agreement shall be interpreted according to their fair meaning and shall not be strictly construed against any Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.18 <u>Time of Essence</u>. TIME IS OF THE ESSENCE OF THIS AGREEMENT AND EACH PROVISION HEREOF IN WHICH TIME OF PERFORMANCE IS ESTABLISHED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.19 <u>Business Days</u>. If any time period provided for in this Agreement ends on a day other than a Business Day, the time period shall be extended to the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.20 <u>Successors and Assigns</u>. Subject to the provisions of this Agreement, this Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Other than pursuant to a Permitted Assignment, this Agreement may not be assigned by Developer without the prior written consent of Owner (which consent may be granted or withheld in Owner's sole and absolute discretion), and any such assignment in violation of the foregoing shall be void *ab initio*. This Agreement may not be assigned by Owner without the prior written consent of Developer (which consent may be granted or withheld in Developer's sole and absolute discretion), and any such assignment in violation of the foregoing shall be void *ab initio*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.21 <u>Further Assurances; Subsidiaries</u>. Owner and Developer, at any time and from time to time before or after the date of this Agreement, upon request by any other Party, will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and assurances as may reasonably be required for the effectuation of the transactions contemplated under this Agreement. In addition, Developer shall cause all direct and indirect subsidiaries thereof to comply with the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.22 <u>Third Parties</u>. Except as expressly set forth in this Agreement, this Agreement shall not (1) confer any rights or remedies on any Person other than the Parties and their respective successors and permitted assigns; (2) relieve or discharge the obligation or liability of any third Persons to any Party to this Agreement; or (3) otherwise create any third party beneficiary rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.23 <u>Relationship</u>. With respect to Owner, Developer shall at all times be an independent contractor. No provision hereof shall be construed to constitute Developer or any of its officers or employees as an employee or employees of Owner, nor shall any provision of this Agreement be construed as creating a partnership or joint venture between Developer and Owner. Neither Owner nor Developer shall have the power to bind the other Party, except as expressly provided for herein, including, without limitation, Developer's appointment of Owner as its true and lawful attorney-in-fact pursuant to <u>Sections 2.7(b)</u> and <u>6.6</u>. This Agreement is not intended to provide or create any agency relationship between Owner and Developer, and Developer shall have no right or authority, express or implied, to commit or otherwise obligate Owner in any manner whatsoever, and Developer agrees that it shall not hold itself out as having authority to act on behalf of Owner in any manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.24 <u>Consents and Approvals</u>. Except as otherwise expressly provided herein, any approval or consent provided to be given by a Party hereunder may be given or withheld in the sole and absolute discretion of such Party and shall not be deemed to have been given unless given expressly in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.25 <u>Termination</u>. This Agreement shall automatically terminate on the Termination Date (other than inchoate indemnity or other obligations which, by their terms, survive termination of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.26 <u>Guarantors</u>. Developer shall cause each entity that is required to become a Guarantor under and as defined in the Lease in accordance with Section 6.4 of the Lease, which Section is incorporated herein by this reference, *mutatis mutandis*, to become a Guarantor under this Agreement by executing and delivering a Joinder in the form attached hereto. Each Guarantor shall automatically be released from its guaranty of this Agreement (other than with respect to amounts then due and payable by such Guarantor) upon such Guarantor ceasing to constitute a Guarantor under and as defined in the Lease in accordance with the terms thereof and the terms of the applicable Guaranty (as defined in the Lease).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.27 <u>Effectiveness of this Agreement</u>. This Amendment shall not be effective unless and until all approvals from the City of Chicago required for the parties hereto to enter into this Agreement and the Lease have been obtained, whereupon this Agreement and the Lease shall be effective retroactive as of the Effective Date. Developer hereby agrees to give prompt written notice to Owner upon the receipt of such approvals.

[Signature Pages Follow]

**IN WITNESS WHEREOF**, this Agreement has been executed by Owner and Developer as of the date first written above.

**<u>OWNER</u>** **:**

---

| | |
|:---|:---|
| **GLP CAPITAL, L.P.,** | **GLP CAPITAL, L.P.,** |
| a Pennsylvania limited partnership | a Pennsylvania limited partnership |
| By Gaming and Leisure Properties, Inc.,<br> its general partner | By Gaming and Leisure Properties, Inc.,<br> its general partner |
| By: | /s/ Brandon J. Moore |
| Name: | Brandon J. Moore |
| Title: | Chief Operating Officer, President and Secretary |

---

[Signature Page Follows]

[Signature Page to Development Agreement]

**<u>DEVELOPER</u>:**

---

| | |
|:---|:---|
| **BALLY'S CHICAGO OPERATING COMPANY, LLC,** | **BALLY'S CHICAGO OPERATING COMPANY, LLC,** |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | /s/ Ameet Patel |
| Name: | Ameet Patel |
| Title: | President |

---

[Signature Page to Development Agreement]

## Exhibit 10.32

**Exhibit 10.32**

**Placement Agency Agreement**

_____, 2025

Bally's Chicago, Inc.

640 N Lasalle, Suite 460

Chicago, IL 60654

Attention: Charles Diao, Chief Financial Officer

Dear Mr. Diao:

This letter (the "<u>Agreement</u>") constitutes the agreement between Loop Capital Markets LLC ("<u>Loop</u>" or the "<u>Placement Agent</u>") and Bally's Chicago, Inc., a Delaware corporation (the "<u>Company</u>"), that Loop shall serve as the lead placement agent for the Company in connection with the proposed private placements (the "<u>Placements</u>") of Class A-1 Interests at $250 per share, par value $0.001 per share, Class A-2 Interests at $2,500 per share, par value $0.001 per share, Class A-3 Interests at $5,000 per share, par value $0.001 per share, and Class A-4 Interests at $25,000 per share, par value $0.001 per share (together, the "<u>Interests</u>"). The Placement Agent agrees to solicit offers to purchase the Interests on a "reasonable best efforts" basis. The terms of the Placements shall be mutually agreed upon by the Company, Loop and the purchasers of the Interests (each, a "<u>Purchaser</u>" and collectively, the "<u>Purchasers</u>") and nothing herein shall be construed as Loop having the power or authority to bind the Company or any Purchaser or shall constitute an obligation of the Company to issue any Interests or complete the Placements. This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placements, including, but not limited to, the Subscription Agreement (as hereinafter defined) shall be collectively referred to herein as the "<u>Transaction Documents</u>." The date on which the Placements are scheduled to close shall be referred to herein as the "<u>Closing Date</u>." The Company expressly acknowledges and agrees that Loop's obligations hereunder are on a reasonable best efforts basis only and that the execution of this Agreement does not constitute a legal or binding commitment by Loop to purchase the Interests or introduce the Company to investors and does not ensure the successful placement of the Interests or any portion thereof or the success of Loop with respect to securing any other financing on behalf of the Company. The Placement Agent may retain other brokers or dealers to act as sub-agents or selected-dealers on its behalf in connection with the Placements. The sale of the Interests to any Purchaser will be evidenced by a subscription agreement (the "<u>Subscription Agreement</u>") between the Company and such Purchaser in a form reasonably acceptable to the Company and Loop. Prior to the signing of the Subscription Agreement, officers of the Company will be reasonably available during normal business hours to answer inquiries from prospective Purchasers.

<u>SECTION 1</u>. <u>COMPENSATION</u>. [As compensation for services rendered, on the Closing Date, the Company shall pay or cause to be paid to the Placement Agent in the manner set forth below, a placement fee (the "<u>Placement Fee</u>"), the aggregate amount of which shall be equal to six percent (6.0%) of the gross cash proceeds from the sale of Interests, which fee shall be paid by the Company to the Placement Agent on behalf of the syndicate in cash upon the Closing Date, which fee shall be paid by Bally's Chicago Operating Company to the Placement Agent on behalf of the syndicate in cash upon the Closing Date.

<u>SECTION 2</u>. <u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>. The Company represents and warrants to the Placement Agent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) (i) the Company has full right, power and authority to enter into this Agreement and to perform all of its obligations hereunder; (ii) this Agreement has been duly authorized and executed and constitutes a legal, valid and binding agreement of such party enforceable in accordance with its terms; and (iii) the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby does not conflict with or result in a breach of, in any material respect, (y) the Company's certificate of incorporation or by-laws or other charter documents or (z) any agreement to which the Company is a party or by which any of its property or assets is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) All disclosure provided by the Company to the Placement Agent regarding the Company, its business and the transactions contemplated hereby, taken together with all filings the Company has made with the Securities and Exchange Commission, is true and correct in all material aspects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Each filing made by the Company with the Securities and Exchange Commission did not at the time of release contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. To the best of the Company's knowledge and belief, other than the current capital raising (of which this Agreement relates), no event or circumstance has occurred or information exists with respect to the Company or its business, properties, prospects, operations or financial conditions, which, under the applicable laws, rules or regulations, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The Company has not taken and will not take any action, directly or indirectly, so as to cause any Placement to fail to be entitled to rely upon the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"). In effecting the Placements, the Company agrees to comply in all material respects with applicable provisions of the Act and any regulations thereunder and any applicable laws, rules, regulations and requirements (including, without limitation, all U.S. state law and all national, provincial, city or other legal requirements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Company has the power to submit, and pursuant to Section 10 of this Agreement, has legally, validly, effectively and irrevocably submitted, to the non-exclusive personal jurisdiction of any New York State or United States federal court located in the City of New York, Borough of Manhattan, (each, a "New York Court"). The Company has the power to designate, appoint and authorize, and pursuant to Section 10 of this Agreement, has legally, validly, effectively and irrevocably designated, appointed an authorized agent for service of process in any action arising out of or relating to this Agreement or the Placements in any New York Court, and service of process effected on such authorized agent will be effective to confer valid personal jurisdiction over the Company as provided in Section 10 of this Agreement.

<u>SECTION 3</u>. <u>REPRESENTATIONS OF LOOP</u>. Loop represents and warrants that it (i) is a member in good standing of FINRA, (ii) is registered as a broker/dealer under the Securities Exchange Act of 1934, as amended, (iii) is licensed as a broker/dealer under the laws of the states applicable to the offers and sales of the Interests by Loop, (iv) is and will be a corporate body validly existing under the laws of its place of incorporation; (v) has full power and authority to enter into and perform its obligations under this Agreement, (vi) has not taken and will not take any action, directly or indirectly, so as to cause the Placements to fail to be entitled to rely upon the exemption from registration afforded by Section 4(a)(2) of the Act; (vii) in effecting the Placements, the Placement Agent agrees to comply in all material respects with applicable provisions of the Act and any regulations thereunder and any applicable laws, rules, regulations and requirements (including, without limitation, all U.S. state law and all national, provincial, city or other legal requirements), (viii) this Agreement has been duly authorized and executed and constitutes a legal, valid and binding agreement of Loop enforceable in accordance with its terms, and (ix) neither the Placement Agent, any person compensated for soliciting investors in the Placements, nor any general partner, managing member, executive officer, director or officer of the Placement Agent participating in the Placements are subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2). Loop will immediately notify the Company in writing of any change in its status as such. Loop covenants that it will use its reasonable best efforts to conduct the Placements hereunder in compliance with the provisions of this Agreement and the requirements of applicable law.

<u>SECTION 4</u>. <u>INDEMNIFICATION</u>. The Company agrees to the indemnification and other agreements set forth in the Indemnification Provisions (the "<u>Indemnification</u>") attached hereto as Addendum A, the provisions of which are incorporated herein by reference and shall survive the termination or expiration of this Agreement.

<u>SECTION 5</u>. <u>ENGAGEMENT TERM</u>. The Placement Agent's engagement hereunder shall be until the earlier of (i) the Closing Date of the Placements and (ii) the date a party terminates the engagement by providing written notice to the other party (the period of time during which this Agreement remains in effect is referred to herein as the "<u>Term</u>"). Notwithstanding anything to the contrary contained herein, the provisions concerning confidentiality and indemnification and contribution contained herein and the Company's obligations contained in the Indemnification Provisions will survive any expiration or termination of this Agreement. The Placement Agent agrees not to use nor disclose any confidential information concerning the Company provided to the Placement Agent by the Company for any purposes other than those contemplated under this Agreement.

<u>SECTION 6</u>. <u>LOOP INFORMATION</u>. The Company agrees that any information or advice rendered by Loop in connection with this engagement is for the confidential use of the Company only in their evaluation of the Placements and, except as otherwise required by law, the Company will not disclose the advice or information in any manner without Loop's prior written consent.

<u>SECTION 7</u>. <u>NO FIDUCIARY RELATIONSHIP; SECURITIES AND OTHER LAW COMPLIANCE</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) This Agreement does not create, and shall not be construed as creating, rights enforceable by any person or entity not a party hereto, except those entitled hereto by virtue of the Indemnification Provisions hereof. The Company acknowledges and agrees that Loop is not and shall not be construed as a fiduciary of the Company and shall have no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention of Loop hereunder, all of which are hereby expressly waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The Company, at its own expense, will use its reasonable best efforts to obtain any registration, qualification or approval required to sell any Securities under the laws (including U.S. state "blue sky" laws) of any applicable jurisdictions.

<u>SECTION 8.</u> <u>EXPENSES</u>. The Company agrees it shall pay, or reimburse if paid by the Placement Agent, whether or not the transactions contemplated hereby are consummated or this Agreement is terminated, all costs and expenses incident to the Placement and the performance of the obligations of the Company under this Agreement including those relating to: (i) the preparation and delivery of certificates for the Class A Interests to or as directed by the Placement Agent or the Purchasers; (ii) the registration or qualification of the Class A Interests for offer and sale under the securities or Blue Sky laws of the various jurisdictions referred to in Section 5(a)(vi), including the reasonable fees and disbursements of counsel for the Placement Agents in connection with such registration and qualification and the preparation, printing, distribution and shipment of preliminary and supplementary Blue Sky memoranda; (iii) the Company's legal fees and expenses; (iv) the costs of pre-approved due diligence meetings; (v) trustee, transfer and warrant agent and registrar fees; (vi) the cost of any background investigations performed by the Placement Agents of the principals of the Company; and (vii) all transfer taxes, if any, with respect to the sale and delivery of the Class A Interests by the Company to the Purchasers. The Company agrees that the Company shall also reimburse the Placement Agents for certain of its fees and expenses in an amount up to $300,000, including but not limited to travel and communication expenses, printing expenses, road show expenses, due diligence expenses, courier charges and the reasonable fees and disbursements for Placement Agent legal counsel, and also the reasonable fees and disbursements of any other consultants or third party services engaged by the Placement Agents.

<u>SECTION 9</u>. <u>CLOSING</u>. The obligations of the Placement Agent hereunder and the Closing pursuant to the Subscription Agreement are subject to the accuracy, when made and on the Closing Date, of the representations and warranties on the part of the Company and its subsidiaries contained herein and in the Subscription Agreement, to the accuracy of the statements of the Company and its subsidiaries made in any certificates pursuant to the provisions hereof, to the performance by the Company and its subsidiaries of their obligations hereunder, and to each of the following additional terms and conditions, except as otherwise disclosed to and acknowledged by the Placement Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) (i) Neither the Company nor any of its subsidiaries shall have sustained, since the date of the latest audited financial statements included or incorporated by reference in its reports publicly filed with the Securities and Exchange Commission, any material loss or interference with its business from fire, explosion, flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth in or contemplated by the Subscription Agreement and (ii) since such date there shall not have been any material change in the capital stock or long-term debt of the Company or any of its subsidiaries or any material change, or any development involving a prospective material change, in or affecting the financial position, stockholders' equity or results of operations of the Company and its subsidiaries, otherwise as set forth in or contemplated by the Subscription Agreement, the effect of which, in any such case described in clause (i) or (ii), is, in the reasonable judgment of the Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Subsequent to the execution and delivery of this Agreement and up to the Closing Date, there shall not have occurred any of the following: (i) trading in the Company's securities generally on the applicable trading market shall have been suspended or minimum or maximum prices or maximum ranges for prices shall have been established on any such exchange or such market by the Securities and Exchange Commission or by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by federal or state authorities or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, (iii) the United States shall have become engaged in hostilities in which it is not currently engaged, the subject of an act of terrorism, there shall have been an escalation in hostilities involving the United States, or there shall have been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred any other calamity or crisis or any material change in general economic, political or financial conditions in the United States or elsewhere, if the effect of any such event in clauses (i)-(iv) makes it, in the sole and reasonable judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery of the Interests on the terms and in the manner contemplated by the Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental agency or body which would, as of the Closing Date, prevent the issuance or sale of the Interests or materially and adversely affect the business or operations of the Company; and no injunction, restraining order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing Date which would prevent the issuance or sale of the Interests or materially and adversely affect the business or operations of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) The Company shall have entered into a Subscription Agreement with each of the Purchasers and such agreements shall be in full force and effect and shall contain representations, warranties and covenants of the Company as agreed between the Company and the Purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) On or prior to the Closing Date, the Company shall have furnished to the Placement Agent such further information, certificates and documents as the Placement Agent may reasonably request, including a secretary certificate and officer certificate in form and substance reasonably acceptable to the Placement Agent.

All letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agent.

<u>SECTION 10</u>. <u>GOVERNING LAW</u>. This Agreement will be governed by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be assigned by either party without the prior written consent of the other party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith is waived. Each of the Placement Agent and the Company: (i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement and/or the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York, and the United States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Placement Agent and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York and agrees that service of process upon the Company mailed by certified mail to the Company's address shall be deemed in every respect effective service of process upon the Company, in any such suit, action or proceeding, and service of process upon the Placement Agent mailed by certified mail to the Placement Agent's address shall be deemed in every respect effective service process upon the Placement Agent, in any such suit, action or proceeding. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney's fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

<u>SECTION 11</u>. <u>ENTIRE AGREEMENT/MISC</u>. This Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding between the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both Loop and the Company. The representations, warranties, agreements and covenants contained herein shall survive the closing of the Placements and delivery of the Interests, as applicable. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or a .pdf format file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof. The Company agrees that the Placement Agent may rely upon, and is a third party beneficiary of, the representations and warranties, and applicable covenants set forth in the Subscription Agreement.

<u>SECTION 12</u>. <u>NOTICES</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is sent to the email address specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or communication is sent to the email address on the signature pages attached hereto on a day that is not a business day or later than 6:30 p.m. (New York City time) on any business day, (c) the third business day following the date of mailing, if sent by U.S. internationally recognized air courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages hereto.

<u>SECTION 13</u>. <u>PRESS ANNOUNCEMENTS</u>. The Company agrees that the Placement Agent shall, from and after any Closing, have the right to reference the Placements and the Placement Agent's role in connection therewith in the Placement Agent's marketing materials and on its website and to place advertisements in financial and other newspapers and journals, in each case at its own expense.

[*The remainder of this page has been intentionally left blank.*]

Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Loop the enclosed copy of this Agreement.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| **Loop Capital markets, LLC** | **Loop Capital markets, LLC** |
| By: |  |
|  | Name: Sidney Dillard |
|  | Title: Partner |
| <u>Address for notice</u>: 425 S. Financial Place, STE 2700, Chicago, Illinois 60605 | <u>Address for notice</u>: 425 S. Financial Place, STE 2700, Chicago, Illinois 60605 |
| Attention: Corporate Finance<br> Email: compliance@loopcapital.com | Attention: Corporate Finance<br> Email: compliance@loopcapital.com |

---

Accepted and Agreed to as of

the date first written above:

**BALLY'S CHICAGO, INC.**

By:   <br> Name: Ameet Patel <br> Title: President

<u>Address for notice</u>: c/o Bally's Corporation, 100 Westminster Street, Providence, RI 02903, Attention: Chief Legal Officer – Chicago Equity Offering

**BALLY'S CHICAGO OPERATING COMPANY, LLC**

By:   <br> Name: Ameet Patel <br> Title: President

<u>Address for notice</u>: c/o Bally's Corporation, 100 Westminster Street, Providence, RI 02903, Attention: Chief Legal Officer – Chicago Equity Offering

**ADDENDUM A**

**<u>INDEMNIFICATION PROVISIONS</u>**

Capitalized terms used in this Addendum shall have the meanings ascribed to such terms in the Agreement to which this Addendum is attached:

In addition to and without limiting any other right or remedy available to the Placement Agent and the Indemnified Parties (as hereinafter defined), the Company agrees to indemnify and hold harmless Placement Agent and each of the other Indemnified Parties from and against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements, and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise (including, without limitation, the reasonable costs, expenses and disbursements, as and when incurred, of investigating, preparing, pursuing or defending any such action, suit, proceeding or investigation (whether or not in connection with litigation in which any Indemnified Party is a party)) (collectively, "Losses"), directly or indirectly, caused by, relating to, based upon, arising out of, or in connection with, the transactions contemplated by the Agreement, including, without limitation, any breach by the Company of any representation, warranty, covenant or agreement contained in the Agreement (or in any instrument, document or agreement relating thereto, including any agency agreement), or the enforcement by Placement Agent of its rights under the Agreement or these indemnification provisions, except to the extent that any such Losses are found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from the gross negligence, willful misconduct or bad faith of the Indemnified Party seeking indemnification hereunder.

The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of Placement Agent by the Company or for any other reason, except to the extent that any such liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party's gross negligence, willful misconduct or bad faith.

These Indemnification Provisions shall extend to the following persons (collectively, the "Indemnified Parties"): Placement Agent, its present and former affiliated entities, managers, members, officers, employees, legal counsel, agents and controlling persons (within the meaning of the federal securities laws), and the officers, directors, partners, stockholders, members, managers, employees, legal counsel, agents and controlling persons of any of them. These indemnification provisions shall be in addition to any liability, which the Company may otherwise have to any Indemnified Party.

If any action, suit, proceeding or investigation is commenced, as to which an Indemnified Party proposes to demand indemnification, it shall notify the Company with reasonable promptness; provided, however, that any failure by an Indemnified Party to notify the Company shall not relieve the Company from its obligations hereunder unless the Indemnified Party's ability to defend such action, suit, proceeding or investigation is impaired by such failure. If counsel for an Indemnified Party reasonably determines that it would be inappropriate under the applicable rules of professional responsibility for the same counsel to represent both the Company and the Indemnified Party, the Indemnified Party shall have the right to retain a separate counsel of its own choice to represent it, and the reasonable fees, expenses and disbursements of no more than one such separate counsel shall be borne by the Company. Any such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the Company and any counsel designated by the Company. The Company shall be liable for any settlement of any claim against any Indemnified Party made with the Company's written consent. The Company shall not, without the prior written consent of Placement Agent, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise or consent (i) includes, as an unconditional term thereof, the giving by the claimant to all of the Indemnified Parties of an unconditional release from all liability in respect of such claim, and (ii) does not contain any factual or legal admission by or with respect to an Indemnified Party or an adverse statement with respect to the character, professionalism, expertise or reputation of any Indemnified Party or any action or inaction of any Indemnified Party.

In order to provide for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express provisions hereof provide for indemnification in such case, then the Company shall contribute to the Losses to which any Indemnified Party may be subject (i) in accordance with the relative benefits received by the Company and its stockholders, subsidiaries and affiliates, on the one hand, and the Indemnified Party, on the other hand, and (ii) if (and only if) the allocation provided in clause (i) of this sentence is not permitted by applicable law, in such proportion as to reflect not only the relative benefits, but also the relative fault of the Company, on the one hand, and the Indemnified Party, on the other hand, in connection with the statements, acts or omissions which resulted in such Losses as well as any relevant equitable considerations. No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for fraudulent misrepresentation. The relative benefits received (or anticipated to be received) by the Company and its stockholders, subsidiaries and affiliates shall be deemed to be equal to the aggregate consideration payable or receivable by such parties in connection with the transaction or transactions to which the Agreement relates relative to the amount of fees actually received by Placement Agent in connection with such transaction or transactions. Notwithstanding the foregoing, in no event shall the amount contributed by all Indemnified Parties exceed the amount of fees previously received by Placement Agent pursuant to the Agreement.

Neither termination nor completion of the Agreement shall affect these Indemnification Provisions which shall remain operative and in full force and effect. The Indemnification Provisions shall be binding upon the Company and its successors and assigns and shall inure to the benefit of the Indemnified Parties and their respective successors, assigns, heirs and personal representatives.

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the use in this Amendment No. 10 of Registration Statement (333-283772) on Form S-1 of our report dated March 31, 2025, relating to the financial statements of Bally's Chicago, Inc. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Deloitte & Touche LLP

New York, New York

August 5, 2025

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **S-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Bally's Chicago, Inc.**  |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Proposed Maximum Offering Price Per Unit**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A-1 Interests, par value $0.001 per interest | 457(a) | 1707 | $250.00 | $426750.00 | 0.0001531 | $65.34 |
| Fees Previously Paid | 2 | Equity | Class A-1 Interests, par value $0.001 per interest | 457(a) | 500 | $250.00 | $125000.00 |  | $19.14 |
| Fees Previously Paid | 3 | Equity | Class A-2 Interests, par value $0.001 per interest | 457(a) | 1000 | $2500.00 | $2500000.00 |  | $382.75 |
| Fees Previously Paid | 4 | Equity | Class A-3 Interests, par value $0.001 per interest | 457(a) | 1000 | $5000.00 | $5000000.00 |  | $765.50 |
| Fees Previously Paid | 5 | Equity | Class A-4 Interests, par value $0.001 per interest | 457(a) | 7500 | $25000.00 | $187500000.00 |  | $28706.25 |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | Total Offering Amounts: |  | $195551750.00  |  | $29938.98  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  |  | $29873.64  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  | Total Fee Offsets:  |  |  |  | $0.00  |
|  |  |  | Net Fee Due:  | Net Fee Due:  | Net Fee Due:  |  |  |  | $65.34  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> Estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(a) under the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> See Offering Note 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>3</sup> See Offering Note 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>4</sup> See Offering Note 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>5</sup> See Offering Note 1.

---

| | |
|:---|:---|
| | |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |
| **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims | N/A |
| Fee Offset Sources | N/A |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price of Securities Previously Registered**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Form Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **File Number**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Initial Effective Date**  |
| N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |

---