Gabelli Says It’s Time to Bet on Caesars Stock
Posted on: July 13, 2025, 08:21h.
Last updated on: July 13, 2025, 08:21h.
- Gabelli Funds chairman is constructive on Caesars
- Expects cash flow “turnaround”
- He remains bullish on Golden Entertainment, too
Mario Gabelli, the chairman and chief executive officer of Gabelli Funds, has a lengthy history of investing in gaming stocks. Add Caesars Entertainment (NASDAQ: CZR) to that group.
In the latest edition of Barron’s “Roundtable”, Gabelli mentioned Caesars as one of the 10 stocks he’s currently most bullish on. Of the 11 participants in the financial journal’s stock-picking group, Gabelli was the only one to mention any gaming equities. He cites the potential for a cash flow inflection as one reason it’s “time to put down a bet” on the second-largest operator on the Las Vegas Strip.
We see a significant turnaround in cash flow. Caesars is working down its debt, and repayments will accelerate,” Gabelli told Barron’s.
The gaming company carries $11.5 billion in liabilities and its debt-cutting efforts have been well-documented. Those plans could involve asset sales, but the Harrah’s operator hasn’t sold anything this year, prompting speculation that the current macroeconomic environment isn’t conducive to gaming industry consolidation.
That could be the result of still elevated interest rates, which are meaningful to Caesars investors for another reason. Due to the company’s sizable debt burden, it can, by some estimates, save as much as $60 million in yearly interest expenses for every 100 basis points the Federal Reserve lowers rates.
Gabelli Mentions Ichan Involvement in Caesars Stock
Gabelli noted that activist investor Carl Icahn owns 5% of Caesars stock, though the former didn’t overtly say the latter was a reason to own the shares.
Icahn’s renewed involvement with the casino operator hasn’t sparked the shares. The stock would need to gain about 10% to return to where it was in May 2024 when it was revealed the investor was engaged with it for a second time.
Still, Icahn’s involvement with Caesars could be supportive of Gabelli’s bull thesis. In March, the gaming company added two directors with ties to Icahn to its board. While Icahn has said he’s not pushing for activism, he’s supportive of the idea of Caesars spinning off its digital business, including Caesars Sportsbook.
Increasing profitability in that unit isn’t reflected in the stock and by divesting, the company could create shareholder while gaining access to capital that could be used to reduce debt or buy back shares — all factors that could affirm Gabelli’s positive view on the name.
Gabelli Still Likes Golden Entertainment, Too
In the January edition of the Roundtable, Gabelli told Barron’s he liked Golden Entertainment (NASDAQ: GDEN), a point of view he reiterated in the midyear update despite the shares being up just 1.80% since the start of 2025.
“(Golden’s) underlying real estate is worth the intrinisic value of the company,” Gabelli told Barron’s.
The investor is constructive on some gaming-adjacent names, too. Those include Fox Corp. (NASDAQ: FOX) and Sinclair Broadcasting (NASDAQ: SBGI). The former has rights to acquire up to 18.6% of FanDuel and the latter has warrants to buy 11.5 million shares of regional casino operator Bally’s.
Last Comment ( 1 )
11.5 million shares of Bally's (BALY)? That's the spirit! Bally's Chicago flagship destination casino resort hotel is contractually required by the City of Chicago to open by September 2026. Not a problem. Bally's Chicago 500-room hotel tower will surely (?) be ready for occupancy just in time for the ribbon-cutting. Disregard the past 12-month stock performance chart for BALY. That's also not a problem, right?