Gabelli Says It’s Time to Bet on Caesars Stock

July 13, 2025

Mario Gabelli has a long history of investing in gaming stocks. He is the chairman and CEO of Gabelli Funds.  To that group, add Caesars Entertainment (NASDAQ: CZR).

Caesars was listed as one of the ten equities Gabelli is now most optimistic on in the most recent edition of Barron's "Roundtable."  Gabelli was the only member of the 11-person stock-picking group in the financial journal to bring up gaming stocks.  One of the reasons he says it's "time to put down a bet" on the second-largest operator on the Las Vegas Strip is the possibility of a cash flow inflection.

"We see a significant turnaround in cash flow. Caesars is working down its debt, and repayments will accelerate,” Gabelli told Barron’s.

The gambling company has well-documented debt-cutting measures and carries $11.5 billion in liabilities.  Asset sales may be part of those ambitions, but the Harrah's operator hasn't sold anything this year, raising concerns that the macroeconomic climate isn't favorable for the consolidation of the gambling sector.

That might be the outcome of persistently high interest rates, which have additional significance for Caesars investors. According to some calculations, the company's substantial debt load can result in annual interest expenditure savings of up to $60 million for every 100 basis points that the Federal Reserve reduces rates.

Gabelli Brings Up  Caesars Stock Involvement of Ichan

Although Carl Icahn, an activist investor, did not explicitly state that this was a justification for owning Caesars stock, Gabelli pointed out that Icahn holds 5% of the company's shares.

The shares have not increased in response to Icahn's resumed involvement with the casino operator.  When it was disclosed that the investor was investing in the stock for a second time in May 2024, the stock would need to rise by around 10% to reach its previous level.

Icahn's association with Caesars, however, would lend credence to Gabelli's bull thesis.  Two directors with connections to Icahn joined the gaming company's board in March.  Icahn has stated that he is not advocating for action; instead, he is in favor of Caesars splitting up its internet operations, notably Caesars Sportsbook.

Gabelli's favorable opinion of the name may be supported by the fact that increasing profitability in that unit isn't reflected in the stock and that the company might build shareholder value through divesting while also getting access to resources that could be utilized to pay down debt or buy back shares.

Gabelli continues to enjoy Golden Entertainment

Gabelli expressed his liking for Golden Entertainment (NASDAQ: GDEN) to Barron's in the January Roundtable, and he reiterated this opinion in the midyear report, even though the company's shares had only increased 1.80% since the beginning of 2025.

“(Golden’s) underlying real estate is worth the intrinisic value of the company,” Gabelli told Barron’s.

The investor is also supportive of some names that are related to gaming.  Among them are Sinclair Broadcasting (NASDAQ: SBGI) and Fox Corp. (NASDAQ: FOX).  The former holds warrants to purchase 11.5 million shares of Bally's, a regional casino operator, while the latter has the opportunity to purchase up to 18.6% of FanDuel.