Caesars: Attractive Despite Legislative And Debt Headwinds

  • Caesars shares have underperformed due to slow debt reduction and new tax headwinds from the OBBB, but these risks are manageable. Digital business is driving growth, with improved profitability and user monetization, while physical casinos remain stable despite muted consumer spending. The company is nearing the end of a heavy investment cycle, which should boost free cash flow, and a potential NYC casino license could be a long-term positive.