Caesars: WSOP Sale And Las Vegas Momentum Enable Accelerated Debt Deleveraging

Summary:

  • Caesars reported a Q2 result showing a shift into stronger Las Vegas operations but likely temporarily weakening regional casino financials after good post-Covid normalization.
  • CZR’s debt remains high after the COVID earnings slump and the 2020 merger, but debt paydowns should accelerate through improved cash flows.
  • The sale of the WSOP brand should also aid in paying down debt, while the transaction still lets the Company leverage licensed brand assets from WSOP, including tournament hosting.
  • Caesars’ stock valuation seems balanced but extremely volatile due to its extremely high debt.

Caesars Palace and Bellagio Hotel and Casino in Las Vegas Strip. Street view, architecture, people, sunny day with cler blue sky background

Nature, food, landscape, travel/iStock Editorial via Getty Images

Caesars Entertainment, Inc. (NASDAQ:CZR) primarily operates brick-and-mortar casinos with Las Vegas locations such as Caesars Palace, Flamingo, and Horseshoe, and with several regional casinos under the Harrah’s and other names. The company also has


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