Thomas Reeg on tax legislation
From $CZR Caesars Entertainment Q2 2025 Earnings Conference Call · · EARNMOAR
“The tax bill reduced our cash taxes — the reduction this year should offset the EBITDA shortfall in Vegas for Q2 and Q3, so free cash flow is not materially impacted for 2025–2027; think something like $80 to $100 million less in cash taxes than we were anticipating before the bill.”
On , Thomas Reeg, Chief Executive Officer & Director at Caesars Entertainment, spoke about tax legislation during $CZR Caesars Entertainment Q2 2025 Earnings Conference Call on EARNMOAR.
About Thomas Reeg
On the company's second-quarter 2025 earnings call, Reeg described the summer in Las Vegas as "soft," attributing the weakness to a contraction in booking windows and a market that "started leaking at the end of May." He said the period of softness when the market is leisure-dominated had extended into the quarter, but characterized it as "normal seasonality that we haven't seen in a while." Reeg expressed confidence in the business after the third quarter, citing the group calendar, and said his confidence in the digital segment increases each quarter due to its momentum and scaling. He stated that the company remains on track to deliver over $500 million of EBITDA from digital in 2026. Reeg has emphasized the company's focus on profitability over market share in its digital business. He stated that Caesars' promotional spend is a third to a half of what DraftKings and FanDuel spend, and that the digital business is approaching or will soon exceed 20% EBITDA margins. Reeg has also discussed the company's capital allocation priorities, noting that debt reduction remains the primary focus but that he finds the company's stock "particularly attractive" given its trading level and the momentum in digital. He mentioned that the company expects a step down in gross capital expenditure in 2025 of more than $500 millionhol.