The report didn't specify the size of Icahn's stake.
If the report is true, Icahn is getting in on Caesars at a discount after the stock tumbled more than 45% in 2018. Gaming stocks in general have been on a downward trajectory, with the VanEck Vectors Gaming ETF (BJK - Get Report) falling more than 20% over the past 12 months.
Icahn isn't the first wealthy investor to take an interest in Caesars.
Last year, Tilman Fertitta, owner of restaurant company Landry's Inc. and the NBA's Houston Rockets, offered $13 a share in cash and stock for the company. Fertitta would have been chairman and CEO of the combined company had the offer been accepted, CNBC reported.
Back in August, Caesars shares were halted temporarily after tepid results from the Macau gaming region in China sent investors running for the hills in droves. The stock dropped more than 20% at one point during the session.
The Macau gaming region has since bounced back, reporting a 16.6% year-over-year increase in gaming revenue to about $3.28 billion in December.