world-economy

Prominent Investor Sees Regulatory Opportunity in Sports Betting Stocks

Michael Burry, known for his 2008 housing market prediction, has taken substantial positions in two regulated sports-betting operators. He purchased Flutter Entertainment and DraftKings shares, allocating approximately 60% of his full-sized position to Flutter at roughly $107 per share and 40% to DraftKings in the low $26 range. He plans to potentially expand each holding independently. Both stocks have experienced significant declines—DraftKings fell roughly 45% from its September peak, while Flutter dropped 65% from August highs—largely due to competitive pressure from prediction market platforms. Burry anticipates federal regulatory intervention will eventually subject prediction markets to the same restrictions and taxation applied to traditional sports betting. The Commodity Futures Trading Commission is currently engaged in jurisdictional disputes with multiple states over prediction market regulation, while these platforms have managed to circumvent state gaming taxes.