Investor Michael Burry said he has bought shares in DraftKings and Flutter Entertainment, arguing that regulated sports-betting companies could benefit if U.S. authorities tighten oversight of prediction markets. Burry said he established a full-sized position split about 60% in Flutter and 40% in DraftKings, with purchases made at roughly $107 a share for Flutter and in the low $26 range for DraftKings. He also said he may eventually expand each holding into a standalone full position.
Burry said the two companies remain attractive operating businesses even after their shares came under pressure amid the rapid expansion of prediction markets. DraftKings shares have fallen about 45% from a 52-week high reached last September, while Flutter has dropped about 65% from its August peak. He said DraftKings is improving as an operating business, while describing Flutter as a fundamentally strong company with significant scale despite what he characterized as past capital-allocation mistakes.
At the center of Burry’s investment thesis is the regulatory status of prediction markets, which have increasingly offered event-based contracts. The U.S. Commodity Futures Trading Commission has said those products fall under its jurisdiction, and the agency is engaged in legal action against multiple states in a broader dispute over who should regulate the sector. Burry contended that prediction markets currently occupy a loophole next to a heavily regulated and taxed industry, and argued that the political environment is unlikely to allow that arrangement to persist.
That view remains a forecast rather than an established outcome, as the regulatory battle is still underway. Burry’s thesis depends in part on the expectation that prediction markets will eventually face broader regulation and taxation, reducing a competitive advantage over traditional sportsbook operators. At the same time, he noted that DraftKings and Flutter have started exploring their own prediction-market offerings, a move that could leave them positioned to benefit even if the market develops under a different regulatory framework.
