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Michael Burry Buys Stakes in Flutter and DraftKings

He says CFTC oversight will bring prediction markets under regulation and taxation, shifting business back to regulated sportsbooks.

Flutter's logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration

Overview

  • Burry disclosed in a Substack post Wednesday that he bought a full-sized position split roughly 60% in Flutter at about $107 a share and 40% in DraftKings in the low $26s.
  • He argued prediction-market platforms that sell event contracts have undercut regulated sportsbooks by operating under CFTC oversight and avoiding state gambling taxes.
  • Burry expects those platforms to be folded into regulation and taxation, a view that underpins his bet that Flutter and DraftKings will regain business as competition is curbed.
  • Both companies have seen large share declines from recent peaks and have started exploring their own prediction-market offerings, which could help them if rules change.
  • Burry also added JD.com to his holdings and said he expects shifts in regional tech enthusiasm to benefit Hong Kong and Chinese stocks as other markets cool.