TLDR Michael Burry has taken new positions in Flutter Entertainment and DraftKings stock. Flutter makes up about 60% of the investment, DraftKings the remaining 40%. Sports betting stocks have fallen from their highs as growth slows. Prediction market platforms are pulling bettors away from traditional sportsbooks. Burry’s bet may hinge on regulation and lower marketing costs boosting profits.
Michael Burry has added two well known sports betting companies to his portfolio. New filings show he bought stock in Flutter Entertainment and DraftKings.
Burry is known for finding value in companies other investors have written off. His latest move follows that same pattern.
The investment leans more toward one company. Flutter makes up close to 60% of the position, while DraftKings accounts for the other 40%.
Both stocks trade well below the highs they reached during the sports betting boom. Growth in the sector has slowed over the past year.
Sports Betting Stocks Under Pressure
Sports betting companies have struggled to keep growth rates high. Investors have raised questions about how profitable the business really is.
New prediction market platforms have added competition. These sites let people wager on events in a different format, and they are drawing interest from bettors who used to stick with licensed sportsbooks.
That competition has made investors more cautious about traditional sportsbook operators. Expectations for the sector have come down as a result.
Burry’s move goes against this trend. He appears to view the drop in share prices as a chance to buy rather than a reason to stay away.
His approach also differs from where much of the market’s money has gone lately. Many investors have poured cash into artificial intelligence companies instead.
Burry has raised concerns in the past about how some AI companies are priced. His sports betting investment