Michael Burry invests in Flutter and DraftKings, betting on prediction‑market regulation

Investor Michael Burry, known for forecasting the 2008 U.S. housing crash, disclosed that he has purchased shares in sports‑betting operators Flutter Entertainment and DraftKings. He bought Flutter at about $107 per share and DraftKings in the low $26 range, creating a position weighted roughly 60% Flutter and 40% DraftKings, with the possibility of expanding each to a full standalone stake.

Burry argued that prediction markets—contracts tied to the outcome of events such as sports, elections or economic data—operate in a regulatory loophole under CFTC oversight while evading state gaming taxes. He wrote, “I believe that the political climate will not tolerate this,” and added that “prediction markets exist in a loophole adjacent to a heavily regulated and taxed industry. In time, prediction markets will be subsumed into regulation and taxation.”

He noted that Flutter’s shares have fallen about 50% this year and DraftKings about 21%, but sees both companies as fundamentally strong businesses. Burry also mentioned a larger position in JD.com, but his focus here is on the anticipated regulatory crackdown that could reshape the sports‑betting landscape.