Michael Burry Increases Stake in DraftKings and Flutter Entertainment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Source: CNBC
- Investment Positioning: Michael Burry has established a full-sized position in regulated sports-betting operators DraftKings and Flutter Entertainment, allocating approximately 60% and 40% respectively, purchasing shares at about $107 and in the low $26 range, indicating his long-term confidence in both companies.
- Market Outlook: Burry believes that despite the rapid expansion of prediction markets weighing on the stock prices of both companies, they remain attractive businesses that could perform better in the future as regulatory measures tighten.
- Regulatory Dynamics: The U.S. Commodity Futures Trading Commission is engaged in legal battles with multiple states to clarify regulatory authority over prediction markets, which could lead to these markets being subjected to stricter regulations and taxation, a development Burry views positively.
- Business Transformation: DraftKings' shares have fallen about 45% from their 52-week high, while Flutter has slid 65%; Burry notes that DraftKings is undergoing a business transformation, and although Flutter has suffered from past capital misallocation, its fundamentals remain strong with significant scale advantages.
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Analyst Views on FLUT
Wall Street analysts forecast FLUT stock price to rise
26 Analyst Rating
23 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.350
Low
228.00
Averages
296.77
High
381.46
Current: 108.350
Low
228.00
Averages
296.77
High
381.46
About FLUT
Flutter Entertainment plc is an online sports betting and iGaming operator. Its segments include the United States (U.S.), United Kingdom and Ireland (UKI), Australia and International. The U.S. segment offers sports betting, casino, DFS and horse racing wagering products to players across various states in the United States, mainly online but with sports betting services also provided through retail outlets and certain online products in the province of Ontario in Canada. The UKI segment offers sports betting (sportsbook), iGaming products and other products through its Sky Betting & Gaming, Paddy Power, Betfair and tombola brands. Its Australia segment offers online sports betting products through its Sportsbet brand. The International segment includes its operations in 100 global markets and offers sports betting, casino, poker, rummy and lottery, mainly online. This segment includes Sisal, PokerStars, Snai, Betfair International, Adjarabet, MaxBet, Betnacional, and other brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Community Investment Commitment: FanDuel is donating $50,000 to the A Dollar A Day Foundation to support mental health programs in Alberta, having contributed a total of $150,000 over the past three years, highlighting its commitment to community responsibility.
- Strategic Partnerships: FanDuel has formed an exclusive partnership with Light & Wonder to bring the Huff N' Puff game to Alberta, while renewing its multi-year agreement with the Canadian Football League, expanding its market presence in Alberta.
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- Stock Price Recovery: Following Burry's announcement, DraftKings and Flutter saw their share prices rise by 1% and 2.7%, respectively, despite experiencing declines of 36% and 61% over the past year, suggesting a shift in market perception regarding their future potential.
- Regulatory Risk Anticipation: Burry highlighted that current prediction trading platforms exploit a
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Michael Burry Increases Stake in DraftKings and Flutter Entertainment
- Investment Positioning: Michael Burry has established a full-sized position in regulated sports-betting operators DraftKings and Flutter Entertainment, allocating approximately 60% and 40% respectively, purchasing shares at about $107 and in the low $26 range, indicating his long-term confidence in both companies.
- Market Outlook: Burry believes that despite the rapid expansion of prediction markets weighing on the stock prices of both companies, they remain attractive businesses that could perform better in the future as regulatory measures tighten.
- Regulatory Dynamics: The U.S. Commodity Futures Trading Commission is engaged in legal battles with multiple states to clarify regulatory authority over prediction markets, which could lead to these markets being subjected to stricter regulations and taxation, a development Burry views positively.
- Business Transformation: DraftKings' shares have fallen about 45% from their 52-week high, while Flutter has slid 65%; Burry notes that DraftKings is undergoing a business transformation, and although Flutter has suffered from past capital misallocation, its fundamentals remain strong with significant scale advantages.
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- Operational Transition Potential: Burry notes that DraftKings is inflecting as an operating business, suggesting an increase in its future value, which may enhance the company's position in the competitive online betting market.
- Flutter's Fundamentals: Despite past capital misallocation issues, Burry believes Flutter's fundamentals remain strong with excellent operational scale, which could yield substantial returns for investors in the future.
- Market Regulation Outlook: Burry mentions that prediction markets like Kalshi and Polymarket may face regulatory and taxation impacts, and while they pose a threat, this could also create a more stable market environment for DraftKings and Flutter, fostering long-term growth.
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- App Functionality Concept: The app, internally referred to as 'Arena', is expected to utilize a video game-style points system to encourage user participation, although Meta has not ruled out the possibility of monetary betting, which could influence user engagement and market competition.
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- User Participation Status: Recent studies indicate that 32% of Gen Z and 24% of millennials are either participating in or considering prediction markets, a trend that could drive acceptance and usage rates of Meta's 'Arena' app among younger demographics.
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- Market Potential: Prediction markets like Polymarket and Kalshi saw a combined $50 billion in online trades in 2025, with this year's total already surpassing $130 billion, indicating rapid growth in this sector, and Meta's entry could further enhance market dynamics.
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- Market Expansion Plan: FanDuel is set to enter the Alberta market on July 13, aiming to provide local players with an industry-leading casino and sportsbook experience, thereby reinforcing its leadership position in North America.
- Community Investment Commitment: FanDuel is donating $50,000 to the A Dollar A Day Foundation to support mental health programs in Alberta, having contributed a total of $150,000 over the past three years, highlighting its commitment to community responsibility.
- Strategic Partnerships: FanDuel has formed an exclusive partnership with Light & Wonder to bring the Huff N' Puff game to Alberta, while renewing its multi-year agreement with the Canadian Football League, expanding its market presence in Alberta.
- Charity Event Support: As the title sponsor of the Cowboys Stampede Showdown Charity Poker Tournament, FanDuel raised $260,000 this year, setting a record and further enhancing its impact within the local community.
See More
Michael Burry Increases Stakes in DKNG and FLUT Stocks
- Investor Confidence Rebound: Renowned investor Michael Burry has established full-sized long positions in sports betting leaders Flutter Entertainment and DraftKings, allocating 60% and 40% of his portfolio respectively, indicating strong confidence in these companies.
- Stock Price Recovery: Following Burry's announcement, DraftKings and Flutter saw their share prices rise by 1% and 2.7%, respectively, despite experiencing declines of 36% and 61% over the past year, suggesting a shift in market perception regarding their future potential.
- Regulatory Risk Anticipation: Burry highlighted that current prediction trading platforms exploit a
See More
Michael Burry Increases Stake in DraftKings and Flutter Entertainment
- Investment Positioning: Michael Burry has established a full-sized position in regulated sports-betting operators DraftKings and Flutter Entertainment, allocating approximately 60% and 40% respectively, purchasing shares at about $107 and in the low $26 range, indicating his long-term confidence in both companies.
- Market Outlook: Burry believes that despite the rapid expansion of prediction markets weighing on the stock prices of both companies, they remain attractive businesses that could perform better in the future as regulatory measures tighten.
- Regulatory Dynamics: The U.S. Commodity Futures Trading Commission is engaged in legal battles with multiple states to clarify regulatory authority over prediction markets, which could lead to these markets being subjected to stricter regulations and taxation, a development Burry views positively.
- Business Transformation: DraftKings' shares have fallen about 45% from their 52-week high, while Flutter has slid 65%; Burry notes that DraftKings is undergoing a business transformation, and although Flutter has suffered from past capital misallocation, its fundamentals remain strong with significant scale advantages.
See More
Michael Burry Discloses New Stakes in DraftKings and Flutter
- Investor Confidence Boost: Michael Burry's disclosure of new stakes in DraftKings (DKNG) and Flutter (FLUT) in a Substack post indicates his optimistic outlook on the future of these online betting platforms, potentially attracting more investor attention and driving stock prices higher.
- Operational Transition Potential: Burry notes that DraftKings is inflecting as an operating business, suggesting an increase in its future value, which may enhance the company's position in the competitive online betting market.
- Flutter's Fundamentals: Despite past capital misallocation issues, Burry believes Flutter's fundamentals remain strong with excellent operational scale, which could yield substantial returns for investors in the future.
- Market Regulation Outlook: Burry mentions that prediction markets like Kalshi and Polymarket may face regulatory and taxation impacts, and while they pose a threat, this could also create a more stable market environment for DraftKings and Flutter, fostering long-term growth.
See More
Zuckerberg Plans to Develop Prediction Market App
- Market Trend Focus: Zuckerberg has directed a team at Meta to develop a prediction market app similar to Polymarket and Kalshi, indicating the company's attention to emerging social behaviors, which could attract younger users and enhance user engagement.
- App Functionality Concept: The app, internally referred to as 'Arena', is expected to utilize a video game-style points system to encourage user participation, although Meta has not ruled out the possibility of monetary betting, which could influence user engagement and market competition.
- Market Reaction: Following the report, stocks of DraftKings and Flutter Entertainment fell by over 2%, reflecting market concerns about the potential impact of Meta's entry into the prediction market, which may intensify pressure on existing competitors.
- User Participation Status: Recent studies indicate that 32% of Gen Z and 24% of millennials are either participating in or considering prediction markets, a trend that could drive acceptance and usage rates of Meta's 'Arena' app among younger demographics.
See More
Meta Develops Prediction Markets App 'Arena'
- App Development Progress: Meta is developing a prediction markets app called 'Arena,' which will operate independently from Facebook and Instagram, aiming to leverage Meta's vast user base for growth and attract significant user engagement.
- Market Potential: Prediction markets like Polymarket and Kalshi saw a combined $50 billion in online trades in 2025, with this year's total already surpassing $130 billion, indicating rapid growth in this sector, and Meta's entry could further enhance market dynamics.
- User Experience Innovation: Arena may initially utilize a video game-style points system instead of real-money betting, although cash wagering is not ruled out for the future, which could attract younger users and enhance user retention.
- Strategic Priority: Zuckerberg views Arena as a key experimental project, and while it remains in development, this initiative reflects Meta's strategic direction to create new apps based on emerging social behaviors, potentially transforming user interactions.
See More
