Investor Who Predicted 2008 Crisis Buys Flutter and DraftKings Shares After Sharp Fall

^{Michael Burry, American investor}

Prominent U.S. investor Michael Burry has bought shares in two companies linked to the sports betting and online gambling markets: Flutter Entertainment and DraftKings, Reuters reported.

Burry rose to prominence after the 2008 financial crisis.

He was one of the first investors to bet against the U.S. mortgage securities market and profited from its collapse. That story later became the basis for the book and film The Big Short.

The investor has now moved into companies with strong positions in the U.S. betting market. Flutter Entertainment owns several major gambling brands, including FanDuel and PokerStars. DraftKings is a separate publicly traded company and one of the largest sports betting operators in the United States.

The exact number of shares purchased was not disclosed. What is known is that Burry described the combined investment as a full position in his portfolio. The position is split roughly 60/40, with the larger share allocated to Flutter and the smaller one to DraftKings. Burry bought the stocks after a notable decline in their share prices: according to Reuters, Flutter shares were down around 50% for the year at the time of publication, while DraftKings had fallen 21%.

Burry explained the move by saying the market had overreacted to competition from prediction markets. Polymarket and Kalshi are among the best-known platforms in this segment.

On prediction markets, users effectively bet against each other on the outcome of future events, including sports matches, elections and economic indicators. Technically, this is structured as the buying and selling of contracts tied to a specific outcome.

According to Burry, such platforms benefit from a loophole: their contracts can be offered nationwide under the federal oversight of the U.S. Commodity Futures Trading Commission. At the same time, they do not face the same tax burden as bookmakers, which are licensed separately in individual states.

Burry believes the current regime for prediction markets could change. In his view, pressure from states and the gambling industry could eventually lead to tougher regulation and additional taxes for such platforms. If that happens, pressure on Flutter and DraftKings could ease, making their shares attractive after a steep decline.