Michael Burry of “The Big Short” fame said he bought shares of regulated sports-betting operators DraftKings and Flutter Entertainment, anticipating regulators will eventually crack down on prediction markets after competition from the upstarts pressured the stocks.
Burry said Wednesday he purchased a full-sized position split roughly 60% in Flutter and 40% in DraftKings, buying Flutter at about $107 a share and DraftKings in the low-$26 range. He said he could eventually increase each holding into a full standalone position.
The investor, who rose to prominence for predicting the U.S. housing crash in 2008, said both companies are attractive businesses whose shares have been weighed down by the rapid expansion of prediction markets.
