Famous short seller Jim Chanos has relinquished his bearishness towards the US sports betting sector after highlighting a major theme among American gamblers: they’re not very good at it.
This is because online gambling platforms offer riskier forms of betting during sports.
“Betting figures in the US continue to be strong, much stronger than we thought,” he told the Financial Times in a recent interview. “The thing that we underestimated — which I think is going to be beneficial to all of these companies for some time — is the American gambler.”
Chanos first opened a short position against gambling platform DraftKings in mid-2021 over doubts about its business model, noting that its marketing expenses exceeded the firm’s revenue.
