Hedge fund short sellers have made at least $2.3 billion this year betting against online gambling companies, which are under pressure from the rapid rise of prediction markets in the United States and steep tax increases in the United Kingdom.
Traders positioned to make money from falls in the share price of Paddy Power owner Flutter, DraftKings and Entain have accumulated estimated paper profits of $2 billion, $351 million and $35 million, respectively, since the beginning of 2026, according to data provider S3 Partners. Some of this profit has been realized as funds have closed their short positions.
Shares in the world’s largest publicly traded gambling company Flutter, which is Dublin-headquartered but dual-listed in London and New York, have dropped more than 50 per cent so far in 2026.
