Michael Burry has disclosed new positions in Flutter Entertainment and DraftKings, placing a high-profile bet that the sector’s recent underperformance is a buying opportunity rather than a structural decline.
The filings reveal the investor is accumulating shares in the two leading sports-betting operators, signaling confidence that the market has overreacted to emerging competitive threats.
The move comes as sentiment toward the online gambling sector has cooled amid concerns that prediction markets and alternative betting platforms could erode the dominance of traditional sportsbooks.
Burry’s entry suggests he views these competitive pressures as manageable and believes the current valuations offer an attractive entry point for long-term investors.
This contrarian stance aligns with broader market discussions about the saturation of bearish views on betting stocks.
Perpetual portfolio manager Nathan Hughes recently noted that the rise of prediction markets has disproportionately pressured betting equities, shifting his own focus toward undervalued healthcare and software names.