Burry expects regulatory crackdowns on prediction markets to benefit established sportsbooks like DraftKings and Flutter.
Investor Michael Burry has opened positions in DraftKings ($DKNG) and Flutter Entertainment ($FLUT) while betting against prediction markets such as Kalshi and Polymarket. Burry anticipates regulatory restrictions on prediction markets, which he believes will drive business toward regulated sportsbooks.
DraftKings shares have dropped 45% from their 52-week high, while Flutter’s stock has fallen 65% from its peak. Burry purchased Flutter at $107 per share and DraftKings at around $26, citing their established regulatory status and potential to absorb displaced prediction market activity.
Burry suggested that political pressure will lead to increased regulation and taxation of prediction markets, benefiting companies already exploring such offerings. Both DraftKings and Flutter have begun developing their own prediction market products.