Michael Burry says he bought Flutter and DraftKings shares, citing expected prediction-market crackdown

According to CNBC, investor Michael Burry said he bought shares of regulated sports-betting operators Flutter Entertainment (FLUT) and DraftKings (DKNG), saying he expects regulators to eventually crack down on prediction markets after competition from those platforms pressured the stocks. Burry said Wednesday he took a full-sized position split about 60% in Flutter and 40% in DraftKings, buying Flutter at about $107 a share and DraftKings in the low $26 range, and said he could later increase each holding into a full standalone position. He said prediction markets have expanded event-based contracts that the U.S. Commodity Futures Trading Commission says fall under its jurisdiction, and noted the agency is in legal action against multiple states over who can regulate prediction markets; he also said the contracts have sidestepped state gaming taxes. CNBC reported that DraftKings shares are down about 45% from their 52-week high reached last September, while Flutter has fallen 65% from its August peak, and that Burry said both companies are attractive businesses whose shares have been weighed down by the rapid expansion of prediction markets; he added that both companies are exploring their own prediction-market offerings.