Michael Burry Backs DraftKings and Flutter as Prediction Market Bet
Michael Burry is betting on sportsbooks DraftKings and Flutter, wagering that regulators will rein in prediction market rivals.
Michael Burry — the man who called the housing crash — is putting his money on sportsbooks. The Big Short investor has taken positions in DraftKings and Flutter, two of the biggest names in the legal sports betting space. That's a bold call at a time when both stocks have been getting squeezed.
The pressure on DraftKings and Flutter isn't coming from other sportsbooks. It's coming from prediction markets — upstart platforms that let users trade on real-world event outcomes. Those platforms have been pulling eyeballs and dollars away from traditional sportsbooks, and the stocks have felt it.
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Burry's thesis is straightforward: regulators will eventually step in and curb prediction markets. If you believe that, then DraftKings and Flutter are sitting at a discount right now — beaten up by competition that may not be around in its current form for long. That's the kind of contrarian setup Burry has built his reputation on.
This is not a trade for the faint of heart. Regulatory timelines are unpredictable, and prediction markets have shown real staying power. But if Washington moves against them, established sportsbooks with licensing infrastructure and brand recognition stand to recapture significant market share fast. Burry is essentially betting on the regulators, not just the stocks.
Whether you agree with the call or not, the setup is clear: legal sportsbooks are on sale because of competitive fear, and one of the most famous contrarian investors alive just backed them. Continue reading at US Top News and Analysis.
