Harvard University’s investment portfolio includes a stake in Flutter Entertainment (NYSE: FLUT), the world’s largest online sports betting and iGaming company, valued at $8,190,765.
Flutter Entertainment (NYSE: FLUT) ranks tenth among Harvard’s top stock picks for 2026, reflecting the university’s confidence in the company’s long-term growth prospects despite recent headwinds.
The stock has fallen over 55% this year, pressured by the rise of prediction markets like Polymarket and Kalshi, which are drawing users away from traditional sportsbooks.
An overall downturn in the broader sportsbook industry has compounded selling pressure on Flutter Entertainment (NYSE: FLUT) shares throughout 2026.
Despite the sharp decline, some analysts argue the stock is deeply undervalued, trading at just 10.5x EV/EBITDA based on management’s full-year 2026 EBITDA guidance of $2.86 billion.
The company’s free cash flow yield currently sits above 10%, well below its historical average, suggesting a potential valuation opportunity for patient investors.
The FIFA World Cup is seen as a significant near-term catalyst, with some indicators showing over 60% of American soccer fans plan to bet on the tournament.
Additionally, 29% of Americans plan to place their first-ever sports bet during the FIFA World Cup, a figure that could meaningfully boost FanDuel’s user acquisition and revenue figures.
FanDuel remains Flutter’s most valuable asset and the dominant sports betting platform in the United States, giving the company a structural advantage in capturing new bettors.
The iGaming segment, which covers online casino games like slots and poker played over the internet, represents another underappreciated growth driver for Flutter Entertainment (NYSE: FLUT).
Unlike traditional sportsbook betting, which is inherently seasonal, iGaming generates revenue consistently throughout the entire calendar year, providing more stable income streams.
iGaming is currently legal in only seven US states, meaning the potential expansion into new states represents a significant untapped revenue opportunity for the company.
Flutter Entertainment’s (NYSE: FLUT) iGaming segment already demonstrated strong momentum, growing 28% year over year in the first quarter of 2026.
The company is also moving to counter the threat from prediction markets directly, announcing the launch of FanDuel Predicts, its own prediction market product backed by an initial $40 million investment.
Flutter Entertainment (NYSE: FLUT) appears to be pursuing a strategy that addresses competitive threats head-on while simultaneously positioning itself to benefit from major sporting events and regulatory expansion across the United States.
