Burry, the investor famed for predicting and profiting from the 2008 U.S. housing market collapse, has taken positions in two major sports-betting platforms.
The legendary contrarian investor purchased shares of Flutter Entertainment and DraftKings, wagering that regulatory scrutiny will eventually curb the threat posed by prediction markets.
Burry said he bought Flutter at about $107 a share and DraftKings “in the low $26s,” forming a combined full-sized position.
The investments are weighted roughly 60/40 toward Flutter, though Burry said he may make each a full position in the future.
Prediction markets represent the main threat facing both companies, Burry argued, because their event contracts can be offered nationwide under Commodity Futures Trading Commission oversight while avoiding state gaming taxes.
Prediction markets allow traders to buy and sell contracts tied to the outcome of events, including sports, elections, and economic data.
Burry said these platforms operate in a loophole alongside a heavily regulated and taxed gambling industry, creating an uneven competitive landscape for traditional operators.
“I believe that the political climate will not tolerate this,” he wrote, adding that he expects prediction markets to eventually be brought under regulation and taxation.
Shares of Flutter have fallen 50% this year as of last close, yet Burry views the company as a strong business with significant scale despite past capital misallocation.
DraftKings shares are down 21% this year, but Burry described the company as inflecting as an operating business, suggesting its underlying fundamentals are improving.
The positions reflect Burry’s broader conviction that regulatory and political forces will ultimately level the playing field between traditional sportsbooks and newer prediction market platforms.
Beyond sports betting, Burry also disclosed he bought more JD.com shares at $27.58, calling it one of his top three positions.
He also expressed a bullish outlook on Hong Kong and Chinese stocks, expecting them to benefit as AI and memory-chip enthusiasm unwinds in South Korea and Japan.
