Investor Michael Burry, known for his contrarian market moves, disclosed fresh purchases in two major sports-betting platforms and added to a significant Chinese equity holding.
Burry said he purchased shares of Flutter Entertainment at approximately $107 each and bought DraftKings shares "in the low $26s." The two stakes together form a full-sized position weighted about 60/40 in favor of Flutter at present, though he noted the possibility of making each a full position later.
His rationale centers on prediction markets. Burry identified those markets as the principal risk confronting Flutter and DraftKings because type of event contracts traded there can be offered nationwide under Commodity Futures Trading Commission oversight while bypassing state-level gaming taxes. He described prediction markets as platforms that allow traders to buy and sell contracts tied to the outcomes of events including sports, elections and economic data.
Noting a regulatory inconsistency, Burry said prediction markets operate in what he called a loophole alongside a gambling industry that is heavily regulated and taxed. He wrote, "I believe that the political climate will not tolerate this," and added that he expects prediction markets to be brought eventually under regulation and taxation.
Burry also commented on the market context for the specific equities. He said Flutter, whose shares have fallen about 50% year-to-date as of the last close, remains an attractive business with substantial scale despite prior capital misallocation. DraftKings, down roughly 21% for the year as of the last close, was described by Burry as reaching an inflection point as an operating company.
Separately, Burry reported buying additional shares of JD.com at $27.58 and called JD one of his top three positions. He further stated his expectation that Hong Kong and Chinese equities could benefit if AI and memory-chip enthusiasm cools in South Korea and Japan.
Contextual note - The comments reflect Burry's stated views and reported purchases; they also highlight regulatory and market dynamics that he sees as drivers of future valuation and risk for the named companies.