Michael Burry Buys into DraftKings and Flutter as Prediction Market Debate Intensifies

Michael Burry, the investor best known for correctly calling the 2008 housing collapse, has taken new positions in DraftKings and Flutter Entertainment (the parent company of FanDuel). He disclosed the trades in a post on his Substack newsletter, saying he built a position split roughly 60% in Flutter and 40% in DraftKings. 

Burry said he bought stock in FanDuel owner Flutter at approximately $107 a share, and picked up DraftKings shares at around $26. He noted he could still expand either holding into a full standalone position down the road.  

Both stocks have taken a beating over the past year, with Flutter down roughly 61% from its peak and DraftKings off about 36%, losses many have tied to rising competition from prediction market platforms like Kalshi and Polymarket. 

Burry's bet runs against that narrative. He argued that prediction market apps are operating in what he called a loophole next to an industry that is already heavily regulated and taxed, and he does not expect that gap to last.  

He wrote that he does not believe the political climate will allow it to continue, predicting that these platforms will eventually be subject to the same kind of regulation and taxation that traditional sportsbooks already face. 

He also pointed to internal improvements at both companies as a reason for his confidence. He described DraftKings as a business now shifting into a stronger operating phase, while calling Flutter fundamentally sound despite past missteps in capital allocation.  

Both DraftKings and Flutter have also started building their own prediction market products, giving them a foothold in that space. 

World Cup trading sends prediction markets to record volumes 

Burry isn't the only one watching this space closely right now. June turned into a landmark month for the trading platforms he sees as vulnerable to a regulatory clampdown, with the World Cup pulling in activity on a scale those exchanges hadn't seen before.  

Dune Analytics figures put Kalshi's monthly total above $31 billion, up from $17.9 billion the prior month, a gain of better than 70%. Daily totals on the exchange haven't dipped below the billion-dollar mark since the tournament kicked off on June 11. 

Rival Polymarket posted its own high-water mark internationally, clearing $10.8 billion for the month. The domestic version of the platform brought in over $3.5 billion, nearly double the $1.77 billion it managed in May.  

Nowhere was the trading frenzy more obvious than around the American squad. Bettors funneled upward of $64 million into Kalshi contracts and $122 million into Polymarket wagers tied to a potential US tournament win.  

Meanwhile, the tally of unsettled contracts sitting open on the platforms grew, too. Kalshi's open positions now top $1 billion, and Polymarket isn't far behind at close to $400 million.