Why "Big Short" Investor Michael Burry Sees Upside in Beaten-Down Sportbook Stocks

Michael Burry recently bought shares of DraftKings and Flutter Entertainment, betting on a recovery in beaten-down sportsbook stocks.

Burry believes prediction markets like Kalshi and Polymarket will eventually face government regulation and taxation, reducing their competitive threat to sportsbooks.

Wall Street analysts largely agree with Burry, with consensus price targets implying 30% upside for DraftKings and 60% upside for Flutter.

Investor Michael Burry made hundreds of millions of dollars as the Great Financial Crisis unfolded by shorting subprime mortgages.

Burry’s hedge fund, Scion Asset Management, is now defunct. However, he remains a part of the investment zeitgeist, providing his takes on various assets.

Notably, Burry recently made his opinion known on one of the most beaten-down corners of the stock market in 2026: online sportsbook stocks.

The two most notable names in this space are DraftKings NASDAQ: DKNG and Flutter Entertainment NYSE: FLUT .

DraftKings operates a sportsbook app by the same name, while Flutter operates the app FanDuel.

Overall, DraftKings is down more than 20% on the year, while Flutter has lost almost half of its value.