July 8 (Reuters) - Michael Burry, the investor famed for predicting and profiting from the 2008 U.S. housing market collapse, has bought shares of sports-betting platforms Flutter Entertainment and DraftKings, wagering regulatory scrutiny will eventually curb the threat posed by prediction markets.
Burry said on Wednesday he bought Flutter at about $107 a share and DraftKings "in the low $26s." Together, the investments make up a full-sized position weighted roughly 60/40 toward Flutter, though the investor
said he may make each a full position in the future.
Prediction markets are the main threat facing the two companies, Burry said in a post on his website, because their event contracts can be offered nationwide under Commodity Futures Trading Commission oversight while avoiding state gaming taxes.
Prediction markets let traders 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. "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, down 50% this year as of last close, remain attractive because the company is a strong business with significant scale despite past capital misallocation, while DraftKings, whose shares are down 21%, is inflecting as an operating business, the investor said.
Meanwhile, Burry also said he bought more JD.com shares at $27.58, calling it one of his top three positions, and that he expects Hong Kong and Chinese stocks to benefit as AI and memory-chip enthusiasm unwinds in South Korea and Japan.
(Reporting by Pragyan Kalita in Bengaluru; Editing by Jonathan Ananda)
