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Flutter's logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

CompaniesJuly 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 (FLTRF.L), opens new tab and DraftKings (DKNG.O), opens new tab, 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.

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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

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DraftKings Predictions continues rapid growth, generating approximately $3.4 billion in annualized consumer volume within DraftKings' unified platform

BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced the launch of its proprietary prediction markets exchange, DKeX, with integration into the unified DraftKings: Sports & Casino app, further advancing the DraftKings Predictions experience. The launch positions the Company to innovate more rapidly through greater ownership over content depth, operating economics, and the end-to-end customer experience. DKeX marks the next phase in DraftKings’ prediction markets evolution, strengthening its ability to deliver differentiated sports experiences across the country alongside its leading sportsbook.

DKeX marks the next phase in DraftKings’ prediction markets evolution, strengthening its ability to deliver differentiated sports experiences across the country alongside its leading sportsbook.

Share "DraftKings is at its best when building innovative platforms that bring together technology, customer focus, and world-class execution to shape the future of sports engagement," said Jason Robins, Chief Executive Officer and Co-Founder of DraftKings. "The momentum we've seen on DraftKings Predictions in recent months reflects the significant progress we've made in delivering a more seamless and connected experience for sports fans. DKeX provides a vertically integrated foundation for DraftKings Predictions, strengthening our prediction markets content and capabilities, giving us greater control over the technology that powers those offerings, and enabling us to move faster as we continue enhancing our unified app."

The launch of DKeX comes as DraftKings Predictions continues rapid growth, with approximately $3.4 billion in annualized consumer volume and approximately $11.3 billion in annualized total trading volume for the week ended June 21. The Company expects continued growth throughout July, driven by ongoing enhancements to the platform, growing adoption of new event contracts and features such as combinations, and heightened interest surrounding the World Cup. Since launching in mid-May, more than 30% of customers have used combinations, which allow multiple individual contracts to be bundled into a single position, highlighting strong demand for a customizable, sports-first prediction markets experience.

“The launch of DKeX and its integration into our unified app is a major step forward in delivering a best-in-class customer experience in sports nationwide,” said Jeanine Hightower-Sellitto, DraftKings Senior Vice President and General Manager of Prediction Markets. “The pace of development across Predictions has been substantial, from expanding our event contract offerings to introducing key features like combos, which customers have quickly embraced. DKeX is the latest milestone in that progression and creates new opportunities to further expand the offering ahead of some of the biggest moments on the sports calendar.”

As part of DraftKings' all-in-one platform strategy, DraftKings Predictions continues to evolve within the unified app. The DraftKings Sports experience brings sports betting and prediction market trading together with sportsbook offerings and/or sports event contracts available based on customer location. Recent enhancements include Predictions Sports Combos, expanded pre-game and in-play stats, dedicated hubs for major events such as the World Cup, and an always-on Live tab that surfaces real-time sporting events, giving customers more opportunities to engage with key moments as they unfold. DraftKings also enhanced its Responsible Engagement tools through My Budget and Controls, an in-app destination for managing deposit limits and personalized activity alerts.

DraftKings Predictions has also expanded with additional event contract offerings, including MLB player and futures contracts, No Runs First Inning (NRFI) baseball, broader NBA and NHL selections, and international sports.

The DraftKings Sports experience is available nationally, including sports event contracts in 18 states. The Company applies its Responsible Engagement principles across its prediction markets offering, supporting informed participation through tools and resources, including the DraftKings Responsible Trading Center.

DKeX leverages the technology and CFTC license from DraftKings’ acquisition of Railbird Technologies.

To access prediction markets and more, customers can download the DraftKings: Sports & Casino app on iOS and Android.

About DraftKings
DraftKings Inc. is a digital sports and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with platforms that range across daily fantasy, regulated gaming, prediction markets and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games, betting experiences and event contracts trading. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Puerto Rico, and Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III LLC (d/b/a DraftKings Predictions) also operates DraftKings Predictions, offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NHL, PGA TOUR and WNBA, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to delivering responsible engagement tools and resources, while focusing on integrity and customer education.

Forward-Looking Statements
Certain statements made in this press release are “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see DraftKings’ filings with the Securities and Exchange Commission. DraftKings does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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