A famous bear just bought the sportsbooks. Is the story finally too cheap?
On 10 July 2026 investor Michael Burry revealed bets on Flutter near $107 and DraftKings in the low $26s, weighted about 60/40 toward Flutter. His view is that regulators will crack down on CFTC event contracts.
Flutter trades about 65% below its August high and DraftKings about 45% off its own high. Both are also building their own prediction-market products.
The share-price drop reflects a fear about the future, even though betting volume and revenue have not fallen anywhere near 65%.
That is the sign of a story vacuum. When a company stops explaining what it is, the market fills the gap with the scariest explanation available.
Building a rival product answers the product question and leaves the identity question open. The identity question is the one setting the price.
Expect the gap between results and share price to stay. It closes when an operator says plainly why a regulated sportsbook is worth more than an exchange.
A ruling before the next earnings would settle it from outside, on terms nobody in the industry chose. Smaller operators face the same squeeze without the cash to wait it out.