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Michael Burry has taken positions in sportsbook operators DraftKings and Flutter.
The trade is built on a single regulatory thesis: prediction markets, which have competed directly with sportsbooks and pressured their stocks, will eventually be curtailed by government regulators.
Burry is betting the competitive displacement is temporary, not structural. The thesis and its sequence Burry's positions in DraftKings and Flutter follow a specific logic.
Prediction market platforms, described as upstarts, moved into territory that overlaps with traditional sports betting. That competition weighed on the stocks of DraftKings and Flutter.
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