Eminence Capital Feasts on Sports Betting Stocks, Dumps MGM
Eminence Capital Feasts on Sports Betting Stocks, Dumps MGM
Despite already holding a significant share in Entain Plc, which owns half of BetMGM, Ricky Sandler’s Eminence Capital has ramped up its stake in sports betting during the first quarter.
A Form 13F submitted to the Securities and Exchange Commission (SEC) indicates that Eminence started its investment in Flutter Entertainment, acquiring 155,024 shares of the parent company of FanDuel. This marked one of five new investments made by Eminence in the first three months, with Flutter being the only gaming stock among them.
In addition to this, the hedge fund nearly tripled its holdings in DraftKings, increasing its share count to 5.1 million. DraftKings was among 13 positions expanded by Eminence, and one of two gaming stocks in that batch alongside Red Rock Resorts.
With these commitments toward Flutter, DraftKings, and Entain, Eminence Capital now has stakes in the three largest online sportsbook operators in the US — FanDuel, DraftKings, and BetMGM.
Disposal of MGM Stake Could Raise Questions
Sandler has been known for voicing his criticism of Entain management, which led to him securing a board position at the Coral owner’s board last year.
With his involvement, some analysts speculated that Sandler’s association with Entain could pave the way for potential divestiture of the company’s 50% stake in BetMGM, something he previously advocated for. This speculation is particularly intriguing given that Eminence completely liquidated its existing stake in MGM Resorts International — partner to Entain for BetMGM — in the first quarter.
Casino.org reached out to Eminence for comment about the possible implications stemming from its exit from MGM, but the inquiry went unanswered.
The hedge fund also disposed of its entire position in Wynn Resorts during the same quarter.
Emerging Support for Flutter
Recent 13F filings confirm that the first quarter saw numerous professional investors in the US adding to or initiating stakes in Flutter, backing up the decision made by the Dublin company to list its shares in New York in 2024.
This transition to New York was a strategic move made nearly a year ago to attract more American institutional investors, broadening its market reach.
The current 13F filing cycle corroborates that listing in New York was a prudent choice for Flutter as a number of investment managers, including Eminence, initiated or expanded their positions throughout the first three months of the year.
Key Takeaways
- Eminence Capital increases its investments in key sports betting stocks.
- New positions taken in Flutter and substantial additional investments in DraftKings.
- Disposal of MGM Resorts and Wynn signifies a strategic shift in focus towards top sports wagering entities.
- Flutter’s decision to list in New York is yielding positive outcomes.
Overall, Eminence Capital is demonstrating a confident ramp-up in sports betting investments, showcasing a strategic pivot which may shape the future landscape of the betting industry.
