Eminence Capital Feasts on Sports Betting Stocks, Dumps MGM

• Hedge fund was already a large investor in Entain
• Sandler’s firm starts new Flutter position, adds to DraftKings stake in Q1

Despite already being a large shareholder of Entain Plc (OTC: GMVHF), which owns half of BetMGM, Ricky Sandler’s Eminence Capital boosted its exposure to sports wagering stocks in the first quarter.

A Form 13F filed with the Securities and Exchange Commission (SEC) Thursday indicates the hedge fund initiated a position in Flutter Entertainment (NYSE: FLUT) in the first quarter, buying 155,024 shares of the FanDuel parent. Flutter was one of five new positions taken by Eminence in the first three months and the only gaming stock among that quintet.

The money manager also nearly tripled its stake in DraftKings (NASDAQ: DKNG) to 5.1 million shares. DraftKings was one 13 positions Eminence added to in the first quarter and one of two gaming stocks in that group with the other being Red Rock Resorts (NASDAQ: RRR).

With the new Flutter position and the stakes in DraftKings and Entain, the hedge fund now has exposure to the three largest US online sportsbook operators — FanDuel, DraftKings, and BetMGM.

Disposal of MGM Stake Could Raise Questions

Sandler had long been a vocal critic of Entain management and he leveraged that dismay into a board seat at the Coral owner last year.

Casino.org reached out to Eminence for comment, inquiring about potential implications resulting from the liquidation of its MGM investment as it relates to Entain, but that request was not acknowledged as of this writing.

The hedge fund also sold all of its Wynn Resorts (NASDAQ: WYNN) position in the first quarter.

More Pros Backing Flutter

As confirmed by the recent spate of 13F filings, the first quarter was the latest stretch in which professional investors in the US added to or initiated stakes in Flutter, validating the Dublin-based company’s 2024 decision to list its shares in New York.

That shift occurred in early 2024 and it’s been nearly a year since the gaming company shifted its primary listing to New York from London. One of the reasons the operators made those moves was to gain a larger following among American institutional investors.

The current 13F filing season confirms Flutter was wise to list in New York because multiple money managers, including Eminence, either added to or started fresh positions in the stock in the first three months of the year.