Investment Firm, Eminence Capital, Favoring Sports Betting Shares over MGM, Shedding Position in MGM Stocks
Posted on: May 16, 2025, 03:51h.Last updated on: May 16, 2025, 03:51h.
Todd Shriber @etfgodfatherRead MoreGaming BizMergers and Acquisitions Hedge fund goes all-in on sports wagering stocks* Eminence dives headfirst into Flutter, beefs up DraftKings stake in Q1*
Here comes a major shakeup for the gaming sector as Ricky Sandler's Eminence Capital dives deep into the heart of sports betting stocks.
The hedge fund's latest move, as revealed in a form 13F filed with the Securities and Exchange Commission (SEC), brings them full tilt into Flutter Entertainment, the parent company of FanDuel. Sandler's crew picked up a whopping 155,024 shares in Flutter in Q1, making it one of only five new positions taken by Eminence in the same period.
Moreover, Eminence ramped up their bet on DraftKings, nearly tripling their stake, securing a position of 5.1 million shares. These maneuvers place Eminence in the driver's seat with the big three US online sportsbook operators: FanDuel, DraftKings, and BetMGM.
Leaving MGM Behind?
A long-time critic of Entain management, Sandler had previously advocated for a divestment of Entain's 50% stake in BetMGM - which might raise eyebrows given that he just sold off all of his previously held MGM Resorts International shares in Q1.
speculation swirls around whether this move might foreshadow a strategic reevaluation for Entain and BetMGM. Some analysts even propose this could mean that the company may be considering parting ways with its 50% stake in BetMGM.
We reached out to Eminence for comment, but as of now, they haven't dropped a line on the matter.
The Great Institutional Shift
This latest chapter in the world of 13F filings affirms that the first quarter was yet another spell where expert investors piled on to or initiated stakes in Flutter, nodding to the company's 2024 decision to list its shares on the New York Stock Exchange.
That decision to trade on the NYSE marked a significant shift, happening back in early 2024 and now nearing a year since they moved away from the London Stock Exchange. Both operators made the leap to attract more American institutional investors.
Currently, a wave of 13F filings reveals that a slew of money managers, including Eminence, either ramped up or launched new positions in Flutter in the first quarter of the year.
Potential Impact on Entain and BetMGM
With Eminence's backing, Flutter is set to shake things up in the sports betting arena, doubling its firepower against Entain's BetMGM. As Flutter consolidates its position, Entain might need to adapt its strategies to remain competitive in this high-stakes game.
Stay tuned as these gaming giants reposition themselves in the ever-evolving sports betting landscape.
In light of the latest financial moves by Eminence Capital, there might be significant changes for Entain and BetMGM in the sports betting industry. Eminence's increased stakes in Flutter Entertainment, the parent company of FanDuel, and DraftKings, coupled with their divestment from MGM Resorts International, signals a potential shift in strategy for these companies. Moreover, the surge in institutional interest in Flutter, following its decision to list its shares on the New York Stock Exchange, may escalate competition within the sports betting sector.
