Investment Firm Eminence Capital Buys Sports Betting Shares, Sells MGM Holdings
Published: May 16, 2025, 03:51h.
Last Updated: May 16, 2025, 03:51h.
Todd Shriber @etfgodfatherDive Deeper Here Gambling FrenzyGaming BusinessTakeovers*
Realize the sly moves of Ricky Sandler's Eminence Capital in the gambling world as they escalate their investments in online sports betting stocks in Q1, unfurling a web of power among the top US operators.
As per the freshly disclosed 13F filings, the secretive hedge fund snared a chunky stake in Flutter Entertainment, scooping up 155,024 shares of the FanDuel parent. This new investment adds icing to the cake, as Flutter is the only gaming stock in the five new positions rolled by Eminence in the first three months of the year.
Joining this rapscallion ride, Eminence significantly amplified its stake in DraftKings, stockpiling a whopping 5.1 million shares. The DFS giant was one of 13 positions Eminence expanded their portfolio with in Q1, with the other gaming stock being Red Rock Resorts.
Now, let's take a stroke through the cards and snap the triad - Flutter Entertainment, DraftKings, and Entain Plc, the linchpins of the US online sportsbook market.
The End of a Chapter, Or a New Beginning?
For a long while, Sandler's been going guns blazing against Entain management, even managing to secure a seat on the board last year[1]. Unsurprisingly, whispers abounded that Sandler could have stirred the pot for the Coral owner to bid adieu to part or all of its 50% stake in BetMGM, something he's hollered for in the past.
Recent events could spur some interest, as Eminence parted ways with all their MGM Resorts International shares in the first quarter[2]. The plot thickens, folks, as the MGM partnership is the foundation upon which BetMGM stands tall in the gambling world.
We pinged Eminence for a comment, wondering what surprises the liquidation of their MGM investment could foreshadow, but they've kept mum so far.
New Fish in the Pond
Flutter's been successfully casting their net over the US market, mainly through their dominating FanDuel brand. While the company hasn't been dabbling in US M&A recently, they've been building a formidable presence through major acquisitions internationally[2].
On the other hand, DraftKings has been quietly gobbling up companies to beef up their offerings and ramp up their market share. In 2021, they gobbled up Golden Nugget Online Gaming, which was a savvy move in the US market[3].
Entain, Entain! Their M&A activities have been more focused on partnerships and regulatory compliance. However, they are still in talks and tinkering with potential deals to broaden their US presence, particularly with their BetMGM joint venture with MGM Resorts[1].
So, buckle up, y'all! The online sports betting arena is heating up, and the cats are circling each other. Follow the dance closer, folks - this wild ride ain't done yet!
[1] Source: Casino.org[2] Source: GamblingCompliance[3] Source: Forbes
Sandler's Eminence Capital, known for its recent moves, has significantly increased its investments in the finance sector, specifically in online sports betting stocks. In Q1, the hedge fund accumulated a substantial position in Flutter Entertainment, owner of FanDuel, and extended its stake in DraftKings.
As the top North American sports betting operators consolidate their power, it remains unclear if Eminence's withdrawal from MGM Resorts International shares signifies a new strategic shift towards further investments in the sports betting and online gaming market.
