During 2025’s first quarter, Eminence Capital made a big push into online sports betting, changing up its game plan for gambling investments. CEO Ricky Sandler led the hedge fund to increase its ownership in major US sports betting companies while selling its shares in MGM Resorts International.
Eminence Capital Expands Sports Betting Holdings with Flutter and DraftKings
A new filing with the US Securities and Exchange Commission (SEC) showed that Eminence Capital started a new stake in Flutter Entertainment, buying over 155,000 shares of the company that owns FanDuel.
This was one of just five new investments the fund made during the quarter, and the only one related to gaming in that group. The purchase adds to Eminence’s already big position in Entain, which co-owns BetMGM, and strengthens its involvement in the growing online betting industry.
The hedge fund tripled its stake in DraftKings, bringing its total holdings to about 5.1 million shares. It also boosted its investment in Red Rock Resorts, showing a focused push toward companies with robust US gaming operations. These actions now give Eminence Capital exposure to the country’s three leading sportsbook operators: FanDuel, DraftKings, and BetMGM.
Eminence Capital Backs US Betting While Dropping MGM and Wynn Stakes
The complete exit of the firm from its MGM Resorts position has led to speculation among industry watchers. Entain’s joint venture with MGM in BetMGM, along with Sandler’s earlier criticism of Entain’s management, has caused some market experts to wonder if this sale points to a bigger strategy shift. Sandler got a seat on Entain’s board last year to push for changes, including a possible sale of the company’s stake in BetMGM.
Eminence’s move away from MGM comes after it sold off another major gaming position, Wynn Resorts, in the same quarter. The hedge fund has not given any official reason for these sales.
Flutter Entertainment’s plan to attract US institutional investors seems to be working out. The company moved its main listing from London to New York in early 2024, which has caught the eye of more American investment firms.
The latest 13F filings show that several big-name money managers have started or increased their stakes in Flutter, with Eminence being one of the newest to jump on board. Eminence Capital’s shift in investments highlights the growing trust investors have in the US sports betting market. It also points to a clear wager on digital betting platforms that have strong operations within the country.