A group of hedge funds, including AQR Capital Management, DE Shaw, Marshall Wace and Two Sigma Investments, have collectively established a significant short position against Flutter Entertainment, amounting to an estimated £640m on the London Stock Exchange, according to report by the Irish Times.
The report cites regulatory filings as showing that the firm’s have have each taken positions betting that the share price of the gambling group will decline further following a period of sustained weakness.
Flutter’s stock has fallen sharply over the past year, dropping from above £230 to around £71.50, reflecting a combination of operational challenges and shifting investor sentiment toward the online gaming sector.
The disclosed short interest represents roughly 5% of Flutter’s issued share capital, although market participants suggest the total level of bearish positioning may be higher when including positions in other jurisdictions and below-reporting-threshold trades.
Under UK disclosure rules, short positions must only be reported publicly once they exceed 0.1% of a company’s share capital, meaning smaller positions across a wider group of investors may not be visible in aggregate data.
Among the largest disclosed holders, Two Sigma has built a particularly notable position, reflecting its data-driven, systematic investment approach, which relies heavily on quantitative models and machine learning to identify relative value and directional trading opportunities.
Analysts say the short positioning reflects a combination of company-specific pressures and broader structural concerns affecting the gambling industry, including regulatory developments, tax changes in key markets and softer-than-expected growth in certain international segments.
Flutter has faced headwinds across multiple regions, including regulatory changes in India, fiscal tightening in the UK and more moderate growth in the US online betting market than initially anticipated. Investors have also pointed to increasing competition from alternative betting and prediction-market platforms as a potential long-term risk factor.
Despite the bearish positioning, some analysts argue that the extent of short interest in the sector may be overstated in public disclosures, given reporting thresholds and the complexity of global derivatives exposure.
The wider gambling industry has come under pressure more broadly, with several listed operators experiencing significant share price declines over the past year as investors reassess growth assumptions and regulatory risks.
