Harvard University Portfolio Has This Sports Betting Stock With Growth Catalysts

We just covered Harvard University Stock Portfolio 2026: Top 10 Picks. Flutter Entertainment (NYSE:FLUT) ranks #10 (see Harvard University Stock Portfolio 2026: Top 5 Picks).

Harvard’s Stake: $8,190,765

Flutter Entertainment (NYSE:FLUT) is the world’s largest online sports betting and iGaming company. Its most valuable asset is FanDuel, the dominant sports betting platform in the United States. The stock is down over 55% this year, hurt by two main fears. The first is the rise of prediction markets like Polymarket and Kalshi, which are pulling users away from traditional sportsbooks. An overall downturn in the sportsbook industry is also impacting the stock.

However, some believe the stock is undervalued and can rebound. Based on management’s full-year 2026 EBITDA guidance of $2.86 billion, the stock now trades at just 10.5x EV/EBITDA with a free cash flow yield above 10%,  well below its historical average.

The FIFA World Cup could be a catalyst. Some indicators show that over 60% of American soccer fans plan to bet on the tournament, and 29% of Americans plan to place their first-ever sports bet during the event.

iGaming — online casino games like slots and poker played over the internet — is another underappreciated growth driver. Unlike sportsbook betting, which is seasonal, iGaming generates revenue all year round. It is currently only legal in 7 US states, meaning expansion into new states is a significant untapped opportunity. Flutter Entertainment’s (NYSE:FLUT) iGaming segment already grew 28% year over year in Q1 2026.

Flutter Entertainment (NYSE:FLUT) is not ignoring the prediction market threat. The company announced it will launch FanDuel Predicts, its own prediction market product, backed by an initial $40 million investment.

While we acknowledge the risk and potential of FLUT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLUT and that has 10,000% upside potential, check out our report about the cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

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