Published on: November 15, 2025, 02:50h.
Updated on: November 15, 2025, 02:50h.
- A prominent investor has cut his shares in Penn Entertainment
- Another investor has reduced his holdings in MGM
- A hedge fund completely divested from DraftKings
The filing season for Form 13F is actively ongoing, and the latest documents reveal that several notable hedge fund managers are decreasing their investments in casino stocks.
According to a Form 13F disclosed on Friday, David Einhorn’s DME Capital Management has taken a slight step back, trimming its holdings in Penn Entertainment (NASDAQ: PENN) to around seven million shares from 7.5 million. This adjustment follows a significant increase in its position during the previous quarter.
Penn remains the sole gaming stock represented in the DME Capital portfolio, and the reduction was revealed shortly after the gaming operator announced the conclusion of its partnership with ESPN Bet.
“Over the next three years, we anticipate the company’s debt/adjusted EBITDA averaging 2.8 times, enhanced by improved profitability within its interactive sector, assisted by the termination of its ESPN partnership in December 2025, which previously required an annual marketing investment of $150 million,” notes Dan Wasiolek from Morningstar.
When Penn presented its third-quarter financials recently, it highlighted the early conclusion of the ESPN Bet deal—an action that received positive feedback from analysts.
Meister’s Corvex Adjusts MGM Holdings
Another notable casino stock impacted by hedge fund adjustments was MGM Resorts International (NYSE: MGM).
A recent 13F filing from Keith Meister’s Corvex Management indicates a reduction in its stake in the Bellagio operator from 5.62 million shares to 5.38 million. This marks the second consecutive quarter of reduced holdings for Corvex in MGM.
Corvex also decreased its investment in Barry Diller’s IAC/InterActiveCorp (NASDAQ: IAC) from 2.7 million shares to approximately two million, as IAC is MGM’s largest shareholder.
Meister continues to serve on MGM’s board of directors.
DraftKings Exits by Whale Rock
In addition to casino stocks, other gaming companies faced third-quarter divestment from hedge funds. For instance, Whale Rock Capital Management opted to entirely exit its position in DraftKings (NASDAQ: DKNG).
Individuals filing Form 13F are not obligated to explain their buy or sell decisions, making it unclear whether Whale Rock’s withdrawal from DraftKings was influenced by recent prediction market trends or general industry challenges stemming from significant betting success in the NFL.
On a positive note for DraftKings, a separate regulatory filing revealed that Director Harry Sloan acquired 25,000 shares of the company, increasing his total holdings to 249,712 shares.