The acquisition of Rush Street Interactive by DraftKings is under consideration.Insiders reveal that Rush Street Interactive is exploring several strategic options, with a potential sale being one of them.
Reports suggest that Rush Street Interactive is in talks with a number of interested parties, including the sports betting titan, DraftKings.
Although Rush Street Interactive hasn't officially addressed these rumors, a DraftKings representative mentioned that engaging in talks with various companies is standard business practice. Nonetheless, they abstained from confirming or refuting a particular interest in RSI.
Guided by CEO Richard Schwartz, Rush Street Interactive made its initial public offering in December 2020, merging with a special-purpose acquisition company.
Rush Street Interactive manages well-known brands like RushBet, BetRivers, and PlaySugarHouse.com, providing online betting across 15 U.S. states and Ontario, Canada.
In addition to North America, Rush Street Interactive has established a solid presence in Colombia and Mexico. The company rolled out BetRivers in Delaware by acquiring 888’s position to become the state lottery’s sports betting and iGaming provider, and it's keen on expanding further into Latin America.
A Company on the Up
In 2023, Rush Street Interactive reported a revenue of $691 million, marking a 17% growth from the previous year. Speculations about a potential sale and ties with DraftKings spurred a 12% lift in Rush Street's share price, while DraftKings also saw a 3% rise.
RSI’s stock has surged by 42.3% over the current year, with a remarkable 96% increase over the last year, positioning it as one of the top performers in the gaming sector. Recent assessments put its value at a minimum of $1.42 billion USD (approximately $1.93 billion CAD).
Discussions about a takeover are not new to Rush Street Interactive. In 2021, ESPN emerged as a prospective buyer and during the SBC Summit North America in May 2023, CEO Richard Schwartz welcomed potential buyout opportunities.
An Attractive Casino Prospect
Despite BetRivers being part of its portfolio, Rush Street Interactive isn’t viewed as a heavyweight in the North American sports betting arena — it holds the sixth spot in U.S. market share with under 2% within the last year through January.
Dominating the online betting landscape are DraftKings, FanDuel, and a few other giants. However, RSI shines with its internet casino offering, a massive hit in the U.S., making it attractive to many seeking to strengthen their foothold in the sector, DraftKings being a prime example.
DraftKings has shown a keen interest in acquisitions before. In 2022, they took over Golden Nugget Online Gaming and recently set the stage for purchasing the digital lottery platform Jackpocket for around $750 million. Could Rush Street Interactive be next in line?
Last Updated: March 26, 2024
