Rush Street Interactive could be on the open market.
The sports betting and gaming company that owns BetRivers, PlaySugarHouse, and Rush Bet is mulling over a potential sale among a number of strategic options, according to a Bloomberg report.
The report says RSI has reached out to potential buyers, including online sports betting giant DraftKings, one of the top market share operators in the U.S.
Both RSI and DraftKings declined comment while RSI shares were up following the Thursday report.
Rush Street is one of the top iGaming companies in the U.S., making it potentially an attractive addition to a big name like DraftKings.
Seven U.S. states currently offer lucrative legal online casinos while other jurisdictions, like Maryland, are eyeing iGaming for tax revenue benefits.
Across the Americas
RSI’s sports betting and iGaming sites operate in 15 U.S. states and three other countries. The company recently launched operations in Delaware and has a strong sports betting and online casino presence in Pennsylvania.
Rush Street reported 2023 revenue of $691 million, a 17% increase from 2022. The company’s three brands brought in $194 million in the fourth quarter of 2023, a 17% year-over-year hike.
“With a substantial cash balance and no debt, our financial wherewithal provides us the luxury of continuing to execute on our long-term strategy and investing appropriately in new markets," RSI CEO Richard Schwartz said earlier this month. "Our strong launch in Delaware exemplifies our ability to identify and grow new and exciting markets, including the opportunities we are pursuing across the Americas.”
Why sell?
Should RSI indeed sell all or portions of its company, it could speak to how difficult it can be to do business in the U.S. It could also show what the going rate for iGaming purchases is these days.
The report that the company is weighing its options is nothing new. RSI went public in 2020 and has been rumored to seek a sale since 2021.
DraftKings and FanDuel dominate the U.S. market, but online U.S. casino revenue is booming.
Last month, DraftKings purchased Jackpocket, the largest lottery app in the U.S., for $750 million.
