DraftKings Buy Rush Street Interactive DraftKings Buy Rush Street Interactive

According to sources, Rush Street Interactive is considering a number of different realignment strategies, including the possibility of selling up.

It’s been reported that company representatives have been in discussions with several potential buyers, including sports betting giant DraftKings.

While Rush Street hasn’t yet made any official comments on the matter, a spokesperson from DraftKings has confirmed that the company is often in discussions with companies as part of its regular business operations. However, they chose not to provide details on specific conversations… and could neither confirm nor deny their interest in RSI.

Under the leadership of CEO Richard Schwartz, Rush Street Interactive first went public in December 2020 through a merger with a special purpose acquisition company.

The company, which oversees several big brands, such as RushBet, BetRivers, and PlaySugarHouse.com, offers online betting services in 15 U.S. states and the Canadian province of Ontario.

As well as this, it is quite a big player in Colombia and Mexico. It recently introduced BetRivers in Delaware after securing an agreement to replace 888 and take over as the state lottery’s sports betting and iGaming provider. Rush Street Interactive has also expressed interest in expanding into Latin America.

A Company on the Up

In 2023, Rush Street Interactive reported revenue of US$691 million—a 17% year-on-year growth. What’s more, the rumours surrounding the potential sale and the association with DraftKings led to an initial 12% rise in Rush Street shares, while DraftKings saw an increase of over 3%.

Year-to-date, RSI’s stock has risen by 42.3%, and over the past year, it has grown by 96%—which makes it one of the top-performing stocks in the gaming industry. Recent reports suggest it is currently valued at at least US$1.42 billion ($1.93 billion CAD).

However, this isn’t the first time Rush Street Interactive has been involved in takeover discussions. Indeed, in 2021, ESPN was mentioned as a potential buyer, and CEO Richard Schwartz confirmed that he was open to prospective buyers during the SBC Summit North America in May 2023.

An Attractive Casino Prospect

Despite their ownership of BetRivers, Rush Street Interactive (RSI) isn’t considered a major player in North American sports betting. As it stands, Rush Street only ranks sixth in market share in the U.S. – with less than 2% of the online sports betting market in the 12 months through January.

Unsurprisingly, the online betting market is dominated by DraftKings, FanDuel, and a few other big players. However, what RSI does offer that makes it an appealing prospect, is its internet casino, which is incredibly popular in the U.S. market. This makes it appealing to lots of possible buyers who are looking to get – or keep – a competitive edge in the industry. And DraftKings certainly fits the bill.

Rush Street International isn’t the first to have caught DraftKings’ eye. In 2022, they acquired Golden Nugget Online Gaming. What’s more, DraftKings recently made a significant move by announcing in February that it had reached an agreement to purchase Jackpocket, a major U.S. digital lottery app, for around $750 million. Will RSI be the next on their shopping list? We’ll have to wait and see…

Last Updated: March 26, 2024

Erik Jensen is a seasoned gambling expert that has previous worked at one of the largest igaming companies globally. He has also extensive experience working with online casino campaigns for the biggest companies in the world. In the last 5 years Erik has solely been focusing on the Canadian market to give the best up to date news and best casino bonuses available for the Canadian casino players.

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