Rush Street Interactive talking to potential buyers including DraftKings

BetRivers owner exploring possible sale

Rush Street Interactive is exploring a number of realignment options including a potential sale, sources have told Bloomberg.

Company representatives are believed to have approached multiple potential buyers including DraftKings.

Rush Street would not comment on the rumours but a spokesperson from DraftKings told Bloomberg that the company “speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions.”

Rush Street, led by CEO Richard Schwartz, went public in December 2020 via a merger with a special purpose acquisition company.

The company, which runs several brands including BetRivers, RushBet, and, offers online betting in 15 U.S. states and the province of Ontario as well as having a sizeable footprint in Colombia and Mexico. Most recently it launched BetRivers in Delaware, taking up an agreement to replace 888 as the provider of sports betting and iGaming to the state lottery. It also has eyes on Latin American expansion.

In Ontario, RSI launched BetRivers as a day-one operator in the province’s legal sports betting market in spring 2022.

Rush Street Interactive reported revenue of $691 million USD last year, marking a 17% growth year-on-year.

News of the interest in a sale and the links with DraftKings pushed Rush Street shares up by 12% at one stage on Thursday. By day’s end, they had settled at a 4% jump, while DraftKings was up over 3%. RSI’s stock is up 42.3% year-to-date and 96% over the past year, making it one of the best-performing gaming equities.

Rush Street ended Thursday valued at $1.42 billion USD ($1.93 billion CAD).

Takeover talk about Rush Street Interactive isn’t new. Back in 2021, ESPN was credited as an interested potential buyer and Schwartz said at last May’s SBC Summit North America that he would keep an open mind if prospective buyers emerged.

iCasino offerings attractive to buyers

RSI isn’t a major player in the North American sports betting market despite BetRivers’ presence.

According to Eilers & Krejcik Gaming, Rush Street ranks sixth in market share in the U.S., holding less than 2% of the online sports betting market in the 12 months through January. The online betting market is dominated by DraftKings, FanDuel, and other major players, and a number of less impactful companies have exited the U.S. sports betting market through sales in recent years.

However, RSI has robust internet casino offerings with a deeper footprint in the U.S. market, which could make it attractive to numerous buyers looking to stay ahead of the curve in that space. DraftKings is one of a number of companies that would seem to fit that bill.

Rush Street wouldn’t be the only company to exit the U.S. sports betting market through a sale to a larger competitor. Last year, PointsBet sold its U.S. branch to Fanatics while in 2022, DraftKings acquired Golden Nugget Online Gaming.

Meanwhile, DraftKings made a big recent move when it announced in February that it had reached an agreement to acquire Jackpocket, a leading U.S. digital lottery app, for a total consideration of approximately $750 million. DK Chief Financial Officer Jason Park has transitioned into the role of Chief Transformation Officer in part to oversee that acquisition.

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