Rush Street debuts in Pennsylvania with Phil Galfond
One of the fastest-growing gaming companies in North America, Rush Street Interactive, has launched its online BetRivers Poker platform in Pennsylvania through a partnership...
Rush Street interactive sale may happen soon
Rush Street Interactive (RSI) sale might occur within two months, as per a recent report.
The Off Shore Gaming Association (OSGA) hinted that BetRivers’ owner might be sold by September, but didn’t name any potential buyers. Back in March, news came out that the Illinois-based gaming company was exploring acquisition options with several competitors, with DraftKings being the only one named specifically.
Currently, the US sports betting market is dominated by FanDuel and DraftKings. However, Rush Street Interactive, the owner of BetRivers, stands out as an attractive acquisition target for those wanting to increase their market share. In the first quarter, the company saw a 34% revenue increase and a significant reduction in net loss, dropping from $24.5 million to $2.2 million, along with positive earnings before interest, taxes, depreciation, and amortization (EBITDA).
Why Rush Street Interactive Might Be a Target
Rush Street Interactive (RSI) is an appealing acquisition target in the iGaming industry, drawing interest from a range of potential buyers, including DraftKings. RSI’s strong presence in the fast-growing Latin American market, particularly in Colombia and Mexico, boosts its appeal. The company might also secure a sports betting license in Brazil, the region’s largest economy. In the first quarter, RSI saw a 72% increase in monthly active users in Latin America, with a 4% rise in average revenue per user.
Despite some analysts doubting RSI’s likelihood as a takeover target, CEO Richard Schwartz mentioned in May 2023 that he is open to mergers and acquisitions discussions. RSI’s value has climbed, with shares up 98% this year and a market capitalization of $2 billion as of July 12. Any potential buyer would likely need to offer more than this to entice RSI into negotiations.
Assessing Potential RSI Suitors Beyond DraftKings
DraftKings might consider acquiring Rush Street Interactive (RSI) for iGaming expansion, but hasn’t confirmed any interest. Some analysts doubt it will pursue acquisitions soon.
The OSGA report mentioned smaller companies and European giant bet365 as potential RSI buyers, though no discussions have been confirmed.
RSI’s largest investor is hedge fund HG Vora, holding 8.79% of shares. Institutional investors own 28.81%, and insiders control 8.08%.
RSI operates under BetRivers and PlaySugarHouse brands, available in several US states and Ontario, Canada.
Rush Street Gaming named its new COO
Cliff Ehrlich has been appointed Chief Operating Officer at Rush Street Gaming.
Founded in the mid-1900s, Rush Street Gaming is one of the fastest-growing gaming companies...
