Rush Street Interactive Inc Considers Strategic Options
Chicago-based online betting firm, Rush Street Interactive Inc (RSI), is exploring strategic options that may lead to a potential sale.
One of the steps in this exploration involves reaching out to potential buyers, including DraftKings Inc (DKNG).
While DraftKings acknowledged the contact, the company refrained from disclosing the specifics of any ongoing discussions, citing standard operational engagements with various entities.
Backed by billionaire Neil Bluhm, Rush Street Interactive operates prominent brands like BetRivers and RushBet, experiencing a remarkable revenue surge of 17% to $691 million last year.
Rush Street’s Position in the Market
Despite its impressive growth, Rush Street Interactive continues to be a modest player compared to industry behemoths like DraftKings and FanDuel that dominate the online sports betting industry.
According to research by Eilers & Krejcik Gaming cited in a Bloomberg report, Rush Street holds a meager market share, ranking sixth with less than 2% of the market in the year leading up to January.
Industry Trends and Movement
Recent times have seen various players exiting the U.S. online betting market, with companies like Churchill Downs Inc and PointsBet Holdings Ltd. making notable exits. Others, like Tilman Fertitta, have chosen to divest their ventures, such as Golden Nugget Online Gaming Inc., to industry giants like DraftKings.
Under the guidance of CEO Richard Schwartz, Rush Street Interactive went public in December 2020 through a merger with a special purpose acquisition company.
Stock Performance
Price Action: RSI closed at $6.36 on Thursday, while DKNG shares showed a 0.15% uptick to $48.02 during the premarket session at the last check on Friday.
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