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Rush Street Interactive Inc. (RSI) is looking into strategic options, including a potential sale, Bloomberg reported. A confidential source shared that representatives of RSI have approached potential buyers, including DraftKings Inc.
A spokesperson for DraftKings (NASDAQ: DKNG) said his firm “speaks to a variety of companies regarding various matters” in the normal course of business. According to a Bloomberg article, the spokesperson said:
“It is our general policy not to comment on the specifics of any of those discussions.”
RSI, however, hasn’t shared any official comments or statements so far.
RSI holds about 2% of the US online sports betting market share
Chicago-based RSI is a derivative of the real estate and casino empire of billionaire Neil Bluhm, who remains its controlling shareholder.
Rush Street Interactive (NYSE: RSI) operates gaming brands, including BetRivers, PlaySugarHouse and RushBet.
RSI is the sixth largest gambling operator in the US online sports betting market, with BetRivers holding nearly 2% of the market share, according to research firm Eilers & Krejcik Gaming.
RSI offers online sports betting operations through its brands in fifteen US states. RSI also operates its US online casino in New Jersey, Pennsylvania, Michigan and Delaware.
Besides the US, RSI’s RushBet brand has a significant presence in the Latin American online gambling market, including Mexico and Colombia. The operator is also present in Ontario, Canada.
RSI became a public company through a merger with a special-purpose acquisition company in December 2020. Its shares exceeded $25 in January 2021.
Last week, on March 30, they closed at $6.12, giving the company a market capitalization of $1.3 billion. RSI announced robust financial results for the fourth quarter of 2023 and the full year, with a record revenue total of $193.9 million, an annual 17% increase.
2023 and 2022 have been challenging for gambling operators
Many operators have been forced to shut down their businesses in the US in the past two years. That includes brands like 888’s SI Sportsbook and Kindred’s Unibet.
Likewise, Churchill Downs Inc. and Australia’s PointsBet Holdings Ltd exited the US business. Furthermore, DraftKings acquired Golden Nugget Online Gambling Inc. in 2022.
Last week, Bloomberg reported MGM Resorts was looking at potential sales of Ohio and Massachusetts casinos.
Operators launching and running businesses in the US sports gambling scene face many challenges. Besides having to pay high entry costs, operators face fierce competition with the US market dominated by the two giants, DraftKings and FanDuel, a division of Ireland’s Flutter Entertainment Plc.
