DraftKings is a potential buyer of Rush Street Interactive with sources revealing it is exploring a potential sale, among other options.
A report from Bloomberg claims company representatives have approached several potential buyers, including DraftKings.
RSI, which operates both the PlaySugarHouse and BetRivers brands, provides online gaming and betting to 15 states in the U.S.
It most recently launched BetRivers in Delaware, replacing 888 as the sports betting and iGaming provider to the state lottery.
Rush Street has not yet confirmed or denied these rumors, 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.”
Who Are Rush Street Interactive?
Going public in 2020, Rush Street Interactive was formed via a merger with a special-purpose acquisition company. The company is now headed up by Chief Executive, Richard Schwartz.
Rush Street’s shares spiked more than 12% when news of their possible sale first broke on Thursday. Prices levelled out at a 4% increase on the day, ending with a market capitalization of $1.4 billion. DraftKings also rose in price, up 3% following the reports.
RSI generated revenue of $691m in 2023, which represented a year-on-year growth of 17%. And according to data from Eilers and Krejcik Gaming, Rush Street is the sixth-ranked company in terms of U.S. market share.
In the 12 months through to January, RSI took up less than 2% of the sports betting market.
This wouldn’t be the first time a betting operator has exited the U.S. market via a sale to a larger competitor in recent years, though.
Last year, Fanatics purchased the U.S branch of PointsBet, while DraftKings also bought out Golden Nugget Online Gaming back in 2022.
Should they emerge as the eventual buyers, it would be the second time DraftKings has bought out a rival recently.
For more seamless gaming experiences and instant payouts, explore the fastest payout online casinos.
