DraftKings a potential buyer as Rush Street considers selling up

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Rush Street Interactive is exploring a number of options including a potential sale, according to sources in the know.

Bloomberg reported that company representatives have approached potential buyers including DraftKings.

RSI, which runs the BetRivers and PlaySugarHouse brands, offers online betting in 15 U.S. states and three other countries. 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.

Although Rush Street has yet to comment on the rumors, a spokesperson from DraftKings said to 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, now led by Chief Executive Richard Schwartz, went public in December 2020 via a merger with a special purpose acquisition company. 

Rush Street’s shares spiked over 12% on Thursday when the news broke but levelled out at a 4% increase on the day and ended with a market capitalization of $1.4 billion. DraftKings was up over 3% following the news.

The company generated a revenue of $691 million last year, marking a 17% growth year-on-year.

According to Eilers and Krejcik Gaming, Rush Street ranks sixth in terms of market share in the U.S., with less than 2% of the online sports betting market in the 12 months through January.

Similar deals in rearview

Rush Street wouldn’t be the only company to exit the U.S. through a sale to a larger competitor.

Last year, PointsBet sold its U.S. branch of the company to Fanatics while in 2022 DraftKings acquired Golden Nugget Online Gaming.