Tiny US Online Betting Firm Rush Street Interactive Contacts DraftKings As It Seeks Strategic Options

Rush Street Interactive Inc RSI, the Chicago-based online betting firm, is considering strategic options that could potentially lead to a sale.

The exploration includes contacting potential buyers such as DraftKings Inc DKNG.

Responding to inquiries about the situation, DraftKings stated that they engage with various entities on different topics as part of their standard operations but refrained from delving into specifics concerning ongoing discussions. 

Rush Street, backed by billionaire Neil Bluhm, operates under brands like BetRivers and RushBet, boasting a revenue surge of 17% to $691 million last year.

Rush Street remains a relatively minor player despite its growth compared to industry giants like DraftKings and FanDuel, which dominate the online sports betting landscape. 

Citing research from Eilers & Krejcik Gaming, the Bloomberg report indicates that Rush Street holds a meager share, ranking sixth with less than 2% of the market in the year leading to January.

The online betting sector has witnessed various players exit the U.S. market recently, including Churchill Downs Inc and PointsBet Holdings Ltd., while others like Tilman Fertitta opted to sell their ventures, such as Golden Nugget Online Gaming Inc., to DraftKings in 2022.

Under the leadership of CEO Richard Schwartz, Rush Street went public in December 2020 through a merger with a special purpose acquisition company. 

Price Action: RSI closed at $6.36 on Thursday, and DKNG shares are up 0.15% at $48.02 during the premarket session on the last check Friday.

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