Report: Rush Street Interactive in rumoured talks with DraftKings ahead of potential sale
Chicago-based online operator has reportedly reached out to several potential suitors about acquiring the 12-year-old sports betting and igaming firm
Rush Street Interactive (RSI) has reportedly begun talks with a number of potential buyers, including DraftKings, about acquiring the business.
Bloomberg reported on Thursday 21 March, that sources said a representative of RSI has contacted DraftKings to discuss a potential sale of the operator.
While RSI declined to comment, a representative for DraftKings told Bloomberg that “[DraftKings] 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.”
The story caused to RSI’s stock to spike before rebounding and, at the time of writing, is $6.68 (£5.30). RSI shares are up almost 60% in 2024 amid mounting speculation over a potential sale.
In its most recent financial results, posted on 7 March, RSI reported a 17% year-on-year (YOY) increase in revenue to $193.3m for the final quarter of 2023.
The BetRivers and PlaySugarHouse operator also reported that net losses were down 82.3% YOY, with adjusted EBITDA reaching $11.5m in Q4.
According to research firm Eilers & Krejcik Gaming, BetRivers’ market share of the US online gambling market, based on GGR, has steadily declined from around 6% in early 2022 to 4% by the end of Q4 2023.
Founded in 2012, RSI, which also has a social casino operation, employs more than 800 people across 23 countries, according to its corporate website.
Its Kambi-powered BetRivers spotsbook is also live in the regulated Colombian market.
If DraftKings were to make a move for RSI, it would be the Boston-based operator’s second big transaction so far in 2024 after its acquisition of lottery courier Jackpocket for $750m in February.
The deal, which was signed on 11 February, will see Jackpocket shareholders receive around $412.5m in cash and approximately $337.5m in DraftKings common stock.
DraftKings announced on Tuesday19 March that it would be reshuffling its C-suite to assist with the Jackpocket amalgamation, with long-term CFO Jason Park moving into the role of chief transformation officer to oversee the integration.