Report: Rush Street Interactive Approaching Potential Buyers, Including DraftKings
Online betting firm Rush Street Interactive is reportedly considering a sale, among other strategic options.
The company’s representatives have approached potential buyers, Bloomberg reported Thursday (March 21), citing unnamed sources.
Rush Street Interactive did not immediately reply to PYMNTS’ request for comment.
One of the potential buyers approached by the representatives is DraftKings, according to the report. A spokesperson for DraftKings told Bloomberg that the company often talks with other companies in the course of normal business and does not comment on those talks.
Rush Street Interactive, whose brands include BetRivers and RushBet, offers online betting in 15 U.S. states and three other countries, per the report. With reported sales of $691 million in 2023 — up 17% from 2022 — the company is ranked sixth among the companies in the online sports betting market and holds a market share of less than 2%.
The online betting market is dominated by DraftKings, FanDuel and a handful of other companies, and a number of companies have exited that business in the U.S. in recent years, the report said.
DraftKings announced in February that it reached an agreement to acquire Jackpocket, a leading digital lottery app in the United States, for total consideration of approximately $750 million.
During a Feb. 16 earnings call, DraftKings executives said that they anticipated “significant customer overlap between Jackpocket and DraftKings, implying a substantial cross-sell opportunity between product offerings.”
In January, FanDuel’s parent company, Flutter, began trading on the New York Stock Exchange (NYSE) while continuing to list on the London Stock Exchange. Flutter said at the time that it believed the NYSE is the optimal location for its primary listing of its shares and that it plans to make that transition as soon as practicable.
PYMNTS Intelligence has found that while sports betting has always been big business in the U.S. — though confined to off-track establishments, bookies or casinos — it has entered the mainstream market due to several states’ legalization of online sportsbooks.
As more states legalize online sportsbooks, the scale of sports betting is likely to continue increasing, according to the “Disbursements Satisfaction Report 2023: Instant Payouts Reach an Inflection Point,” a PYMNTS Intelligence and Ingo Money collaboration.
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