Rush Street Interactive could be a takeover target for Stake.com
Cryptocurrency casino operator Stake.com is rumored to be considering an acquisition to enter the U.S. iGaming market, and Rush Street Interactive (NYSE: RSI ) could be on the list of potential suitors.
Stake has been surrounded by controversy, but it is seeking to enter more tightly regulated gambling markets around the world, including the United States. Rush Street Interactive has long been considered an acquisition target, and it ticks many of the boxes a potential buyer might be looking for.
There are not many companies that fit the description of large, regulated and for sale. Eilers & Krejcik Gaming (EKG) stated in the latest EKG Line report: “Rush Street Interactive is a logical choice as it has been for sale for a long time and has an online casino license that Stake is likely to covet. Certificate."
Stake has also filed for iGaming in the Canadian province of Ontario and is currently awaiting approval from Australia’s regulated internet gambling market.
More Stake.Com acquisition rumors
EKG added that Stake.com may also have been exploring deals in fantasy sports and skill games. However, the research firm did not disclose any companies that cryptocurrency casino operators are considering.
One thing is clear: Stake has the resources to complete the transaction. Last year, the company had sales of $2.6 billion, well ahead of DraftKings' $2.2 billion. The company has 6 million registered accounts, 10% of which are considered active users, in major markets such as Brazil and Japan, EKG said, citing the Financial Times.
As for Rush Street Interactive, the operator has a market cap of $699.1 million, is reasonably priced, and is open to acquisition discussions. In the United States, Chicago-based RSI operates under the BetRivers and PlaySugarHouse brands and is currently available in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia and West Virginia of mobile or retail store purchases.
RSI also offers mobile sports betting in Ontario, which may be attractive to buyers due to its access to Latin America, including Colombia and Mexico.
Speculation about iGaming/sports betting integration is set to change as PointsBet's US operations delist, with RSI at the predictable center of these rumors.
Stake.com wants to switch from gray to white
Stake.com is currently a so-called gray market operator. The label means that, although it is not officially licensed and regulated and is equivalent to its white market counterpart, it is safer for consumers than its black market counterpart.
Still, white markets remain the most popular label, and Stake's potential advantage is that many competitors have already made the switch from gray to white in various markets around the world.
"A number of companies, including Entain and Stars Group, are doing this. It could also mark an IPO for Stake in the near future, and perhaps co-founder Eddie Craven turns his attention to his new company Kick (a streaming competitor to Twitch). ” concluded EKG.
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Source: www.casino.org
