Stake.com Could Mull Takeover Of Rush Street Interactive
Rumors have circulated that Stake.com, a crypto casino operator, is thinking about buying companies that would get it into the US online gaming market. Reportedly, Rush Street Interactive (NYSE: RSI) may be one of the entities under consideration for acquisition.
According to Eilers & Krejcik Gaming, Stake, the crypto casino operator, may be considering buying Rush Street Interactive. Both companies check many boxes – Rush Street Interactive is in a regulated gaming market and has been up for sale for some time. Stake could stand to benefit from Rush Street Interactive’s online casino licenses, as well as its presence in the US market. Stake is already looking to gain permission to operate in Ontario, Canada and Australia. The possibility of Stake taking over Rush Street Interactive is gaining traction.
More Stake.Com Takeover Rumors
Research firm EKG mentioned that Stake.com may have looked into various acquisitions in the fantasy sports and skill gaming sectors. They failed to recognize which businesses Stake had weighed, though it is evident that the crypto casino provider has the finances to make a purchase. Last year, Stake earned an estimated $2.6 billion in revenue, overtaking the $2.2 billion of DraftKings. The outfit owns 6 million subscribed accounts, with 10% considered active customers, inhabiting many major locations such as Brazil and Japan as noted by the Financial Times. As for Rush Street Interactive, it is an attainable buy due to its market capitalization of $699.1 million and is accepting offers. In the US, RSI trades as BetRivers and PlaySugarHouse, having an array of mobile and retail capabilities in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia, and West Virginia.
With PointsBet now out of the picture, rumour has it that RSI (Race & Sports Inc.) will become the main target of iGaming and sports betting consolidation speculation. This makes sense due to the fact that the company offers mobile sports betting in Ontario and has access to Latin American countries like Colombia and Mexico. Additionally, it has been reported that Stake.com is seeking to transition from a grey market to a white market.
Stake.com Looking to Go White from Gray
Stake.com is labeled as a “gray market operator,” meaning it is not officially recognized as being compliant with industry regulations like its “white market” counterparts, but nonetheless remains safer than black market operators. Despite the desirable “white market” label, many of Stake.com’s competitors have made this transition in past, such as Entain and the Stars Group, which suggests that a possible stock listing or “float” of Stake.com is in the near future. According to EKG, this could be due to co-founder Eddie Craven shifting his focus to his new venture, “Kick,” which is a streaming service that competes with Twitch.
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