Rush Street Interactive shares dropped by 34.55% year-to-date. Rush Street, which also operates BetRivers Interactive, has experienced a drop of more than 50% on the year and experts believe that the situation could have been much worse had it not been for acquisition rumors by Fanatics.
As of February 15th, Rush Street’s shares were trading at $10.91 per share before dropping again to $9.79. On February 18th, the stock was trading at $9.01, having dropped again by -7.97%. Although things appear to be bleak currently, experts predict that Illinois’ online casino market could help.
At present, Illinois is the only state with an active iGambling bill. The state’s iGambling bill, also titled HB 3142/ SB 2064 or the Internet Gaming Act, is expected to legalize both online casino games, as well as online poker. Legal sports betting in Illinois has already proven to be a massive hit among punters and legislators are hoping that a legal iGaming market will have similar effects.
September 2021 was a historic month for the sports betting market in the country as the Garden State became the first market to generate a handle of a billion dollars in a single month. American’s appetite for legal sports betting has been robust but the growth of sports betting in the state has been especially inspiring and impressive. Last year alone, the state saw a sports wagering revenue rise of more than 150% and the state has already generated a colossal $65 million in tax revenue year to date.
New Jersey’s growth of this once looked down upon activity has inspired many other states to legalize their markets, as punters are increasingly opting to place wagers with established and regulated operators such as DraftKings. The result of a legal sports betting market has resulted in a win-win environment for both the operators and the states, which have been benefiting from the tax revenue produced.
As such, Illinois stands to benefit greatly, especially if it can maximize the advantages of regulated online betting. To begin with, Illinois must permit mobile sports betting platforms to offer extra games including traditional casino games. iGaming is simply supposed to provide punters with an alternative to land-based casinos.
Indeed, New Jersey had enjoyed iGaming since it was made legal in 2013 and it has so far been a tremendous success, even complementing sportsbooks and brick and mortar casinos. Under bill 3142, Illinois physical casinos will be allowed to apply for iGaming licenses. If approved, each licensee will then have the leeway to operate at least 3 skins or contract with up to 3 internet management service providers.
In addition to a new iGaming market, Rush Street’s stock could also improve greatly once the brand enters Mexico’s gaming market. At the start of this year, Rush Street entered into an agreement with Grupo Multimedios, a media conglomerate, which could be a boon for Rush Street.
According to estimates made by experts, the online gaming industry in Mexico generates a gross gaming revenue of more than $450 million each year. The population of 130 million is more than twice Colombia’s, which means that Rush Street stands a chance of making a killing in the state. Rush Street is already operating in Colombia ever since it debuted its services back in 2018.
According to Engel, Rush Street, Colombia generated approximately $40 million in revenue during the 3rd quarter of 2021. Now that the brand is available in Mexico, capital analysts predict that the brand could attain a 5% to 10% market share in Mexico compared to its 20% share in Colombia.
What we cover
New York Sports Betting Could Also Help the Brand Immensely
Rush Street was one of the few brands that received approval to operate in New York’s newly legalized market before the end of last year. The New York State Gaming Commission awarded 9 licenses permitting operators like Rush Street and BetMGM to offer online and mobile sports wages in New York after a thorough bidding process.
Rush Street’s early presence in the Empire State will go a long way in allowing the brand to stand out, which will no doubt boost its shares. New York is a crown sports betting market with more than 20 million residents, which means that it is now slated to be the most successful sports betting market in the country.
After a successful debut, New York has now surpassed the Garden State for the top spot in the country’s wagering market. According to data generated by GeoComply, approved sportsbooks, which included Rush Street Interactive, processed an impressive $17.9 million in transactions during the first 2 weekends of legal mobile sports betting in the Empire State. GeoComply data also states that residents created 1.2 million new accounts since mobile sports betting went live on January 8th.
For the entire month, punters in the Empire State placed a record $1.6 million worth of online sports wagers, thus shattering a record previously set by Arizona for the highest sports betting handle for a debut month. Arizona set the record during the fall when it generated a total handle of $777 million in September and October. New Jersey also set the one-month record for its $1.3 million handle in October 2021.
Why is New York’s performance so impressive? Despite only operating for one month, New York has managed to knock out one of the most successful sports betting markets, New Jersey, from the top spot, which is indeed a feat. New Jersey was the first to legalize mobile sports betting in the country and has since emerged as the gambling mecca of North America- until New York’s claimed the title recently.
Final Thoughts
New York has far exceeded what experts and analysts predicted for the state in its first few weeks. And Rush Street Interactive has been part of the ride all along. Plus, with more sporting events like March Madness scheduled in the calendar, the New York sports betting market will only become more successful in the coming weeks.
