Rumors have long circulated that Rush Street Interactive (NYSE: RSI) could be a potential acquisition target. Following their announcement to leave the Connecticut sports betting scene, the operator may become even more appealing to prospective buyers. On Tuesday, the Chicago-based company stated that ending their partnership with the Connecticut Lottery Corporation (CLC) was the best course of action to improve profitability and achieve their long-term objectives.
With a market capitalization of $655.33 million and their shares suffering a 61% drop over the last year, it’s no surprise that RSI is often mentioned as a potential acquisition. The move to sever ties with the CLC, though it may have come with a penalty, could make the company a more attractive option for buyers, especially with its current enterprise value at about $465 million, as noted by Eilers & Krejcik Gaming (EKG).
EKG surmised that RSI may be trying to minimize costs and maximize profitability until internet casinos become more widespread in the US. Currently, only six states offer this form of gaming, but this number is likely to grow over time. Additionally, the focus on specific markets where RSI has established brand recognition, such as Illinois and Pennsylvania, could make the operator even more appealing to potential buyers.