Boom Entertainment's retail casino partners will provide Rush Street Interactive with market access in Louisiana, Mississippi and New Mexico.

Rush Street Interactive Strikes Investment Deal With Boom Entertainment, Securing Market Access To Three New States

Rush Street Interactive (RSI) sent a resounding message on Wednesday to market speculators who’ve been sending its stock skyrocketing on rumors that it’s ripe for acquisition. Essentially the message was, “We’re still in the game – boom!”

In its press release yesterday, the Chicago-based business that operates BetRivers and PlaySugarHouse said it made a minority investment in Boom Entertainment. That vendor develops games and supplies tech for RSI’s competitors, including Penn National Gaming. Boom is also known for its flagship product, NBC Sports Predictor.

In addition to the investment, RSI entered into an agreement with the New York-based firm formerly known as Boom Sports.

The highlights of RSI’s agreement with Boom are that the latter will:

  • Supply online casino and sports betting products to RSI;
  • Create custom games, which will be exclusive to RSI for at least one year; and
  • Provide RSI with online gambling and sportsbook market access to Louisiana, Mississippi and New Mexico, through Boom’s relationships with land-based casinos in those states.

RSI stock soars due to consolidation rumors

In the days before the RSI announcement, the rumor that had been thundering through the market was that the US online gambling industry was ripe for consolidation.

As Travis Hoium, an analyst for The Motley Fool, wrote about RSI stock increases on Monday:

“The big news of DraftKings’ acquisition of Golden Nugget Online has pushed investors to think about whether consolidation is coming to the space. Online gambling has spread across the country, which has lifted most of the operators’ stock prices. But in the long term, it might not make sense to have a dozen companies taking bets. And if smaller companies are gobbled up by larger ones, Rush Street Interactive could be next. Or so the market seems to be speculating.”

On Aug. 4, RSI stock was valued at $9.81. After the market closed yesterday, RSI stock reached $13.32. That’s a nearly 36% increase in a week, on little more than rumors.

Those rumors don’t come from nowhere, however. It’s been a week resounding with mergers and acquisitions.

RSI’s announcement didn’t mention any of these deals or market speculation about the company.

What RSI President Richard Schwartz did say yesterday is that the company’s immediate plans are to “continue to expand across the country and position RSI to reach gaming enthusiasts wherever they may be.”

- Heather Fletcher is the lead writer with OnlinePokerReport. She's a career journalist, with bylines in The New York Times, Adweek and other publications. Reach her at [email protected]
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