Stake.com, the prominent crypto casino operator, is reportedly scouting for acquisitions that might pave its way into the thriving US iGaming market. Rumours have named Rush Street Interactive as a likely contender on the company’s acquisition list.
Stake, not without its share of controversies, seeks to spread its wings into more stringently regulated global gaming markets, the US being high on the list.
Rush Street Interactive has long been speculated to be an attractive takeover target and might just meet Stake’s stringent criteria.
Rush Street Interactive: A Worthy Target for Stake.com
“Not many companies fit the description of large, regulated and for-sale. Rush Street Interactive is a logical fit given it has long been up for sale, and holds online casino licenses that Stake would presumably covet,” remarked Eilers & Krejcik Gaming in their recent “EKG Line” report.
Furthermore, Stake has a pending application for iGaming in Ontario, Canada, and is making attempts to gain approval in Australia’s regulated internet wagering market.
The company is also believed to have explored deals in the fantasy sports and skill gaming industries, though specific names remain under wraps.
One thing is clear: Stake is prepared to make a deal.
In the past year, the company outpaced DraftKings, raking in $2.6 billion in revenue with a user base of 6 million registered accounts. Active users constitute about 10% of this number, spanning across large markets like Brazil and Japan.
As for Rush Street Interactive, it’s considered an affordable acquisition target, with a market capitalisation of $699.1 million. The operator is reputed for its BetRivers and PlaySugarHouse brands in the US and is available with mobile or retail businesses in numerous states. In addition, its foothold in Latin America could also make it an attractive prospect for potential buyers.
Implications for the iGaming Industry
- Increased Market Competition: Stake’s entry into the US market could stir up increased competition, encouraging innovation and better service offerings for customers.
- Shifting Regulatory Landscape: A grey market operator like Stake.com transitioning to a white market operator may pressure other companies in similar positions to follow suit, potentially leading to a safer, more regulated iGaming landscape when it comes to crypto casinos, NFT gambling and decentralised lotteries.
- Market Consolidation: The potential acquisition of Rush Street Interactive by Stake could trigger a new wave of mergers and acquisitions in the iGaming industry, potentially reshaping the sector’s future.