Rush Street Interactive Excels, Eyes Potential Sale

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00:00Let's go to legal sports report and talk a little bit about the latest on some of these

00:07earnings calls.

00:08We'll start off with Rush Street Interactive and a surprising result here, I think, for

00:12Bet Rivers.

00:13Tell us more.

00:14Bet Rivers did great.

00:16Rush Street did great.

00:17They reported great earnings.

00:19They raised their adjusted EBITDA guidance.

00:21I mean, it went every way it was supposed to go for Bet Rivers, which is, you know,

00:26you don't always know with Bet Rivers because they are one of those companies that is comfortable

00:30with keeping their market share smaller, right?

00:33They're just not interested in trying to market and promo the same way the bigger guys do.

00:39And so they take their little slice of each market that they're in and they work as hard

00:43as they can to make it profitable.

00:45And they did a fantastic job of that in the first quarter.

00:47Now, the most interesting part about this Rush Street call, if you remember a couple

00:53of weeks ago, we had a report from Bloomberg that not only was Rush Street available to

00:58be bought, but that they were pitching themselves to DraftKings.

01:02Now, they are a publicly traded company.

01:04So management is always limited in what they can say, especially when it comes to something

01:09like this.

01:10But it was notable that the CEO, Richard Schwartz, he didn't deny that that was happening.

01:18He noted, you know, as substantial shareholders ourselves, meaning the management team, he

01:23said, we're fully aligned with shareholders.

01:25We are always looking to make shareholder value.

01:29And we will continue to evaluate all opportunities.

01:33He was also asked, why not just open up like a formal process if you're thinking about

01:37selling yourself?

01:38And he said, I can't respond to that question in a public setting.

01:41So there are things going on behind the scenes over at Bett Rivers.

01:46And look, putting out these great numbers, it only helps, right?

01:51Delaware is turning into a bigger market than they thought it could be.

01:54They are doing, they're getting more out of their Parley product than they originally

01:58thought they could.

02:00So Bett Rivers is in a great place right now.

02:04And their stock is up, which is terrific if they're thinking about getting bought, because

02:09they really were undervalued for a little while.

02:11And they probably still are a little undervalued now.

02:13But the stock is finally up.

02:15And things are looking pretty positive for Rush Street right now.

02:19I don't know who is going to be involved in buying them.

02:23We talked before, I think if DraftKings bought them, it might be a little redundant.

02:27Maybe they would buy them to get the database and keep it from someone else.

02:31I don't know.

02:32But yeah, we're going to be keeping an eye on Rush Street and seeing what happens.

02:34They're definitely an attractive target right now.

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