In a significant move for the Chicago-based online gambling giant, Rush Street Interactive (RSI) has announced that its three most senior executives are selling a combined 10 million shares of the company.
This major divestment comes at a time of notable stock market strength for the firm, even as the RSI board of directors concurrently authorizes a massive new $100 million share repurchase program.
Strategic Sell-Off and Executive Reassurance
The selling executives at Rush Street Interactive are trusts beneficially owned by a trio of top leadership: Executive Chairman Neil Bluhm, CEO Richard Schwartz, and COO Mattias Stetz. Trading under the ticker RSI on the New York Stock Exchange, the company’s stock has recently surged, climbing from a February low of $15.89 to reach $29.17 by the time of the announcement.
The company was emphatic in noting that each executive is offloading less than 10% of their respective total holdings. The primary motivations cited for the sale were personal financial and estate planning purposes. Even following the completion of this offering, Neil Bluhm and his controlled entities will retain ownership of over 40% of RSI’s stock, ensuring he remains the largest shareholder by a significant margin while continuing in his role as executive chairman.
Simultaneous Share Repurchase Program
RSI clarified that it is not a seller in this specific transaction and will not receive proceeds from the executive sale. However, in a move to stabilize equity and return value to the firm, RSI intends to buy back $30 million worth of shares directly from the underwriters at the same price paid to the selling stockholders.
These repurchased shares will be subsequently cancelled. This arrangement will replace RSI’s existing plan with a fresh $100 million authorization approved by the board.
Founded in 2012, RSI has established itself as an early mover in the regulated US market and currently operates in 15 states, as well as Colombia, Ontario, Mexico, and Peru through its flagship brands BetRivers, PlaySugarHouse, and RushBet.
