Rush Street Interactive Broadens LatAm Reach with Peru Entry
Rush Street Interactive (NYSE: RSI) is expanding its Latin American footprint, announcing Monday that it launched its RushBet iGaming and sports betting offering in Peru.
Peru authorized new online gaming regulations last November. The country is the third in the region in which Rush Street Interactive has entered following Colombia in 2018 and Mexico in 2022. It’s estimated that online sports betting drives an annual handle of $1 billion in Peru, and with the government’s favorable 12% tax rate, it could be a compelling market for operators such as RSI.
Notably, RSI has become the first operator to be fully licensed under the Peru’s new regulatory regime demonstrating its ability to meet rigorous compliance standards and aligning with the company’s strategy of entering regulated markets with strong growth and profitability potential,” according to a statement issued by the Chicago-based gaming company.
Rush Street Interactive was the first US-based operator to establish itself in Mexico — Latin America’s second-largest economy — and the RushBet brand is now among the leaders by market share in Colombia.
LatAm May Not Be Appreciated in RSI Investment Thesis
With the stock up 127.39% year to date, it’s hard to complain about RSI’s performance, but much of the upside has been fueled by the operator’s profit and revenue growth, as well as speculation that the company remains a prime takeover target.
Because the bulk of iGaming and online sportsbook operators in this country focus on the US and Canada, RSI’s Latin America exposure and growth potential in that region may not be adequately factored into the share – something analysts have previously mentioned.
By establishing itself in the region, RSI could eventually tap into other markets there, including Argentina and Brazil — the latter of which is the region’s biggest economy and home to its largest population. Specific to Peru, that country is home to more than 34 million people, meaning it would be the second-largest state behind only California.
“The Peru launch enables RSI to optimize its Latin American operations by sharing resources, including marketing assets and customer service teams, across multiple countries. This approach is expected to drive operational efficiencies and expand long-term growth in the region,” RSI added in the press release.
Why Peru Matters to RSI
As noted above, Peru offers RSI several advantages that may not yet be fully appreciated by the industry or the investing public. Those include a favorable tax percentage, strong regulatory guidelines, and a sizable population.
Peru could be integral to RSI’s Latin American expansion efforts because the gaming company is the first to land a license under the country’s new regulatory regime. That could be advantageous when it comes to procuring an internet wagering permit in Brazil.
“This launch is not just about entering a new market; it’s about building on our vision to create an engaging, unique online gaming experience across the Americas,” said RSI CEO Richard Schwartz in a statement.
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Rush Street Interactive (NYSE: RSI) is expanding its Latin American footprint, announcing Monday that it launched its RushBet iGaming and sports betting offering in Peru. The Rush Street Interactive corporate logo. The company announced its entry into Peru. (Image: Rush Street Interactive) Peru authorized new online gaming regulations last November. The country is the third…