- Rush Street Interactive trades at a massive discount to other OSB and iGaming operators like DraftKings, Wynn Interactive, and Golden Nugget Online Gaming.
- I believe this discrepancy is caused by investor fears of falling market share in new markets like Michigan.
- However, management has a lot of room to grow marketing spend and have stated their intention to continue investing in growth.
- Even with these issues, I think the proven ability for RSI to maintain share in existing markets greatly derisks the business and the low valuation increases the potential reward.
For further details see:
Rush Street Interactive: Asymmetric Risk Reward