Rush Street Interactive Insiders Selling Stock, Company Adds $100M Buyback Plan
Posted on: May 5, 2026, 04:09h.
Last updated on: May 5, 2026, 04:09h.
- Three Rush Street Interactive insiders are selling up to 11.5 million shares
- The gaming company will absorb some of that supply by repurchasing $30 million of that equity
- The operator also announced a new $100 million buyback plan
Shares of Rush Street Interactive (NYSE: RSI) tumbled in after-hours trading Tuesday, shedding more than 10%, after the internet casino operator announced that three high-ranking executives are selling up 11.5 million shares.
The Chicago-based company announced founder and Executive Chairman Neil Blum, CEO Richard Schwartz and COO Mattias Stetz are offering 10 million shares with a 30-day window in which underwriters can purchase up to another 1.5 million shares. Their timing is excellent because the stock is up 29.07% over the past month and hit an all-time high today.
The Selling Stockholders are offering these shares for personal financial planning and estate planning purposes,” according to a statement issued by the Chicago-based gaming company. “Upon completion of the offering, Neil Bluhm and trusts and other entities beneficially owned by him will continue to own over 40% of RSI’s stock, remaining RSI’s largest shareholder by a significant margin, and will continue to serve as Executive Chairman of RSI’s Board of Directors.”
In all three cases, the executives are posting less than 10% of their RSI equity for sale.
RSI Absorbing Some of the Supply
Based on today’s closing price of $29.17, 10 million shares of Rush Street Interactive are worth $291.7 million. That’s not a drop in the bucket, but in a tactic previously seen in the gaming industry, Rush Street will absorb some of that supply.
Leveraging an existing share repurchase program, RSI will repurchase $30 million of the stock being sold by Blum, Schwartz and Stetz. Those buy backs will occur with the operator’s existing cash on hand. It also unveiled a new repurchase program.
Additionally, after such repurchase, RSI’s existing stock repurchase plan will be replaced by a new $100 million stock repurchase plan approved by RSI’s Board of Directors in connection with this offering,” according to the statement.
Overall, the iGaming outfit could buy back as much a $130 million of the stock being sold by the aforementioned executives. That’s not 100%, but it could allay investor concerns about more shares coming to market.
RSI Insider Selling Not Necessarily a Red Flag
When it comes to corporate insider transactions, it’s often said that insider buying is always positive because it implies executives see value in the stock, but insider selling is more nuanced. There occasions when it is a cause for alarm and others when it’s as simple as insiders wanting to diversify their personal portfolios.
Compared to colleagues at some competing companies, Rush Street Interactive insiders aren’t profligate sellers and the company recently raised its 2026 financial guidance, indicating the fundamental case is still intact.
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