Rush Street Interactive Enters Mexico Through Grupo Multimedios Deal

Posted on: January 31, 2022, 09:48h. 

Last updated on: February 1, 2022, 09:47h.

Rush Street Interactive (NYSE:RSI) is entering the Mexican online casinos and sports wagering market through a deal with media giant Grupo Multimedios.

Rush Street
A Bet Rivers sportsbook in Illinois. Parent company Rush Street Interactive is expanding in Mexico. (Image: Wall Street Journal)

Financial terms of the agreement weren’t disclosed. But RSI said it’s a 25-year accord and that it will be working in tandem with a subsidiary of the media conglomerate that has a gaming license. The gaming operator will also be able to use the media company’s “assets and distribution channels for promotional and content integration purposes.”

Monterrey-based Grupo Multimedios is well-known beyond its home market, and it has ownership stakes in several professional sports teams, which could be leveraged in the RSI agreement.

It has expanded into several businesses beyond media and holds ownership in multiple sports teams, including the Sultanes de Monterrey, one of the most prestigious teams in the Mexican Baseball League, as well as two professional basketball teams,” according to a statement.

RSI and Grupo Multimedios say they expect to launch operations in the second quarter.

Second LatAm Market for RSI

RSI operates under the BetRivers and PlaySugarHouse brands, and is currently available with either mobile or retail businesses in Colorado, Illinois, Indiana, Iowa, Michigan, New Jersey, New York, Pennsylvania, Virginia, and West Virginia.

Mexico is the second Latin American market in which the gaming company will have a presence. It was the first US-based gaming company to launch a legal, regulated online sportsbook in Colombia, South America’s third-largest economy. Mexico is Latin America’s second-largest economy behind Brazil, and it has a population north of 130 million people, confirming it’s a compelling market for gaming firms. Data confirm RSI is already finding success in the region.

“In the most recent quarter, with published data from Colombia’s gaming regulatory body, accounted for nearly 20 percent of online casino and sports betting handle in the country,” according to the statement.

Following a minority investment in mobile games developer Boom Entertainment, which was announced last August, RSI gained access to Louisiana, Mississippi, and New Mexico.

Operators Looking Beyond US

While the US is the world’s fastest-growing sports wagering market, it’s hyper-competitive and costly. That’s prompting some analysts to say the current population of operators will be pared in the years ahead by consolidation. Also, some operators will simply be throwing in the towel.

Some iGaming and online sportsbook companies are already looking to markets outside the US, either through potential acquisitions, or angling for licenses in Canada.

However, many US-based operators are glossing over the opportunity set in Latin America, indicating RSI has a leg up on its rivals in that region.

Combine the operator’s Colombia and Mexico footprints, and it will soon be in front of more than 180 million people, potentially positioning it to grow in the region as more countries there allow or expand regulated sports wagering offerings.