Rush Street Interactive Stock Tumbles on Colombian Tax Proposal

Rush Street Interactive (NYSE: RSI) stock tumbled Friday on news that the Colombian government filed a bill in its lower chamber of Congress that includes a value-added tax (VAT) on internet wagering deposits.

On volume that’s nearly triple the daily average, Rush Street Interactive stock is off 11% in midday trading and is flirting with its lowest levels since April 2025 after the Colombian government proposed a 19% VAT on online betting deposits. That’s comparable to the tax scheme that was in place in the South American country last year and it was one that weighed on shares of Rush Street. Some analysts view the tax proposal as surprising.

It’s possible that committee work on the VAT pitch will start late next month, putting it on pace for a floor vote in December. Colombia’s regular congressional session is scheduled to end on Dec. 16 before resuming on Feb. 16, 2027.

Miserable Week for Rush Street Interactive Stock

News of the Colombian tax proposal emerged a day after Rush Street Interactive stock was drubbed following a tepid third-quarter earnings report that indicated slowing iGaming growth. While the operator reiterated 2026 guidance, investors focused more on the perceived internet casino weakness.

The once hot gaming stock is off nearly 24% over the past week and has shed almost 65% from its 52-week high, which was notched about three months ago.

As Stantial puts it, the Colombia tax, which has previously been a headwind to the gaming stock, is “another hit to sentiment.” The company hasn’t discussed potential financial effects of the Colombian tax being extended, but the operator’s previous commentary on the issue could be instructive regarding potential hits to earnings before interest, taxes, depreciation and amortization (EBITDA).

“On the 4Q25 call, RSI quantified the impact at ~$75 million contra-revenue translating to $25-30M adjusted EBITDA, which annualized and grown at RSI’s promo-normalized ~80% LatAm net gaming revenue (NGR) growth in FY26 would imply to the tune of $50-65M of EBITDA impact were this tax structure and RSI’s prior bonusing strategy to be in effect for all of FY26 vs. ~$50M estimated EBITDA impact from the 16% temporary tax that is scheduled to expire 12/31/2026,” says Stantial.

Perhaps a Buying Opportunity With Rush Street Interactive Stock

There’s no denying that at the moment, Rush Street Interactive stock is a battlefield, particularly amid concerns of sluggishness in the North American iGaming market.

Colombia only exacerbates the stock’s near-term woes because Rush Street’s Latin American footprint, including Colombia and Mexico, has long been viewed as a selling point when comparing the stock to shares of US-focused rivals. On the other hand, it’s possible the slump eventually proves to be a buying opportunity.

“While acknowledging this uncertainty and added overhang in Colombia, we continue to see attractive risk/reward based on relative, and would note our model (and seemingly most of consensus) already conservatively assumes the temporary 16% tax remains in place through FY27-28E implying only modest and potential mitigable downside risk to Street estimates should the bill pass as structured,” concludes Stantial.