Market reaction
Shares of Rush Street Interactive (NYSE: RSI) fell 8.8% on Wednesday following the announcement that an underwritten, secondary public offering of common stock had been priced. The offering sets the sale of 10 million Class A shares at $26.00 per share.
Who is selling and why
The shares in the deal are being offered by trusts that are beneficially owned by Neil Bluhm, RSI’s Executive Chairman, Richard Schwartz, RSI’s Chief Executive Officer, and Mattias Stetz, RSI’s Chief Operating Officer. According to the disclosure, each selling stockholder will be offering less than 10% of their respective current holdings. The selling stockholders stated the shares are being sold for personal financial planning and estate planning purposes.
Ownership and governance after the sale
Upon completion of the transaction, Neil Bluhm, together with trusts and other entities beneficially owned by him, will continue to hold in excess of 40% of RSI’s outstanding stock. Bluhm will remain the company’s largest shareholder and continue to serve as Executive Chairman of the board.
Company role and proceeds
Rush Street Interactive is not issuing any Class A shares in this offering and will not receive proceeds from the sale of the shares by the selling stockholders. The company has agreed to bear the costs associated with the sale except for underwriting discounts and commissions, which will be borne by the selling stockholders and underwriters as usual.
Timing and underwriter option
The offering is expected to close on May 7, 2026, subject to customary closing conditions. The underwriters have a 30-day option to purchase up to an additional 1.5 million shares from the selling stockholders.
Concurrent repurchase and new plan
Concurrent with the offering, RSI plans to repurchase 1,153,846 shares of Class A common stock from the underwriters under its existing repurchase program at a per-share price equal to the price paid by the underwriters to the selling stockholders. The company intends to fund that repurchase with cash on hand, and the repurchased shares will be cancelled. Following the transaction and repurchase, the company will replace its existing stock repurchase plan with a new $100 million stock repurchase program approved by the board of directors.
Advisers to the transaction
Wells Fargo Securities and Morgan Stanley are acting as lead book-running managers for the offering.
Context limitations
The facts above are drawn from the offering announcement and related disclosures. The company’s statement specifies the selling stockholders’ stated purposes for the sale and confirms that RSI itself will not realize proceeds from this secondary offering.