3 Sports Betting Stocks That Could Get Bought Out Next

3 Sports Betting Stocks That Could Get Bought Out Next

Consolidation in the sports betting industry could be coming with investors digesting the acquisition of Score Media and Gaming Inc SCR by Penn National Gaming, Inc PENN.

The highly competitive sports betting market and push to acquire customers and market share could lead to further consolidation after Thursday’s buyout announcement.

Here are three sports betting companies that could be the next acquisition of a larger rival.

Rush Street Interactive: Online gaming and sports betting company Rush Street Interactive RSI went public via SPAC and could find itself an acquisition target by one of the larger operators.

The company’s BetRivers brand has sports betting deals in several states and was the first one allowed to operate online in Illinois, giving it an early lead. BetRivers was one of only four brands that saw market share gains in Michigan recently.

Rush Street Interactive could also be valuable with its strong first skin access to the huge New York online sports betting market. The state has pushed for legalizing sports betting but it could come with a limited number of operators. If the state limits the operators, Rush Street Interactive’s New York access could become incredibly valuable.

Penn acquiring Score Media allows it to manage its own back-end technology similar to Draftkings Inc DKNG switching to SBTech later this year. Rush Street Interactive owns its proprietary technology platform, which could be valuable to a larger operator looking to control its costs and technology.

RSI shares are up 13.21% to $11.10 on Thursday.

GAN Limited: Internet gaming SaaS provider Gan Ltd GAN could be an acquisition target thanks to its strong technology platform acting as “the thing behind the thing” for sports betting and online gaming operators.

The company reported stronger than expected growth of its B2C business which includes the CoolBet brand. The strength of the second quarter led to updated full-year revenue guidance in a range of $125 million to $135 million.

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