Chicago-based Rush Street Interactive (RSI), which runs the BetRivers and SugarHouse iGaming brands, has announced it will shut down its online gaming operations in Connecticut. RSI currently offers iGaming in the state in partnership with the Connecticut Lottery Corp. (CLC).
In a statement, Rush Street CEO Richard Schwartz said: “We thank the CLC for their partnership over the last two years. We are proud of what we have accomplished together in Connecticut and have enjoyed the relationships that we have built with the players.
“Consistent with our long-term strategic goals, after much deliberation and discussions with the CLC, we believe it is in the best interest of RSI and our stockholders to wind down this partnership.” RSI will leave the market after the CLC chooses a new online gaming partner.
The partnership is fairly recent. It started in August 2021, when the CLC chose RSI as its sports betting partner over 15 other applicants. The partners then faced off with two other operators: FanDuel and the Mohegan Tribe, and DraftKings, which partnered with the Mashantucket Pequot Tribal Nation, operators of Foxwoods.
According to PlayIllinois.com, Rush Street had high hopes for Connecticut, which has a low population but a high median income. The partnership was to have lasted through 2031.
“As is consistent with nearly everything we do at RSI, both RSI and the CLC remain committed to putting our players first. Through the transition we plan to continue to support all player wagers and ensure a positive player experience and expect the changeover will have an immaterial impact on our guidance for 2023,” said Schwartz.
In the past year, RSI shares toppled 61 percent and the business reported a net operating loss of $134.3 million. RSI’s flaccid performance in Connecticut and its imminent departure have sparked talk of a takeover.
But the change also could signal a renewed focus on RSI’s home territory in Illinois. According to Eilers & Krejcik Gaming, its BetRivers brand has about a 10 percent share of the Illinois online sports betting market.
