Rush Street Interactive (RSI) has inked a multi-year exclusive partnership with the Chicago Bears. Under the terms of the agreement, BetRivers.com and Rivers Casino will become the Bear's official sportsbook and casino partners.
In return, BetRivers and Rivers Casino stand to benefit from signage inside the stadium, complemented by digital and social assets. Additionally, Rush Street's BetRivers is to become the title partner of the Chicago Bears customized game on the official app.
Players on the BetRivers website will see Chicago Bears ads while placing bets on the site. The Rush Street Interactive deal marks the Chicago Bears' first strategic partnership in the Sportsbook and Casino sector. (See Rush Street Interactive stock chart on TipRanks)
"We look forward to expanding our relationship with the Bears and their dedicated fan base, and offering innovative products and promotions as we remain committed to delivering a first-rate customer experience. This partnership also reinforces our commitment to hometown teams in states where we have our online and land-based sportsbooks," Rush Street Chairman Neil Bluhm said.
Needham analyst Bernie McTernan has reiterated a Buy rating on the stock but lowered his price target to $20 from $22, implying 56.1% upside potential. According to the analyst, Rush Street Interactive is well-positioned for an impressive second half of the year, following revenue raise and beat in the recent quarter.
McTernan stated, "We see three reasons RSI sets up favorably in the second half of the year. (1) More capital to spend on marketing, with coming public RSI has more capital to allocate towards marketing and is noting efficient returns. (2) Technology improvement with an Android App and iOS sportsbook refreshes already done, the next step is an iOS app in development for the combined casino and sportsbook markets, which is on track to launch in 2H21.(3) Potential launch in Canada, which is not currently in our estimates."
Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average analyst Rush Street Interactive price target of $21.33 implies 66.5% upside potential to current levels.
RSI scores 4 out of 10 on TipRanks' Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.