Trusts beneficially owned by Rush Street Interactive’s executive chairman Neil Bluhm, CEO Richard Schwartz, and COO Mattias Stetz are selling 10 million Class A shares. The offering has been set at $26 per share, and the base transaction is worth $260 million.
The underwriters have also been granted a 30-day option to purchase up to 1.5 million additional shares. Should the option be exercised in full, the offering would reach 11.5 million shares, worth $299 million at the public offering price.
According to RSI, the offering from each selling stockholder accounts for less than 10% of their current holdings. RSI explained the rationale behind the stock sale as personal financial planning and estate planning. Bluhm and entities linked to him will retain more than a 40% stake in RSI. That leaves Bluhm as the company’s largest shareholder.
RSI Keeps Proceeds Out of Its Books
The sale is a secondary offering. RSI will not offer any new shares or receive proceeds from the transaction. RSI will cover the offering costs, excluding underwriting discounts and commissions.
In addition, RSI plans to repurchase 1,153,846 of its own shares from the underwriters as part of the same offering. However, this repurchase is conditional and depends on the completion of the offering itself. The company said that it will fund this transaction with cash on hand, and the repurchased shares will be cancelled.
Furthermore, the board of directors has authorized a new $100 million share repurchase plan. It will replace the current share repurchase program once the related buyback is completed.
Timing Follows a Strong Q1 Update
RSI’s share price was already on an upward trajectory after its first-quarter results. Q1 2026 revenue amounted to $370.4 million, registering a year-over-year growth of 41%. Net income stood at $26.2 million, and the adjusted EBITDA grew 81% to $60.2 million.
In addition, RSI has raised its full-year outlook for 2026. The revenue is expected to range from $1.49 billion to $1.54 billion, whereas adjusted EBITDA is projected between $230 million and $250 million.
Market Reading
While the executive-linked trusts are reducing their exposure after a strong quarter, the company is using the same transaction to advance its capital return plan.
The main issue for investors is that of control. Although the offering decreases the holdings of insiders, Bluhm continues to be the largest shareholder. RSI’s next test will be whether it can sustain recent player growth through the rest of 2026.
