Published on: October 20, 2025, 01:03h.
Updated on: October 20, 2025, 01:04h.
- Last Friday, the stock of Rush Street Interactive experienced a decline due to concerns about a Colombian tax initiative
- On Monday, the stock began to recover slightly as market uncertainties subsided
Rush Street Interactive (NYSE: RSI) emerged as one of the top gaming stocks on Monday, buoyed by a relief rally following a sharp decline observed last Friday.
During midday trading, shares of the Illinois-based online sportsbook and internet casino operator rose by over 7%, with trading volume appearing set to surpass the daily average, a notable rebound after a 15% decline on Friday. This drop was mainly due to misunderstandings surrounding Colombia’s value-added tax (VAT) policy on online betting, alongside some unusual trading patterns in gaming stocks. Analyst Mike Hickey from Benchmark reaffirmed that the sell-off on October 17 shouldn’t be seen as a reflection of Rush Street Interactive’s robust fundamentals.
“Given that the tax is already being collected under an emergency decree, it is naturally reflected in current results, and the consensus does not expect a benefit from its potential repeal,” Hickey stated in a client note.
He maintained a ‘buy’ recommendation and set a price target of $24 for the gaming stock, suggesting a potential upside of approximately 33% from the current price levels.
Tax Concerns Already Factored into Rush Street Interactive Stock
With a year-to-date increase of 34.11%, Rush Street Interactive has distinguished itself as one of the leading online gaming stocks, suggesting that the impacts of the Colombian tax policy are predominantly incorporated into its current share price.
In January, Colombia declared a fiscal state of emergency, which was followed by a February presidential decree imposing a 19% VAT on player deposits. The Constitutional Court of Colombia deemed this decree legal, and it is expected to remain in force until the year’s end.
There exists a possibility that the VAT could be abolished, potentially as early as 2026. However, Hickey notes that the market response witnessed last Friday may indicate some investors are not anticipating a $30 million rise in adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) if the tax were to lapse.
The Benchmark analyst encourages RSI stakeholders to consider a broader context, especially since the Colombian tax policy is set to end, faces considerable opposition from a variety of policymakers, and represents a minor aspect of the government’s larger revenue strategies.
Significance of Latin America in Rush Street Interactive’s Strategy
While Rush Street Interactive operates in fewer states compared to competitors like DraftKings and FanDuel in the U.S., it has established a formidable presence in Latin America—a region witnessing rapid expansion in online sports betting and various wagering formats.
RSI broke into the Colombian market in 2018, followed by Mexico in 2022, and gained access to Peru two years thereafter. It is estimated that online sports betting generates an annual handle of $1 billion in Peru, and with a favorable 12% tax rate, this presents an attractive market for companies like RSI.
Rush Street Interactive distinguished itself as the first U.S.-based operator to establish its presence in Mexico—the second-largest economy in Latin America—and the RushBet brand has emerged as a frontrunner in market share in Colombia.