Rush Street Interactive (RSI) has made a notable announcement regarding customer surcharges. In a recent statement, CEO Richard Schwartz affirmed that RSI, which operates under brands such as BetRivers, PlaySugarhouse, and RushBet, will not implement any additional surcharges for its customers. Schwartz emphasized the company’s commitment to customer satisfaction, stating, “As we put our customers first, it was an easy decision for us.”
Rush Street Interactive Declares No Customer Surcharge Amid Industry Shifts
DraftKings’ Recent Move Sparks Industry Reactions
This announcement from RSI follows a significant development in the industry. DraftKings recently revealed its plans to introduce a surcharge on customer bets in certain states, including Illinois, New York, Pennsylvania, and Vermont. This decision comes in response to high gross gaming revenue (GGR) rates in these regions and will apply to winning bets as reflected on betting slips. During their Q2 results conference call, DraftKings CEO Jason Robins and CFO Alan Ellingson noted that “players [will] appreciate transparency” regarding the new surcharge.
Market Impact: DraftKings vs. RSI
The announcement by DraftKings has had a notable impact on its stock performance. Following the disclosure, DraftKings’ share price experienced a decline of approximately 11%, reaching its lowest point since October 2023. In contrast, RSI’s stock had a strong performance last week, though it has seen a 14.5% decrease today.
RSI’s Strategic Focus and Industry Position
Richard Schwartz reiterated RSI’s commitment to customer-centric practices and industry leadership. He stated, “RSI remains committed to maintaining its leadership position in the industry by continuously prioritizing the needs and preferences of its players.” Schwartz highlighted RSI’s emphasis on customer satisfaction, as well as its innovative rewards and loyalty programs, which he believes set a high standard in the online gaming sector.
RSI’s Market Presence and Expansion
RSI offers online and retail sports betting across several states, including Illinois, New York, and Pennsylvania. The company is also actively exploring opportunities in the Latin American (LatAm) market, a region that DraftKings has not currently targeted. This strategic focus underscores RSI’s broader vision for growth and its commitment to expanding its market presence.
Conclusion: The RSI
Rush Street Interactive (RSI) has chosen not to implement customer surcharges, unlike DraftKings. Despite a recent drop in its stock price, RSI continues to focus on customer satisfaction and industry leadership, while also exploring growth opportunities in new markets.
FAQs About Rush Street Interactive’s Customer Surcharge Policy and Market Impact
1. What did Rush Street Interactive (RSI) announce regarding customer surcharges?
RSI CEO Richard Schwartz announced that the company will not implement any customer surcharges. This decision reflects RSI’s commitment to prioritizing customer satisfaction.
2. Why is RSI’s decision significant in the industry?
RSI’s decision is significant because it contrasts with DraftKings’ recent move to introduce surcharges on winning bets in several states, including Illinois, New York, Pennsylvania, and Vermont. RSI’s stance highlights its focus on maintaining a customer-first approach.
3. What is DraftKings’ plan regarding customer surcharges?
DraftKings plans to add a surcharge to customer bets in states with high gross gaming revenue (GGR) rates. This surcharge will be applied only to winning bets and will be reflected on betting slips.
4. How has the announcement affected DraftKings’ stock performance?
Following DraftKings’ announcement about the surcharge, its share price fell approximately 11%, reaching its lowest level since October 2023.
5. How has RSI’s stock been performing recently?
RSI’s stock experienced a positive trend last week but has seen a 14.5% decrease today, following the broader market reactions.
6. What did Richard Schwartz say about RSI’s market position and strategy?
Richard Schwartz reiterated RSI’s commitment to industry leadership by prioritizing customer needs and preferences. He highlighted the company’s focus on customer satisfaction and its innovative rewards and loyalty programs.
7. In which markets does RSI operate?
RSI offers both online and retail sports betting in states such as Illinois, New York, and Pennsylvania. Additionally, the company is pursuing opportunities in the Latin American (LatAm) market, which DraftKings is not currently targeting.
