Rush Street Interactive Stock Tumbles on Colombian Tax Proposal
Rush Street Interactive (RSI) stock fell 11% after Colombia proposed a 19% VAT on online betting deposits, which could impact earnings. The company also reported slowing iGaming growth in Q3. Analysts estimate potential EBITDA impact of $50-65M if the tax is implemented. RSI stock is down 24% this week and 65% from its 52-week high.
How this was made
The 30-second read
Why it matters
The immediate 11% drop reflects market concern over a $75M revenue hit and $25‑30M EBITDA reduction, with potential further downside if the tax is extended.
Market read
RSI's share price fell sharply on the tax news, highlighting immediate trading risk for the stock and potential sector ripple effects.
What to watch
RSI's North American growth slowdown and existing 16% temporary tax may already be priced in, reducing the incremental impact of the new proposal.
Background
Rush Street Interactive reported a tepid Q3 earnings and reiterated 2026 guidance, but the new Colombian VAT proposal added fresh negative pressure on the stock.
Ticker impact
Colombian government proposed a 19% VAT on online betting deposits, causing RSI stock to tumble 11% intraday.
downward pressure as the market prices in the potential earnings hit from the VAT.
The bill is newly filed, the tax impact was quantified at $75M revenue loss, and the stock already fell 11% on the news.
Market effects
Other iGaming operators with exposure to Colombia may face similar headwinds, potentially weighing on the broader online gambling sector.
Colombian market sentiment could turn bearish for gaming stocks, while investors may rotate to peers with less Latin American exposure.
Limited to the niche online gambling space; broader market impact is minimal.
Counterpoint
If the tax is delayed or reduced, RSI could rebound sharply, offering a buying opportunity at lower valuations.
Key entities
- CompanyRush Street Interactive
US-listed online gambling operator (ticker RSI) facing new Colombian tax proposal.
- RegulatorColombian Government
Proposed a 19% VAT on internet wagering deposits, affecting RSI's Latin American revenue.
