Why Shares of Rush Street Interactive Jumped 16.2% on Monday

Shares of online gambling company Rush Street Interactive (NYSE: RSI) jumped as much as 16.2% in trading on Monday as one of its closest competitors was bought out. DraftKings (NASDAQ: DKNG) announced the acquisition of Golden Nugget Online Gaming (NASDAQ: GNOG) for $1.6 billion, starting what could be a wave of consolidation in the space. Shares of Rush Street closed the day up 14.4%.

The big news of DraftKings' acquisition of Golden Nugget Online has pushed investors to think about whether consolidation is coming to the space. Online gambling has spread across the country, which has lifted most of the operators' stock prices, but in the long term, it might not make sense to have a dozen companies taking bets. And if smaller companies are gobbled up by larger ones, Rush Street Interactive could be next, or so the market seems to be speculating. 

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Source Fool.com