Rush Street to ‘benefit greatly’ from tax bill rejection, says Craig-Hallum

Craig-Hallum reiterates a Buy rating on Rush Street Interactive (RSI) after Colombian President Gustavo Petro’s tax reform bill, which included a 19% value-added tax, was rejected by the Senate’s fourth committee. The entire bill has been effectively shelved with the rejection and with a week until the congressional deadline, it becomes much more likely that budget cuts will take the place of reform, the analyst tells investors in a research note. Craig Hallum thinks Rush Street “stands to benefit greatly from the result.” Assuming that the temporary VAT expires at the end of the year, the company will see an immediate uplift to profitability, the firm contends.