SCHEDULE 13G/A: Divisadero Street Capital Management Discloses 8.7% Passive Stake in Rush Street Interactive

Divisadero Street Capital Management, LP and affiliated entities have filed an amended Schedule 13G, confirming a passive beneficial ownership of 8.7% in Rush Street Interactive, Inc.'s Class A common stock as of March 31, 2025.

Summary

• Divisadero Street Capital Management, LP, along with William Zolezzi and Divisadero Street Capital, LLC, collectively reported beneficial ownership of 8,290,980 shares of Rush Street Interactive, Inc. Class A common stock, representing 8.7% of the class.
• Divisadero Street Partners, L.P. and Divisadero Street Partners GP, LLC reported beneficial ownership of 6,203,634 shares, equating to 6.5% of the Class A common stock.
• All reporting persons hold shared voting and shared dispositive power over their respective reported shares, with no sole voting or dispositive power.
• The filing is an Amendment No. 3 to a previously filed Schedule 13G, indicating an update to an existing passive investment position.
• The reporting persons certified that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of Rush Street Interactive, Inc.

Sentiment

Score: 6

Explanation: The sentiment is moderately positive. While a 13G filing is routine, the continued significant passive stake by an institutional investor suggests confidence in the company without indicating any disruptive intent. It's a neutral-to-positive signal of institutional interest.

Positives

• The continued significant passive investment by Divisadero Street Capital Management and its affiliates, holding 8.7% of the Class A common stock, can be viewed as a vote of confidence in Rush Street Interactive's long-term prospects by institutional investors.
• The filing explicitly states that the stake is passive and not intended to influence control, which can provide stability and reduce concerns about potential activist campaigns.

Future Outlook

This filing does not contain any forward-looking statements or guidance from Rush Street Interactive, Inc. regarding its future performance or strategic direction. It solely pertains to beneficial ownership disclosure.

Management Comments

• William Zolezzi, as Manager for Divisadero Street Capital Management, LP, Divisadero Street Partners, L.P., Divisadero Street Partners GP, LLC, and Divisadero Street Capital, LLC, certified that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer.

Industry Context

This filing reflects ongoing institutional interest in companies within the online gaming and sports betting sector, such as Rush Street Interactive. The disclosure of a significant passive stake by an investment firm like Divisadero Street Capital Management indicates continued investor engagement in the growth potential of digital entertainment and wagering platforms.

Related Party Transactions

• Divisadero Street Capital Management, LP is the investment adviser for advisory clients, including Divisadero Street Partners, L.P., which directly owns a significant portion of the reported shares.
• William Zolezzi and Divisadero Street Capital, LLC may be considered control persons of Divisadero Street Capital Management, LP.

Stakeholder Impact

• Shareholders: The disclosure of a significant passive institutional stake may be viewed positively, indicating investor confidence and potentially contributing to market stability.
• Management: The certification of passive intent by the reporting persons suggests no immediate threat of activist intervention, allowing management to focus on long-term strategy.

Key Dates

Recommendation

Keywords

Rush Street Interactive, RSI, Divisadero Street Capital Management, Schedule 13G, Beneficial Ownership, Class A Common Stock, Institutional Investment, Passive Stake, Online Gaming, Sports Betting