(AsiaGameHub) –   At the end of April, Rush Street Interactive (RSI) raised its revenue guidance for FY 2026, expecting it to increase between 31-36% year over year to approximately $1.49–$1.54 billion. With double-digit growth in both revenue and EBITDA, the gaming company established new records, further demonstrating its strength and appeal to investors.

On Tuesday, May 5, RSI’s stock declined sharply in after-hours trading, falling by more than 10% following the online casino operator’s disclosure that several senior executives intend to sell a substantial portion of their shares.

Personal Financial and Estate Planning

The Chicago-based firm stated that founder and executive chairman Neil Bluhm, together with CEO Richard Schwartz and COO Mattias Stetz, will together offer up to 10 million shares for sale.

Underwriters may also purchase an additional 1.5 million shares within a 30-day period, increasing the total potential offering to 11.5 million shares.

The announcement followed a strong upward trend for the stock, which had risen nearly 30% over the prior month and hit an all-time high earlier that day.

Company leadership described the decision as part of personal financial planning and estate planning, rather than an indication of reduced confidence in the business outlook.

They emphasized that the executives will remain significantly invested post-sale. Neil Bluhm—along with related trusts and entities—is expected to retain ownership of over 40% of the company and continue as the largest shareholder.

Each selling executive is offloading less than 10% of their respective equity positions, according to the company.

RSI to Use Cash Reserves to Repurchase up to $130 Million Worth of Shares

To mitigate the market impact from the share issuance, RSI announced it will use its current cash reserves to repurchase $30 million worth of shares associated with the offering.

The company also introduced a broader $100 million share repurchase program, approved by the board, which replaces its previous buyback authorization.

In total, RSI plans to repurchase up to $130 million in stock, helping to offset the increased supply entering the market.

While insider sales can prompt investor concern, they do not necessarily reflect underlying issues, especially given the company’s recent positive performance metrics.