Grupo Multimedios was founded in 1933 in Monterrey and plays a significant role in multiple industries, including media, sports, entertainment, food, wine and real estate.
Crucially, one of its many subsidiaries holds a licence to operate online gambling in Mexico, which will help to facilitate the launch of Rush Street’s gaming platform to consumers.
As part of the agreement, Rush Street will also be able to leverage the media giant’s vast array of commercial assets and distribution channels across television, radio, print, billboards and digital.
Grupo Multimedios owns Mediotiempo, a digital sports website with more than seven million unique monthly users, and Milenio, considered the number one digital national news source in Mexico with 27.7 million unique users per month.
Canal 6, a network of 22 television stations and 63 radio stations, is also part of the group.
In recent years, Grupo Multimedios has expanded into several businesses beyond media and holds ownership in multiple sports teams, including Mexican baseball franchise Sultanes de Monterrey and two professional basketball teams.
It is now eyeing a slice of online sports betting revenue in collaboration with Rush Street.
Rush Street Interactive CEO Richard Schwartz said: “We are excited to partner with Grupo Multimedios, one of the most respected media enterprises in Mexico, which we believe will serve as a great accelerant for building our online gaming operations in the country.
“Mexico represents an attractive market opportunity, with a population of more than 130 million, which, when combined with Colombia’s population of 50 million, will expand RSI’s offering in Latam significantly.“We were deeply impressed by Grupo Multimedios’ management team and long track record of success, including the growth of its digital businesses in Mexico, which will be extremely valuable as we launch and grow our business in Mexico,” he added.
Rush Street was the first US gaming company to launch a regulated online sportsbook in Latam when it launched RushBet.co in Colombia in 2018.
In the most recent quarter with published data from Colombia’s gaming regulatory body, the site accounted for nearly 20% of online casino and sports betting handle in the country.
Rush Street, which is also live in New York with its BetRivers brand, is estimated to be the fourth largest operator of online casino and sports betting in the US by Eilers & Krejcik as of December 2021, with real-money mobile, online and retail operations in 13 states to date.
“As the first US gaming company to launch a regulated online gaming sportsbook in Latam, we have a deep understanding and appreciation for the communities where we operate and the localisation that is needed to thrive in the market,” said Schwartz.
“We look forward to leveraging the infrastructure, operations team, and relationships developed during our five years of business in Latam as we expand our online gaming platform into a growing Mexico market.
Rush Street’s share price climbed by more than 6% to $9.40 per share in early trading on Nasdaq.
Online gambling has been legal in Mexico in some capacity since 2004 and is regulated by the Ministry of the Interior (SEGOB). Regulated operators face a fixed 30% tax on revenue.
Bet365 launched in Mexico in 2019 via a media partnership with TV Azteca, while Betsson signed an agreement last year to launch an online gambling offering in collaboration with land-based casino operator Big Bola.