Rush Street Colombia tax impact should be modest, says Jefferies

Jefferies analyst David Katz says Rush Street Interactive’s (RSI) regulatory filing regarding Colombia’s Presidential decree instituting a 19% value added tax on player deposits “highlights the volatility and political risk inherent” in the Latin America gaming space. However, the firm views the potential impact to Rush Street as “specifically modest.” In addition, the prospects are reasonable that the decree is either short term or not instituted at all, the analyst tells investors in a research note. Jefferies believes the decree should not overshadow the other positives in Rush Street’s story, “which mitigate a prospective negative reaction.” It keeps a Buy rating on the shares with a $17 price target The stock in morning trading is down 4% to $16.06.