RedactedNarrative: Vessel 1 was in operation, then stopped to pick up one of the Occupants that was tubing behind Vessel 1.  When Vessel 1 accelerated after picking up the Occupant, other Occupants on board noticed water accumulating in Vessel 1.  The Operator also observed that Vessel 1 was not steering properly and Vessel 1 was unable to get on plane.  Vessel 1 was approximately half full of water when it was towed to the ramp and loaded onto its trailer.  Investigation revealed that the rudder was damaged due to unknown causes and had resulted in a hole in the hull.