Rush Street Interactive (RSI) has revised its annual revenue guidance upward, reflecting a notable quarter that saw strong iGaming share growth for BetRivers and a lucrative World Cup period. RSI now targets a revenue midpoint of $1.58 billion, alongside $255 million in adjusted EBITDA, marking its strongest quarterly revenue growth in over four years, as CEO Richard Schwartz detailed during Wednesday’s earnings call. “Our results this quarter reflect the continued strength of our casino-first strategy, disciplined execution across operating regions, alongside a well-planned and strongly executed World Cup period,” Schwartz stated. Despite the upbeat financial news, shares of BetRivers’ parent saw a 17% decline in trading by 2 pm Eastern Thursday.
In This News
Alberta’s Promising Launch for BetRivers
In Alberta, RSI has seen early success with their online casinos just a few weeks post-launch. Still, metrics are promising, showing first-time depositors and daily active users at levels double that of Ontario, adjusted for population differences. Ontario boasts a population roughly three times larger than Alberta. With such an encouraging start, RSI is increasing its marketing expenditure for the third quarter by an estimated $7 million to $10 million compared to the previous quarter, according to CFO Kyle Sauers.
Cost-Effective Customer Acquisition
BetRivers continues to secure new players effectively while incurring lower customer acquisition costs, CFO Kyle Sauers pointed out. “Our cost to acquire players has gone down,” he said. Most marketing expenses are concentrated in North American markets with iCasino, largely focusing on slots-related promotions. While BetRivers welcomes table players and maintains a strong presence in sports betting, the casino focus and decreased acquisition costs are driving their strategy. Marketing expenses rose by 34% year-on-year, but now represent 12.3% of revenue, down from 13.4%. Sauers emphasized that improved ROI opportunities justify additional marketing spend in the second half of the year.
World Cup’s Impact on User Numbers
The World Cup boosted RSI’s customer funnel, with Schwartz praising the team’s “incredible effort and execution.” North American monthly active users spiked 51%, reaching over 296,000, while online casino users grew 64%. In Latin America, user engagement leaped 62% to over 652,000. And notably, more than 25% of new first-time depositors who signed up during the World Cup also engaged with RSI’s online casino offerings, a 50% increase compared to the Copa America two years ago.
iGaming Legalization Outlook
When asked about the iGaming market in the U.S., Schwartz highlighted potential opportunities in states like D.C., Indiana, Ohio, and Virginia. He also noted that budget cuts at the federal level might pressure states, including major populations like Illinois and New York, to explore iGaming legalization as a fresh revenue source. “It’s going to create even more pressure on funding gaps,” he added, suggesting iGaming legalization could fill financial voids from reduced federal support.
Maintaining Flexibility in Predictions Market
RSI has filed an application to offer prediction markets but remains focused on its core casino strategy. “We don’t intend to lean into the crowded sports-focused prediction market space,” Schwartz noted. However, the dynamic nature of this market means RSI is keeping its options open, ensuring they can adapt if necessary. Still, looking ahead, RSI continues to monitor the changing legislative market, with potential policy shifts on the horizon. The company remains agile, ready to use opportunities as they arise in different jurisdictions.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
