Rush Street Interactive’s Revenue Surges 15% in Third Quarter
LISTEN TO THIS ARTICLE:RushStreet Interactive, the parent company of BetRivers and PlaySugarHouse online casino brands, has reported a revenue of $169.9m in its Q3 trading update, an increase of 15% year-over-year.
US and Canadian operations account for $151m of the total revenue, while $19m was derived from operations in the LATAM gambling market.
The operator reported a net loss of $13.4m for the third quarter, down 41.6% from the $22.7m loss reported in Q3 of 2022. The company achieved adjusted EBITDA profitability for the second consecutive quarter, with a reported $4.1 million in contrast to a loss of $12.5 million in the same period in 2022.
The operator also affirmed its position as a top-five operator in all online casino markets where it is live in the United States and Canada, including Pennsylvania, West Virginia, Michigan, New Jersey, and Ontario. RSI stated that it has been experiencing an increase in market share in these jurisdictions, even though its marketing spend has decreased.
Advertising and promotional costs for the quarter amounted to $34.1m, down from $44.7m in Q3 2022.
Our goal from the beginning has been to develop an experience that retains customers. In today’s landscape, we are unique, a digital-first operator with an iCasino customer-centric approach. We’ve consistently maintained that as the industry grows and matures. Consumers will naturally gravitate toward the best products. As a playing field levels with a tide of marketing and aggressive bonus in dollars slowly washing away, that is what we are seeing.
RSI Expands Operations
A significant operational achievement of RSI in Q3 was getting selected by the Delaware Lottery to be the exclusive provider of online gaming services. The partnership, which is set to launch by the end of the year, will see RSI strategically positioned in a market that currently generates $13m in GGR, with 80% of the revenue coming from online slots.
The market is pretty small right now. But over time, we think there’s a pretty nice opportunity to expand. It’s not going to happen overnight. I would not think about it as some big headwind in 2024 like most markets, it takes a little while to get up and running. There’s some costs associated with that. But like other North American casino markets, that we’ve demonstrated. Delaware, it should get profitable pretty quickly.
Following a successful quarter, RSI has raised the midpoint of its 2023 revenue guidance to $675m, with the full guidance range set between $665m and $685m. This midpoint represents a 14% year-over-year increase compared to the $592 million in revenues generated in 2022.
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