The parent company of BetRivers reported its 10th straight quarter of revenue growth, driven by strong momentum in North American online casino markets.
Rush Street Interactive reported Wednesday that revenue grew 20% to a record $277.9 million in the third quarter compared to last year. Adjusted EBITDA hit $36 million, up 54%.
The results and positive momentum throughout the business led Rush Street to raise its 2025 adjusted EBITDA expectations to $150 million at the midpoint on $1.11 billion in expected revenue. Those figures represent growth of 62% and 20% over 2024, respectively.
Its stock is not seeing the same positivity, however. RSI opened Thursday at $17.68, down 2.7% from Wednesday’s close and is down around 7.3%as as of 12:30 p.m. Eastern.
Substantial online casino growth
Rush Street saw monthly active users for its online casino business jump 46% in North America. That is the second largest growth rate in more than four years and was achieved despite a larger starting player base, CEO Richard Schwartz said.
Michigan users rose 48%, its second-fastest rate since the first quarter of 2022. New Jersey, RSI’s most mature online casino market, saw 37% growth, second best since Q1 of 2021.
The province of Ontario saw online casino revenue grow 24%, the best rate since the fourth quarter of 2023. Pennsylvania, meanwhile, rose 15%, its best quarter since Q3 2021.
“This broad-based acceleration of growth across markets of varying maturity levels validates our strategic approach of focusing on product differentiation and a high-quality customer experience,” Schwartz said. “Our proprietary technology platform enables us to deliver unique gaming experiences that drive both customer acquisition and retention efficiently.”
The average revenue per monthly active user in North American fell 5%, but that is to be expected with the levels of user growth, CFO Kyle Sauers explained. “As we’ve seen consistently, newer player cohorts start with lower spend levels and more bonusing before increasing engagement and player value over time.”
BetRivers continues to pull more from Delaware
Delaware, where BetRivers took over as the exclusive operator at the end of 2023, saw net revenue rise 74% in the quarter.
The gross revenue run rate hit more than $160 million in the third quarter. That is more than 9 times better than what former exclusive operator 888 saw in its best quarter.
Latin America issues persist
Rush Street is still dealing with the 19% VAT on customer deposits in Colombia, which should last through the end of the year. Rush Street, like other operators, has absorbed the tax in order to maintain market share and player activity.
There is also a risk of increased taxes in Colombia, though Schwartz said there does not appear to be sufficient congressional support to pass the proposal.
Mexico, meanwhile, looks prepared to raise its gaming taxes to 50% from 30%.
“There have been and should continue to be ways to reduce the effective rate below these amounts,” Sauers said. “But we’ll keep you updated next year, assuming these changes get enacted and what that means for us and if there’s any difference in the way we approach that market.”
LatAm expansion plans unchanged
The issues in Colombia have not soured Rush Street on their plans to continue growing in Latin America.
“It’s a lot of effort to get experience right for Latin America,” Schwartz said. “We believe those markets are at the infancy of growth. And as we see in our growth ourselves, there’s lots of opportunity there, and it’s a very large population across Latin America that are in the process of or will be legalizing online gaming in the future. So we certainly remain very excited for it.
” … So I think certainly, we are excited for the LatAm market and think we will be able to control the things that we can and execute where we can and influence when we’re able to in terms of how we sort of want frameworks to exist in a way that’s viable. But I think we’re excited for the future in LatAm.”
BetRivers will not risk licenses on predictions
Rush Street, like every other company involved in online gambling, is keeping a close eye on predictions. There has been no impact felt by Rush Street from predictions so far, Schwartz said.
While ultimately Rush Street will need a level playing field should predictions be allowed over the long term, they will not be moving forward in the space anytime soon.
“We’re certainly monitoring it closely, aware of everything that’s been happening and don’t expect to be pushing any limits because we certainly respect the state gaming licenses and recognize that licenses are a privilege at a state level, not a right,” Schwartz said. “And so we have to be very cautious and make sure we’re compliant with those stakeholders there that feel strongly on this topic.”
He also echoed statements from Rush Street’s second quarter call that the growth of predictions and sweepstakes could be a catalyst for online casino legalization around the country.
