Rush Street Interactive execs upbeat at G2E
Rush Street Interactive Chief Executive Richard Schwartz and Chief Financial Officer Kyle Sauers vouched for progress on several fronts. Even apparent adversity, they said, could prove advantageous.
Their views were conveyed in an October 7 investor note by J.P. Morgan analyst Daniel Politzer. The executives were in Las Vegas for the Global Gaming Expo, where the meeting took place.
The execs told Politzer that Rush Street Interactive was continuing to gain market share and monthly active users. Although they admitted to unfavorable hold on NFL gains, they said it was not enough to break their third-quarter results. As for the incursion of prediction markets, the men felt that could spur legislators to legitimize igaming in more US states.
In one of Rush Street Interactive’s main markets, Colombia, the company said it was seeing robust betting volumes and growing market share. A temporary value-added tax is expected to end on January 1.
The second quarter of 2025 was Rush Street Interactive’s strongest for customer acquisition and the third quarter evidently did not disappoint, either. “RSI is continuing to penetrate existing icasino markets and acquire customers new to the segment given the localized nature of icasino marketing (vs OSB’s more national/brand approach),” Politzer wrote.
Having had success in drawing new players even in mature markets such as New Jersey, Michigan and Pennsylvania, management was looking to keep the customer-acquisition pressure on through year’s end. Not only were players increasing, so was their betting activity.
“While RSI noted a modest impact from customer-friendly sports outcomes in September, their relatively low mix of OSB vs igaming provides insulation from hold volatility,” reported Politzer. Even with heightened, NFL-related activity, the promotional climate was said to be still somewhat rational.
Citing the legal murkiness of prediction markets, Schwartz and Sauers said that Rush Street Interactive wouldn’t be first mover among OSB providers to invade that space. Although keeping their options open, they said they were looking for prediction-market activity to spur igaming legalization “as states search for a way to protect their tax revenue.” The execs felt that states that have online sports betting would be the quickest to act, as the igaming infrastructure would be in place.
Although higher promotional activity to offset the Colombian VAT has flattened Rush Street Interactive revenue in that country, Schwartz and Sauers remained optimistic. Even so, revenues had been impeded by as much as US$75 million and cash flow by US$20 million or more. The upside is that a VAT-free 2026 would make for easy comparisons with tax-impaired 2025.
Rush Street Interactive’s Delaware monopoly was said to be “incredibly strong,” with no rivals trying to enter the state, although that might change. Whenever Alberta incepts igaming, Rush Street Interactive expects to be ready on the first day. In Ontario, the operator enjoys as much as 2% market share.
Mexico was “growing very nicely,” RSI execs said, eventually due to outstrip Colombia in its revenue contribution. Peru was described as trending quite well but RSI is keeping its powder dry on Brazil at present.
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Momentum builds behind RSI’s growth story
Rush Street Interactive’s recent performance did not arrive out of nowhere. The company spent the past year stacking operational wins and recalibrating to shifting market forces. In the fourth quarter of 2024, RSI posted a 31% revenue surge to US$254.2 million and a modest profit, then set 2025 guidance at US$1 billion to nearly US$1.1 billion with a sharply higher cash flow target, underscoring confidence in its model after a stronger-than-expected finish. The beat was not a one-off. In the first quarter of 2025, revenue rose 21% to US$262.4 million and profit reached US$11.2 million, while active users continued to climb, particularly in Latin America as RSI extended its streak of double-digit growth.
Management has framed this momentum as the product of disciplined customer acquisition in online casino, measured promotion in sports betting and a pipeline of content partnerships meant to deepen engagement. At the Global Gaming Expo in Las Vegas, CEO Richard Schwartz and CFO Kyle Sauers told investors they were gaining market share and monthly active users across core geographies even as unfavorable NFL hold created short-term noise, emphasizing that a heavier igaming mix insulates results from volatility in a J.P. Morgan note after G2E. That positioning explains why RSI has leaned into igaming expansion in mature markets like New Jersey, Michigan and Pennsylvania and why it sees a long runway in states that already host online sports betting.
The through line across these updates is simple: RSI has used steady execution in regulated igaming to compound user growth, while directing capital to content and market access that can sustain per-player value. It has also prepared for policy shifts that could reprice the opportunity set higher or lower, depending on whether new states legalize online casino or impose new taxes in existing jurisdictions.
Product partnerships underpin user acquisition
RSI has paired its operating cadence with content deals aimed at boosting the quality and frequency of gameplay. In October, RubyPlay chose RSI’s BetRivers for its U.S. debut in New Jersey with a slate of slot titles, with plans to expand into Pennsylvania and Delaware and explore Michigan and West Virginia. Schwartz touted the fit with BetRivers’ player-first positioning as RubyPlay entered the U.S. via BetRivers. The move adds exclusive and phased releases that can attract new players and keep existing ones engaged, a lever RSI has used to acquire “new-to-vertical” casino customers in markets where brand battles are expensive and national advertising is less efficient.
RSI also extended a content partnership with Inspired Entertainment to bring its portfolio to Mexico, Colombia, Peru and Delaware, building on earlier launches in Pennsylvania, Michigan and New Jersey. The expansion widens RSI’s international catalog via RushBet in Latin America and strengthens BetRivers’ library in Delaware as Inspired grows alongside RSI across the Americas. These arrangements help explain why RSI has sustained higher user counts without overspending on promotions. In both the fourth quarter and first quarter, marketing outlays rose, but growth in monthly active users, especially in Latin America, outpaced the spend.
Management’s commentary ties these content plays to ROI. Schwartz credited technology upgrades and strategic partnerships for improving acquisition efficiency and player values, which supported higher guidance heading into 2025 after the fourth-quarter beat. The cadence continued into the first quarter, with average revenue per player ticking up in North America and total cash flow nearly doubling year over year as RSI preserved pricing discipline.
Latin America’s promise meets policy risk
Latin America has become RSI’s fastest-growing user base and a strategic hedge against U.S. market maturity. In both late 2024 and early 2025, active users in the region grew faster than in North America, even as average revenue per user moderated. Management argues that the region’s scale and lower acquisition costs can offset that ARPU gap over time, supported by localization and content breadth as user counts scaled past North America.
But growth has come with tax friction. Colombia’s surprise 19% value-added tax weighed on revenue and cash flow. RSI responded with more disciplined marketing and bonus adjustments, saying the impact is embedded in 2025 guidance and that several legal challenges may follow as the company recalibrated in Colombia. At G2E, executives added that higher promotional activity to offset the VAT flattened Colombian revenue, though they expect the temporary levy to lapse Jan. 1, which would set up easier comparisons in 2026 per the investor readout.
Outside Colombia, RSI says Mexico is “growing very nicely” and could overtake Colombia in revenue contribution, while Peru is trending solidly as Latin expansion gains traction. Inspired’s content rollout should reinforce engagement on RushBet in those markets as the portfolio deepens. The balance for RSI is to keep scaling users in Latin America while managing near-term ARPU dilution and tax volatility, which the company says it can offset through product and promotional tools on its proprietary platform.
Legalization tailwinds and the prediction market wildcard
RSI has been explicit that the biggest upside catalyst remains U.S. igaming legalization. On the fourth-quarter call, Schwartz said state budget pressure and the prevalence of untaxed sweepstakes-style games are pushing lawmakers to confront the reality that online casino play is already happening outside the regulatory framework. He called the current environment the most favorable yet for legalization efforts, with industry alignment and fiscal needs converging as RSI sharpened its 2025 outlook.
At G2E, management added a twist: the rise of consumer prediction markets could prod states to act faster to protect tax bases. RSI does not plan to be a first mover into that gray area, citing legal uncertainty, but sees it as another pressure point for lawmakers, especially in states that already run online sports betting and have the infrastructure to add casino games as executives outlined in Las Vegas. That stance reflects RSI’s focus on regulated, durable economics rather than chasing short-term volume in ambiguous channels.
The stakes are clear. If even a handful of large states authorize igaming, RSI’s core competency in casino could expand its addressable market significantly. If tax regimes tighten instead, the company believes its mix of proprietary technology, localized marketing and content depth can protect margins better than peers skewed to national sportsbook promotions.
Market-by-market posture and what comes next
RSI’s geographic portfolio shows a preference for defensible positions and measured bets. The company describes its Delaware position as “incredibly strong,” with content additions from Inspired and potential RubyPlay expansion poised to reinforce BetRivers’ offering as third-party libraries grow and new studios enter. In Ontario, RSI holds a small share but continues to acquire customers with localized tactics. In the U.S., New Jersey remains a proving ground for content-led engagement, highlighted by RubyPlay’s U.S. debut on BetRivers with a phased slot rollout.
Capital allocation has been steady. RSI repurchased US$5.2 million of its stock in the first quarter and reiterated 2025 guidance without assuming upside from legalization or M&A. Sauers has emphasized cash discipline, saying the balance sheet is strong enough to fund growth while assessing opportunities without urgency as cash flow ramped and liquidity improved.
That combination—content partnerships, operating consistency and regulatory readiness—frames RSI’s next phase. The company enters the back half of the year with accelerating user growth, particularly in igaming, and clear levers to press if new states open. The risk remains policy, not demand. RSI is betting that its focus on casino and localized marketing can continue to compound through cyclical sports swings and tax bumps, positioning it to convert any legalization window into durable gains.
