Rush Street Interactive revenue spikes in third quarter
Experiencing its best third quarter, Rush Street Interactive posted US$277.9 million in revenue, a 20% year-over-year increase. The company also realized a US$14.8 million profit.
Cash flow for Rush Street Interactive shot up 54%, reaching US$36 million. Sales and marketing expenses dipped slightly to US$38.1 million. Company leaders were prompted to raise their earnings guidance for the full year.
Rush Street grew its number of monthly active users in North America to about 225,000, a 34% boost. Latin American users were up 30%, to roughly 415,000. The average North American player represented US$365 in revenue per month, compared to US$27 per user in Latin America.
Chief Executive Richard Schwartz, in a prepared statement, said the outcome “underscores the resilience of our business model and player-first approach. Our third-quarter results demonstrate continued momentum and acceleration of growth across key markets, led by our continued outperformance in the online casino space.” He added that this was the tenth straight quarter of revenue growth.
“What makes these results particularly compelling is the continued acceleration of growth in North American online casino markets,” Schwartz continued. He said that the player increase was the strongest seen since early 2021 and more remarkable for having been done off of a much larger player base.
“We’ve now seen accelerating year-over-year growth in this player base every single month since March, indicating strong underlying momentum that extends well beyond seasonal factors,” Schwartz resumed. First-time depositors, he said, put down more than ever before by a 10% margin, despite the lower marketing outlay.
“This broad-based acceleration,” he concluded, “even across our most mature markets validates our strategic approach of focusing on product differentiation and a high-quality customer experience.”
Rush Street Interactive forecasts its 2025 cash flow to be between US$147 million and US$153 million, an improvement of as much as 62% over 2024. Revenues were predicted to crest between US$1.1 billion and US$1.2 billion. That would be a 20% increase on 2024’s US$924 million.
Schwartz went on to discuss the opportunities in Latin America, saying military threats by the US toward Colombia haven’t dampened the operator’s interest in the region.
“There’s lots of opportunity and there is a very large population,” Schwartz said of Latin and South America. “Anything is possible these days, anywhere in the world. We’re excited for the future. We’ve been a great citizen down there and very respected.”
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Why this quarter matters now
Rush Street Interactive’s latest quarter did more than beat expectations. It extended a multiquarter build in revenue, profitability and cash generation that has reshaped the company’s outlook for 2025. The move did not come out of nowhere. It reflects earlier cost discipline, stronger retention in core online casino markets and a deliberate emphasis on jurisdictions where the company can operate a full suite of products.
Across 2024 and 2025, Rush Street moved from intermittent profits to consistent earnings growth, bolstered by rising average revenue per user in North America and faster user growth in Latin America. Management has leaned on that trajectory to justify higher full-year guidance, while cautioning that international tax volatility and product mix could pressure margins. The backdrop shows how the business stitched together incremental wins in North America with opportunistic expansion abroad, setting the stage for today’s results.
Momentum built in earlier quarters
Rush Street signaled its step-up in performance well before this quarter. In the spring, the company reported double-digit increases in revenue, profit and cash flow, flipping a prior-year loss to a first-quarter profit as North American monthly actives rose and average revenue per player edged higher. That first-quarter earnings beat also came with measured marketing spend and a buyback, pointing to confidence in cash generation without overspending to acquire users.
By summer, the trend accelerated. The company delivered a second-quarter surge in revenue and profits, posting record cash flow and lifting full-year guidance. User growth was broad-based: monthly actives climbed in the U.S. and Canada, while Latin America continued to scale even as average revenue per user in the region slipped due to tax absorption in Colombia. Management emphasized the durability of online casino, where engagement and retention are structurally stronger than in sports betting, and said product breadth across licensed markets was maximizing cross-sell and player value.
The operating cadence was visible even in tougher environments. Earlier in the year, Rush Street surmounted adverse sporting results from marquee events like the Super Bowl and March Madness, reporting higher igaming receipts and resilient sportsbook revenue. That performance underscored the company’s tilt toward casino-led markets, where results volatility tends to be lower and lifetime values higher.
Latin America: growth engine with policy risk
Latin America has been a growth pillar, but the quarter-to-quarter story has been shaped by taxes and regulation as much as user expansion. In Colombia, Rush Street absorbed a double-digit value-added tax rather than pass it to customers, which compressed per-user revenue even as player counts grew. In multiple updates, executives detailed how the levy and associated emergency measures dented growth, then steadied once the immediate shock passed. Earlier this year, Rush Street said the market went from growing roughly 50 percent to flat after the tax took effect, though management expected profitability to improve once the levy sunsets or is reworked.
Those moving pieces framed a mostly upbeat tone on the company’s third-quarter outlook call, where leaders pointed to robust player-count growth across Latin America despite a Colombia revenue dip. They also flagged potential tax changes in Mexico, where the rate could rise substantially, and reiterated that the company would adjust bonusing and marketing to protect long-run returns.
The broader LatAm thesis remains intact. Mexico is tracking ahead of Colombia at a similar maturity stage, according to management, and Peru is still being optimized ahead of heavier marketing. The bet is that diversified presence across several regulated markets reduces single-country risk and amplifies cross-sell as new content pipelines open.
Product mix and partnerships underpin the strategy
Rush Street’s insistence on competing where it can deploy casino, poker and sportsbook together has been a constant theme behind the numbers. In the U.S., the company called out strong growth in Delaware, Michigan, New Jersey and Pennsylvania, attributing the gains to product depth and better player retention in igaming. Pennsylvania’s move to join a multi-state poker compact, for instance, gave Rush Street another gateway product to acquire and cross-sell, which the company has described as an efficient on-ramp to higher-value casino play.
Content deals helped. An expanded pact with Inspired Entertainment broadened the catalog across both North America and Latin America, including deployments in Delaware and on the RushBet platform in Mexico, Colombia and Peru. The companies cast the move as a way to scale proven titles across new jurisdictions quickly, bolstering engagement without heavy fixed costs. Details are in Inspired’s partnership expansion with Rush Street, which followed prior launches in Pennsylvania, Michigan and New Jersey.
The company also drew sharper lines on where it will not chase growth. Management has consistently downplayed prediction markets and criticized the sweepstakes model, arguing both could ultimately push regulators toward legalized igaming but do not fit Rush Street’s risk profile. On multiple calls, executives stressed that sustainable, regulated casino-led growth—not experimental categories—will drive returns. That conservative posture has resonated with investors who favor steady cash flow over splashy, high-risk ventures.
Capital discipline and what’s next
The capital plan has stayed opportunistic. Rush Street has ended recent quarters with substantial cash and no debt, giving it flexibility to repurchase shares selectively while preserving dry powder for new market openings or product investments. It bought back stock in the first half of the year, then held off as guidance rose and cash needs for expansion loomed. That stance was reiterated on the third-quarter outlook call, where leadership framed repurchases as tactical rather than programmatic.
Legislative calendars will shape the next leg. In the U.S., executives expect economic pressures on state budgets to keep igaming on the docket, though timelines are uneven. In Canada, leaders cited progress in Alberta, where online sports betting and igaming legislation advanced and could support launches by 2026. Each incremental market where Rush Street can activate casino alongside sportsbook tends to improve unit economics and retention, reinforcing the company’s stated focus.
The stakes are straightforward. If North American igaming grows and LatAm tax overhangs ease, Rush Street’s mix should tilt further toward higher-margin casino play with improving per-user monetization abroad. If taxes rise or legalization stalls, the company will lean harder on product and content differentiation to sustain engagement. Either way, the quarters leading into today’s results show a business disciplined on costs, deliberate on markets and clearer about what it will and will not pursue—context that explains how Rush Street arrived at its strongest third-quarter performance to date.
