Rush Street leaders take victory lap in earnings call

David McKee

31 July 2025 at 2:22pm UTC-4

Source: Shutterstock

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Richard Schwartz, CEO of Rush Street Interactive, began the second-quarter earnings call by noting new company highs for revenue, profitability and margins. These, he said, were “underscoring the consistency and strength of our business model.”

Revenues were higher across Rush Street’s board. In Michigan, they rose 42%; in West Virginia, 47%. Ontario saw a 25% increase while Columbia jumped 70% and Mexico shot up 125%.

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“The positive momentum across our market are far outweighing any headwind from increased taxes,” said Schwartz. He also lauded the company’s launch of a multi-state poker product, live in four states.

“Our marketing efficiency continues to be a highlight,” Chief Financial Officer Kyle Sauers said of the company’s US$36 million outlay, flat with 2024. Rush Street’s results, he continued, had been accomplished without entering a new jurisdiction since December 2023.

Sauers called the US$44.2 million in cash flow “our highest flow-through in the past five quarters.” He also guided Wall Street analysts to higher revenue and cash-flow projections for the full year. Those numbers, however, assumed that Colombia’s value-added tax is not extended.

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“We’re continuing to absorb the VAT tax for the players,” Schwartz said, “so there’s no change that we expect.” He added that congressional action would be needed to prolong the levy and that the Colombian president had experienced little success with such efforts in the past.

The nation’s courts, Schwartz said, were still mulling the constitutionality of the presidential impost. “There’s still a chance they could shorten the duration of it,” he opined.

Asked what Rush Street would do with its liquidity, Sauers replied that the highest use of cash would be to enter new igaming states. Returns from igaming, he said, were “really, really strong. We’ve seen that time and again.”

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Sauers also said that Rush Street had picked up US$5 million in additional revenue from favorable sports outcomes, which were better in the second quarter than in the first.

Schwartz said Rush Street was monitoring the prediction markets closely, “like everyone else in the sector.” But where others saw a challenge, Schwartz perceived opportunity.

“At the end of the day, we are a casino-first company,” he said, “so we don’t see the same risks others do.” For instance, if sports betting by the Kalshis of the world were to erode state-level tax bases, it would open up new markets for igaming and “it could work out well for us.”

As for Rush Street’s live-dealer product, “it obviously has a lot of room for growth,” the CEO continued. He enumerated various ways Rush Street was trying to enhance its product to increase its player cache.

For instance, casino igames were being aggregated into a “lobby” for greater ease of access, as opposed to segregating them by manufacturer. Of live dealers, he said, “maybe with a random number generator there’s a trust element that’s missing. All in all, we are bullish on live dealer.”