Another quarter of record revenue is evidence Rush Street Interactive is on the right strategic path, says the CEO of the online/retail sports betting and iGaming operator.
RSI, which operates gaming in 22 U.S. states, Canada, and three Latin American countries, reported $220 million in profits for the second quarter (a 34% year-over-year rise) when it released its Q2 update on Wednesday.
"Looking back at the last 12 months, our results have been a clear sign to us that our approach is working," RSI CEO Richard Schwartz said during the company’s earnings call. "We have consistently exceeded expectations and this quarter is no exception."
Revenue rose a modest 1.2% from its Q1 results while RSI’s Adjusted EBITDA grew to a record $21.4 million in Q2, up $20 million from the same quarter in 2023.
A net loss of $300,000 for the quarter was much better than the $16.7 million net loss in Q2 2023.
New business
RSI trumpeted a 40% YoY increase in Q2 iGaming revenue, with BetRivers Sportsbook enjoying a 25% jump in profits.
RSI grew its monthly average users by 24% in the U.S. and Canada; the sixth consecutive quarter of growth in the North American sector.
The Latin American sector, comprised of Mexico, Colombia, and the new market Peru, grew MAUs by 73%.
The Chicago-based company’s executives said lower marketing costs to acquire new customers led to improved EBITDA, while two huge soccer tournaments — Copa America and Euro 2024 — helped bring in new customers.
Introducing a new same-game parlay product, adding a promotional squares game, and offering a prop central feature helped fuel the sports betting side.
NBA SGP wagers jumped 55% yearly, while the action on MLB player props rose 70% — with unique player acquisitions increasing 50% in Q2.
U.S. success
Profits from markets outside of Illinois and Pennsylvania grew to 59% of the total Q2 revenue, the highest since RSI went public.
The company was especially pleased with its growth in Delaware, where gross gaming revenue reached $37 million in the first half of 2024 and the iGaming profits were more than four times the revenue produced in Q2 2023.
Michigan, New Jersey, and Pennsylvania, where RSI operates iGaming, saw the highest revenue growth in two years during the first quarter... and grew even more in Q2.
"Our ability to provide much higher growth in our most profitable markets continues to drive higher incremental profitability," Schwartz said.
Heightened expectations
The success of 2024’s first two quarters led RSI executives to alter yearly guidance.
The company projects revenue to be between $860 million and $900 million, a midpoint increase of $45 million compared to previous guidance, with adjusted EBITDA expectations for 2024 jumping $13 million to be between $64 million and $72 million.
Current guidance includes live jurisdictions only; RSI’s expectations factor in the new Illinois tax rate, which could cost RSI potentially $2 million extra, with launch costs from Peru and increased marketing with the Olympics and football season taking place in Q3.
"We remain steadfast in our commitment to innovate, grow, and deliver value to our customers,” Schwartz said. “We are confident we are well on our way to becoming a leader in online gaming across the Americas."
