Rush Street Interactive, the online casino and sports betting company, increased first quarter revenue 34% year-over-year driven by strong growth in both iCasino and online sports betting products.
“We are extremely pleased with our record first quarter results achieving company quarterly record revenues and adjusted EBITDA of $217 million and $17 million, respectively,” Richard Schwartz, CEO of Rush Street Interactive (RSI), said in a press release announcing the company’s earnings.
Adjusted EBITDA grew by $26 million year-over-year as well, a significant improvement from Q1 2023. These impressive gains follow a Q4 2023 performance that also saw the BetRivers operator produce records in both categories.
“This was accomplished by growing both our iCasino and online sports businesses by over 35% year-over-year,” Schwartz continued, “in large part by acquiring new players more efficiently while simultaneously increasing the number and value of our users.”
The operator also owns major legal gambling brands such as PlaySugarHouse and RushBet, and it achieved its highest ever first-time depositors through its portfolio of products.
Strength in North America
RSI operates iGaming and online sports betting products through the United States, Canada, and Latin America, and its North American assets turned in impressive performances in the first quarter.
Monthly active users (MAU) in North America grew 20% year-over-year to roughly 176,000, establishing a new high mark for the company’s quarterly MAU growth. Average revenue per monthly active user in this cohort was $355, climbing 9% compared to Q1 2023.
RSI’s three largest online casino markets in North America (Michigan, New Jersey, and Pennsylvania) each achieved the highest year-over-year revenue growth rates in the last two years
Schwartz cited this achievement as a signal to how the company’s iCasino-centric strategy is paying off.
“Our focus on the iCasino experience is resonating with new and existing customers driving very solid growth in these existing markets,” he said.
Delaware is one of the newest markets for RSI, where the company grew annualized run-rate gross gaming revenue to $70 million, which is four times greater than the prior year’s results.
LATAM expansion
Some of RSI’s biggest gains came from its Latin American (LATAM) markets. Overall revenue soared 84% year-over-year, setting a new quarterly record for the region.
Latin American MAUs also improved by a whopping 72% year-over-year to roughly 224,000, and average revenue per monthly active user in the region finished the quarter up 4% compared to the prior year period.
RSI’s LATAM activities comprise both Colombia and Mexico, but Schwartz pointed to the opportunity awaiting in another Latin American country:
“Our next likely market launch will be Peru which we anticipate to be later this summer,” he said.
He also noted that the company is well-positioned for a new launch in Peru given its market adjacency and overlap with Colombia and the established teams RSI has in Colombia.
Moving forward looking
The positive first quarter returns triggered the company to adjust its previous performance guidance for 2024.
RSI increased the midpoint for both full-year revenue and adjusted EBITDA. The operator is now anticipating full-year revenue to come in between $810 million and $860 million, which bumps the midpoint by $35 million compared to its original guidance. Adjusted EBITDA is expected to fall between $50 million and $60 million, bringing the midpoint up by $15 million as well.
These new midpoint marks represent potential 21% and 575% year-over-year growth for full-year revenue and adjusted EBITDA, respectively.
RSI will remain a compelling character in 2024’s legal sports betting story. This momentum all comes on the heels of rumors that company leadership is weighing a potential sale and may have even reached out to DraftKings as a potential buyer.
