Rush Street Interactive Sets New Q3 Records in Revenue and Adjusted EBITDA

Q3 2024 Financial Performance of Rush Street Interactive

RSI reported $232.1 million in revenue for Q3 2024, representing a 37% increase from $169.9 million in Q3 2023. Net income reached $3.2 million, compared to a net loss of $13.4 million in the same quarter last year.

RSI announced an adjusted EBITDA of $23.4 million, a substantial improvement from $4.1 million in Q3 2023.

Adjusted advertising and promotional expenses totaled $38.6 million, a 13% increase from $34.1 million in Q3 2023.

Richard Schwartz, Chief Executive Officer of RSI, said, “We are excited to report that we have achieved another quarter of exceptional performance, setting new quarterly records in both revenue and adjusted EBITDA. Our third quarter revenue surged by 37% year-over-year, and our adjusted EBITDA increased more than fivefold from the same period last year. These record results highlight the effectiveness of our strategic initiatives and ability to execute. Our focus on innovation to attract and retain high-value players continues to drive significant growth and profitability.”

Monthly Active Users (MAU) in the U.S. and Canada reached around 168,000, up 28% year-over-year. In Latin America (including Mexico), MAUs hit approximately 329,000, marking a 122% year-over-year increase.

Average Revenue Per Monthly Active User (ARPMAU) in the U.S. and Canada was $388 in Q3 2024, up 4% year-over-year. In Latin America, ARPMAU was $39, compared to $43 last year.

As of September 30, 2024, unrestricted cash and cash equivalents rose to $216 million from $194 million as of June 30, 2024.

On October 24, 2024, RSI’s Board approved a repurchase of Class A common stock worth up to $50 million.

RSI’s Strategy and Focus on iCasino

Rush Street Interactive (RSI) has a strong iCasino-focused strategy, setting it apart from many competitors who emphasize online sports betting.

RSI positions itself as a “leading digital operator with an iCasino-focused strategy,” believing that iCasino offers greater growth potential and higher margins than OSB.

The company operates in key North American iCasino markets, including New Jersey, Michigan, and Pennsylvania, and has an international presence in Colombia, Ontario, Mexico, and Peru, giving it a broader potential market than competitors focused solely on the U.S.

RSI has invested over 12 years in developing its proprietary technology platform and vertically integrated tech stack.The platform offers unique player features, such as UX personalization, social features, gamification tools, and RSI’s flagship promotional engine.

“Our strategy has yielded broad based growth and success across all of our geographies and products. We’ve accelerated player growth for another consecutive quarter, acquired significantly more players with much greater marketing efficiency, all the while increasing our player values. This combination sets us up well for continued strong performance,” added Schwartz.

The company prioritizes player retention and return on investment, resulting in industry-leading unit economics and growing adjusted EBITDA profitability.

RSI’s Strategy for Building Brand Awareness and Player Engagement

Rush Street Interactive (RSI) leverages diverse media and marketing strategies to build brand awareness and boost player engagement.

The BetRivers network, featuring sports personalities like Mike Francesa, connects with audiences in their local communities and beyond. Approximately 70% of Francesa’s viewership comes from jurisdictions where RSI operates. In September 2024, Mike Francesa achieved record YouTube viewership, nearly doubling compared to September 2023.

Poker Night in America also saw significant success, garnering a record 54 million minutes watched on YouTube in Q3 2024, a 228% increase over Q3 2023. In 2024, total viewing time for Poker Night exceeded 117 million minutes, surpassing the combined total of 2022 and 2023.

Betting Weekly Studios, focused on tennis and soccer betting content, also achieved record YouTube viewership in Q3, with over 2.1 million minutes watched, a 265% increase year-over-year.

RSI produces a variety of YouTube content, including popular poker sessions, gaming-related entertainment, expert previews for major sports, and local sports programming for fans and bettors. RSI’s YouTube subscribers have grown by 46% since Q3 2023.

In August, RSI introduced a revamped loyalty program (iRush Rewards) for its BetRivers, PlaySugarHouse, and RushBet brands. The program was redesigned to make loyalty rewards easier to earn and more rewarding for players.

Program enhancements include a new points system with simplified earning for casino games and sports bets, level stability with a player-friendly process allowing benefits retention for six months, and a new design with an improved user interface that provides a centralized location for viewing status, points, and progress through levels and tiers.