A gaming and sports entertainment company is reaping the benefits of legal sports betting.
Rush Street Interactive posted $162.4 million in revenue in Q1 2023, compared to $134.9 million for the same period last year. RSI — the parent company of BetRivers — reported a net loss of $24.5 million during the quarter, an improvement from a net loss of $52.3 million in Q1 2022.
“On the back of these excellent results, we remain on track to achieving our goal of profitability for the second half of this year,” said CEO Richard Schwartz. “We are staying disciplined in our approach and successfully balancing growth and profitability over the long run.”
RSI’s ability to narrow losses in Q1 2023 came as the company reported a reduction in adjusted advertising and promotions expenses. The Chicago-based company, which offers online wagering in Ontario, Colombia, Mexico, and 15 states in the U.S., had $49.4 million in adjusted advertising and promotions expenses — down from $66.3 million for the same period last year.
RSI estimates full-year revenue in FY2023 to range between $630 million and $700 million.
Marketing mixup
The company, which also owns PlaySugarHouse, made changes to its market presence in Q1 2023. On March 27, RSI and the Connecticut Lottery Corporation announced a joint plan to dissolve their online sports betting sites and retail betting partnership after securing a 10-year deal in 2021.
RSI’s decision to exit Connecticut came after the Nutmeg State reported lackluster sports betting profits. The Connecticut Department of Consumer Projection reported that the state’s sports betting handle in February was $136.5 million — down from $167.7 million for the month prior. Gross gaming revenue was $8.55 million in February, down from $14 million in January.
RSI expects to turn a profit for the first time in H2 2023. The company believes the launch of sports betting operations in Maryland and Ohio will help boost the company’s financial results. In March, RSI generated $281.9 million in revenue from online sports wagering In Ohio. That same month, the company’s BetRivers operations in Maryland reeled in $221,000 in revenue.
