Rush Street Interactive (RSI) reported a 21% year-over-year revenue increase to start 2025.
Key takeaways
- RSI reported 95% year-over-year adjusted EBITDA growth.
- CEO sees “strong momentum” from recent success.
- Monthly Active Users surge in North America and Latin America.
The online sports betting and iGaming company announced a $262 million first-quarter profit, up from $212 million in Q1 2024.
Adjusted EBITDA increased year-over-year by 95% to reach $33.2 million, while net income went from a $2.2 million loss in the previous year's first quarter to a $11.2 million net gain from the latest quarter that ended March 31.
“We have started 2025 with strong momentum, building on our success from recent years,” RSI CEO Richard Schwartz said. “These strong results are driven by our commitment to innovation and enhancing the quality of our player experience, alongside efficient acquisition and retention of high-value players.”
Chicago-based Rush Street operates in 15 U.S. states, including New York, Pennsylvania, Illinois, and New Jersey. BetRivers Sportsbook is the company’s sports betting brand. RSI also owns online casino brand SugarHouse and provides its sports betting platform for five land-based sportsbooks.
Additional Q1 highlights
Rush Street reported a 17% year-over-year increase in Monthly Active Users (MAU) across the U.S. and Canada, reaching 203,000 in Q1 2025. Latin America, including Mexico, saw an even greater jump of 61% from the previous year.
The average revenue per MAU in North America rose a modest 3% from Q1 2024 to $368 to begin 2025. The average in Latin America fell from $44 to $36.
Q1 adjusted sales and marketing expenses went up 3% from the previous year, from $37.8 million to $38.8 million. RSI also said it repurchased $5.2 million in Class A common stock under an authorized $50 million buyback plan.
“The consistency and durability of our business, particularly in online casino, is reflected in our execution and performance and is the foundation of the optimism we have for sustaining our momentum going forward,” Schwartz said.
Looking ahead
Rush Street executives reiterated the midpoint of the prior guidance and expect full-year revenue to reach between $1.01 billion and $1.08 billion, a 13% year-over-year growth. Adjusted EBITDA is projected to grow 35% at the midpoint and land between $115 million and $135 million.
RSI’s guidance ranges are based on certain assumptions, including that only operations in live jurisdictions as of today’s date are included, and RSI continues to operate in markets where it's live today under similar tax structures.
Gaming growth
A run by favorites in the NCAA tournament, the outcome of Super Bowl LIX, and a high tax rate in Colombia kept Rush Street from even more profit. Still, sports betting grew by 11% from Q1 2024.
“The growth in sports betting occurred despite player-friendly outcomes throughout March Madness as well as the Philadelphia Eagles’ Super Bowl win, which impacted us because of our large player base in the Delaware, South Jersey, and Pennsylvania areas,” Schwartz said during Wednesday’s earnings call.
Much of RSI’s first-quarter success came from 25% growth in iGaming. Schwartz said the company enjoyed year-over-year revenue growth in 15 of its 16 North American online markets. Rush Street reported that revenue from markets outside of Illinois and Pennsylvania grew to 64% of total revenue in Q1, the highest since the company went public. Delaware led the way with 80% growth, while Michigan increased by 40% and New Jersey by 27%. RSI operates online casinos in all three markets.
RSI is confident that iGaming, which is legal in seven U.S. jurisdictions, will continue to expand in the U.S., and the operator believes it offers a high-quality online casino product that helps crossover to its sports betting and poker platforms.
“We believe that iGaming legalization will gain momentum in the coming years,” Schwartz said.
