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Rush Street Interactive raises guidance after Q3 revenue skyrockets


Rush Street Interactive – the digital arm of Rush Street Gaming – has raised its full-year revenue guidance by 20% to between $265m and $275m, after it saw revenue grow 369.5% to $72.8m in the third quarter of 2020.

Rush Street Interactive chairman Richard Schwartz said the business’s growth in revenue highlighted its leading position in the US betting and igaming market.

“Our third quarter results demonstrate RSI’s commitment to excellence and validates our focus on player engagement and building a best-in-class technology stack, which have enabled us to attract and retain a loyal and diverse user base,” Schwartz said.

“We have maintained the number one online casino share in the United States for the second straight quarter according to Eilers & Krejcik. 

“The discipline in how we bring new players onto the and platforms, and retain existing players, is the hallmark of our approach and will remain core to the Company as we continue to expand and enhance our product offerings.”

However, Rush Street Interactive’s operating expenses also skyrocketed, up 469% to $104.7m.

The operator’s cost of revenue came to $47.1m, up 647.6%. Its advertising and promotional costs, meanwhile, were up 82.3% to $17.5m.

General and administrative costs, however, were the largest reason for the increase in expenses, growing almost 18 times over to $39.6m. Depreciation and amortisation costs, meanwhile, grew 40.6% to $450,000.

Rush Street Interactive chief executive George Carlin said many of these costs were in areas that ensured RSI was well placed for the future.

“As we move toward completing a transformational year for RSI, we have built a strong technological and operational foundation that we expect will continue to serve us well as we expand into new markets,” Carlin explained.

“We are excited to be on the path to becoming a publicly listed company and expect that our customer acquisition strategy and growing market share will create sustainable long-term value for our shareholders.”

These costs resulted in an operating loss widening to $26.5m.

After paying a $1.5m dividend and interest and other expenses of $16,000 each, RSI’s net loss came to $28.0m. After foreign currency adjustments of $134,000, its comprehensive loss was $28.1m, more than 17 times the amount it lost a year prior.

RSI is set to go public on the New York Stock Exchange, having agreed a reverse merger with special purpose acquisition company dMY Technology Group, which is expected to close before the end of the year.