Rush Street Interactive revenue leaps 57% in third quarter
Chicago-based operator’s stock tumbles 5% on Nasdaq as adjusted EBITDA losses mushroom to $12.2m
Rush Street Interactive (RSI) has announced a 57% year on year (YOY) increase in Q3 revenue to $122.9m, up from $78.2m during the corresponding period last year.
The sports betting and casino operator, which launched in Arizona during the reporting period, revealed that adjusted EBITDA losses amounted to $12.2m, compared with a loss of $1m in Q3 2020.
However, real-money MAUs in the US rose 26% YOY as ARPMAU came in at $380, the firm revealed.
Meanwhile, adjusted advertising and promotions expenses totaled $45.4m, which was 37% of revenue for the three months to the end of September, up from $17.5m in Q3 2020.
Richard Schwartz, CEO of RSI, said: “We are very encouraged by the ongoing execution of our business strategy across the entire organization.
“New market access and launches have continued to be a significant driver of our overall success,” he added, referencing Connecticut following an access agreement inked in August.
With its PlaySugarHouse brand, RSI is one of three permitted operators in the state, which is now live with sports betting and igaming, and is the exclusive partner of the Connecticut lottery.
On top of this, RSI was one of nine operators granted access to New York, albeit with an eye-popping GGR tax rate of 51%.
“Upon launch of its online sportsbook in New York, RSI will be one of only three companies with online gaming market access in New York, New Jersey, and Connecticut,” Schwartz continued.
“The New York City media market, the largest media market in the nation, taps into all three states in the tri-state region, giving RSI significant long-term marketing efficiencies.”
RSI also revealed that single-game parlays for its Kambi-powered sportsbook are available across all its states, while 50% of NFL bettors have placed one of these bets this season.
Finally on top-line growth, RSI said it expects full-year revenue to increase slightly from its previous guidance of $465m-$495m to $480m-$500m.
The Chicago-headquartered outfit said the mid-point of that revised range – $490m –represents 76% YOY growth when compared to the $278m in revenue accrued in 2020.
RSI stock slid more than 5% on the back of the Q3 results, closing the day’s trading at $18.67.