Sixth market turning positive

RSI sees revenue and active users grow in Q2 amid deepened net loss, bets on positive Ontario and Mexico debuts

Richard Schwartz, CEO of RSI.
Reading time 2:42 min

Rush Street Interactive (RSI) on Thursday reported revenue growth of 17% year-on-year to $143.7 during the second quarter of 2022. Net loss nearly doubled to $28.3 million, and Adjusted EBITDA was a loss of $18.6 million, a loss about three times higher than the one reported for Q2 2021.

Furthermore, adjusted advertising and promotions expense was up 20% to $44.2 million, and Real-Money Monthly Active Users (MAUs) in the United States and Canada grew 35% year-over-year to 133,000, with average revenue per MAU (ARPMAU) of $325, up 23% sequentially.

Richard Schwartz, Chief Executive Officer of RSI, said: “We made further progress towards our profitability goals with a sixth market turning positive during the quarter, adding to the five markets that also showed sequential profitability improvements in the second quarter. We significantly expanded our international reach with the recent launches in Ontario and Mexico, both large population markets where online casino is legal, playing to our strength. We have seen our handle and revenue in Ontario steadily grow since launching at the beginning of the second quarter and remain excited about our recent launch in Mexico and the start of our upcoming marketing campaigns in that market."

During Q2, RSI launched its online casino and online sportsbook RushBet in Mexico through an exclusive partnership with Mexican media conglomerate Grupo Multimedios. Previously, it started the quarter with its BetRivers launch in Ontario. RSI also added its online sportsbook to existing online casino offering in West Virginia, where it also became the first to launch live dealer content.

Moreover, the Chicago-based company expanded its content production and creation capabilities with the acquisition of Poker Night in America, and recently enhanced its responsible gaming program by being the first in the U.S. to deploy Neccton’s player protection software.

"Looking forward, we are confident heading into the back half of the year and what it holds for RSI, as many of our recently launched markets will be entering their first full football and soccer seasons," RSI CEO added. "With our continued growth in both the United States and international markets, we are well-positioned to achieve our goal of Adjusted EBITDA profitability for the second half of 2023.”

In that sense, RSI expects revenues for the full year ending December 31, 2022 to be between $600 million and $630 million. At the midpoint of the range, revenue of $615 million represents 26% year-over-year growth when compared to $488 million of revenues for 2021.

See RSI's full Q2 investor presentation here.

New BetRivers brand ambassador in Canada

On Tuesday, Rush Street Interactive announced the signing of popular Canadian sports broadcaster and reporter Natasha Staniszewski to an exclusive brand and content deal with BetRivers.

Staniszewski is currently the host of StampsTV for Calgary Sports and Entertainment Corporation. Prior to that, she spent 10 years anchoring and reporting for SportsCentre, TSN's flagship sports news and information program.

As part of the new partnership with RSI, Staniszewski will produce original content for the BetRivers brand and will appear in radio, television and marketing campaigns in Ontario and U.S. markets where BetRivers has sportsbooks. Staniszewski will also represent the brand at various events across Ontario.

"It's an exciting time to be part of the sports betting industry in Ontario and I am thrilled to be joining the BetRivers team as a brand ambassador," said Staniszewski. "I look forward to sharing my knowledge and passion for sports while creating unique content for a wide audience of sports fans."

"We couldn't be more excited for Natasha Staniszewski to be joining the BetRivers family," said Richard Schwartz, CEO of RSI. "Her unique perspective and extensive experience covering the world of sports will be an incredible asset to our customers and will continue to enhance BetRivers' award-winning experience for sports betting enthusiasts in Ontario and beyond."