Rush Street Interactive Q1 LatAm users surge 61% despite Colombia tax drag

Rush Street Interactive (RSI) posted a 61% year-on-year increase in monthly active users (MAUs) across Latin America in the first quarter, reaching a regional record of 354,000, even as a new tax in Colombia weighed on revenue performance.

The user growth came despite the introduction of a 19% value-added tax (VAT) on online gambling in Colombia in February, which RSI offset by absorbing the cost through bonusing rather than passing it on to customers. While this approach preserved market share and lifted gross gaming revenue (GGR) by 55% in local currency, net gaming revenue (NGR) and average revenue per user declined.

Globally, RSI’s revenue rose 21% year-on-year to $262.4 million in the quarter. The company swung to a net profit of $11.2 million from a $2.2 million loss a year earlier, while adjusted EBITDA nearly doubled to $33.2 million.

“In each of March and April, our net revenue growth was significantly impacted,” CFO Kyle Sauers said on an analyst call. “So, in March, our net revenue in US dollars was actually down slightly year-over-year. And in April, it’s been about flat year-over-year.”

The Colombian VAT is currently set to expire at the end of December, but RSI executives warned it may become permanent. The tax, enacted to fund government responses to civil unrest, is under review by Colombia’s courts for constitutionality, with a ruling expected by late May or June.

“Given how strong the volumes have been in Colombia, should the temporary tax go away prior to year-end, we could see meaningful upside to both revenue and EBITDA,” Sauers said.

Elsewhere in Latin America, RSI reported nearly 50% year-on-year growth in Mexico, where it is in its third full year of operation. CEO Richard Schwartz said the company remains “really excited” about Mexico’s potential, calling it a market that could ultimately surpass Colombia.

In Peru, where RSI launched its RushBet brand in July 2024, the company has taken a more measured approach, with limited marketing investment as it continues to localize the platform. “It’s still something that we’re excited to be able to do in the future given the relatively large population that country has,” Schwartz said.

RSI is also evaluating expansion into Chile, Argentina, Ecuador, and Brazil, targeting a total addressable market in Latin America of $15.9 billion by 2028. “Once you have a great brand, a great platform, a great marketing team, operations, local knowledge of experiences in those regions, it becomes a lot easier for us to be able to add and be successful in future markets,” Schwartz said.

MAUs in North America rose 17% to 203,000 in the quarter, with average revenue per user far outpacing Latin America at $368 versus $36. RSI reaffirmed its full-year 2025 guidance of $1.01 billion to $1.08 billion in revenue and adjusted EBITDA between $115 million and $135 million.

“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,” Schwartz said.