Rush Street Interactive revenue up 89% in Q2 as it enters new US markets

Rush Street Interactive announced its second quarter 2021 results on August 12, reporting revenue of $122.8 million, up 89% year-over-year.

The online casino and sports betting company saw a net loss of $14.0 million during the period, compared to a net loss of $50.6 million; while Adjusted EBITDA loss was $6.6 million, compared to $3.7 million in the prior year.

“In addition to successfully growing revenues in existing markets, we have made significant progress in securing access opportunities to new markets,” said Richard Schwartz, Chief Executive Officer of RSI.

One of such new ventures includes a partnership in the State of Connecticut, also announced August 12, where Rush Street Interactive will be the exclusive partner of the Connecticut Lottery Corporation. RSI will be one of only three operators in the state.

Under the terms of this 10-year agreement, RSI will serve as the CLC’s exclusive provider of the sports betting system for mobile, online and retail channels, as well as the operator of the CLC’s mobile/online sportsbook.

Connecticut Lottery expects at least $170 million in revenue over the next 10 years. But while CT Lottery is now preparing itself to take wagers for the opening of the NGL season on Sept. 9, the launch date might come later than that.

“In terms of getting to a launch date for sports wagering in Connecticut, it’s actually not possible to say when that will be completed,” said Greg Smith, president of the Connecticut Lottery Corporation, as Connecticut’s regulatory structure is still awaiting completion, reports the CT Mirror.

However, Rush Street is confident to begin operations as soon as possible, with Schwartz saying: “We have a track record of being first to launch in a wide range of markets. We were first to launch sports betting in Illinois, Indiana, Colorado, first day in Michigan. And so our goal is to be prepared to launch as soon as it’s viable in Connecticut.”

Earlier this month, the company also announced an agreement for market access opportunities in Louisiana, Mississippi and New Mexico, the latter two subject to said states passing mobile gaming legislation. Moreover, RSI has also submitted mobile sports betting applications in New York and Arizona.

Due to the positive outcome seen in Q2, RSI now expects revenues for the full year to be between $465 and $494 million, up from previous guidance of between $440 and $480 million. A midpoint revenue of $480 million would represent 72% year-over-year growth compared to $278.5 million revenue in 2020.

The company has also continued to work in expanding its content offering for both sport betting and casino games, including new partnerships with GTG Network for co-exclusive sports betting information and Boom Entertainment for exclusive casino content, with new and exclusive offerings “in coming quarters.”

In terms of sports betting, BetRivers entered a partnership with the Chicago Bears and has secured well-known former athletes as brand ambassadors, including football legend Mike Ditka.

Schwartz also remarks an “ongoing commitment” to improve player experience by enhancing the quality of the company’s mobile apps and sites, leading to “continued impressive paybacks.” One of these positive results involve Real-Money Monthly Active Users (MAUs) in the US up 128%, with average revenue per MAU of $377.