May 5, 2022 Sports Betting, iGaming

New York and Ontario launches boost Rush Street revenue, despite losses

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Revenue came in at $134.9m during Q1, a 21% year-on-year increase.

Rush Street Interactive, an iGaming and sports betting company operating throughout the United States, has announced its financial results for the period ending March 31, 2022.

Despite increasing losses, the company had a relatively positive Q1 with increased revenue and a series of launches in new jurisdictions.

Revenue for the period was $134.9m, a 21% increase from 2021’s $111.8m. Following this, monthly active users rose by 32%, bringing revenue per monthly active users to $265.   

Q1 saw the gaming brand launch in several new markets, including New York, Ontario and Louisiana. Concurrently, the company’s sportsbook, BetRivers, also became the official sports betting partner of the New Orleans Pelicans.

Speaking on these results, Richard Schwartz, CEO of RSI, said: “Launching five new markets in seven months with an additional market set for launch by the end of the second quarter, positions us well to continue to rapidly expand and diversify the business with an eye towards profitability. We grew MAUs sequentially at our fastest pace in six quarters and experience shows that these players build significant value over time.”

Despite these areas of growth, losses compounded for the gaming brand, with Q1 seeing a net loss of $52.3m, compared to $0.1m in 2021.

“We remain disciplined in our approach and are balancing profitability from more developed markets with investments in new market launches,” added Schwartz. “In fact, excluding the impact of our New York launch during the first quarter, our Adjusted EBITDA loss is less than $15m, demonstrating the growing profitability of our previously launched markets. Achieving consistent profitability is our top priority and we expect RSI to be Adjusted EBITDA positive for the second half of 2023.”

With this financial update comes an increase to Rust Street’s revenue guidance for 2022, which has now been boosted to between $600m and $650m.

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