Online casino and sportsbook company Rush Street Interactive (RSI) generated $169.9 million in revenue for the third quarter of 2023, up by 15% from the same period last year when it posted $148 million. Revenue was also slightly up from the $165.1 million delivered in Q2 2023.
In addition to growing in revenue, RSI was also able to cut down its losses. The RushBet and BetRivers operator’s net loss was recorded at $13.4 million, down from a net loss of $22.7 million in 2022, improving by 41%. The net loss also improved from last quarter, when the operator recorded a $16.7 million loss.
Richard Schwartz, CEO of RSI, said: “Thanks to our decade-long investment in cutting-edge technology and a customer-centric approach, we’ve positioned ourselves as a top 5 online operator in the U.S., with a leading position in iGaming and a growing online sportsbook.”
“As discerning consumers seek out the best products and user experiences, our third quarter results affirm our ability to deliver on both counts as we continue to acquire, engage, and retain customers,” he added.
Revenue growth in Q3 was coupled with higher costs, as Rush Street Interactive sought to grow its business. Total operating costs were up 7.7% to $181.6 million, with the main outgoing revenue costs at $116.2 million.
The business noted an additional $762,000 in interest income, meaning pre-tax loss was $10.9 million, an improvement on $20.8 million in 2022. RSI paid $2.4 million in tax and also discounted $9.2 million in losses from non-controlling interests.
RSI also reported a positive adjusted EBITDA in Q3 of $4.1 million, favorably compared to last year, when the company posted a loss of $12.5 million. Further, the gaming brand reported a decrease in its expenditure on adjusted advertising and promotions, which dropped from $44.7 million during Q3 2022 to $34.1 million in this year’s third quarter.
Another highlight for the quarter was an increase in Average Revenue per Monthly Active User in the United States and Canada, reaching $374 during the period and translating to an 8% jump on a yearly basis.
“With strong revenue growth and more efficient marketing spending, we are proud to report another quarter of increasing quarterly profitability on an adjusted EBITDA basis as well as our expectation to have positive Adjusted EBITDA for the full year, underscoring our commitment to sustainable growth and profitability,” the CEO noted.
“Our focus on innovation and efficiency has elevated our market-leading ROI enabling us to navigate competitive markets with remarkable success and resilience. As we look ahead to new opportunities in North America and Latin America, we remain optimistic and excited about the path that lies ahead,” he concluded.
Richard Schwartz, CEO of RSI
RSI up almost 16.6% year-to-date
As for the year-to-date period, revenue in the nine months to 30 September was $497.3 million. This is 16.6% ahead of $426.7 million at the same point last year. Operating expenses for the period were 4.3% higher at $545.4 million. Interest income reached $1.4 million, leaving a pre-tax loss of $46.7 million, compared to $97.1 million in 2022.
Tax payments totaled $6.2 million and Rush Street Interactive took off $73.6 million in losses from non-controlling interests. As such, net loss for the period was $16.6 million, shorter than last year’s loss of $29.6 million. As for adjusted EBITDA, this stood at a loss of $3.3 million. However, given the improvement on the $74.5 million loss in 2022, RSI is hoping to post positive adjusted EBITDA for the full year.
As for full-year revenue guidance, this has now been tightened slightly. The business expects its revenue for the full year to be between $665 and $685 million, increasing the midpoint compared to the previous guidance. At the midpoint of the range, revenue of $675 million represents 14% year-over-year growth when compared to $592 million of revenues for 2022.
Access Rush Street Interactive’s full Q3 report here.
