RSI - Rush Street Interactive, Inc.

Rush Street Interactive operates BetRivers and PlaySugar branded online casino and sports betting platforms, offering real-money iGaming and sports wagering directly to consumers in regulated U.S. states, Canada, and Latin America. The business model is direct-to-consumer transactional, generating revenue primarily through gaming hold (the house edge) on bets and wagers placed on its digital platforms. RSI generates approximately $700-800M in annual revenue, with the U.S. market—particularly Pennsylvania, Michigan, Illinois, and New Jersey—accounting for the majority of volume. The company competes in the regulated online gambling space against DraftKings and FanDuel, holding a smaller but established market position focused on product quality and player retention over aggressive marketing spend.

Past Year Trends

• Rush Street Interactive grew full-year 2024 revenue 34% YoY to $924.1M, and reached $1.13B in full-year 2025 revenue (+23% YoY), driven by record quarterly active user growth in North American online casino markets. (Bullish)
• Adjusted EBITDA surged from $8.2M in FY2023 to $92.5M in FY2024 (+1,033% YoY) and further to $153.7M in FY2025 (+66% YoY), reflecting improving marketing efficiency as spend fell to below 14% of revenue—the lowest ratio since RSI's public debut. (Bullish)
• Colombia's President Petro issued a 19% VAT decree on player deposits in February 2025, forcing RSI to absorb approximately $75M in incremental bonusing costs in 2025 and reducing Latin American ARPMAU from $42 to roughly $30, materially pressuring international segment margins. (Bearish)

Next Year Trends

• RSI is targeting a BetRivers launch in Alberta, Canada around July 2026, which management expects to reach profitability within one quarter of operation based on comparable North American market ramp profiles, representing the company's next meaningful North American market entry. (Bullish)
• The 19% Colombian VAT on revenue remains in RSI's 2026 guidance as a structural headwind, with a court suspension of the tax creating uncertainty around the final outcome; if the tax is upheld in full, it will continue to suppress Latin American EBITDA contribution relative to the region's revenue scale. (Bearish)
• RSI's 2026 full-year guidance of $1,490M–$1,540M in revenue (approximately 32–36% growth) and a projected 40%+ Adjusted EBITDA growth rate at the midpoint implies continued operating leverage, contingent on the Maine tribal iGaming partnership materializing and North American online casino monthly active users sustaining their 37–51% YoY growth trajectory. (Bullish)

Red Flags

(c) Financial restatement: Rush Street Interactive filed an amended Form 10-K/A in May 2021 (SEC EDGAR filing), restating its audited financial statements for the year ended December 31, 2020, after the Audit Committee concluded prior financials should no longer be relied upon due to misclassification of warrants as equity rather than liabilities. No findings under categories (a), (b), (d), or (e).