Online gambling company Rush Street Interactive (RSI) announced financial results for the quarter that ended Sept. 30, 2022, last week.
During the third quarter, the business delivered $148M in revenue, an increase of 20%, compared to $122.9M during Q3 2021.
However, RSI’s adjusted EBITDA fell by 2.5% year-over-year to $12.5M. Still, that represented an improvement compared to the company’s $18 million earnings before interest, taxes, depreciation, and amortization.
The firm also announced a net loss of $22.7M during the third quarter of 2022. That was greater than a loss of $18.9 million during the same period last year.
Other Rush Street Interactive earnings highlights
The third quarter of 2022 marks RSI’s 14th consecutive quarter of sequential revenue growth. Rush Street Interactive operates the BetRivers and PlaySugarHouse online gambling brands in addition to a few other products.
In the company’s earnings call, RSI also mentioned that real-money Monthly Active Users (MAUs) in the US and Canada for Q3 2022 grew 31% year-over-year to 130,000 with an average revenue per MAU of $345. This amount was up by 6% sequentially.
Adjusted advertising and promotions expenses were $44.7M, a 2% decline compared to the $45.4M during the same period in 2021.
RSI’s CEO, Richard Schwartz, also highlighted that Rush Street remains profitable in New Jersey, Pennsylvania, Michigan, Illinois, West Virginia, and Colombia. That follows trends from similar companies. In the third quarter of this year, Flutter’s US brands and Wynn Resorts also reported better-than-expected results.
As of Sept. 30, 2022, unrestricted cash and cash equivalents on the balance sheet were $195m with no debt outstanding.
“We posted a solid third quarter, as our efficient approach to marketing and robust platform continue to perform well. Despite a lower than normal online casino hold rate and currency headwinds during the quarter, which we believe collectively impacted our quarterly revenue by an estimated $6 million, we generated record revenues for the fourteenth straight quarter and progressed towards our profitability goals and our target of being Adjusted EBITDA positive for the second half of 2023.”
RSI’s recent milestones
RSI’s online casino brand, BetRivers, brought live dealer games to West Virginia in June. In fact, BetRivers became the first online casino in West Virginia to offer Evolution live table games.
Earlier this month, Rush Street Interactive teamed up with High 5 Games to bring its extensive selection of games to Pennsylvania casinos.
Thanks to this agreement, High 5 Games are coming to PlaySugarHouse and BetRivers in Pennsylvania. The partnership marked the companies’ fourth collaboration, with High 5 Games already available on RSI’s online casino platforms in Michigan, New Jersey and Ontario.
Rush Street Interactive’s future plans
During the company’s Q3 earnings call, RSI mentioned a series of partnerships, including a deal with the Spanish soccer league LaLiga to be the exclusive sportsbook partner throughout South America.
As Schwartz explained:
“In terms of activity, we continue to see very strong volumes in markets where we operate both online casino and sports betting, as we are able to execute on the enhanced profitability offered by the online casino vertical in these markets.
Internationally, we are seeing strong results from both Colombia and Ontario and we are excited to begin increasing marketing efforts in Mexico. We remain focused on building a strong foundation in our new markets that will provide stable, long-term growth opportunities while keeping an eye on future profitability.”
The company also announced the operator opened in-person sports betting in Maryland through the BetRivers sportsbook at Bingo World.
RSI has big plans for the online sports betting launch in Maryland and Ohio in the upcoming months. As Maryland’s mobile market is preparing to launch in about a week, Ohio’s launch date is scheduled for Jan. 1, 2022.