Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Rush Street Interactive Inc (NYSE:RSI) reported a 21% year-over-year increase in revenue for Q1 2025, reaching $262 million.

• Adjusted EBITDA nearly doubled compared to the same period last year, reaching $33 million.

• The company experienced strong growth in both online casino (25% growth) and sports betting (11% growth) verticals.

• RSI’s North American monthly active users (MAUs) grew by 17% year over year, with Latin America MAUs increasing by 61%.

• The company maintained a strong cash position with $228 million in unrestricted cash and no debt.

• The newly imposed 19% VAT tax in Colombia negatively impacted net revenue growth, despite strong gross gaming revenue (GGR) performance.

• RSI’s net revenue in Colombia was flat year over year in April, despite a 55% increase in GGR.

• The company anticipates facing tougher comparisons as the year progresses, particularly in markets like Delaware.

• Marketing spend increased by 3% compared to last year, although it was leveraged to achieve record EBITDA.

• The VAT tax in Colombia is expected to remain a headwind throughout the year, affecting net revenue and profitability.

Q: Can you provide more details on the competitive landscape in Colombia and how the VAT tax is affecting your market share? A: We are bonusing at higher rates to offset the VAT tax, similar to other operators in the market. This strategy has allowed us to maintain or potentially grow our market share, although exact market share data isn’t disclosed. We are focusing on execution and managing the business smartly during this challenging period. – Richard Schwartz, CEO

Q: How should investors think about growth in Delaware for 2025 and beyond? A: Delaware has been a significant success for us, and we expect continued growth. While the growth rate may slow as we lap the launch period, the market has the potential to reach a $300 million GGR in a few years, indicating substantial upside. – Kyle Sowers, CFO

Q: With Pennsylvania joining the multi-state internet gaming agreement, how do you see this impacting your poker segment? A: We are excited about Pennsylvania joining the agreement, which will enhance liquidity across our platform. Our poker strategy is more of an amenity, aimed at cross-selling to casino and sports betting. We plan to expand into more states, leveraging our platform’s capabilities. – Richard Schwartz, CEO