RSI Enjoys 75% Growth in 2021 but Reports Net Loss of $19.5M

Announcing its full year 2021 financial results, Rush Street Interactive revealed that it has seen a 75% year-over-year revenue growth. However, despite the significant growth, the company reported a net loss of $19.5 million during 2021.

RSI Releases Full Year, Fourth Quarter 2021 Results

Rush Street Interactive (RSI), the online casino and sports betting company, released its full year 2021 and fourth quarter 2021 results on Wednesday. During the fourth quarter, the company has seen $131 million in revenue. This represents a 31% increase when compared to the same period in 2020. On the other hand, RSI revealed that its revenue for the full year 2021 hit $488 million. The result marked a significant 75% increase when compared to 2020. Despite the positive growth that the company has seen during 2021, it still reported a net loss of $19.5 million. 

According to the latest announcement, adjusted EBITDA during the fourth quarter of 2021 was a loss of $31.2 million. This marks an increase when compared to the loss of $1.3 million in adjusted EBITDA for the same period in 2020. Moreover, the company reported an adjusted EBITDA loss of $65.1 million during the full year of 2021. Once again an increase is observed when compared to the $4.4 million in adjusted EBITDA for the full year 2020.

The Company Completed Several Strategic Expansions

During the fourth quarter and after that, RSI completed strategic expansion goals. The company launched its online sportsbook in Connecticut during Q4 2021. Moreover, thanks to its partnership with the Connecticut Lottery, RSI introduced nine out of the 15 planned retail sportsbooks in the state. This was a key success for RSI, considering that the company was one of the three online operators in the state. Additionally, RSI launched its online sportsbook in Arizona under a partnership with the Arizona Rattlers.

Continuing its expansion after the quarter, RSI launched its online sportsbooks in both Louisiana and New York. The company became an official sportsbook partner of the New Orleans Pelicans. What is more, RSI forged a partnership with Grupo Multimedios to launch its sportsbook and online casino for the Mexican market. The launch is expected to be completed during Q2 2022.

Delivering Shareholder Returns Is a Key Priority for RSI

Balancing profits from existing markets combined with entering new markets is a part of the plan for the future of RSI, according to the company’s CEO, Richard Schwartz. At the end of 2020, RSI operated within only 6 markets. However, Schwartz pointed out that the company expanded significantly and by now it is operating and offering its best-in-class technology in 14 markets.

“Our track record demonstrates that we have been highly successful stewards of capital for our investors.”

Richard Schwartz, CEO at RSI

In addition, he pointed out that delivering strong shareholder returns is one of RSI’s key priorities. According to Schwartz, the company will continue to enhance its offerings while at the same time providing the best-in-class service for its customers. He explained that RSI is looking forward to expanding in Canada and Mexico. In conclusion, Schwartz said that the company is well-positioned to achieve success within the two markets.