- Legal States
Fiona Simmons November 27, 2020 3 min read
Rush Street Interactive Revenue Surges by 370% in Q3
One of the fastest-growing online casino and sports betting gaming companies in the United States reported an incredible rise in profit in July-September 2020 and increased its outlook for the financial year ending in December 2020 by 20%.
Revenue, Ebitda, and Real Money Users on the Rise
Chicago-based Rush Street Interactive, experienced in developing, supplying, and operating regulated online gaming sites, has posted revenue of $78.2 million in Q32020, up by 370% from $16.7 million during the same period of 2019. Adjusted Ebitda amounted to $9.9 million, compared to a loss of $1.3 million during the third quarter of 2019, while real money active users in the United States increased by 135% in annual terms and by 87% in quarterly terms.
In June, Rush Street Interactive delivered for the first time mobile sports betting operations in Illinois. The company teamed up with Rivers Casino Des Plaines to launch the BetRivers.com sports betting app, which made it possible for residents in the state to be among the first ones to ever place a legal online bet in Illinois.
“Solid execution and financial discipline helped drive our third quarter success.”Greg Carlin, chief executive officer, Rush Street Interactive
Expertise in Attracting and Retaining Clients is Key
Carlin also said that marketing expenses during the period increased by 81% and highlighted that the company has built a strong technological and operational foundation that will be crucial when expanding into new markets.
The company will become publicly listed on the New York stock exchange soon and for this purpose, the online casino operator entered into a combination agreement with dMY Technology Group, a publicly-traded special purpose acquisition company.
Rush Street Interactive CEO expressed hopes that its customer acquisition strategy and increasing market share will bring sustainable long-term value for shareholders.
The financial outlook of the company has increased previous guidance by 20% and now expects revenues for the one-year period ending on 31 December 2020 to be between $265 and $275 million. During the previous fiscal year, the company’s revenue amounted to $64 million. The revised guidance takes into account professional and college sports calendars take place as initially planned.
Multiple Industry Awards in 2020
Throughout the year, Rush Street Interactive received several industry recognitions, including both Casino Operator of the Year and Customer Service Operator of the Year at the 2020 EGR North America Awards. The company also was recognized with a Global Gaming Award for the first time, as a winner in the Digital Operator of the Year category at the Global Gaming Awards Las Vegas 2020.
Richard Schwartz, president of RSI said the company has maintained the number one online casino share in the United States for the second quarter in a row, according to consulting firm Eilers & Krejcik. Schwartz highlighted the discipline in bringing new players onto the BetRivers.com and PlaySugarHouse.com platforms and retaining existing players, which remain in the core of the business strategy.