RSI Q2 Deep Dive: Online Casino Expansion and Latin America Drive Guidance Raise

August 12, 2025 at 23:07 PM EDT

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Online casino and sports betting company Rush Street Interactive (NYSE: RSI) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 22.2% year on year to $269.2 million. The company’s full-year revenue guidance of $1.08 billion at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $0.11 per share was 74.5% above analysts’ consensus estimates.

Is now the time to buy RSI? Find out in our full research report (it’s free).

Rush Street Interactive (RSI) Q2 CY2025 Highlights:

Revenue: $269.2 million vs analyst estimates of $250.2 million (22.2% year-on-year growth, 7.6% beat)
Adjusted EPS: $0.11 vs analyst estimates of $0.06 (74.5% beat)
Adjusted EBITDA: $40.25 million vs analyst estimates of $27.01 million (15% margin, 49% beat)
The company lifted its revenue guidance for the full year to $1.08 billion at the midpoint from $1.05 billion, a 2.9% increase
EBITDA guidance for the full year is $140 million at the midpoint, above analyst estimates of $127.8 million
Operating Margin: 9%, up from 1.9% in the same quarter last year
Monthly Active Users: 197,000, up 33,000 year on year
Market Capitalization: $1.84 billion

StockStory’s Take

Rush Street Interactive’s second quarter results were met with a notably positive market reaction, as the company exceeded Wall Street’s revenue and profit expectations. Management pointed to strong growth in both online casino and sports betting, with CEO Richard Schwartz attributing the momentum to “broad-based performance across our business.” Notable market highlights included substantial year-over-year growth in Michigan, West Virginia, Delaware, and Ontario, as well as momentum in Latin America, particularly in Colombia and Mexico. Management also highlighted improved marketing efficiency and ongoing gross margin expansion.

Looking ahead, management’s updated guidance reflects confidence in continued market share gains in both North America and Latin America. CEO Richard Schwartz emphasized the significance of anticipated launches in Alberta and product innovation like multistate poker, stating, “This market represents a significant opportunity for us to leverage our success in other North American online casino markets.” CFO Kyle Sauers noted that guidance incorporates ongoing tax headwinds, particularly in Colombia, and an expectation for higher marketing spend in the second half as the company pursues further customer acquisition.

Key Insights from Management’s Remarks

Management attributed second quarter outperformance to robust product and market diversification, disciplined marketing spend, and continued success in key North American and Latin American jurisdictions.

Online casino outpaced sports betting: Management reported that online casino revenue grew 25% year over year, surpassing the 15% growth in sports betting. CEO Richard Schwartz highlighted the company’s focus on markets that allow for casino offerings, which has driven higher engagement and player value.
North America market strength: Markets such as Michigan, West Virginia, and Delaware experienced accelerated growth, with Michigan up 42% and Delaware showing continued momentum six quarters post-launch. Ontario in Canada grew 25%, which management attributed to focused investment and product differentiation.
Latin America momentum: Latin America, particularly Colombia and Mexico, delivered high player growth rates—Colombia’s gross gaming revenue was up over 70%, while Mexico’s revenue grew more than 125%. Management attributed this to effective regional partnerships and tailored user experiences.
Marketing efficiency gains: Marketing spend represented less than 14% of revenue, the lowest since going public, yet the company achieved its highest number of first-time depositing customers in company history. Management noted that this was accomplished without launching new North American markets during the quarter.
Product innovation and cross-sell: The recent launch of multistate poker was cited as a strategic move to drive engagement and cross-sell between casino, sports betting, and poker. Management pointed to unique product features such as seamless transitions between gaming verticals and exclusive content as key differentiators.

Drivers of Future Performance

Rush Street Interactive expects continued revenue and margin growth, underpinned by new market entries, product innovation, and disciplined operational execution, while managing regulatory and tax headwinds.

Expansion in new jurisdictions: The anticipated launch in Alberta and ongoing growth in Mexico are expected to be significant contributors, as management positions the company to leverage its online casino platform in newly regulated markets.
Operational discipline and marketing investment: Management plans to increase marketing spend in the second half of the year to support further player acquisition, while maintaining a focus on efficiency and cost leverage, particularly in general and administrative expenses.
Tax and regulatory challenges: The company’s outlook incorporates continued temporary VAT tax headwinds in Colombia and higher state taxes in the U.S. Management highlighted the importance of flexibility in adapting strategy, especially with potential changes in the regulatory environment and competitive landscape.

Catalysts in Upcoming Quarters

Going forward, we are closely tracking (1) the launch timeline and early performance in Alberta, (2) the pace and sustainability of player growth in Mexico and other Latin American markets, and (3) management’s ability to navigate tax and regulatory developments, particularly in Colombia and key U.S. states. Progress on multistate poker engagement and marketing efficiency will also be important markers of execution.

Rush Street Interactive currently trades at $19.33, up from $16.04 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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