Rush Street Posts Strong Q1 Revenue, Emphasizes Online Casino
Emphasizing its online casino performance, gaming company Rush Street Interactive bettered Wall Street estimates on its first-quarter revenues by posting revenue of $111.8 million for the three months ending March 31. That was an increase of 218% over the first quarter of 2020 ($35.2 million).
Wall Street forecasts for Rush Street Interactive (NYSE: RSI) ranged from a low of $84 million to a high of more than $106 million. After reporting the revenue figures Thursday after market close, RSI raised its guidance for the full year to between $440 million and $480 million.
Loss from operations for the first quarter of 2021 was $27.3 million compared to a loss of $12.9 million for the first quarter 2020. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was a loss of $15.1 million for the first quarter 2021.
Company executives underscored behaviors of online casino players noting that those customers spent 1.9x more time active each month compared to online sports bettors.
“In terms of Michigan, without a data base to start with, we’ve been able to grow at a faster rate and achieve a larger market share than others have starting from similar positions. Our strategy pretty much has been to focus on the casino category,” RSI President Richard Schwartz said during the first-quarter earnings call. “When a player plays both casino and sports, they generate 10% more revenue than someone who is just doing sports betting. So, we’re interested in having players playing both. But we’ve noticed that a player playing casino only is five time more valuable than a sports-only player, so we’ve targeted casino players because of their economics.
”The quality of our brand and our service really appeals to them. … (Also) about 53% of our casino players are female, which indicates our diverse (appeal) and we’re not just focused on the male audience.”
RSI Live in 4 Largest US Online Casino Markets
RSI is live in 11 jurisdictions, including the four largest U.S. online casino markets, and in Colombia, where the company offers online casino and sports betting. The most recently added market (which was not part of the first quarter revenue report) is West Virginia for online casino.
It continues to hold a strong position in Pennsylvania’s online casino market where — outside of RSI’s online business — associated land-based casinos are located in Pittsburgh and Philadelphia.
’Solid Momentum’ for RSI
“We are excited about our strong first quarter results, during which we launched online casino and sportsbook in Michigan and online sportsbook in Virginia, and delivered revenue growth of 218% over last year’s first quarter,” RSI CEO Greg Carlin said in an earnings news release. “We are also pleased by our quarter-on-quarter growth, underpinned by our strong and stable casino results.
”We continue to have solid momentum as we launched online casino in West Virginia in April and are now live in the four largest U.S. online casino markets which we expect to drive significant profitability over the long term.”
RSI executives also noted that controlling promotional spend while delivering quality games to customers was important to the company’s success.
Be first to get our exclusive offers!
Join today to stay up to date on your states gambling news and offers.