Online casino and sports betting company Rush Street Interactive (NYSE: RSI) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 19.7% year on year to $277.9 million. The company’s full-year revenue guidance of $1.11 billion at the midpoint came in 1.3% above analysts’ estimates. Its non-GAAP profit of $0.09 per share was 24.5% above analysts’ consensus estimates.

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

StockStory’s Take

Rush Street Interactive’s third quarter results surpassed Wall Street expectations, driven by robust performance in its online casino segment and disciplined marketing execution. Management credited the acceleration in North American market growth to a significant increase in monthly active users, particularly in higher-value states, and to record new depositor activity. CEO Richard Schwartz highlighted the “continued acceleration of our growth in North American online casino markets, where we see the highest player value and retention.” The company also noted that successful customer acquisition was achieved at lower costs, underscoring marketing efficiency and operational leverage during the quarter.

Looking forward, Rush Street Interactive’s updated full-year guidance reflects optimism about continued growth in markets with online casino legalization and strategic expansion opportunities. Management pointed to the anticipated launch in Alberta and ongoing legislative momentum in multiple U.S. states as catalysts for further revenue gains. Schwartz emphasized that “our focus on markets that include online casino, our proprietary and innovative technology platform, our marketing efficiency and our operational excellence creates a sustainable competitive advantage.” The company also plans to maintain marketing leverage and invest in product development to enhance differentiation and long-term profitability.

Key Insights from Management’s Remarks

Management attributes the quarter’s results to accelerating online casino momentum in North America, strong player acquisition, and expanded leadership roles to support growth initiatives.

• North American online casino surge: The company experienced its fastest user growth in over four years within North American online casino markets, with a 46% year-over-year increase in monthly active users and broad-based growth even in mature jurisdictions like New Jersey and Michigan.

• Record new depositors: Rush Street Interactive achieved a record for first-time depositors, more than 10% above previous highs, without increasing acquisition costs. This was linked to enhanced marketing efficiency and a targeted approach to higher-value player segments.

• Leadership structure changes: Kyle Sauers was promoted to President and CFO, taking on expanded responsibilities in marketing, operations, and commercial strategy. Rob Picard was elevated to Chief Strategy Officer. These changes are intended to improve execution and free the CEO to focus on innovation and legislative efforts.

• Latin America mixed results: The company continued to grow monthly users in Latin America, particularly in Mexico and Colombia, but revenue in the region declined due to a temporary VAT tax in Colombia and challenging sports outcomes. Management remains confident about long-term prospects as tax headwinds are expected to ease.

• Product and technology investments: Management highlighted ongoing enhancements to its proprietary gaming platform, including new payment integrations and differentiated user experiences, which are aimed at improving customer retention and operational efficiency across markets.

Drivers of Future Performance

Rush Street Interactive expects continued growth to be fueled by online casino market expansion, ongoing product investment, and marketing efficiencies, while monitoring tax changes and regulatory developments.

• Online casino legalization momentum: Management is optimistic about further U.S. state-level legalization of online casino gaming, citing increased legislative interest due to budget pressures and the proliferation of unregulated sweepstakes. CEO Richard Schwartz said expanded legalization could provide “meaningful upside” and leverage the company’s expertise in regulated markets.

• Profitability and marketing discipline: The company expects to maintain marketing leverage by growing expenses at a slower pace than revenue, focusing on efficient player acquisition and retention in core markets. Investments in product development will target markets with the highest lifetime value.

• Regulatory and tax headwinds: Risks in Latin America include the temporary VAT tax in Colombia, which impacts net revenue, and a potential gaming tax increase in Mexico. Management plans to adjust bonusing strategies and operational focus based on evolving regulatory landscapes, with the expectation that either resolution of the VAT or changes in operator behavior will improve results in 2026.

Catalysts in Upcoming Quarters

In the upcoming quarters, StockStory analysts will watch (1) the success of Alberta market entry and initial user adoption, (2) legislative progress and any new U.S. states advancing online casino legalization, and (3) the resolution of regulatory and tax issues in Colombia and Mexico. The effectiveness of recent leadership changes, as well as ongoing product innovation and payment integrations, will also be important signposts for sustained growth.

Rush Street Interactive currently trades at $18.39, up from $18.20 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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