Rush Street Interactive Sees Continued Growth Amid Challenges in Q2 2025
Rush Street Interactive (RSI) has once again demonstrated robust financial performance, marking its ninth consecutive quarter of growth in both revenue and EBITDA. For the quarter ending June 30, 2025, the company set new records for revenue and adjusted EBITDA, successfully navigating challenges, including increased tax burdens in Colombia.
In the second quarter, RSI reported a remarkable revenue of $269.2 million, reflecting a 22% increase from the same period last year. This spike corresponds to a substantial rise in adjusted EBITDA, which soared by 88% to $40.2 million, up from $21.4 million in Q2 2024. Furthermore, net income flipped from a loss to a gain, reaching $28.8 million compared to a slight deficit of $0.3 million a year prior.
Revising 2025 Projections
Following the impressive quarterly results, RSI has announced an upward revision of its full-year revenue expectations, forecasting a range between $1.05 billion and $1.1 billion. Similarly, the company’s EBITDA expectations have been adjusted to reflect a target of $133-$147 million.
During the recent earnings call, CEO Richard Schwartz expressed confidence in the operational strategies driving this growth. He stated, “The momentum we’re experiencing in our markets is significantly outweighing the challenges posed by elevated tax rates in both the US and Colombia.”
Dominance in Delaware’s iCasino Market
Another noteworthy achievement for Rush Street Interactive is its performance as the sole operator of Delaware’s iCasino, a position it secured in late 2023. In the past year, RSI has generated a staggering $102 million in gross gaming revenue in Delaware, a stark contrast to the $15.1 million generated by its predecessor in the same segment.
This success is indicative of RSI’s overall strength in North America, evidenced by a 21% year-on-year increase in monthly active users, totaling approximately 197,000. Additionally, the average revenue per monthly active user (ARPMAU) reached a new high at $391. Other thriving markets include Michigan and West Virginia, where revenues increased by 42% and 47%, respectively.
“The continued success is a testament to our strategy of focusing on markets where we can effectively deploy our full suite of gaming offerings,” Schwartz noted.
Thriving Despite Headwinds
Challenges do loom, particularly the recently implemented 19% value-added tax (VAT) on online gambling operators in Colombia, which is projected to last until the end of 2025. This tax has created stagnation in net revenue in Colombia, despite a 70% increase in gross gaming revenue (GGR) for RSI.
To mitigate the impact on bettors, RSI has introduced a bonusing strategy akin to practices observed by industry peers. George Sauers, the company’s CFO, anticipates that once the VAT is lifted, GGR and net revenue in Colombia could experience a resurgence starting in 2026.
Expanding Horizons in Mexico
In Latin America, monthly active users surged nearly 42% year-on-year to 403,000, although the average revenue per user saw a slight decline attributed to the bonusing strategy. Notably, RSI’s revenue in Mexico skyrocketed by 125% compared to Q2 2024 and grew by 40% over the previous quarter.
Schwartz is optimistic about Mexico evolving into one of RSI’s largest markets, predicting that the revenue trajectory here could surpass that of Colombia during its early launch period. “Our unique user experience resonates with players seeking something fresh and of high quality,” he stated.
Looking Ahead: Expansion in Latin America
The company has ambitious plans for expansion, with a total addressable market (TAM) in Latin America projected to reach $28.9 billion by 2028. Currently operational in Colombia, Mexico, and Peru, RSI is eyeing potential markets such as Chile, Ecuador, Argentina, and Brazil, despite the latter still undergoing regulatory developments.
In closing, shares of Rush Street Interactive increased by over 25% recently, reflecting strong investor confidence, with a staggering rise of 101.4% over the past year. The future appears bright for RSI as it continues to adapt and thrive in a rapidly evolving landscape.