RSI Says iGaming Is More Profitable Than Betting amid Strong Growth
As it went public last year, Rush Street Interactive became the second-largest online casino operator in the United States, generating revenue growth of 337% in 2020.
Rush Street Interactive Becomes the Second-Largest Operator in the US
Rush Street Interactive delivered the happy news to its investors, becoming the second-largest online casino operator in the US with revenue growth of 337% in 2020 to $278 million. The company has a reach of 21% of the country’s population, which could rise to 35% after its latest market access deals.
With its merger with dMY Technology, the operator became public and started trading on the New York Stock Exchange last December. Eilers & Krejcik, a gaming research company, measured Rush Street’s income. The company’s shares rose 13.05% ($2.18) on Thursday, closing at $18.71 on the New York Stock Exchange. In after-hours trading, they dropped 0.16% (3 cents) at $18.68.
On Wednesday, Rush Street CEO Greg Carlin said that the operator achieved that success with an advertising expense of $56.5 million and small capital. This marks the 8th quarter of consecutive growth for Rush Street Interactive. The company posted a 260% revenue increase in Q4 2020 to the tune of $100 million, compared with $27.8 million in Q4 2019.
RSI spent around $23.1 million in Q4 2020 for advertising or 23% of its revenue. In comparison, the amount spent on promotional activities in Q4 2019 was $8.7 million. The company posted a net loss of $48.8 million in Q4 2020 compared to a net loss of $15.1 million in Q4 2019.
RSI Says That iGaming Is More Profitable Than Sports Betting
According to Carlin, iGaming generates more income than sports wagering, and RSI’s success in Pennsylvania and New Jersey proves it. The company is anticipating states which legalized sports wagering to legalize online casinos as well. Last year RSI started operating in Illinois, Iowa, and Colorado. At the beginning of 2021, it launched iGaming and sports wagering in Michigan and sports betting in Virginia.
Rush Street’s president, Richard Schwartz, stated that in the 4th quarter of 2020, the average monthly income per user in the country was $328 (73%). For the whole year, it was $341 (53%). He said that the company focuses on quality betting instead of quantity.
Schwartz said that RSI focuses on premium experience for the players and has a data-driven marketing approach. On a local level, the company forms partnerships with popular companies, and on a national level, it partners up with leaders in the industry who have local reach on the main markets.
RSI Brings Top Notch Content to the US
Recently, Rush Street brought high-quality content to the regulated US market by forming a long-term partnership with an iGaming gaming company, Pariplay Ltd., part of the Aspire Global Group. The deal brought to New Jersey player a selection of casino games which are a hit in Europe. The Pariplay’s gaming portfolio of 750 games became available on PlaySugarHouse.com, RSI’s New Jersey website.
Eva is a PR specialist and communications expert with ten years of experience in campaign organizing and creative writing. She is also a published author of fictional stories. Eva recently developed an interest in economics and the gaming industry after discovering the inspirational story of Molly Bloom.
