Rush Street Interactive (RSI) 27th Annual Needham Growth Conference summary

2024 performance highlights

• Achieved record revenues, EBITDA, and cash flow, with improved efficiency and reduced marketing spend.

• Launched in Delaware and Peru, with Delaware revenue approaching $100 million, far surpassing previous operators.

• Enhanced user experience and product innovation, setting up for continued growth in 2025.

• Monthly active users and first-time depositors accelerated quarter after quarter.

• Strong player retention and high ARPMAU, with new player acquisition costs down 30%-50% year-over-year.

Market trends and diversification

• Revenue less volatile due to 70% iCasino focus, with diversified sports revenue from Latin America.

• Soccer outcomes in December offset NFL headwinds, benefiting overall results.

• No structural issues identified in recent sports hold underperformance; outcomes attributed to game results.

• Continued strong acquisition rates despite competitive NFL season.

Regulatory and legislative landscape

• Higher sportsbook taxes may drive players to unlicensed sites, reducing state tax revenue and consumer protection.

• iGaming generates significantly more tax revenue than sports betting and offers better consumer protection.

• Momentum for iCasino legalization is increasing, with New York and Illinois showing potential for progress.

• Unlicensed sweepstakes sites generate billions in profits, highlighting the need for regulation.