Rush Street Interactive, or RSI, is BetRivers’ parent company expecting to witness positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2023, according to CEO Richard Schwartz’s statement on Wednesday.
According to the earnings call on Wednesday, the casino and sportsbook app has outperformed during every quarter this year and is now expected to be adjusted for a positive EBITDA for the whole year ahead of the original plans. The team plans to continue leveraging and innovating its insights to create and provide its clients with fun and differentiated experiences that appeal to them and achieve profitability and sustainable growth. This only acts as a catalyst required for the current stock on BetRivers. RSI opened at $3.65 and was up by 3.1% from the closing price on Wednesday.
Schwartz explained how the platform overcame its internal expectations to allow its revenue to grow by almost 15% last year, reaching $169.9 million. The growth comes from a higher handle with an improved holding from new products on the BetRivers’ sportsbook.
The revenue is growing exponentially due to a decline in market expenses by almost 24% compared to last year. These factors added to a positive adjusted EBITDA RSI report of $4.1 million compared to a $12.5 million loss in 2022.
Schwartz also mentioned that 888 will soon be replaced by RSI as Delaware’s online casino platform in winter, and the entrance of BetRivers indicates the introduction of sports betting online in the state for the first time.
Reports from Delaware have projected around $13 million in gross revenue for 2023 from online casinos, with around 80% coming from online slots. An agreement with Delaware Lottery involves a budget for digital marketing, which in the past did very little in terms of online product advertisements. RSI will introduce new features and additional games to the state and will become a notable contribution to adjusted EBITDA and revenue.
BetRivers received an update on its product in Prop Central that has helped allow handles on props to increase by 87%. Prop Central lists prop bets from every major sports betting event in a single spot. BetRivers has also reformed its Squares feature to involve all NFL games and college football matches. Squares give bettors an additional chance to win with squares given to bettors after a particular wager amount is reached on certain select games.
RSI has projected its highest revenue per month with active users in the US and Canada in 8 quarters.
An average revenue per month active of $374 has increased by 8% in the last year and around 4% from the second quarter. This growth occurred despite a cut in digital marketing. Overall, RSI spent around $34.1 million on promotions and ads in the third quarter, a significant reduction from $44.7 million in 2022. RSI continues to emphasize gamblers and bettors through its casino and sportsbook sites.
