RCI's Favoritely Rollout: A Bold Bet on the Adult Entertainment Future – Is This a Winner?

Let me tell you, folks, RCI Hospitality (NASDAQ: RICK) just made a move that could redefine how adult entertainment companies monetize their assets—and investors should take note. The company’s rollout of Favoritely.com to more clubs isn’t just a tech upgrade; it’s a strategic play to capitalize on a growing niche market. Let’s break this down.

First, the basics: RCI operates over 60 adult nightclubs and sports bars nationwide. Now, they’re leveraging their physical locations with Favoritely, a social media platform tailored for entertainers and staff. The goal? Turn customers into engaged digital users, boost repeat visits, and create a recurring revenue stream from subscriptions and content sales.

The rollout is already showing promising signs. In Phase Two, Favoritely expanded to 15 additional clubs, bringing the total to 20 locations. Metrics are surging: page views doubled, subscriptions and spending quadrupled since January 2025, and credit card accounts among users jumped from 50% to 70%. Even more impressive? The number of creators (entertainers and staff) skyrocketed from 100 to 500, with payouts now flowing directly to them. This isn’t just a side project—it’s a business within a business.

Now, let’s talk about what makes Favoritely stand out. Unlike competitors, it’s tied to licensed clubs, ensuring legal compliance and safety for in-person meetings. Creators set their own prices, keep 80% of sales, and even earn bonuses for recruiting others. That’s a smart incentive structure—turning staff into brand ambassadors. Take Armanda “Barbie” Marin, a VIP bartender and star of Paramount+’s Landman. She’s using Favoritely to drive fan engagement, boosting both her own profile and the club’s traffic. CEO Eric Langan called this synergy a win for everyone: “Barbie’s success is RCI’s success.”

But here’s the kicker: Favoritely isn’t just a social platform. It’s a joint venture with an established adult entertainment tech company, giving RCI instant credibility and expertise in a space where compliance is king. The platform’s free-to-join model lowers barriers, while its focus on licensed venues minimizes legal risks.

Now, the skeptics will say: “Adult entertainment is a volatile industry.” And they’re right—RCI’s press release lists risks like regulatory hurdles, competition, and reliance on key personnel. But let’s crunch the numbers. If Favoritely’s pilot in 20 clubs can drive a 70% increase in credit card adoption and quadruple spending, imagine scaling this to all 60+ locations. That’s a potential $4–$5 average monthly subscription per user, multiplied by thousands of customers.

Moreover, RCI isn’t just betting on today’s trends. They’re future-proofing. As more entertainment moves online, Favoritely blends the physical and digital worlds—something competitors like onlyFans can’t replicate. And with partnerships in place, RCI has a roadmap to dominate this hybrid space.

So, what’s the bottom line? RCI’s stock has already seen a 25% jump in the past six months as Favoritely’s potential becomes clear. But here’s where it gets exciting: the rollout is still in beta. If Phase Three expands to more markets—say, Las Vegas or Miami—the upside could be massive.

This isn’t a “play it safe” move. It’s a calculated risk with real data backing it up. The metrics are there, the model is replicable, and the company’s track record in adult entertainment speaks for itself. For investors willing to look beyond traditional sectors, RCI’s Favoritely play could be a hidden gem.

Conclusion: RCI is betting big on Favoritely, and the early returns are staggering. With subscriptions up 400%, creator numbers surging, and a platform that’s both safe and scalable, this isn’t just a tech experiment—it’s a revenue engine. While risks like regulation and competition linger, the data shows RCI is turning its physical assets into digital gold. For aggressive investors, this could be a stock to watch closely as the rollout expands. Stay tuned—this could be the start of something huge.

Disclaimer: Past performance does not guarantee future results. Investors should conduct their own research and consult with a financial advisor.