RSI Defies Regulatory Headwinds, Drives 34% Casino Growth and Raised Guidance

Rush Street Interactive Inc (RSI) delivered a robust third-quarter performance in 2025, surpassing revenue and earnings estimates amid strong growth in its online casino segment, despite navigating regulatory challenges in key markets, according to a Yahoo Finance report. The company reported revenue of $277.9 million, a 20% year-over-year increase and a 4.3% beat against analyst expectations, per a TradingView analysis. Adjusted EBITDA rose 54% to $36 million, while non-GAAP earnings per share reached $0.09, exceeding the Zacks Consensus Estimate by 28.57%, as detailed in a Nasdaq article.

The results were driven by a 34% year-over-year surge in North American monthly active users (MAUs) to 225,000, fueled by record player acquisition and engagement, the Yahoo Finance report said. Online casino revenue growth in the region hit 34%, outpacing sports betting, which contracted 16% due to player-friendly outcomes, according to the same Yahoo Finance coverage. Richard Schwartz, CEO, highlighted the "resilience of our business model" and noted that the company achieved its 10th consecutive quarter of sequential revenue growth, a point also noted by TradingView.

However, headwinds emerged in Latin America, where revenue fell 11% amid elevated bonusing in Colombia tied to a temporary VAT tax, the Yahoo Finance coverage added. The company also faces potential challenges from a proposed gaming tax hike in Mexico, where rates could rise from 30% to 50%, the report said. Despite these pressures, RSI raised its full-year 2025 revenue guidance to $1.1 billion–$1.12 billion, up $35 million at the midpoint, with adjusted EBITDA projected at $147 million–$153 million, per the Yahoo Finance update.

Analysts have responded positively, with Zacks Investment Research upgrading RSI to a "Strong Buy" (Zacks Rank 1) based on favorable earnings estimate revisions, according to the Nasdaq article. The stock has gained 36.3% year-to-date, outperforming the S&P 500's 17.2% rally, the Nasdaq coverage noted. TradingView's analysis also observed that RSI's operating margin expanded to 7% in Q3, up from 2.8% in the prior-year period, reflecting improved efficiency.

Management emphasized strategic priorities, including lobbying for online casino legalization and differentiating its product offerings, the Yahoo Finance report noted. Schwartz stated that unregulated sweepstakes operators present both a challenge and an opportunity, arguing that states should "legalize and regulate online casino gaming to ensure consumer protection and generate tax revenue," the report added. The company also plans to leverage its proprietary technology platform to enhance customer retention and acquisition, according to the same coverage.

Looking ahead, RSI faces a critical regulatory outlook. In Colombia, the current VAT tax is expected to ease if proposed reforms fail to gain congressional support, which Schwartz described as "insufficient," per the Yahoo Finance report. Meanwhile, the company remains cautious about Mexico's tax environment but expressed confidence in mitigating strategies to reduce the effective tax rate, the report said.

With its online casino markets driving growth and a strengthened balance sheet—boasting $273 million in unrestricted cash and no debt—RSI appears positioned to navigate near-term challenges, the Yahoo Finance coverage concluded. However, sustainability of its momentum will depend on regulatory clarity and its ability to counter competitive pressures in an evolving gaming landscape, TradingView noted.