RSI Experiences Rapid Expansion Due to Casino Boom, Maneuvers Through Shifting Regulatory Landscape

Rush Street Interactive Inc (RSI) posted impressive results for the third quarter of 2025, with revenue climbing 20% year-over-year to reach $277.9 million—exceeding Wall Street expectations by 4.3% in its

. This performance was largely driven by significant growth in the online casino division, which experienced a 34% increase in revenue compared to the previous year, as reported by . Adjusted EBITDA jumped 54% to $36 million, indicating greater operational efficiency, according to the Q3 earnings summary. RSI also lifted its full-year 2025 revenue forecast to between $1.1 billion and $1.12 billion, raising the midpoint by $35 million and demonstrating confidence in ongoing growth despite regulatory headwinds.

RSI’s North American business was a major contributor to its strong performance, with monthly active users (MAUs) rising 34% to 225,000, as detailed in the Q3 earnings summary. The region’s online casino sector saw MAUs grow 46% year-over-year, propelled by a record number of first-time depositors, according to the Seeking Alpha report. CEO Richard Schwartz emphasized the "strength of our business model" during the earnings call, highlighting that the company’s proprietary tech platform improved both customer acquisition and retention.

In contrast, the Latin American market encountered obstacles. Revenue in this region dropped 11% year-over-year, mainly due to a temporary VAT tax in Colombia that reduced net revenue by 27%, as outlined in the Q3 earnings summary. Mexico, however, was a bright spot, with revenue more than doubling, as noted by Seeking Alpha. Management remains cautiously hopeful about resolving tax-related issues in both markets, with Schwartz mentioning that legislative backing for proposed tax reforms appeared lacking in the

.

RSI’s growth strategy centers on product development and regulatory engagement. The company promoted Kyle Sauers to President and CFO, underscoring a focus on marketing effectiveness and operational rigor, as reported by Seeking Alpha. Sauers pointed out that marketing costs increased just 1% year-over-year to $38.1 million, while still attracting new players at "compelling rates," as referenced in the Q3 earnings summary. Analysts have responded positively: Jefferies recently increased its

to $27 per share, maintaining a "Buy" recommendation, while to a "Strong Buy."

The stock has advanced 36.3% so far this year, outperforming the S&P 500’s 17.2% gain, according to Zacks. However, this positive outlook is balanced by risks such as possible gaming tax hikes in Mexico and competition from unregulated sweepstakes platforms, as discussed in a

. Schwartz addressed these concerns during the earnings call, urging lawmakers to "legalize and regulate online casino gaming to safeguard consumers and boost tax income" in his .

RSI now projects full-year adjusted EBITDA between $147 million and $153 million, marking a 62% increase at the midpoint, as stated in the Q3 earnings summary. The company is preparing to enter the Alberta, Canada market and remains positive about the prospects for online casino legalization in the U.S., according to Seeking Alpha. Despite ongoing regulatory uncertainty, RSI’s strong financial standing—$273 million in unrestricted cash and zero debt, as noted in the Q3 earnings summary—gives it the flexibility to manage near-term challenges.

At present, RSI is focused on leveraging its North American momentum while addressing regulatory risks in Latin America. As a top industry operator, RSI’s ability to combine innovation with regulatory compliance will be key to maintaining its growth trajectory.