Q2 marked the ninth straight quarter of revenue and EBITDA growth for Rush Street Interactive.
Rush Street Interactive posted quarterly records for EBITDA and revenue in the three months to 30 June 2025, with the operator continuing its strong momentum despite tax headwinds in Colombia.
Rush Street Interactive revenue hit $269.2 million in Q2, a 22% year-on-year rise, while adjusted EBITDA increased 88% to $40.2 million from $21.4 million in the same quarter last year.
Net income, meanwhile, stood at $28.8 million, an impressive improvement when considering Q2 2024 resulted in a net loss of $0.3 million.
Q2 marked the ninth consecutive quarter for Rush Street Interactive of improved quarter-on-quarter revenue and adjusted EBITDA, which it says underlines the strength and consistency of the company’s business model.
RSI ups 2025 guidance after strong Q2
The results have led Rush Street Interactive to raise its full-year guidance, expecting revenue to reach between $1.05 billion and $1.1 billion, while its EBITDA target now stands at $133-$147 million.
In the company’s Q2 earnings call, Rush Street Interactive CEO Richard Schwartz voiced his confidence in the business’ strategy.
“The positive momentum across our markets are far outweighing any headwinds from increased taxes in the US and Colombia,” Schwartz said.
RSI excelling as exclusive Delaware iCasino operator
In late 2023, Rush Street Interactive succeeded 888 as the exclusive operator for the Delaware Lottery’s iCasino offering.
In the last 12 months, Rush Street Interactive has generated $102 million in iCasino gross gaming revenue in Delaware, compared to just the $15.1 million 888 achieved in its final year as the exclusive operator.
It is an example of Rush Street Interactive’s strong performance in North America, with monthly active users up 21% year-on-year in Q2 to approximately 197,000. ARPMAU in the region hit a new quarterly high at $391.
Aside from Delaware, other standout markets included Michigan, which grew 42% year-on-year, while revenue from West Virginia was 47% higher.
The operator ranks among the top four for net revenue in US iCasino, with the company active in as many states for the vertical as any other operator.
“This strong momentum reflects the effectiveness of our focus on markets where we can deploy our full suite of gaming offerings and maximise player value,” Schwartz declared.
Rush Street Interactive boasts a total addressable market (TAM) of $145 billion, with $109.8 billion of this in the US and $6.6 billion in Canada. In LatAm, the operator has a current TAM of $28.9 billion.
RSI flourishing in spite of significant headwinds
The headwinds Schwartz referred to in the earnings call largely centre around the new temporary value-added tax (VAT) in Colombia.
In February, Colombia’s government announced a 19% VAT on player deposits to online gambling operators, with the measure expected to last until the end of 2025.
Similar to Stake and other market leaders in Colombia, Rush Street Interactive introduced a bonusing strategy to absorb the impact of the tax on bettors.
As a result, net revenue was flat in Colombia despite Rush Street Interactive’s GGR in the market increasing by over 70%.
With the VAT set to expire at the end of the year, Rush Street Interactive CFO Kyle Sauers expects the company’s GGR and net revenue growth in Colombia to kickstart from 2026 onwards.
“It’s a big headwind for us here while this tax is in place, and that obviously hits revenue and profitability,” Sauers explained. “So we’re pretty excited for the time when that isn’t in place any longer.”
Mexico set to become a key market
Elsewhere in LatAm, monthly active users rose nearly 42% year-on-year to 403,000, although average revenue per monthly active user across the entirety of LatAm dropped from $38 to $30, which it again attributed to the bonusing strategy in Colombia.
The company achieved impressive results in Mexico, with revenue up by 125% when compared to Q2 2024, while it also grew 40% from Q1 this year.
Schwartz believes Mexico will ultimately become one of Rush Street Interactive’s largest markets, with the revenue growth in that market ahead of where it was in Colombia during the same timespan after launch.
“We are very unique in our user experience, and I think it resonates very well with the players down there who are looking for something different and exciting and differentiated and high quality compared possibly to what you see in the market,” Schwartz said.
“So, we are very optimistic and continue to believe that can be a very significant market for us for many years to come.”
Significant TAM in LatAm for Rush Street Interactive
In its Q2 presentation, Rush Street Interactive explained how it expects to have a total addressable market of around $28.9 billion across LatAm by the end of 2028.
Already live in Colombia, Mexico and Peru, Rush Street Interactive lists Chile, Ecuador and Argentina as potential expansion opportunities.
Also included in the potential expansion section is Brazil, with Rush Street Interactive yet to enter the market despite seven months of the regulated online market now being in the books.
In Rush Street Interactive’s post-Q2 call last year, Schwartz expressed interest in the market, although he also stated any entry would involve a cautious approach.
“Brazil is a large and exciting market,” Schwartz said last year. “There’s lots of moving parts there. It’s very important that we sort of remain disciplined and more thoughtful about how we approach the market.”
Shares in Rush Street Interactive closed up 25.53% at $20.16 per share in New York, with its share price up 101.4% over the past 12 months.
