RSI revenue soars 260% in Q4 as operator finalizes Google Play Store app launch
NYSE-listed firm expects to be among first in US to launch its igaming app on Google Play Store
Rush Street Interactive (RSI) posted 2020 full-year revenue of $278m following eight consecutive quarters of growth.
Like many of its competitors, Q4 2020 contributed significantly to the full-year earnings with revenue of $100m, up 260% on the previous year.
On the back of this strong performance, the operator has increased its 2021 revenue guidance to between $420m and $460m, up from $320m.
RSI CEO Greg Carlin said the firm was analyzing possible bolt-on acquisitions and further developing its technology stack to continue its growth trajectory.
Daily total stakes for online gaming in newly launched Michigan in March was up 65% on early data in January.
RSI president Richard Schwartz revealed the average amount wagered in the state was quickly approaching the same rate as New Jersey, which has been live with igaming since 2013.
Schwartz said the operator was aiming to be among the first operators in the US to launch its casino app on the Google Play Store after the search giant lifted its ban on real-money gambling (RMG) apps.
He said RSI had applied to launch in the Play Store in every state where it was legal and permitted by Google, although some states like Michigan and West Virginia had not yet been given the go-ahead.
Schwartz declined to offer a timeline for launching an Android app due to the lengthy review process.
DraftKings was the first RMG operator to set its casino and sports betting apps live on the Play Store in Pennsylvania this week.
“[However], we are very aggressive and staying focused to ensure we are among the first to launch,” Schwartz said.
He told analysts RSI would be investing heavily in its technology and product this year, with a major iOS app upgrade planned for April 2021.
The operator plans to launch its iOS app in Michigan and Pennsylvania this year as it is only currently live in New Jersey.
Additionally, after Apple changed its policy for RMG apps recently, the RSI tech team built an entirely new offering to meet Apple’s requirements and ensure it would be fit for purpose in the long term.
On the financial results, industry analysts Regulus Partners wrote in a note that the biggest winners of the US digital gambling expansion outside media companies remained land-based casino owners like RSI.
They added: “The US market is still highly immature and there is a lot still to shake out. Nevertheless, RSI’s (barely) profitable product-led, casino-led model raises a few awkward questions for those hoping to take and hold significant share of a significant market with a betting-led approach, in our view.”
RSI stock is up almost 15% to $19 at the time of writing.