RSI Overcomes Regulatory Challenges, Achieves 34% Casino Expansion and Increases Outlook

Rush Street Interactive Inc (RSI) posted impressive results for the third quarter of 2025, outperforming both revenue and profit forecasts as its online casino division experienced significant expansion, even as the company dealt with regulatory hurdles in major markets, according to

. The company announced $277.9 million in revenue, marking a 20% increase from the previous year and surpassing analyst projections by 4.3%, based on a . Adjusted EBITDA climbed 54% to $36 million, and non-GAAP earnings per share reached $0.09, topping the Zacks Consensus Estimate by 28.57%, as outlined in .

According to Yahoo Finance, these strong figures were propelled by a 34% year-over-year jump in monthly active users (MAUs) in North America, reaching 225,000, thanks to record levels of player acquisition and engagement. Online casino revenues in the region surged 34%, outstripping the sports betting segment, which saw a 16% decline due to outcomes favoring players, the report noted. CEO Richard Schwartz emphasized the "strength of our business model" and pointed out that RSI has now achieved ten straight quarters of sequential revenue growth, a milestone also highlighted by TradingView.

Nonetheless, the company encountered difficulties in Latin America, where revenues dropped 11% due to increased promotional spending in Colombia linked to a temporary VAT tax, as reported by Yahoo Finance. RSI is also bracing for possible impacts from a proposed gaming tax increase in Mexico, which could see rates rise from 30% to 50%, the report stated. Despite these obstacles, RSI raised its full-year 2025 revenue outlook to a range of $1.1 billion to $1.12 billion, an increase of $35 million at the midpoint, with adjusted EBITDA now expected between $147 million and $153 million, according to Yahoo Finance.

Market analysts have reacted favorably, with Zacks Investment Research upgrading RSI to a "Strong Buy" (Zacks Rank 1) following upward revisions to earnings estimates, as mentioned in the Nasdaq article. The stock has advanced 36.3% so far this year, outpacing the S&P 500's 17.2% gain, according to Nasdaq. TradingView also reported that RSI’s operating margin improved to 7% in the third quarter, up from 2.8% a year earlier, indicating greater operational efficiency.

Company leadership reiterated their focus on strategic initiatives, such as advocating for the legalization of online casinos and enhancing product differentiation, Yahoo Finance reported. Schwartz pointed out that unregulated sweepstakes operators pose both risks and opportunities, and argued that states should "legalize and regulate online casino gaming to protect consumers and increase tax revenue," the report said. RSI also intends to use its proprietary technology platform to boost customer loyalty and attract new users, according to the same report.

Looking forward, RSI is facing important regulatory developments. In Colombia, the current VAT tax could be reduced if proposed legislative changes do not pass, which Schwartz described as "not enough," according to Yahoo Finance. The company remains wary of Mexico’s tax situation but is confident in its ability to implement measures to lower its effective tax rate, the report indicated.

With its online casino business fueling growth and a solid financial position—holding $273 million in unrestricted cash and carrying no debt—RSI seems well-equipped to handle short-term headwinds, Yahoo Finance concluded. However, maintaining this momentum will require regulatory certainty and the ability to withstand increasing competition in the dynamic gaming sector, TradingView observed.