Rush Street Interactive NYSE: RSI reported record results for the first quarter of 2026, highlighting accelerating player growth, improving marketing efficiency, and expanding profitability as it raised its full-year outlook and prepared for a new market launch in Alberta.
Record quarter driven by casino-first strategy
CEO Richard Schwartz said the company generated record revenue of $370 million in the first quarter, up 41% year-over-year, alongside record adjusted EBITDA of $60 million, up 81% year-over-year. Schwartz attributed the performance to “the strength of our casino-first strategy” and operational execution, describing online casino as the primary value driver with sports betting and poker as complementary products.
Schwartz said the company is “scaling revenue off a much larger base at very strong growth rates while improving profitability at about double that pace,” arguing that online casino customers typically deliver higher lifetime value and retention than sports-only bettors.
User growth accelerates; marketing efficiency improves
Management pointed to sharp growth in monthly active users (MAUs) and first-time depositors. Schwartz said North America MAUs increased 46% year-over-year to 296,000, while Latin America MAUs rose 54% to 543,000. In North American online casino markets specifically, MAUs grew 62% year-over-year, which Schwartz said marked accelerating player growth for the fourth straight quarter in those markets.
President and CFO Kyle Sauers said the company set “another new record for first-time depositors” and emphasized that marketing efficiency improved even as acquisition scaled. Marketing expense was $46.2 million, up 19% year-over-year, representing 12.5% of revenue versus 14.8% a year earlier. Sauers said the company’s cost to acquire players is “the lowest they’ve been since we went public over five years ago.”
Asked about the makeup of new North American customers, Sauers said the new cohorts “look a lot like the ones that we’ve acquired before,” though he acknowledged some incremental additions from a more casual base. He said average revenue per monthly active user (ARPMAU) has declined as a result of the influx of new players who may not be active for a full month and who initially receive bonusing, but added the long-term value expectations have only “modest” deterioration.
In the quarter, North America ARPMAU was $317, down 14% year-over-year. Sauers called the decline “healthy and anticipated” given record new-player volumes, adding the company expects ARPMAU to improve as growth normalizes and cohorts mature.
Regional performance: Latin America growth and Colombia tax developments
On a geographic basis, Sauers said first-quarter revenue in North America grew 26% while Latin America revenue increased 134%. By product, online casino revenue grew 39% and online sports betting revenue rose 47%.
Schwartz and Sauers discussed regulatory and tax changes in Colombia. Schwartz said the Colombian Constitutional Court suspended an emergency decree imposing a 13% VAT on GGR in late January, and later ruled a 19% VAT unconstitutional, meaning it was not applied to the company. He said a new emergency decree implemented in mid-March imposed a temporary 16% tax on GGR, which is expected to undergo review by the Constitutional Court in coming months. For guidance purposes, management assumed the temporary 16% tax from mid-March through year-end.
Schwartz said that despite a “complex regulatory environment,” Colombia posted its fastest MAU growth in the past four quarters, and he argued the company’s 2025 decision to absorb certain tax-related burdens through increased bonusing helped maintain player trust. Sauers added that reduced bonusing this year is allowing more growth to “flow through to the net revenue line,” while the new revenue-linked tax affects gross margin dynamics.
In response to a question about potential refunds tied to the overturned 19% emergency VAT, Sauers said the court suggested funds should be returned to operators that paid it, but added, “We did not pay any of that VAT… so not really relevant for us.”
In Mexico, Schwartz said the company is benefiting from a favorable competitive setup for a “casino-first operator,” arguing some large incumbents have historically skewed toward sports. He also addressed questions about competitors’ license issues, saying Bet365 and Betano were out of the market and that their absence “certainly has helped us to acquire some customers from them.” Sauers said Mexico revenue has grown more than 100% in each of the last four quarters and is becoming more meaningful to both revenue and profitability.
Alberta launch and raised 2026 guidance
Looking ahead, management said it is approaching a launch in Alberta, with Schwartz noting the regulator has set July 13 as the market launch date. The company expects to begin investing in marketing and brand building in the second quarter ahead of the launch, while taking what Schwartz described as a “deliberate, measured approach” focused on sustainable unit economics.
Sauers said the company’s raised 2026 guidance incorporates the Alberta launch in the back half of the year, adding “some modest revenue” but also including launch costs. In Q&A, Sauers said he expects Alberta to be competitive, similar to Ontario, and said the market includes incumbent gray market operators. He declined to provide a specific market share target.
Rush Street Interactive raised its full-year 2026 guidance to:
- Revenue: $1.49 billion to $1.54 billion (31% to 36% year-over-year growth)
- Adjusted EBITDA: $230 million to $250 million (50% to 63% year-over-year growth)
Sauers said the revenue increase was driven, in order of impact, by improved North American iCasino market share in the first quarter, continued outperformance in Latin America, better sports outcomes in both regions, and the Alberta launch. For EBITDA, he cited the same drivers, plus the Colombia tax rate being lower than the previously discussed temporary 19% VAT that was overturned, partially offset by Alberta investment and “modestly higher marketing spend and G&A costs than expected earlier in the year.”
On longer-term profitability, Sauers reiterated the company believes it can reach “low to mid 20%” adjusted EBITDA margins over time, while noting additional iCasino market expansions in North America would likely be needed to get there.
Balance sheet and other strategic commentary
Sauers said the company ended the quarter with $331 million in cash and no debt. The company did not repurchase shares in the first quarter under its $50 million share repurchase program.
Management also discussed potential future market expansion. Schwartz said the company continues to evaluate additional opportunities in Latin America but is “not ready to share anything at this point in time.” In the U.S., he said Virginia would be an “exciting market” if iGaming were authorized, noting legislation progressed through both the Senate and House this year. Sauers added that the company could have advantages in Virginia that it did not have in certain other launches, referencing the company’s relationship with Rivers Casino.
Schwartz also addressed product differentiation in iCasino, saying the company believes competitors are often “very me too” in feature development, while pointing to Rush Street Interactive’s app rating—“4.9 out of the five”—as validation of its player experience and retention focus.
In closing remarks, Schwartz said the company looked forward to updating investors when it reports second-quarter results this summer.
About Rush Street Interactive NYSE: RSI
Rush Street Interactive NYSE: RSI is a digital gaming and sports betting company that develops and operates online wagering platforms in regulated markets. As a subsidiary of Rush Street Gaming, the company specializes in delivering interactive casino games, live dealer experiences, and sports betting services through desktop and mobile applications. Its technology infrastructure is designed to support real-time wagering, secure transactions, and responsible gaming tools across multiple jurisdictions.
The company’s flagship brand, BetRivers, offers a range of casino titles—including slots, table games, and virtual sports—alongside a comprehensive sportsbook featuring pre-game and in-play betting markets.
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