Oct 28, 2026 earnings call — Casino-led growth and Latin America strength
Rush Street Interactive reported Q3 revenue of $385.9 million, up 39% year-over-year, with adjusted EBITDA of $62.2 million, up 73%.
Revenue $0.4B (est $0.4B) · EPS $0.15 (est $0.13) · Next-quarter revenue outlook $1.6B–$1.6B
Key quotes
"Online casinos remains the foundation of our business model, and it was once again the core driver of growth and profitability this quarter."
"Net revenue in LatAm held steady with the record level we set in Q2, while also growing more than 200% year-over-year."
"We continue to see attractive returns on spend, with cost to acquire players still at the lowest rates we've seen."
Analyst Q&A 12
Brazil entry and U.S. 2027 legalization
Q (David Katz · Jefferies): He asked for updated thoughts on entry strategies for Brazil and whether FolioObs has plans. He also asked how management is thinking about U.S. legalization opportunities for 2027.
A: Management said they were disappointed by Brazil's decision and have looked at the market very closely. Any move into Brazil would be considered only on a risk-adjusted basis. They named Virginia, Ohio, D.C., and Indiana as near-term U.S. opportunities and said Illinois and New York budget pressure could increase interest in iCasino.
"Anything that we would consider would have to be done on a risk-adjusted basis." — Richard Schwartz (CEO)
Industry slowdown and marketing plan
Q (Ryan Sigdahl · Craig-Hallum): He asked what changed in the industry slowdown since August and September. He also asked whether FolioObs should increase or reduce marketing spend now.
A: Management said online casino growth moderated a bit but the company held up well and is gaining share in most markets. They said customer cohorts are being monitored and they will adjust marketing dynamically by market. They noted the cost to acquire players is still at very low levels.
"The cost to acquire players are still at the lowest levels they've been." — Kyle Sauers (CFO)
Promotions and Colombia tax impact
Q (Dan Politzer · JPMorgan): He asked whether the slight rise in promotions was strategic or a response to the market, and asked for the tax impact in Colombia in 2026 to help estimate 2027 benefit.
A: Management said increased bonusing was partly due to the Alberta launch and more new players, not a change in overall strategy. They said they are watching any proposed 2027 tax-structure changes. As a backward reference, they said about two and a half months in Q1 2026 represented about $7 million in cost.
"What we're monitoring for is any change in the tax structure that might be proposed for 2027." — Kyle Sauers (CFO)
World Cup player behavior and guidance drivers
Q (Zach Silverberg · Wells Fargo): He asked how World Cup-acquired customers behaved after the event and about payback or lifetime value. He also asked what could move revenue and EBITDA above current guidance ranges.
A: Management said the World Cup was strong for acquisition and brand awareness, and they were pleased with post-World Cup trends. They said about half of World Cup first-time depositors have also placed an iCasino wager, and retention is a bit lower for event-driven players. To beat the current guidance range they'd need industry iCasino growth to rebound, take more share, or see continued strength in LatAm or sports results.
"But we're really pleased with how it went and how the trends continue post-World Cup." — Kyle Sauers (CFO)
Q4 guidance drivers and exit rate
Q (Brandt Montour · Barclays): He asked if the move in the revenue range midpoint down to the low end was driven by U.S. slowdown and whether that is market growth or share. He also asked if the Q4 exit rate is a base for next year's run rate.
A: Management said the Q4 revenue expectation is largely attributable to North American iCasino growth and that the change is more about the market than share. They said October trends looked similar to September and they'll provide 2027 guidance on the next call. They did not give a firm run-rate assumption for next year now.
"I think the answer to your first question and your assumption is fair, that where we're expecting Q4 revenue to come in at the moment is largely attributable to North American iCasino growth." — Kyle Sauers (CFO)
2027 ARPM and marketing spend outlook
Q (Joe Stauff · Susquehanna): He asked whether ARPM should grow in 2027 and how marketing spend should be thought of after the big step-up in 2026.
A: Management said they expect 2027 growth to come more from new player counts than higher average player value, at least in North America. They said marketing spend rose substantially in 2026 and, excluding new market launches, they expect marketing growth to be much less in 2027. They also expect to regain operating leverage over the marketing line.
"I would expect that our growth in marketing spend will be quite a bit less than it was in 2026." — Kyle Sauers (CFO)
Why World Cup customers were more valuable
Q (Stefanos Crist · Needham): He asked why World Cup customers drove more player growth and better lifetime values versus prior events like Copa América — was it the product, marketing, or the World Cup itself?
A: Management attributed the better results to improved execution by the team and stronger brand awareness compared with prior years. They said execution improvement and greater brand recognition helped drive the better acquisition and engagement.
"I think a lot of it goes to our team at execution and how much better we've gotten over the years." — Kyle Sauers (CFO)
Market weakness and building in-house games
Q (Mike Hickey · StoneX): He asked what is driving the North American iCasino weakness and whether FolioObs will cut costs. He also asked about building more first-party games.
A: Management said competition is a clear factor in some markets like Michigan and that they see slightly lower activity across player cohorts. They do not expect cost-cutting that would hurt growth and expect improved gross margins and leverage over marketing in 2027. They said they have an in-house remote game server and game studio and are preparing to launch proprietary games in the future.
"We're already getting ready to launch some games in the future and excited for the results that we expect to deliver from those." — Richard Schwartz (CEO)
Alberta market transition and World Cup cohort effects
Q (Jordan Bender · Citizens): He asked whether the competitive environment in Alberta changed after the three-month transition and whether World Cup players pulled forward wallet spend and might not show up later.
A: Management said the sign-up offers available to legacy operators during the transition created a temporary competitive disadvantage that is now removed. They said it's reasonable that the World Cup could have pulled forward spend but they don't have conclusive data; they also noted seasonality and that online casino has historically slowed and then returned stronger.
"I would just add, I think you're specifically talking about the sign-up offers that the other operators were able to offer during this three-month period that those who were regulated like us were unable to offer." — Richard Schwartz (CEO)
Prediction markets and M&A
Q (Chad Beynon): He asked for an updated view on prediction markets given current volumes, and asked about the firm's M&A stance with changing valuations.
A: Management said they are following prediction markets closely and have filed for licenses with the CFTC to be prepared for regulatory outcomes. They said recent CFTC communications seem to move away from casino-style gaming in prediction markets, which they view as positive for regulated online casino. On M&A, they continue to look at opportunities to accelerate market entry or bring in complementary technology.
"As you know, we have filed for our licenses with the CFTC, so we're prepared for any potential outcomes at the regulatory level or as legal landscape evolves." — Richard Schwartz (CEO)
Brazil effects and quarter housekeeping items
Q (Jeff Stantial · Stifel): He asked if Brazil's ban could cause competitors to reallocate investment across Latin America. He also asked about any quarter impact from hold and whether the $4.3 million one-time gain was in prior guidance.
A: Management said Brazil is unpredictable but they see no broad shift yet across other LatAm markets; each country has its own dynamics and some are constructive. They said the $4.3 million one-time gain was not included in the July guidance and that sports hold was house-friendly in July but much more player-friendly in August and September, with September being the worst sports hold this year.
"So on your second piece, it was not included in the guidance that we had offered up in July." — Kyle Sauers (CFO)
New player behavior and digital card features
Q (Jed Kelly · Oppenheimer): He asked whether the new North American players behave differently than older cohorts and whether FolioObs would explore ‘rips’ or digital card features for loyalty.
A: Management said expected player values for newer players are lower than a year or two ago, which is expected as markets mature, and most new players are casino-first. They noted interest in card-style mechanics but emphasized legal risks and that they will look to incorporate such features in a clearly legal, regulated way.
"I think we've talked about this before, but I'd say generally, the expected player values are lower on these newer players than they would have been a year or two years ago." — Richard Schwartz (CEO)