Rush Street Interactive (RSI) has reported impressive earnings for Q1 2026, exceeding expectations in revenue, earnings per share (EPS), and EBITDA. The company’s net revenue reached $370.4 million, surpassing forecasts by 12%. EPS stood at $0.14, compared to the anticipated $0.11, while EBITDA was reported at $60.2 million, significantly above the consensus estimate of $48 million.
The company experienced a remarkable 41% year-over-year revenue growth, marking the fastest expansion rate in four years. This surge is largely attributed to RSI’s “casino-first” approach and significant user acquisition in Latin America.
RSI appears to be at a pivotal moment, with its rapid revenue growth translating into substantial profits. The management has effectively reduced marketing expenses, which have fallen to 12.5% of revenue from 14.8% the previous year.
Looking ahead, the transition of Alberta's iGaming market from a government monopoly to a regulated environment for private operators presents a significant opportunity for Rush Street. The province is set to launch its market on July 13, 2026, which analysts predict will bolster revenue in the latter half of the year. Alberta's regulatory framework is expected to be similar to Ontario's, where RSI has already achieved considerable success.
In Alberta, private companies, including RSI’s BetRivers brand, will be permitted to legally offer online casino games and sports betting. The province has implemented a competitive 20% tax on net iGaming revenue, allowing 80% to remain with operators, making it an attractive market for commercial gaming firms.
During the earnings call, CEO Richard Schwartz expressed optimism about the Alberta prospects, stating, “We are getting closer to launching in Alberta. The regulator has set July 13th as the launch date. We’re executing well, growing our player base rapidly and profitably, and preparing for an exciting new market launch that we believe will mirror our success in Ontario.”
In North America, the online casino sector has seen a 62% increase in monthly active users (MAUs) year-over-year. This growth is significant, as online casino players typically possess a lifetime value (LTV) that is 3.7 times higher than those who only engage in sports betting.
Latin America is also contributing positively, with regulatory changes such as the removal of the 19% VAT in Colombia allowing RSI to reinvest in player acquisition. This has led to a staggering 134% revenue increase in the region this quarter, with MAUs rising by 54% to 543,000.
Schwartz highlighted the effectiveness of the company’s casino-first strategy, stating, “Our continued momentum demonstrates the strength of our casino-first strategy. We’re scaling revenue off a much larger base at very strong growth rates while improving profitability at about double that pace. This strategic choice delivers meaningful advantages in player economics that compound over time, creating a virtuous cycle.”
Due to these strong results, Rush Street Interactive has raised its full-year guidance, as confirmed by CFO Kyle Sauers during the call, who noted, “We achieved record first-time depositors this quarter.”