Rush Street says US iCasino growth cooling despite record quarter

Rush Street Interactive reported third-quarter revenue up 39% year over year to $385.9m and adjusted EBITDA up 73% to $62.2m, the BetRivers operator said on Wednesday, while warning that the North American online casino category is losing momentum.

President and CFO Kyle Sauers said the company's full-year revenue is trending toward the low end of its $1.56bn-to-$1.6bn guidance range, a shortfall he tied directly to a cooldown in iCasino rather than any loss of market share. He called the slowdown "largely attributable" to that category and said it was "more about the market than it is the share."

Sauers said growth decelerated from July into August, with a smaller step-down from August to September, and that "October looks a lot like September." He added that the softness showed up across RSI's player base and that the company, holding roughly 8% to 9% of the US online casino market, cannot speak for the industry as a whole.

CEO Richard Schwartz said the quarter reflected a "more measured pace of growth" across North American online casino and sports betting, pointing to public state data as evidence the slowdown is industry-wide rather than specific to Rush Street.

Online casino still accounts for 75% of RSI's total revenue and grew 32% year over year, remaining the company's main profit driver. RSI said it gained market share in every North American market except Michigan, where executives cited "more competitive intensity from the newer privately held entrants" — a reference an analyst linked to this year's bet365 and Hard Rock launches in the state.

Player economics shifted during the quarter. North American monthly active users reached a record 300,572, up 34%, while revenue per player fell 15% to $309. Schwartz attributed the decline to newer players carrying lower expected value than in prior years, describing it as a natural feature of a maturing market.

Marketing spend rose 44% to $54.7m, or 14.2% of revenue, though Sauers said player acquisition costs are the lowest the company has recorded and payback periods remain on target. He expects marketing growth to slow considerably in 2027, with future gains coming mainly from adding players rather than extracting more value per customer, barring a new state launch.

September also delivered the weakest sports betting hold of the year across the US and Latin America, according to the company.

Schwartz said only about 12% of the US population currently has access to regulated online casino, and he named several states as potential 2027 additions: Virginia, where companion bills passed both chambers in 2026 without a final compromise; Ohio, where he sees a path under either gubernatorial candidate; Indiana, following Republican primary results he called favourable; and Washington, DC, which he described as a "very near-term" opportunity by year-end.

He also pointed to Illinois and New York, arguing that Medicaid funding cuts under the One Big Beautiful Bill Act could push budget-strained lawmakers toward iCasino revenue.

Schwartz said growing attention to prediction markets is making lawmakers more alert to protecting state gambling revenue, and he criticised sweepstakes and other gray-market products for generating no tax contribution. RSI has applied for Commodity Futures Trading Commission licences, and Schwartz said recent CFTC guidance appears to move away from supporting casino-style games on prediction markets, which he called a positive sign for regulated iCasino.

MGM Resorts International struck a similar tone on its own earnings call the same day. Chief executive Bill Hornbuckle called Michigan's iGaming market "probably the best live example anywhere in the world" of what legalization can do alongside an existing land-based casino footprint, according to SBC Americas. He said he remains optimistic about further legalization regardless of whether it takes revenue from or adds to brick-and-mortar casinos, cautioning that "we've all seen this cycle." Hornbuckle named Virginia and Maryland as MGM's top hopes for 2027, saying Virginia "came very close" and that MGM has held "real dialogue with the government of Maryland."