Rush Street Interactive Revenue Grows 39% Amid Cooling Online Casino Market
BetRivers owner warns of lower growth trends as US online casino demand softens.
1Revenue Growth Performance
Rush Street Interactive reported a 39% revenue increase to $385.9 million in the third quarter of 2026. Despite this growth, the company signaled that October trading trends are tracking toward the lower end of its full-year guidance range. This warning follows a period of record performance during the second quarter.
2Market Demand Shifts
Online casino operations now account for 75% of total revenue, up from 72% in the previous quarter. Management attributes the slower growth trajectory to a cooling North American online casino market rather than a loss of market share. Increased competition in states like Michigan is contributing to this broader sector softening.
3Profitability and Margins
Net income rose 93% to $28.7 million, significantly outpacing revenue growth. Adjusted EBITDA increased 73% to $62.2 million, demonstrating efficient operational scaling despite the revenue headwinds. The company continues to invest in growth, with sales and marketing expenses rising 43% to $56.0 million compared to the same period last year.
4User Base Expansion
The company reached a record 300,572 monthly active users in North America, representing a 34% year-over-year increase. Latin American user growth was even stronger at 46%, reaching 607,308 active users. These figures highlight that while market growth is cooling, the operator continues to successfully acquire and retain a large player base.
5Regional Market Dynamics
Michigan serves as a key indicator for the current market environment, with September iGaming receipts falling 0.9% compared to August. Rush Street Interactive noted that these statewide figures align with their internal observations of a softer market. The company’s performance remains sensitive to regional regulatory environments and local competitive pressures.
6Capital Allocation Strategy
Rush Street Interactive actively managed its capital during the quarter by repurchasing approximately $14 million in stock. An additional $11 million was bought back after the quarter ended, leaving $75 million available under the current authorization. This demonstrates management's commitment to returning value to shareholders despite the cautious forward-looking revenue guidance.
7Guidance and Assumptions
The company maintained its 2026 revenue guidance, which implies growth between 38% and 41%. This outlook assumes that current tax structures remain unchanged, including Colombia’s temporary 16% excise tax. The fourth quarter will serve as a critical test to determine if revenue hits the lower end of these projections.
8Investor Market Reaction
Following the earnings release on October 28, shares fell 1.82% to $15.13 during regular trading. The stock price subsequently moved below its 52-week low in after-hours trading. Investors are closely monitoring the fourth-quarter performance to see if the company can sustain its momentum amidst the reported cooling of the online casino sector.