The latest financial results of the company show that Rush Street’slosses increased to $124.8 Million compared to $94.3 Million in 2021. However, during the Q4 earnings calls, CEO Richard Schwartz talked about mindful spending and how it will benefit the company long-term.
Rush Street Interactive lost revenue doubled, from $19.5 million in 2021 down to $38.6 millions last year. Despite the losses, YoY gains were seen in Q4 for interactive division.
Here are the top-line numbers of Rush Street Gaming for Q4 and 2022.
Q4 Revenue: $165.5 Million, an increase of 26.7% YoY
Q4 EBITDA ($28.4 Million), down by 30.7% YoY
Rush Street Interactive’s Q4 net losses were $9 million, a decline of 13.6% YoY
Revenues for 2022: $414.7 Million, an increase of 24.8% over 2021
EBITDA 2022: ($124.8 Million), 32.4% lower than 2021
Rush Street Interactive’s net losses in 2022 were $38.6 Million, an increase of 98.2% over 2021
“Those who have been following us for a while will know that top-line growth does not mean growth at any cost. Schwartz stated during the earnings call that it was purpose-driven, and that the results reflect our proven ability to acquire and keep customers at reasonable investment levels.
“In Maryland and Ohio, our new sports-only states, we have changed our approach and spent less on early marketing initiatives than in our sports-only markets launches. This level of investment will be reflected in market share. However, we expect a faster recovery of initial investment in these markets launches. ”
BetRivers Maryland has only half of the handle market share. However, they are one of three online betting books that have made money in Maryland thanks to modest promotional spending. The operator has only spent $261K in promotional credits and earned $82K during the first three months Maryland online betting operations.
BetRivers reported $149K revenue and a loss of $12K for their first month in Ohio.
When measured in percentage of net revenues, the total marketing spend for the year was down by 140 basis points. This is despite the investment-heavy first half of this year. We’ve seen a 560 basis point increase in marketing spend over the past three quarters if we look at net revenue as a percentage over the previous three quarters.
BetRivers, like many mid-tier operators is focusing its efforts on expanding online casinos to fuel growth. Schwartz pointed out that there is a different industry support for the issue in relation to legislation and lobbying than other issues.
He stated that the industry has become more aligned than ever before in terms of online casino. There are a lot of investments and lobbying efforts underway to legalize online casinos in a way you haven’t seen in the past decade. It’s very exciting. It’s obvious why casino is a more profitable and larger category. The industry and legislators are realizing its value, how efficient it is.
