Rush Street Interactive (RSI), a leading online casino operator, has reported an impressive profitability of $1.2 million for Q2 2023. The company’s CEO, Richard Schwartz, attributes this success largely to their operations in the Canadian market, particularly Ontario.
RSI’s Superior Performance in Ontario’s iGaming Market
During the company’s Q2 report, Schwartz frequently referenced the significant contribution of the Canadian operations to their overall profitability. RSI managed to achieve an impressive figure of $1.2 million in profit during this period.
Schwartz acknowledged the competitive nature of the Ontario market but emphasized RSI’s ability to generate substantial year-on-year gains and sequential growth. “On the international front, we had another strong quarter,” he stated. “We continued to perform very well in the highly competitive Ontario market.”
The CEO further mentioned the recent increase in data shared by iGaming Ontario (iGO) in its latest quarterly report. This data provided a more detailed snapshot of the market dynamics and revealed two key trends. Firstly, RSI’s average retail per monthly active user (ARPMAU) is considerably higher than the market average, at more than double that of its competitors. Secondly, the data showed that casino games constitute nearly three-quarters of the market, a trend similar to that observed in the US markets with iCasino.
“These trends should provide an outsized benefit to RSI as future iCasino markets launch,” Schwartz said.
Expansion Opportunities: RSI Eyes Potential Markets
Schwartz underscored RSI’s strategic focus on states and markets with potential for online casino expansion. While the company is keeping a close eye on US markets such as Ohio and New York, it also sees potential for growth in Canadian jurisdictions like Alberta.
“In Canada, you have a couple of jurisdictions there in particular. Alberta is one that really seems to be moving fairly fast in terms of appreciating the tax benefits and consumer protections available from the regulation of Ontario,” Schwartz explained. He further added that other jurisdictions are starting to see the benefits of taxing operators who are marketing to their consumers.
While Schwartz mentioned Quebec and British Columbia as showing signs of interest, he did note that other provinces have not taken recent steps to expand gambling to the same extent as Ontario. However, the successful performance of RSI in Ontario could serve as a model for these potential markets in the future.