RSI Stock Forecast & Price Target

Rush Street Interactive Inc. has demonstrated significant growth in the regulated online casino market, achieving a gross gaming revenue of $877.6 million, reflecting a 28% year-over-year increase and a 5% sequential rise from June. The company's performance in key North American states, such as Michigan, Pennsylvania, and New Jersey, has been robust, with revenue growth between 22% and 31% year-over-year, complemented by exceptional growth from smaller markets like West Virginia, Delaware, and Rhode Island. Furthermore, Rush Street Interactive is expanding its user base with a notable increase in monthly active users (MAUs), reporting over 30% growth in North America and more than 40% growth in Latin America year-over-year, indicating a positive trajectory for future revenue generation.

Rush Street Interactive's market share trends have shown a decline that is worse than anticipated, leading to a negative outlook for the company's future performance. The company's marketing spend has fallen to under 14% of revenue, the lowest since its public offering, which is expected to result in a headwind of $25–30 million to Adjusted EBITDA annually. Additionally, the temporary 19% VAT on deposits in Colombia poses another significant challenge, with a similar estimated impact on EBITDA for 2025, further highlighting financial pressures within the company's operational environment.