RSI Online Gaming · iGaming · Sports betting · Small cap · Thesis updated August 5, 2026

Accelerating growth with a pivot to marketing spend

Second quarter 2026 revenue accelerated to a four-year high of 46 percent growth.
Management plans to increase marketing spend in the second half of 2026 to capture strong returns.
The company launched online casino and sports betting in Alberta in July 2026.
A pro-business election win in Colombia improves the long-term tax outlook for Latin America.
The main risk is that increased marketing hurts short-term profit margins if new players do not spend as expected.

01 Running thesis

Growth accelerates as spending returns

RSI is demonstrating massive revenue momentum. Revenue growth hit a four-year high of 46 percent year over year in the second quarter of 2026. The company continues to prove its ability to take market share in a highly competitive online casino space, aided by strong cross-sell from sports betting into casino games.

The narrative shifted slightly this quarter. After letting marketing fall as a percentage of revenue early in the year, management is now choosing to spend more on marketing in the second half. They see strong return on investment opportunities, particularly with the new Alberta market launch in July 2026. This reflects confidence in customer lifetime value rather than a defensive move against rivals.

The Latin American outlook also improved. A pro-business candidate won the Colombian presidential election, which potentially de-risks the regulatory environment over the long term. A 16 percent tax remains in the company model through the end of the year, but the worst case scenarios seem less likely.

The stock valuation leaves little room for error. Because execution has been so strong, the market expects perfection. If the higher marketing spend in the second half hurts profit margins without driving enough new revenue, investors may punish the shares.

Jul 2026▲Second quarter revenue grew 46 percent. Management announced plans to increase marketing spend in the second half of the year to support new markets like Alberta.

Apr 2026▲First quarter revenue grew 41 percent while sales and marketing fell to 13 percent of revenue. Latin America revenue improved after a Colombian court ruling helped RSI reduce bonusing.

Feb 2026▲The 2025 annual report showed revenue up 23 percent and marketing spend down to 15 percent of revenue. Colombia risk also eased after the temporary tax decree was preliminarily suspended.

Oct 2025▲Third quarter 2025 revenue grew 20 percent and sales and marketing stayed at 14 percent of revenue. The Colombian tax still hurt Latin American revenue metrics, but the issue was already known.

Jul 2025▲Second quarter 2025 revenue grew 22 percent and sales and marketing fell to 14 percent of revenue. The quarter added confidence that RSI could grow while spending less on customer acquisition.

May 2025→First quarter 2025 confirmed the profit turn, with revenue up 21 percent and net income turning positive. The new Colombia tax became a real headwind for Latin America.

Feb 2025▲Full-year 2024 revenue grew 34 percent, and adjusted profit rose significantly. A possible 19 percent Colombia tax was added as a new regulatory risk.

02 Business model

House edge, odds, and small extras

RSI makes most of its money from real-money online casino and online sports betting. In online casino, customers play games like slots and table games against the house, and RSI keeps the house winnings over time. In sports betting, RSI sets odds with a built-in margin, so it expects to keep a small spread across many bets.

The business relies heavily on the online real-money gaming segment. Retail sports betting and social gaming are smaller support lines that help with brand awareness and customer acquisition in local markets.

The model depends on keeping customer acquisition costs in check. It also requires stable gaming licenses, reasonable tax rates, payment systems, and strong sports betting technology partners. If players do not stay active after their initial sign-up bonuses run out, the economics break down quickly.

03 Product portfolio

What players actually use

Cash cow

Online casino

This is the core profit engine. RSI offers slots, table games, and in-house titles under brands such as BetRivers and PlaySugarHouse.

Growth engine

Online sports betting

Sportsbook gives players pre-game and in-game bets, parlays, and live features. RSI uses Kambi Group for risk and trading tools.

Steady

Retail sports betting

RSI provides sports betting services for land-based casino partners. It is much smaller than the online business, but it helps with market access.

Option

Social gaming

Social games use virtual credits. The bigger role is customer acquisition for real-money products before states legalize full gaming.

Growth engine

RushBet Latin America

RushBet is the Latin American brand across markets such as Colombia, Mexico, and Peru. It remains a key international expansion pillar.

04 Business segments

Two revenue regions

United States and Canada76%growing fast

Latin America, including Mexico24%growing fast

The mix uses geographic revenue from recent 2026 company disclosures. RSI reports one operating segment, so these are revenue regions, not separate operating units.

05 Risk factors

What could break the run

Higher marketing hurts margins

High impact · Medium odds

Management is increasing marketing spend in the second half of 2026. If the new cohorts in markets like Alberta do not mature and monetize as expected, short-term profit margins will drop.

We watchProfit margin trends and marketing as a percentage of revenue in the third quarter.

High expectations in the stock

High impact · High odds

RSI has a weak valuation score because the stock price reflects very high growth expectations. If revenue growth slows or profits dip, investors may punish the shares even if the business is healthy.

We watchRevenue growth falling below 30 percent while the valuation remains high.

Colombia tax resolution

Medium impact · Medium odds

A pro-business election in Colombia helps the long-term outlook, but a tax decree is still an overhang. The company is modeling a 16 percent tax through the end of the year.

We watchFinal constitutional court ruling or new government budget action in Colombia.

Corporate governance changes

Low impact · High odds

As of the second quarter of 2026, RSI is no longer a controlled company under stock exchange rules. This transition period means stockholders may have fewer corporate governance protections in the near term.

We watchBoard composition changes and shareholder voting proposals.

06 Quick answers

In one breath

How does Rush Street Interactive make money?

RSI mainly makes money from online casino and online sports betting. Casino revenue comes from house winnings, while sportsbook revenue comes from odds that include a built-in margin.

What brands does RSI operate?

RSI uses BetRivers and PlaySugarHouse in the U.S. and Canada. In Latin America, it uses the RushBet brand.

Why is the company increasing marketing spend?

Management sees strong return on investment opportunities and wants to support the recent launch in Alberta. They believe new players will generate high lifetime value.