Rush Street CEO Warns Brazil Ban Could Push Players To 'Crypto Casinos' — And Names Four 2027 Targets
Richard Schwartz also said only about 12% of Americans can reach regulated online casinos, as revenue rose 39% to $385.9 million.
Rush Street Interactive CEO Richard Schwartz said on the company's third-quarter earnings call Wednesday that if Brazil's ban on a regulated betting market stays in place, he believes it will ultimately be counterproductive, pushing consumers toward unregulated operators in the crypto casinos. Rush Street, which runs the BetRivers, PlaySugarHouse and RushBet online casino and sports betting brands, also laid out where it hopes states will legalize online casino in 2027.
Brazil: disappointed, but open-minded
Answering a Jefferies analyst, Schwartz said the company was "disappointed by the decision to restrict a regulated market that was maturing." His warning was conditional: it applies "if the ban remains in place following the legal congressional challenges that are going to be following very soon."
Asked about entering Brazil, he said the company watches the market closely and stays open-minded about opportunities "on a risk-adjusted basis." Asked by a Stifel analyst whether Brazil signals a wider shift, he said the company does not view it as indicative of its other Latin American markets. He pointed to a pro-business new president in Colombia and stronger enforcement in Mexico.
The 2027 legalization map
Schwartz called Virginia a near-term opportunity heading into 2027, noting that companion bills passed both chambers in 2026 but failed to reach a final compromise. He named Ohio, where either gubernatorial candidate could provide a path, and Indiana, where recent Republican primary results created a more constructive backdrop. D.C., he said, has a very near-term online casino opportunity at the end of this year.
He added that Illinois and New York face Medicaid funding reductions under the federal "one big beautiful bill." He put Illinois at billions of dollars in annual impacts and New York at tens of billions over the next decade, which he said raises interest in alternative revenue such as online casino. Only about 12% of the U.S. population has access to regulated online casinos, he said.
On prediction markets, Schwartz said Rush Street has filed for CFTC licenses to be ready for any outcome. He said the regulator appears to be moving away from supporting casino-style gaming there, which he called positive for regulated online casino.
Quarter: revenue up 39%
Revenue reached $385.9 million, up 39% from a year earlier, and adjusted EBITDA was $62.2 million, up 73%. Net income was $28.7 million, compared with $14.8 million a year earlier. Online casino made up 75% of revenue.
In Alberta, which launched July 13, first-time depositors and daily active users are tracking at over two times Ontario's levels at the same point after launch, on a population-adjusted basis, management said.
The company reiterated full-year revenue guidance of $1.56 billion to $1.6 billion, with October trends pointing closer to the low end. Its adjusted EBITDA guidance of $245 million to $265 million is on track near the midpoint. President and CFO Kyle Sauers said the slower Fourth-quarter revenue outlook is largely due to North American market growth rather than share loss.
The company has $382 million in cash, no debt and $75 million of buyback capacity left, and it said it will give 2027 guidance on its next call.
Sources
- Stifel Cuts Q3 Online Gambling Earnings Forecasts - Legal Sports Report — legalsportsreport.com
- Rush Street Interactive Non-GAAP EPS of $0.15 beats by $0.02, revenue of $385.9M misses by $2.13M (RSI:NYSE) — seekingalpha.com
- Rush Street Interactive earnings: what to look for from RSI — Yahoo Finance
- Barclays Praises Platform, Retention In BetRivers Parent Initiation - Legal Sports Report — legalsportsreport.com
- Down 20.0% in 4 Weeks, Here's Why You Should You Buy the Dip in Rush Street Interactive (RSI) — Yahoo Finance
