The CEO of the parent company of BetRivers said the performance of its Ontario online casino has helped the company’s performance in the province.
During a conference call on Wednesday, Rush Street Interactive’s Richard Schwartz highlighted the success of BetRivers in Ontario, which is home to 46 live gaming operators.
“Our strength in online casino is certainly helping us very much… We are continuing to grow nicely, evidenced by sequential growth of almost 30% during the fourth quarter as we continue in ramp-up mode,” said Schwartz. “In a rapidly expanding market to transitioning operators, our market share remains the mid-single digits for online casino and low-single digits for online sportsbook.”
Schwartz said the increased interest in legalizing online casinos is a positive sign.
“You’re starting to see a lot of investments being made and lobbying efforts to legalize online casino in a way that you haven’t seen over the last decade. That’s extremely exciting. I think it’s clear why casino is a larger, more profitable category, the industry and legislators are realizing the value of the combination, how effective it is,” said Schwartz.
BetRivers 2022 revenue up 21% over 2021
This week, Rush Street announced its financial results for the fourth quarter and full year of 2022. Apart from Ontario, BetRivers operates in 14 U.S. states.
According to the data, BetRivers is running like a well-oiled machine. The fourth quarter revenue of $166 million is up 27% year-over-year. Also, the total 2022 revenue of $592 million is up 21% year-over-year.
Schwartz said the numbers show that the arrow for BetRivers is pointing upwards. And, all signs indicate a strong 2023 for the company.
He said the company grew year-over-year revenue while maintaining a disciplined approach to investing in customer acquisition and retention. BetRivers online sports betting platforms launched in five new jurisdictions in 2022, including Ontario, Mexico, New York, Maryland and Louisiana.
During the fourth quarter, the company also increased its monthly active users by 22%. Schwartz says that is also something they look to build upon in 2023.
“Looking forward, we will continue to focus on earning and retaining customer loyalty, by treating them well, being thoughtful, developing seamless experiences and reducing friction at every possible point,” said Schwartz. “We have built our proprietary platform and culture around a disciplined operating philosophy, which is reflected in our results.”
2023 revenue predicted to be between $630 and $700 million
RSI expects total revenue for 2023 to be between $630 and $700 million. At the midpoint of the range, revenue of $665 million represents 12% year-over-year growth compared to $592 million in 2022.
“We finished 2022 with record revenues of $590 million,” said Schwartz. “For those who have followed us over time, you will appreciate that our top-line growth is not growth at all costs rather it is purpose-driven as a result reflect our demonstrated ability to acquire and retain customers at sensible investment levels.”
For all of 2022, some other notable Rush Street financials were:
- Net loss of $134.3 million, compared to a net loss of $71.1 million in 2021.
- Adjusted EBITDA was a loss of $91.8 million, compared to $65.1 million in 2021.
- Adjusted advertising and promotions expense was $218.4 million, compared to $186.9 million in 2021.
Bet Rivers’ narketing spend expected to decrease in 2023
Rush Street’s chief financial officer Kyle Sauers talked about the marketing spending. He said it was up sequentially in the fourth quarter compared to the third quarter. However, he says the company expects those numbers to go down in the near future.
“For 2023, marketing costs should be lower than 2022, both as a percentage of revenue and in absolute dollars,” said Sauers. “We expect to spend more during the first half than the second half as a result of the recent launches in Mexico, Maryland and Ohio and Ontario market that is still less than a year old and the rebranding efforts in New Jersey.”
According to H2 Gambling Capital, gross gaming revenue in Ontario’s gambling sector could grow to $8.02 billion by the end of 2023. Rush Street is looking to play a major factor in that.
