RSI Stock Forecast & Price Target

Rush Street Interactive Inc. has demonstrated robust growth in the online gaming sector, with gross gaming revenue from states with regulated online casinos reaching $877.6 million, reflecting a 28% year-over-year increase and a 5% sequential growth. The company is experiencing significant customer expansion, particularly in North America, where major markets such as Michigan, Pennsylvania, and New Jersey have recorded growth rates between 22% and 31% year-over-year, alongside impressive gains in smaller markets. Furthermore, the growth in monthly active users (MAUs) in North America and Latin America, with increases of over 30% and 40% year-over-year, respectively, indicates a positive trajectory for the company’s market presence and overall financial health.

Rush Street Interactive's stock faces a negative outlook due to declining market share trends that are worse than anticipated, indicating potential difficulties in maintaining competitive positioning within the online gaming sector. A significant reduction in marketing expenditure, dropping to less than 14% of revenue, suggests challenges in customer acquisition despite achieving record first-time depositors, which could adversely impact future growth. Additionally, the imposition of a temporary 19% VAT on deposits in Colombia presents an estimated $25–30 million headwind to Adjusted EBITDA in 2025, which further compounds the company's financial challenges.