RSI (RSI) Q3 2025: North American Casino MAUs Surge 46%, Powering Guidance Raise
North American online casino momentum drove RSI’s tenth straight quarter of sequential revenue growth, with market share gains and record new depositors fueling a guidance increase. Leadership restructuring signals a sharpened focus on innovation and online casino legalization, while operational leverage and disciplined marketing spend underpin expanding margins. Management’s forward stance centers on regulatory tailwinds and product differentiation, positioning RSI for further outperformance in regulated gaming markets.
Summary
- Online Casino User Growth Accelerates: North American casino MAUs up 46%, highlighting product and market strategy strength.
- Leadership Realignment Targets Innovation: CEO shifting focus to legalization and product, with new President/CFO driving execution.
- Guidance Raised on Operational Leverage: Upbeat outlook reflects confidence in market trends and marketing efficiency.
Performance Analysis
RSI delivered its tenth consecutive quarter of sequential revenue growth, led by a 20% year-over-year increase to $277.9 million. The company’s online casino segment, which generates revenue from regulated digital slots and table games, was the primary engine, with revenue up 34% year-over-year. Monthly active users (MAUs) in North America surged 34% to 225,000, marking the fastest expansion in over four years and outpacing overall market growth.
Growth was broad-based across all major casino markets: Delaware net revenue rose 74%, Michigan 48%, New Jersey 37%, Ontario 24%, and Pennsylvania 15%. RSI set a new record for first-time depositors, exceeding its prior high by more than 10%, and did so while achieving over a 10% reduction in cost per acquisition. Adjusted EBITDA margin reached 13%, up 54% year-over-year, reflecting strong operating leverage as marketing and G&A expenses remained tightly controlled. Latin America saw mixed results: MAUs rose 30% to 415,000, but Colombia’s net revenue dropped 27% due to VAT-related bonusing, offsetting continued over 50% growth in gross gaming revenue (GGR).
- Casino-First Focus Drives Margins: Online casino’s higher retention and ARPU underpinned profitability and market share gains.
- Marketing Spend Efficiency: Marketing expense was less than 14% of revenue, down 1% YoY, while supporting record user growth.
- LATAM VAT Tax Headwind: Colombia’s bonusing to offset VAT tax compressed net revenue, but user and GGR growth remained robust.
RSI’s strong balance sheet—$273 million cash, no debt—provides capital flexibility for organic growth and opportunistic buybacks. Management raised full-year revenue and EBITDA guidance, citing sustained North American casino momentum and disciplined cost management.
Executive Commentary
"What makes these results particularly compelling is the continued acceleration of our growth in North American online casino markets, where we see the highest player value and retention... Even our most mature market, New Jersey, achieved 37% growth, the second fastest rate since Q1 2021, proving that established markets can re-accelerate with the right strategy and execution."
Richard Schwartz, Chief Executive Officer
"We had our highest North American monthly active user growth in four years. and we set another new record for first-time depositors for the entire company during the quarter, achieving this while further decreasing our cost to acquire players in North America by over 10% during the quarter, leading to continued leverage over our marketing investments, and this represents less than 14% of revenue."
Kyle Fowler, President and Chief Financial Officer
Strategic Positioning
1. Online Casino Leadership and Differentiation
RSI’s business model is anchored in regulated online casino, prioritizing high-value, high-retention markets. The company’s proprietary technology platform enables unique player experiences, supporting both acquisition and retention. Record casino MAU growth and market share expansion in mature states (like New Jersey and Michigan) underscore the payoff from product innovation and targeted marketing.
2. Operational Leverage and Marketing Discipline
RSI continues to demonstrate operating leverage, as revenue growth outpaces marketing and G&A expenses. Marketing spend as a percentage of revenue declined, even as player acquisition and engagement surged. The company’s approach—focusing spend on casino-first markets and optimizing acquisition costs—has enabled RSI to scale profitably while maintaining flexibility for new market entries.
3. Regulatory Tailwinds and Legalization Strategy
Leadership is intensifying its focus on online casino legalization, with CEO Schwartz dedicating more time to industry lobbying and regulatory alignment. The company views the proliferation of unregulated sweepstakes and prediction markets as catalysts for further legalization, which would disproportionately benefit RSI’s regulated, casino-first platform. Expansion into Alberta is on deck, leveraging learnings from Ontario’s success.
4. LATAM Execution Amid Regulatory Complexity
Latin America remains a growth lever, with Mexico revenue doubling and Colombia’s GGR up over 50%. However, VAT tax-driven bonusing in Colombia pressured net revenue and margins. Management expects normalization or adjustment in 2026, depending on the outcome of ongoing tax reform debates, which could unlock significant upside or at least reduce volatility.
5. Payments Innovation as a Retention and Cost Lever
RSI’s partnerships with Sightline (integrated debit) and Burra Pay (crypto) reflect a strategy to reduce payment friction, lower processing costs, and enhance customer loyalty. While still early, these innovations position RSI as a first-mover in payment solutions, which can support future margin and retention gains as adoption scales.
Key Considerations
RSI’s Q3 showcased how a casino-first business model, disciplined marketing, and regulatory focus can drive both growth and margin expansion, even amid market and tax headwinds.
Key Considerations:
- Casino-First Market Penetration: Record user growth and share gains in both new and mature online casino markets validate the company’s strategic focus on regulated casino states.
- Marketing ROI and Cost Control: RSI continues to acquire users at lower cost, supporting margin expansion and freeing up capital for innovation and new market entries.
- Regulatory Fluidity in LATAM: Colombia’s VAT tax remains a headwind, but management expects a return to normal or improved profitability in 2026 regardless of legislative outcome.
- Leadership Structure Realignment: CEO’s shift to innovation and lobbying, with President/CFO overseeing operations, is designed to accelerate product and regulatory wins.
- Balance Sheet Flexibility: Strong cash position and no debt allow RSI to pursue organic growth, opportunistic buybacks, and strategic investments without capital constraints.
Risks
Regulatory uncertainty remains the primary risk, especially in Latin America, where tax policy in Colombia and potential gaming tax hikes in Mexico could impact margins and growth. Competition from unregulated sweepstakes and prediction markets may pressure share or force increased marketing spend if regulatory alignment lags. Seasonal and player-friendly outcomes in sports betting can introduce short-term volatility in revenue and hold rates.
Forward Outlook
For Q4, RSI guided to:
- Continued marketing investment to support user growth, with expenses growing slower than revenue
- Seasonal strength in North American online casino markets expected to drive a strong finish to 2025
For full-year 2025, management raised guidance:
- Revenue of $1.1 to $1.12 billion, up $35 million at the midpoint
- Adjusted EBITDA of $147 to $153 million, up $10 million at the midpoint
Management cited robust North American casino momentum, disciplined cost structure, and the upcoming Alberta launch as key drivers. They expect continued leverage in marketing and G&A, and anticipate upside from regulatory normalization in Colombia and further legislative progress in the U.S. and Canada.
Takeaways
RSI’s Q3 results reinforce its positioning as a high-growth, high-margin leader in regulated online casino, with a scalable cost structure and disciplined management of regulatory and operational complexity.
- Casino Market Outperformance: Sustained MAU and revenue acceleration in North American online casino markets, even in mature states, demonstrates the company’s product and marketing edge.
- Operational Discipline: Marketing and G&A leverage supported a 54% YoY EBITDA increase, while user acquisition cost fell over 10%.
- Regulatory Optionality: Near-term tax headwinds in Colombia and Mexico are balanced by long-term upside from legalization trends and potential normalization of tax policy.
Conclusion
RSI’s casino-first model and operational discipline are translating into record growth and profitability, with the company well positioned to capitalize on regulatory and product-driven expansion opportunities. Leadership’s focus on innovation and legalization sets the stage for continued outperformance in core and emerging markets.
Industry Read-Through
RSI’s results offer a clear read-through for the digital gaming sector: Casino-first operators with proprietary tech and disciplined marketing are best positioned to capture share and margin as legalization expands. The company’s ability to reaccelerate growth in mature markets signals that product innovation and user experience remain critical differentiators. Regulatory volatility in emerging markets (Colombia, Mexico) is a sector-wide risk, but also a source of future upside as frameworks stabilize. Payment innovation and a focus on high-retention verticals will become increasingly important as competition intensifies and unregulated alternatives proliferate.