RSI Stock Forecast & Price Target

Rush Street Interactive Inc. is positioned favorably in the online gaming sector, as evidenced by a robust growth in gross gaming revenue across states with regulated online casinos, which reached $877.6 million—an increase of 28% year-over-year and a 5% rise sequentially from June. Notably, key markets such as Michigan, Pennsylvania, and New Jersey reported record or near-record results with growth rates between 22% and 31% year-over-year, contributing significantly to this performance. Furthermore, smaller markets demonstrated exceptional growth, with West Virginia, Delaware, and Rhode Island experiencing increases of 53%, 88%, and 96%, respectively, highlighting the expanding footprint and revenue potential of Rush Street Interactive in diverse geographic regions.

Rush Street Interactive faces a challenging financial outlook primarily due to significant expected headwinds impacting its adjusted EBITDA. A substantial reduction in marketing spend to below 14% of revenue may indicate potential difficulties in customer acquisition and retention, resulting in an estimated annualized headwind of $25-$30 million to adjusted EBITDA. Additionally, the temporary 19% VAT on deposits in Colombia is projected to introduce another $25-$30 million negative impact on EBITDA in 2025, further compounding financial pressures.