Rush Street Interactive acquires Run It Once Poker as Q4 revenue leaps 30.5%
These costs left the business with a loss from operations of $37.1m, a modest reduction from the $43.5m loss from operations registered in Q4 2020.
After other smaller expenses, including $907,000 in taxes, the business declared a net loss for Q4 of $38.1m, again down slightly from Q4 2020’s net loss of $41.6m.
Exactly $10.4m of the net loss was attributable to RSI, with $27.7m attributable to non-controlling interests.
Looking at full-year 2021, RSI generated total revenue of $488.1m, up 75.3% year-on-year.
Total operating costs and expenses also grew significantly, up 41.4% to $582.4m. This left the business with a loss from operations of $94.3m in 2021, a reduction on the $133.4m loss from operations generated in 2020.
The company’s net loss for the year was $71.1m (down 46%), of which $19.5m was attributable to RSI and $51.6m to non-controlling interests.
“We are continuing our disciplined approach of balancing profitability from existing markets and investing in new market launches,” said RSI CEO Richard Schwartz.
Indeed, RSI launched in Connecticut and Arizona during Q4, and following the end of the quarter went on to launch in Louisiana and New York. It now looks set to launch operations in Ontario and Mexico this year.“RSI’s consumer experience leverages our best-in-class technology and now operates successfully in 14 total markets compared to only six at the end of 2020,” Schwartz continued. “On the technology and product side, we continue to enhance our offerings and provide a best-in-class gaming experience to our customers.”
As part of its technological expansion, the operator announced its acquisition of Run It Once Poker, an online poker platform run by professional poker player Phil Galfond, which is thought to have completed late last year.
When I mentioned that @RunItOncePoker was headed down a path towards the US market, I told you that I’d have more details to share with you in the near future.
Today is the future! 👇🏻
— Phil Galfond (@PhilGalfond) March 3, 2022
Galfond said on Twitter yesterday: “We spoke with many potential partners over the last 18 months and are very excited to be on team RSI! They share our values: Honesty, integrity, fairness, and transparency – and not only with their players. They stood out to me in the fair and honest way they dealt with us.”
As of 31 December 2021, RSI had $281m in unrestricted cash and cash equivalents, and no debt, which it said would allow it to continue growing its marketing investment and launch in new markets quickly.
The operator also released revenue guidance for the full-year 2022, suggesting revenue was likely to fall between $580m and $630m during the period. This range’s midpoint, $605m, would represent year-on-year growth of around 24%.
The guidance is based on only those markets in which the brand has already launched – including New York and Louisiana – but does not include markets where it expects to launch this year, such as Ontario and Mexico.