RSI - Earnings call transcript Q1 2022 | Rush Street Interactive, Inc.

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Operator

Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Rush Street Interactive First Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. Please note that this conference call is being recorded today, May 4, 2022. the Investor to Relations turn Vice Seiler, now of President and will call Lauren over Associate I Development.

Lauren Seiler

release. first Thank By you, Quarterly RSI XXXX Results our of Investors heading website now, afternoon. be earnings quarter the everyone should in under operator, have access Financials, and the It can good at section found the to rushstreetinteractive.com.

laws. will the meaning federal securities Some within of statements of be our forward-looking comments the

use of should of Forward-looking operating and not results from could filings the usually our of interpreting caution future SEC identified in should facts expect, upon historical are the impact numerous a our financial risks phrases are such statements and you could and words the what you and detailed or differ more risks to uncertainties to we for expect. are statements that materially results to similar will, discussion exercise conditions. as them. that by other Therefore, actual cause and relying We subject refer

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With the and first some over that, Richard. provide to to questions. We remarks then turn the call I'll will open opening call

Richard Schwartz

to welcome and everyone, earnings afternoon, call. First our Good Lauren. Quarter Thanks,

off continue and sustainable the a business. towards long-term profitable start we in as on are XXXX building We great to path a

revenue Consistent possible customer our new during long-term online growth first York manner execute on to the into to in goal in the with our our a on strategy approach in balancing we acquisition. and generating sustainable with disciplined app the Louisiana. both early, prudent Sportsbook quarter, invest New day launched our returns continue We markets launch to we dollars

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In fact, investment. we customers marketing in twice did U.S. so many QX did acquired we and more than QX new as in with a as similar

that We have revenues over a solid players high-quality history attracting meaningful produce of time.

players excited at are we So about lower trend adding more cost. of this

customer U.S. As acquisition a the grew success of average fourth year-over-year retention our XX% strong and monthly to XX% program, result and quarter. active compared users

we in users grew market to compared during In active QX. QX fact, every

success Xth, our the quarter casino in and been U.S., Sportsbook In receiving have a launched addition on app Ontario in to online outside we on the reception. shortly U.S., our end first April after of the online possible strong day

live We a and are country, in three now in Mexico. plan soon to launch countries fourth

growth came inside state point one $XXX XX% Accordingly, of the in This York negative other a reduces investments from the our where quarter. launches. the the of we First-quarter despite sequential our as consecutive million. Naturally, forecasted, during markets. of We collective it's quarter New revenue been results impact excluding just million prior negative XXth York, revenue, revenue market new think a our quarter, EBITDA I revenue loss growth out, we growth. headwind positive generated in in would the about $XX launch first New to up talked lot in over have the experienced posted adjusted We important during year. represent

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laser-focused market reached and the by for manner, capital mind, XXXX. with continue last allocate G&A. customers adjusted we appropriate adjusted we our of have market-level most and To except clear, an couple launches profitability before expecting recent marketing measured as adding define eye goal With to quarters, to it we all are We discuss a as on be long-term EBITDA still disciplined in in returns. of when end the we corporate by EBITDA retaining that profitability, are toward generating

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awards nice. Of the is industry recognition of and course, the

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we quarter, first saw the play During out. this

handle January, we share opening still grew our Although since each York month one. New during in relatively quarter small

is Ontario. up very On It our early. and is April Xth, in casino sportsbook Next still we online launched Ontario.

over awareness we brands great However, have have a Many is gaming for Canada start a strong customer month. and first the market seen many, large strong online existing many existing years. Obviously, databases.

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databases with and beginning. revenue New have We a Ontario to after who And time. unlike shares the existing steadily comfortable what we positive over contribute market building entering in expect and are very saw familiar we from York, others

we acquiring, data-driven, to remain Turning a to marketing, players. and dynamic re-engaging converting, applying approach retaining

on to channel, would on values spends optimizing a the to behaviors to we return and most efficiently. in seeing long-term are are that around operate, we which specific those we work insights real-time jurisdictions reallocate channels We see. yield player are The results spends data what based and marketing predictive like

the and mouths we we retaining high-quality pre-attracting seek. As I customers mentioned, of grew to from by QX types QX

a Given reminder, York, look sportsbook investment, $XXX A not which New an lower sequentially at shorter the for marketing online quarter. term. since in us general, aggressive as four ARPMAU new the fall, sportsbook ARPMAU level the online of includes ahead is launches ARPMAU naturally the unusual It ARPMAU last we to online casino see QX. depresses are compared around higher negative which to launch, in for little

from for to QX, groundwork our gaming. network. continue also we see new and laid convergence content the In We benefits brand the of BetRivers

as was our Francesa, content signing network, during deliver that the entertainment is unique and and casino and he exclusive BetRivers the key highlight content exclusive hosting New videos provide media through sports He scene as fans. a digital well Francesa network broadcasting the With an at of hosting a events on with of appear will special on throughout appearing A first on lifestyle to year, twice-weekly be sporting will voices also and and deal. content sports, quarter aim select and podcast podcast. Mike platforms. will where and videos the will to the York social brand legend, series PlaySugarHouse for series various create

television of Sports sports Center has ads. We long-time Canadian featured podcast. release many [indiscernible] a had our for Boomsies also anchor Ontario in Dan first been our with of major Dan, the TSN's

with launch corresponded the and Dan. which our its Ontario fact, of investment our In campaign, in featured also Olympics podcast

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invest of online the improving to iGaming We continue sportsbook products. and quality in our

the As continual see revenue an focus as reducing experience a consistent continually tech friction, product growth. any and operator and on customer in great source we improvement of

reflecting improving call, that on in to recently the app This As iOS from are our launched received great and reviewed see combined reception now last we app ratings and continue in our sportsbook users market. we reflected to we casino we rapidly constant experience to feedback our and is store to directly focus on closely appreciated improvements we players noticeable is both continue user our improving positive us. make we to our with we know stream experience. more and will experience experience, our the user know of the players, betting The

example, over XX% iOS As other no turn than in are devices. on to With handles supplier more that, generating users an Michigan, I'll our app call the Kyle.

Kyle Sauers

Thanks, Richard.

XX% $XXX.X up was revenue million, First-quarter year-over-year.

Richard as heavy were at doing, existing markets continue we new As during and run discussed length operate launches, mode nicely. mentioned in grow we state prior calls, a which this recent are that investment of quarter, the in perform where earlier, to knowing we comfortable with and we've

adjusted million. As $XX.X loss our quarter first a EBITDA result, was

Our adjusted coming during biggest EBITDA launch York. from almost New our New of the our loss loss the quarter, was to contributor X/X York with

from headwind New line. of revenue on York good The NBA meaningfully reduced during promotions in expense Adjusted million solid quarter quarterly loss. will XXXX. on revenue news $XX we As and NHL providing XXXX efforts previewed almost marketing call, our New is we to have during our marketing quarter to compared brand-building quarter, contribution $XX.X and York costs launch our New to combined million the the first the the fourth in was quarter of the producing contributed during million state of negative $X first This, conclude. and the we're last positive had the York during revenue as seasons be continue and with significantly now a advertising and been

ahead we a as marketing noted, there. Louisiana, We've our as launch players our Richard more amount industry. across of than spent the As recent of in also in refine players number in increased in reflects prior brand result we quarter. our to the of continue than marketing to awareness launch we of New and new similar marketing had the acquired even we more cost acquire success as lowering twice The get a quarter did fantastic in York, rational efforts generate increase last Ontario over behavior advance efforts sought to and marketing

marketing expense a to in significantly forward, increased market. expect legal we'll market quarter We also that reduce costs exciting recent the York to but this quarter in returns and launch, have New optimistic we're in the casino second in see solid online given our related we'll where Ontario in going second is

it's While likely high be we flexible year with will expenses. for QX in of terms will that initiatives, the marketing remain marketing the our watermark

As call, the first largely we expected and quarter, during gross discussed margins to New on due impact the were York. our our of last lower

We here from improve as forward. the to moves year expect to gross continue margins

adjusted build teams throughout $XX.X year grew is as G&A the G&A quarter, during to infrastructure. fourth we out Our the our corporate grow from our to technology continue $XX.X to quarter. up million the and during first million expected

comfortably hand, position. $XXX the to have be no our cash strength. on get profitability sheet, cash flow and million position positive unrestricted the We're to Turning continue We positioned quarter and we cash well in with to ended we debt. a balance existing with to in of

opening As revenue largely guidance increasing full-year Richard to Ontario. highlighted, XXXX reflect our of the we're

expected our increased raising $XXX the to At XX% the million from to year-over-year revenue $XXX million. growth. between up to range top-line million, $XXX XXXX $XXX million guidance between implies are We midpoint,

are our live. only year. revenue which adds this to That but As or policy any currently a other not launch may is guidance those reminder, include revised include guidance does Mexico they later Ontario, markets in towards states still

for his profitability. Richard In addition, our remarks, in expectation highlighted earlier

gives half in decline our this and our basis our EBITDA market includes a ability be over meaningfully move launches profitable to back Maryland, market-by-market coming new overall we of us as in confidence through And next investments losses to continue Ohio market adjusted to and XXXX. launches profitability size in XXXX, to for quarters. year expect our improving Mexico, the less relative expected We on the

we'll clear that We level path perspective, we get share and with be continue and mark. details a you to market line as well excited the to overall to operator, to please closer additional profitability questions. a execute see open on With business that, for and

Operator

Instructions]. [Operator

question comes line first of Bernie from Your the Needham. from McTernan

is line Your open.

Bernard McTernan

you I comment think industry fact thoughts your take comment Richard, maybe to a and that or large that your will an comment. to it Was it get? Great... market to build. in on how think currently longer you is guess can love specific get here, on We'd that start, Canada how is the big

Richard Schwartz

Sure. Yes.

view the on other a longer is you you player to offer, to spin inducements you given a and in in site is to there have promotional do the America that in markets fact are to existing prohibited. this any promoting the inducing those that restrictions industry going aren't nature market of anything at bonus to offer, new codes, gray the free offer So play have a take of get to players because North like attract

players have the that an have existing previously. gray acquiring restriction, database to you're you a other new to slower time if market due operating than in So going from

volume of because not depositors. a of frankly, large number from the can based of and of driven items, into that some not Certainly, performing. at unclear strategies the are that are store those size downloads of a anticipating large this downloads, and we're don't some lot it's the way the things nature. of certainly, point. on only you've have how We weight have measurable. And but you by downloads In seen we know all numbers put a getting We terms know market, those of people directly

numbers we're size regulators I going publicly. -- we that's have from one the the market when So things and to of their see announced think to the wait

Bernard McTernan

there opportunity, Mexico copying way that we be maybe launch potential relative to revenue a about Understood. and is it's as thinking costs it launch, whether Colombia And market Canada well. to on upcoming the should

Richard Schwartz

us think obviously, be is, launching far so there will also Yes. [indiscernible] us online and partner what's a with casino been about, for we're very Unlike sportsbooks Colombia, excited helpful about media a we environment them. very on that Well, online very in Mexico and partner and in same I they've the collaborative exciting Mexico, we have day.

So I The really our thing make build is two that though, term. those the that are want positives. is over long that plan business clear, to to

on that that payment So of we there, the time all in want using way we'll right focus ensuring market. have there's the we're a we proper user working to, the that forget new are them the don't for experience first lot methods vendors

the And design. we to make that methods are that payment the flows implementing sure are so want we registration and working

the make experience invest spend and before in to going we're really marketing. right user the sure is So we

everyone full So market. the is launches existing I in many are that no have at where -- other because an time and marketing time in market we've there think plan specific a a states with launch to initially. go to There marketing same that like date operated isn't is sensitivity there market

see ramp experience our expectations. to plan user we So as up we meeting the

Bernard McTernan

in Understood. Thank all prepared the color you the and very helpful. really remarks, appreciate you much provided

Operator

Your Wells of Dan the Politzer Fargo. question next line from comes from

Your line now open. is

Daniel Politzer

questions. for Thanks taking my afternoon. Good

sports How we iGaming should in payback on payback in have clarify about just I you're the just -- think market sports mentioned four betting. of quarters. and have where the you profitable you betting terms know versus period, market you wanted a I the online to in the where Michigan in So period the payback period after first,

Richard Schwartz

Yes. Good question.

have factors sports, get is path impact to take it I That's the the casino, to been nature think from pretty markets got we've with tax market. both a profitability we first to overall those are sooner... casino longer going has and to in we've a profitability all that sooner when equal, to going profitability profitable on bit But it's competitive the probably clear think when sports-only the little where and right in gotten as and our well. you're we're evident the rate, going is I track all obviously, market, lot a

Daniel Politzer

operator, seeing across or -- opportunities In from consolidation of this a additional to as extent desk? you leading here? the should we And iGaming continue are pace iGaming space come expect to what accelerate your

Richard Schwartz

attractive, we've So online others find lot our strong about a which is we business, this own before of primarily that consolidation, because shared casino online discussions in scale. that that. of large casino a technology often We're business, things obviously driving the have probably number

I diversified think on the online pretty we're that the four revenues we're Americas, fact getting path the being top profitable, in to casino fact close in a the profitability. we're with across that towards line much sight country. The of

So I product. our lot to a there's think certainly,

think whole to technology experience think to to more build successful. sort aggregation We don't proprietary lot add create something to that just we I And as going a lot of points. into an unique a a view of have way. view selling be competitors our casino you of there's of of of you're library But games. casino and more then it if you have more games, differentiated

the in that rumors to those often wish we're So that recognizing have continuing the in up of to nature start and of to things there, but that come too category. casino in a because fact the markets, I that be grow stronger casino they head given companies of ways I for we the advanced think products we look think that lot do are

Daniel Politzer

Got it. just more one. quick And then one

go ahead. Sorry,

Richard Schwartz

Yes, ahead. go

Daniel Politzer

Or access in, on California. to be it? been there? -- one thinking lately. how going state if sneak on news Or a this I I market it's working been update some are I a that? There's is more And could path any to just ask where was a guess, should just about we you have

Richard Schwartz

too is going for And is, going sought been in have it's California parties the speculate November there truth now relationships referendums whether going the third to with access on it's a and will of is There's to be framework We've early in one investing mobile a be dramatically different several to that. it's conversations, direction market. signatures lot a time. after for that that there's being based vary go, Sure. long great which market I that in held and to

done for self-optionality create go meaningful relationships well. direct, the what the having on So certainly will we we others have opportunity that we've very think that that one be if versus go is direction legislation direction as some ourselves our of helpful we and should

think maintain. our So good of there to we're just we but of established relationships I and open, we've all do very have that sort keeping some options continue

Daniel Politzer

on. much. so I Thanks it. pass it will Got

Operator

comes Jefferies. question from of next Your the line Katz David from

open. Your line is

David Katz

as I to for Thanks about scale? -- just benefits far tell? you the as whether questions. bridge the opportunity, and bigger investment the is about you taking And there future? Or think the my far evolve just water everyone. it are And under in wanted that Afternoon scale scale bigger worse? how math and the or how the better is that so far, actually talk can the does so with

Richard Schwartz

board Sure. but been it's -- across I the what for in wins. I've I've ultimately clear mean years, market I've you're really but and XX the it clear. online no in, it's before, experience industry much matter said seen pretty this been user

best. migrate they to but those to necessary So that sites, marketing like attract will players is the long-term players,

innovative industry, operation what sportsbook when of experience treat so or create. the how experience. you where like you can The change on change you of the the product doesn't house. bonusing against it really And create scale are primary type of size kind what structures what the a the well user your comes play player, Depending in revenue-generating two categories casino doesn't you to the

and rest we less casino feeds, you players' I proper the of in category in think product are the experience poker often of the for able it areas, example, to the scalable long market, invest players data plan scale way. expenses, sometimes in sportsbooks enough which the liquidity making it's the ability market-leading think a as been that to to the experience you're those and the as whereas is, for fees, I is work scaling which with to we example, things competition, as you have, as all where investing continue expand able mentioned that justify that those the relevant doesn't in user than the inferior sure have in nature, is our and focus because of scale those to long number on do wins we've streaming about things offer it as and by in to having the

very continuing we're to excited to by have going reason product and players the us when a So with to have on innovation a they choice. our user play so build optimistic It's that experience side. differentiate

David Katz

very thanks much. Understood,

Operator

line Macquarie. of comes question next Your the Beynon Chad from from

open. Your line is

Chad Beynon

Hi, my taking Thanks good for afternoon. questions.

ahead can where off in the year for stable comments to more growth of revenue EBITDA And two were path we changed When kind of half of about about expectations and players? terms helpful users that, has next you cost Your a think full-back of further believe even of and driven maybe you from anything to those just your or margin, get from that reduction year. is a profitability to? very Thanks. beyond thinking promo or reduction

Kyle Sauers

that. take I'll Jed, Yes.

margins it the there it, an We of this hasn't that view to EBITDA We're to of those coming we more we getting reach many coming seeing this approach in online by over markets and peg coming into about profitability very to markets be changed. seeing and profitability. end to on are see to Our states exact addition the the I year time years. talked mid-to-high able -- don't more call, that should the more about of or feel And good new we're And still being then in XX%. frame get tailwind but a want years.

to think early we're frame. time in that see I growth the our still us So operating I and pretty industry leverage. But will that think company allow

this get quarter. near to technology of over We'll in corporate putting over all discussion Ontario the time. marketing in leverage we're over no We've had up is recent going these place that the the infrastructure most And that So been term. the ramping then in investments us support markets shortage of there's about come to growth. the quarters, launched

the and is going in marketing more spend and markets to over So that normalize declines level are it off mature. time,

we significantly. margins pretty And mix Pennsylvania, We're help also in state as -- maybe last as gross that changes. think structure margins was will matures, of you the our some has will will EBITDA that there'll mature, and a But flow piece margins. cost costs rate. the opportunities much margins, ways which which take the be pretty this our will improve obviously out just higher to So as to to improve gross of industry also tax find the heavy improve then mentioned to I through

Chad Beynon

and the the the to if standpoint Thanks. I New impact from if in would the wasn't Great. impacted had quarter EBITDA, you have EBITDA out hold York lower wondering was the essentially revenue if nice to was but a in and betting revenue Thanks, hold understanding you that from same couple quarter? do of call Kyle. the it your quarter. you were willing million that enough meaningful, were then And a impact in the first sports

Kyle Sauers

Sure.

you'd where where was probably me have but a or probably in expected probably casino, would netting I difference. over in to the probably, little to be our in big So we a expected sports little to, hold as as not be -- we won't not like quarter under but get out and it specific to a it

people saw and have no for hold been from Canada talked think little I and with happening so that we've the focused in hold we or a the different a on pleased and needle not not big us others there. I that surprise the has about, -- in impact of sports what's overall probably and the mover in same quarter. leagues are been that a generally events surprises but think

Richard Schwartz

for some will would agree relatively the There from site a a process thing I any only The weren't side note that. regulated restrictions the marketing haven't of I and close been very to until defined is you size But with be to said one. already market lot existing a of that this from day got a we we've the that, brands recognize the of of going there, aware existing where lot a that launch. we're players operators having have to that with gray gray the well surprises. market is really transition and

Chad Beynon

for color. the [indiscernible]. Awsome, Thanks

question on second me marketing The is for spend.

of of or pulling maybe sort been in of the sort any Just more competitors, And from rationalized you're a on they're more big you're profile new at I disciplined, competitors? you back of spend gain your states maybe existing sort that then change curious public pretty curious from been? seeing in always seeing states, one for makes being quarter. competitive had least That if spend of if sense. in in the obviously, amount the your you some guys, where think behavior spend you've has Just

go versus that's from still spend? I'm spend? are you you tracking you here But are to on guys. there, great. going it's said more -- your You elevating changing, down are conservative Or are budget to being Thanks, you guessing,

Richard Schwartz

second. to I'll the it part question, yes, more we Kyle comes the When could the a seeing maybe are take to rational Okay. of first take rationalization, approach marketing.

it reduced all track and Super we have the that intensity Bowl. have almost fact, noticed competitors of our In their marketing top since

results same excited this able where a see, continue consistent we theme been to opportunity that it new So that been for the price that we've before. players continue the we about great seen give to us to double to has because paying and essentially were the we're we've does that see

that excited rationalization seeing continue, -- that expect in we're hope marketplace. we're So to that and we the some we

Kyle Sauers

Yes.

and that said twice quarter. depositors bit We had And just we we the to new compared or remarks, more. and we so bringing a mentioned first-time this -- Richard only little in there, great QX as players added add then in but success U.S. during spent first I'd many just really the opening FTDs

we attractive continuing So those so we've And far that's in great. CPAs seen QX. think

But we we're So will high spending. to that during I we'll those of terms the advantage -- spent We mentioned marketing when -- with likely of I expenses We point QX also really going year the pull all back opportunities. flexible we take presented. good exciting. for the of what that be think in aren't remain that's it's the quarter.

budget? So our point are I published maybe would want on budget, some is that we so about you less for to the to always improve we say and exact more push where an when haven't we what might we point spend and a just give save in. we bringing opportunities, we're to I opportunity But great Or necessarily balancing -- harder that your don't mean see profitability that. some of players these relative do to data the do budget, than some

our So competitive what landscape, those are looks markets, we margins at in on the does I in different team that from a set those through what the marketing job what marketing think players of see states those like. looking great the returns our are available depending channels,

that. do our team at there. So proven well think we'll to continue be And to dynamic I has really

Richard Schwartz

years, Just is nimble adjusting the us add flexible and invested has we've allowed have commitments, appropriate. marketing in to the long-term to which that long-term that also quick as you one as comment from remain beginning, always We largely deals. allocations many felt many avoided

get the and justify you flow need that same consistency their You ROI. won't of players to

ROI. that us be choose on give right able flexibility us the sense using the to that opportunities that based and to does So we're for pick make the

Chad Beynon

luck. Good guys. Thanks, Nice.

Operator

Your question Capital. Engel next from Roth comes the line of Edward from

Edward Engel

environment CPAs Based than maybe might the we my a of like more the seeing rational Ontario, promotional some markets. for you're question. Hi, taking sounds on what it that Could is thank CPAs assume you And U.S. assume traditional bit than where other then, well? market? the in or Mexico I we as lower breakeven path that for to similarly be guess, shorter market maybe could your that could U.S. Canada lower, also are be

Richard Schwartz

we're don't really a X CPAs comes large Day it are a what things point population a well. it's a When really differentiator service But in day CPAs that help market will us. CPAs, was X, works think Sure. -- basis. for say that launching a I Ontario. having to It's obviously, -- at I product on is helpful we're where disclosing as strong customer a that

player. most many a would unique after Of other typically as selling enticements user It's sign the numbers up free offer the that offer for smaller aggressive course, the an competitors to things don't you're that are such market though, that us It to are the I experience, which the on not because promote. say, that which they initially. than play, only is players advantage we differentiation are notice of customer bonuses, freeplay points we us. actually What really what able with think gives matter service,

that can it we the the give them market to continuing other we on to in for So would differentiated the to plan and that and an do since all relative to products entices players experience talk is But about way. marketplace. we the talk unique us, is players things market helpful to that

try think get much does very larger to amount than reduce on of some I everybody historically focus the focused attention. else promoting many of to our which it have a of competitors, dollar

So about in the the more plan this market, it's offer the player. and on less about that to the user experience we amount to dollar offer

of it's early. Mexico, terms In

yet launched there. haven't We

So of mentioned on well is side, strong don't who lot we have other I that the to leveraging as on assets have media going excited regarded, a we there earlier, have us being specific really start. help that to get a well just a be details a than certainly, respected off they really to partner

that the assets those until where As experience I we said earlier, it we the initially won't be. execute all needs is though, to comfort have product

Kyle Sauers

we being to And when path markets in or shorter maybe before see then with as just that previous the path question, sports, different -- mentioned of say. on do they I and include casino profitability we're both the of question, casino and to I a the part kind should

different early any -- Richard just were they'll But they So they're said, Ontario launched. very than both in get I faster regard as be to wouldn't expect to is hasn't Mexico sports-only if and and Ontario profitability markets. that that Mexico

peg I a getting both a in quarter. yet just we like So time those reasonable Michigan got frame. good wouldn't very the about against fourth it markets profitability very want I But feel in in to place where to there

Edward Engel

of sales I margin the guess of I York, cost it increase Great. improve gross like revenue on of the New efficiencies side a of to time? looks adjusting did what's even as guess bit you, over your opportunity kind and then for sequentially. percent a Thank there kind

Richard Schwartz

Yes.

were that that So what gross your margins. your saying to a Is bit York saying? to getting make you're sure understood you lower is question, I ex-New little math

Edward Engel

Yes.

Richard Schwartz

And think I right. generally that's

you the So When lot quarter. in gross incur that of But neighborhood operating basis something our somewhere good big here, have you during New points continue -- permanent, support back year us that in end pretty and be is XXX that kind how goes it margin the depending margins most to But A A get the on and will little to gross a cost that improve revenue is headwind. -- I'd of generate temporary. revenue, to the of probably York provides you of costs temporary. is negative on of of year, market to the probably approve to the sequentially we'll expect by relative range. others. that margins it of as up mid-XX%

longer-term sports. Obviously, margins, the casino margins terms we those typically they in and -- than of on are it are tax improve better in how In depends the rate.

higher bunch new away Pennsylvania, the And adding out those margins, over lower from operating will longer-term, some I and relative think bigger short we which not of that take have, costs that other years. able we quarters and of to away then -- margins a we'll our costs continue coming little has rate, where some initiatives from, improve be that but naturally there's improve become to markets diversify a to tax things. other -- as

Edward Engel

you the thank Great, for color.

Operator

at are I'll questions Officer. back further now call this Swartz, Chief [Operator There Instructions]. Executive no time. turn Richard over to the

Richard Schwartz

this for you. joining you soon. we us Thank look call, and Thank for forward again speaking to

Operator

Thank call. you conference Ladies and gentlemen, this today's concludes for participating.

disconnect. now may You

Rush Street Interactive (RSI) 5 May 222022 Q1 Earnings call transcript