Rush Street Interactive Expands Latin American Footprint With Launch of RushBet in Peru

Rhea-AI Summary

Rush Street Interactive (NYSE: RSI) has launched its RushBet online casino and sportsbook in Peru, marking a significant expansion of its Latin American footprint. This strategic move extends RSI's presence to a market of over 30 million people, strengthening its position as a leading LatAm online gaming operator. The launch leverages RSI's operational expertise in Latin America, particularly its brand equity built over six years in the region.

RSI becomes the first operator fully licensed under Peru's new regulatory regime, aligning with its strategy of entering regulated markets with strong growth potential. The company aims to capitalize on shared media markets with Colombia, where RushBet is already a top-tier brand. The Peru launch is expected to complement RSI's operations in Colombia and Mexico, providing a platform for potential further expansion in the region.

Positive

• Expansion into Peru extends RSI's market reach to over 30 million people
• First operator to be fully licensed under Peru's new regulatory regime
• Leverages existing brand recognition from shared media markets with Colombia
• Potential for operational efficiencies by sharing resources across Latin American operations
• Tailored product offering incorporating social elements for the Peruvian market

Negative

• None.

Insights

Financial Analyst

Rush Street Interactive's (RSI) launch in Peru represents a significant strategic move in its Latin American expansion. This entry into a market of over 30 million people could potentially boost RSI's revenue and market share in the region. However, investors should note that the impact on immediate financials may be

Key points to consider:

• RSI is leveraging existing brand equity and operational efficiencies from its 6-year presence in Latin America, particularly in Colombia.
• The shared media markets between Peru and Colombia could lead to cost-effective marketing, potentially improving ROI on advertising spend.
• Being the first fully licensed operator under Peru's new regulatory regime gives RSI a first-mover advantage, but also carries the responsibility of setting industry standards.
• The ability to share resources across multiple countries in Latin America should lead to operational efficiencies and potential cost savings.

While the long-term growth potential in Peru's online gaming market is promising, investors should be aware that market penetration and profitability may take time. The success in Colombia and Mexico provides a blueprint, but each market has unique challenges. RSI's focus on regulated markets aligns with responsible growth strategies, which could appeal to ESG-conscious investors.

Market Research Analyst

RSI's expansion into Peru signifies a calculated move in the Latin American online gaming market. The company's strategy aligns with the region's growing digital economy and sports culture, presenting both opportunities and challenges:

• Peru's vibrant sports culture provides a solid foundation for sports betting growth, particularly with popular leagues like Liga 1 and international soccer.
• The incorporation of social elements in RushBet's platform, such as player-to-player chat and multiplayer tournaments, is a shrewd adaptation to the community-oriented Peruvian market.
• RSI's experience in Colombia since 2018 offers valuable insights into Latin American player preferences, potentially accelerating market penetration in Peru.
• The company's focus on regulated markets may limit initial growth compared to grey market operators but provides long-term stability and brand trust.

Investors should monitor key performance indicators such as user acquisition costs, average revenue per user (ARPU) and market share growth in the coming quarters to gauge the success of this expansion. The online gaming market in Latin America is becoming increasingly competitive and RSI's ability to differentiate its offering and efficiently scale operations will be important for long-term success in the region.

Strategic Entry Will Strengthen Competitive Position as a Leading LatAm Online Gaming operator

CHICAGO, July 29, 2024 (GLOBE NEWSWIRE) -- Rush Street Interactive, Inc. (NYSE: RSI) (“RSI”), a leading online casino and sports betting company in the United States and the rest of the Americas, today announced the launch of its award-winning RushBet online casino and sportsbook in Peru. The launch marks the next milestone in the company’s Latin American strategy extending its presence to a market of over 30 million people and further solidifying its position as a market leader in the region.

Richard Schwartz, Chief Executive Officer of RSI, commented on the strategic importance of the Peru launch: "Expanding into Peru is a pivotal step in our mission to become a leading Online Gaming operator across the Americas. This move allows us to leverage our proven operational expertise in Latin America, particularly the brand equity and operational efficiencies we've built in the region over the past six years. Importantly, Peru shares key media markets with Colombia. Consequently, Peruvian sports fans are familiar with the RushBet brand through its presence on shared television networks including ESPN and DirectTV. In addition, Peru's vibrant sports culture and growing digital economy present an exciting long-term opportunity for RushBet to offer our best-in-class product to a new and enthusiastic audience."

RushBet's entry into Peru represents a strategic advancement of RSI's long-term growth plans in Latin America. The company is continuing to capitalize on its established success and brand recognition in Colombia, where it has operated since 2018 as the first U.S.-based operator to enter the Latin American market and more recently Mexico where is has operated since 2022. Notably, RSI has become the first operator to be fully licensed under the Peru’s new regulatory regime demonstrating its ability to meet rigorous compliance standards and aligning with the company's strategy of entering regulated markets with strong growth and profitability potential.

"We expect Peru to become a key component of our Latin American portfolio, complementing our operations in Colombia and Mexico, and providing a platform for potential further expansion in the region. Our success in Colombia, where RushBet has become a top-tier brand, has provided us with invaluable insights into Latin American player preferences," added Schwartz. "We're excited to bring this expertise to Peru, where we see significant potential for growth in both online casino and sports betting segments. This launch is not just about entering a new market; it's about building on our vision to create an engaging, unique Online Gaming experience across the Americas."  

The Peru launch enables RSI to optimize its Latin American operations by sharing resources, including marketing assets and customer service teams, across multiple countries. This approach is expected to drive operational efficiencies and expand long term growth in the region. RushBet enters the Peruvian market with a proven offering tailored to local preferences. The RushBet product uniquely incorporates social elements, including player-to-player chat and multiplayer tournaments, designed to engage the community-oriented Peruvian market. The platform features a curated assortment of casino games, RSI's proprietary promotional tools, and an extensive sportsbook covering all major global sports, including popular leagues such as Peruvian Liga 1, the English Premier League, and the Champions League.

About Rush Street Interactive
RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: New Jersey, Pennsylvania, Indiana, Colorado, Illinois, Iowa, Michigan, Virginia, West Virginia, Arizona, New York, Louisiana, Maryland, Ohio and Delaware, and, as well as in the regulated international markets of Colombia, Ontario (Canada), Mexico and Peru. RSI offers, through its proprietary online gaming platform, some of the most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the EGR North America Awards Customer Services Operator of the Year five years in a row (2020-2024), the 2022 EGR North America Awards Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. RSI's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, RSI's expectations about its anticipated scope, benefits and results of its operations and future performance in the country of Peru. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI's control and are difficult to predict. Factors that may cause such differences include, without limitation, changes in applicable laws or regulations, unanticipated product or service delays, and other risks and uncertainties indicated from time to time in RSI's most recent Annual Report on Form 10-K, including those under "Risk Factors" therein, and in RSI's other filings with the SEC. RSI cautions that the foregoing list of factors is not exclusive. RSI cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. RSI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Contacts
Media:
lisa@lisajohnsoncommunications.com

Investors:
ir@rushstreetinteractive.com

FAQ

What new market has Rush Street Interactive (RSI) entered with its RushBet brand?

Rush Street Interactive (RSI) has launched its RushBet online casino and sportsbook in Peru, expanding its Latin American footprint.

How does the Peru launch align with RSI's (NYSE: RSI) Latin American strategy?

The Peru launch strengthens RSI's position as a leading LatAm online gaming operator, complementing its operations in Colombia and Mexico, and providing a platform for potential further regional expansion.

What advantage does RSI (NYSE: RSI) have in entering the Peruvian market?

RSI benefits from shared media markets with Colombia, where Peruvian sports fans are already familiar with the RushBet brand through its presence on shared television networks like ESPN and DirectTV.

How has RSI (NYSE: RSI) tailored its RushBet offering for the Peruvian market?

RushBet's platform for Peru incorporates social elements like player-to-player chat and multiplayer tournaments, designed to engage the community-oriented Peruvian market, along with a curated assortment of casino games and an extensive sportsbook.