Profits, Players, And Buybacks: Dealing Up A Rare Trifecta in Online Betting

30‑Second Take

Rush Street Interactive just put up a monster Q2. Revenue surged 22%, adjusted EBITDA nearly doubled, and the company swung to a solid profit.

Monthly active users are climbing fast in both North America and Latin America, while buybacks are signaling confidence.

Yet the stock has been sliding after peaking earlier this year, giving you a shot to jump in at a better entry point and ride the wave higher.

Trade Setup

Timeframe: Swing to medium-term. Momentum from the Q2 beat could drive weeks of upside, but with new markets opening, there’s a longer tail if execution continues.

Edge Type: Catalyst momentum. The earnings surprise, record ARPMAU, and ongoing buybacks are fueling a re-rating narrative that could lift RSI higher if sentiment flips back to bullish.

Snapshot Table

Chart

A September without fireworks: September was a breather month for RSI, with the stock drifting sideways after a big summer run.

Shares opened the month at just over $21.00 and made a push toward $22.50 mid-month, only to encounter resistance and retreat back into the low $21s by the close of September. 

That tug-of-war between buyers testing the upside and sellers cashing out gains left RSI down ~9% on the month, but the action says more than the scoreboard.

Support held firm around the $21 mark, suggesting conviction hasn’t disappeared, while the failure to crack higher shows investors are waiting for the next clear catalyst before piling back in.

With a six-month upswing north of 67% still in play, you’d be unwise to count RSI out based on September alone.

Bull Case 

Hitting the gaming jackpot: Achieving success in gaming comes down to momentum, discipline, and market position.

Rush is one of the few online gaming operators proving it can scale without burning through cash, and Q2 showed that in spades.

Revenue jumped, EBITDA nearly doubled, and they actually booked a profit while most peers are still stuck chasing growth at any cost. 

Monthly active users are increasing in both the U.S. and Latin America, with North America delivering record revenue per player, indicating that customers are not only showing up, but also spending more.

Management has kept marketing costs in check and even begun buying back stock, a rare move in this space that demonstrates confidence. 

Put all this together, and you've got a company that's not only winning more players but doing it profitably, with the firepower to seize new iCasino markets as they emerge.

If you believe in the long-term shift from bricks-and-mortar to online gaming, RSI is already laying its chips down and winning.

Lighting up this Sin City stock: If you’re looking for Rush’s next catalysts, you’d do well to keep an eye on the calendar governing fresh state approvals.

That’s because every time a new iCasino market opens, these guys are usually quick out of the gate. 

Latin America is another key factor, especially if Colombia's tax headwinds ease and growth returns to normal there.

Don’t sleep on product development either: any innovation in live dealer or mobile gaming tends to boost engagement and increase spend.

And with that buyback war chest still in play, management has plenty of room to step in if the stock wobbles, which can be a powerful floor under the share price.

Price targets: Price targets span a wide range, from a low of $16.00 to a high of $24.00.

Buy signals are flashing: RSI still has some wind in its sails, despite the recent downtrend. It has found a solid footing around the $21 mark.

The stock is still trading above the 10-, 20-, 50-, 100-, and 200-day moving averages, with buy signals flashing like the bright lights of Las Vegas.

Bear Case 

Navigating curveballs and Colombian tax growth: Success is very rarely linear. For Rush, its success in Latin America could be at risk of taking a detour. 

Colombia, once a rocket booster for user numbers, is now imposing a 19% VAT that's eating into margins and forcing heavier bonuses to keep players engaged.

That drags on profitability and highlights the model's vulnerability to tax and regulatory curveballs. 

Add in a fiercely competitive U.S. market where the big sportsbooks are spending heavily to grab market share, and RSI could find itself squeezed on both sides, with higher costs to defend growth and thinner margins if promotions creep back up.

If we were being extremely pessimistic, we might ask if today’s clean profitability is a high-water mark rather than a new normal.

Finding an edge against casino heavyweights: RSI isn’t playing at an empty poker table. It’s betting against some of the biggest names in online gaming.

DraftKings and FanDuel dominate the U.S. sportsbook market with deeper pockets and aggressive marketing, while BetMGM leans on its casino pedigree and cross-promotion from its parent companies.

Caesars and Penn are also pushing hard, bringing considerable brand recognition and loyalty programs that keep players engaged.

The question of discretionary spending: The online gaming space is riding a big secular shift, but the backdrop isn’t all smooth.

Higher interest rates and sticky inflation make customer wallets tighter, which can quickly cap discretionary spend when it comes to online casinos and sports betting.

Could Rush get lost in the noise? The online betting trade has become a crowded corner of the market, with investors piling in on outsized hype and every state legalization headline.

RSI risks getting lost in the noise, where capital chases the flashiest names and leaves smaller, disciplined players overlooked until they prove they can keep pace with the high rollers.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (September 30, 2025)

Deep‑Dive Links

• Q2 2025 Earnings 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha