Rush Street Interactive, Inc. (NYSE:RSI) Q4 2022 Earnings Call Transcript

Richard Schwartz: Sure, I’ll talk about online casino legislation and share some color on the Mexico question as well. In terms of the online casino, the industry is aligned and in a way that I haven’t seen before and you’re starting to see a lot of investments being made and lobbying efforts to legalize online casino in a way that you haven’t seen over the last decade. That’s extremely exciting. I think it’s clear why casino is a larger, more profitable category, the industry and legislators are realizing the value of the combination, how effective it is. While it’s too tricky to predict exact timelines for when legislation may drop, there is clear movement and is an example of that. I’ll share that, conversations are now turning into draft and draft in five cases that actually turned into introduction of bills in the states of New York, Illinois, Indiana, Maryland, is the fifth one.

We’ve had legislation introduced this year so far as we’ve mentioned. So there is enthusiasm, there is opportunity, now is it going to happen overnight. Probably not, but the first step is to get a sponsor of the bill excited, interested introducing a bill and we’re starting to see that. And you’re starting to see a lot of effort being made and lobbing dollars being applied towards this goal. So I think you’re starting to really get momentum being built, which of course is outstanding for us because of all the companies in the industry, we think we may be one of the ones haven’t disproportionately large share of casino revenues and we do particularly well in the casino markets. So for us, this type of momentum is very welcomed. In terms of Mexico?

Kyle Sauers: Yeah, maybe I’ll jump in on the Latin American question, Jed. So in Columbia, obviously, Richard highlighted just the fantastic success we’ve been having down there in the fourth quarter. We get sporadic information on our market data. So the last data we had, we were approaching 20% share, solid third place down there. It’d be hard to imagine that with close to 90% growth in the fourth quarter in Colombian currency that we lost any momentum there in Mexico. It’s still early days, really not — no changes from what we’ve said before that we’re expecting to see kind of more meaningful and increasing contributions from Mexico towards the back half of this year. So really nothing to share on market share there yet.

Maybe just for a little more color with respect to the growth plans there, the opportunity that we see is very large. Comparing that to Columbia, first year in Columbia we did something like $4 million in revenues, second year was $15 million. We expect a faster pace in Mexico. It’s a bigger market, demographics are more favorable. We feel like we’ve got advantage launching in that market with our media partner that we didn’t have, when we started off in Columbia, and even though we’re really just getting going in Mexico, when you look at it relative to the early growth pattern at Columbia or in Columbia, we’re well ahead of that. So we’re really excited about Mexico.

Richard Schwartz: Just to add on. One quick thing on Mexico, our focus really, as I’ve said before, is to localize the user experience to make it a top rated experience, because the quality really matters. And so, we’ve been doing that very effectively. In fact, our ratings on our app and our feedback form our customers has gone extremely — improves dramatically since we’ve entered the market and we’ve been putting the effort into make sure we do the little things that matter to the customer and we feel we’re in a very strong position there to be able to take that effort and start to deliver long-term value from it in the future.