Following Latin America revenue growth of 72.4% in the second quarter, Rush Street Interactive said it remains keen to launch in Brazil but will need to wait for clarity on rules and regulations in that market before moving forward with such plans.
Brazil is preparing to launch legal gambling, with the market set to open on January 1, 2025. Rush Street is keen to get involved, CEO Richard Schwartz said during the second-quarter earnings call.
The Brazilian Ministry of Finance’s Secretariat for Prizes and Betting (SPA) has now published its final gambling regulations. However, RSI CEO Schwartz insisted operators would not rush into the market.
“Brazil is a huge and exciting market,” Schwartz said on a conference call after the second quarter. “There are a lot of moving parts there. It’s very important that we remain disciplined and treat the market with more caution.”
“We are waiting for clarity on a number of issues, including the tax framework and how to deal with the grey market once regulation is in place. Our strategy is to maintain a certain level of fiscal discipline in all markets, both new and existing. Brazil is no exception.”
Schwartz's comments on Brazil come on the heels of a successful second quarter for the country, with growth in Latin America particularly notable.
Group revenues were $220.4m (£172.8m/€200.8m), up 33.5% in the three months to June 30. This included $218.8m in online casino and sports betting revenues, $1.1m in social gaming revenues and $461,000 in retail sports betting revenues.
While the majority of revenue ($188.5 million) came from the U.S. and Canada, which grew 28.6%, contributions from Latin America grew rapidly. Revenue in the region grew 72.4% to $31.9 million.
Monthly active users (MAU) grew at a similar level, up 20% to 176,000 in the U.S. and Canada. In Latin America, the two markets saw an even greater increase of 72%, to 224,000 people.
“While the vast majority of revenue growth has come from Colombia and Mexico, we continue to see solid growth and remain ahead of where we were at the same point in time when we launched in Colombia,” Schwartz said.
With the launch in Peru last week, RSI's presence in the region begins to expand.
“Peru is a market that is exciting for us,” Schwartz said. “Peru’s population is approximately two-thirds that of Colombia and its per capita GDP is slightly higher than Colombia’s. We believe we have a strong presence in the country given the market proximity and overlap with Colombia, existing brand recognition and the proven team in Latin America that we will leverage. It's in a good position to be successful."
“I would like to add that we are continuing to evaluate other markets in Latin America.”
