Barclays initiates Rush Street Interactive coverage at overweight

Brandt Montour of Barclays initiated coverage of Rush Street Interactive, the parent company of BetRivers, at overweight with a $24 price target. RSI’s stock was up around 4% at 1 pm Eastern Monday.

Strong online casino performance

RSI holds a 10.4% online casino market share, ranking fourth in the U.S. despite having a low online sports betting share and a smaller top-of-funnel than the top three operators, Montour said. The top three U.S. online casino operators are FanDuel, DraftKings and BetMGM.

Online casino revenue accounted for 80% of RSI’s North American revenue in fiscal 2026, the most of the major operators, according to the analyst. BetMGM’s online casino revenue accounts for around two-thirds of its total, Penn has a 50%-50% split, and DraftKings and FanDuel both have around a third each.

RSI’s promotional rate is around 19% compared to 25% for the industry, Montour noted.

Expansion potential

Online casino is only available to about 12% of the U.S. population compared to around 50% for sports betting. If RSI maintains its 10% market share with a gaming revenue per adult around $384, each additional percentage point of the population that gains access to online casino would raise North American revenue by 7%, Montour estimates.

Latin American growth

RSI’s gaming revenue in Mexico has grown at a compound annual growth rate of 39% from 2018-2026, while Colombia has grown 29% for the same period. RSI began operations in Mexico in 2022 and holds just a low single digit market share.

Montour forecasts RSI’s revenue from Mexico at around $65 million, the same as the fourth year of operations in Colombia, which now accounts for $330 million to $340 million of revenue.