When Rush Street Interactive CEO Richard Schwartz discussed how the group managed to achieve profitability of $1.2 million in Q2, he repeatedly mentioned the company’s Canadian performance.
“On the international front, we had another strong quarter. We continued to perform very well in the highly competitive Ontario market. As we are generating outsized year-over-year gains, as well as sequential growth, Ontario has recently increased the amount of data they’re sharing,” Schwartz said, referencing iGaming Ontario’s most recent quarterly report.
In that report, iGO included some new fields to what was previously a pretty scant overall snapshot of the market.
“Two things jump out to us. First, further evidence that our average retail per monthly active user (ARPMAU) is significantly higher than the market’s, coming in at well over two times that of our competitors. Secondly, this is the first time they’ve broken out the difference between casino and sports with casino making up almost three-quarters of the market. This trend is similar to what we’ve seen in the US markets with iCasino and should provide an outsize benefit to RSI as future iCasino markets launch.”
As Schwartz emphasized during the company’s Q1 call, RSI is particularly invested in states and markets looking to expand online casinos. While he named Ohio and New York as some of the US markets the company is monitoring, he also mentioned Alberta as a jurisdiction the group thinks could open up to them in the near future.
“In Canada, you have a couple of jurisdictions there in particular. Alberta is one that really seems to be moving fairly fast in terms of appreciating the tax benefits and consumer protections available from the regulation of Ontario. Other jurisdictions are starting to see consumers in those jurisdictions are being marketed to by operators who aren’t paying taxes there. So they certainly would like to take that lead of Ontario and be able to generate some taxes up and up in Canada for the jurisdiction. Quebec and British Columbia as well are showing various signs of interest.”
The interest may be there but, so far, other provinces have not taken any recent steps to expand gambling to the point that Ontario has.