Despite the tax implications in Colombia, Rush Street Interactive announces a 61% increase in Q1 LatAm Monthly Active Users.

<p>On Wednesday, <a href=”https://ir.rushstreetinteractive.com/news/news-details/2025/Rush-Street-Interactive-Announces-First-Quarter-2025-Results-and-Reiterates-Full-Year-Guidance/default.aspx” target=”_blank” rel=”noreferrer noopener”>Rush Street Interactive released its Q1 results</a>, which revealed a 21% year-on-year increase in revenue to $262.4 million, while the business swung from a $2.2 million loss in Q1 2024 to a net profit of $11.2 million in the first quarter of this year.</p>

<p>Q1 monthly active users (MAUs) hit 354,000, which is a quarterly record for LatAm as a whole. Rush Street Interactive also posted a record number of MAUs in Colombia despite the <a href=”https://igamingbusiness.com/legal-compliance/regulation/colombia-gambling-vat-december/” target=”_blank” rel=”noreferrer noopener”>February introduction of a 19% VAT</a> on online gambling operators in the country.</p>

<p>On the post-results analyst call, Rush Street Interactive CEO Richard Schwartz explained the company had looked to absorb the impact of the tax through bonusing, rather than passing the cost onto players.</p>

<p>As a result, Rush Street Interactive retained its market share in Colombia while keeping GGR levels near all-time highs, up by 55% in local currency, he said.</p>

<p>However, CFO Kyle Sauers explained other financial metrics such as NGR were falling short of base expectations in Colombia, while average revenue per MAU across LatAm as a whole fell to $36 from $44 in Q1 2024.</p>

<p>“In each of March and April, our net revenue growth was significantly impacted,†Sauers said. “So, in March, our net revenue in US dollars was actually down slightly year-over-year. And in April, it&#8217;s been about flat year-over-year.</p>

<p>“So, we&#8217;ve got a market that may have otherwise been growing at 50%, plus that&#8217;s now relatively flat year-over-year because of this temporary VAT tax.â€</p>

<h2 class=”wp-block-heading” id=”h-could-the-tax-be-repealed”><strong>Could the tax be repealed?</strong></h2>

<p>The Colombian government implemented the VAT in February by temporarily eliminating the exemption on online gambling operators, claiming it needed the additional contributions to cover the expenses of responding to ongoing civil unrest in the Catatumbo region.</p>

<p>The tax is currently only set to last until the end of December, although there is uncertainty among the industry over whether it will in fact be made permanent.</p>

<p>Local lawyer Juan Camilo Carrasco, a partner at Bogota law firm Asensi Advogados,&nbsp;previously <a href=”https://igamingbusiness.com/legal-compliance/colombia-gambling-vat/” target=”_blank” rel=”noreferrer noopener”>told iGB</a>: “We know that regarding taxes, nothing is more permanent than something that comes in temporarily.â€</p>

<p>However, Schwartz explained the tax is under review by the Colombian courts to establish whether it is constitutional, with a final ruling expected by late May or June.</p>

<p>There’s underlying optimism from Rush Street Interactive the tax could yet be repealed. “Given how strong the volumes have been in Colombia, should the temporary tax go away prior to year-end, we could see meaningful upside to both revenue and EBITDA,†Sauers pointed out.</p>

<p>“The removal of the VAT tax should be a very meaningful driver of growth for us when that happens and when we have those as comparables with when the tax was in place.â€</p>

<h2 class=”wp-block-heading” id=”h-excitement-for-mexico-and-peru”><strong>Excitement for Mexico and Peru</strong></h2>

<p>Colombia aside, Rush Street Interactive remains confident on its exploits elsewhere in the LatAm region, with the company also live in Mexico and Peru.</p>

<div class=”wp-block-image”>
<figure class=”alignleft size-medium”><img decoding=”async” src=”https://igamingbusiness.com/img-srv/tHsmYFzzmPC0QeDCEzHGMq5xLDPtadGrGiP8VLwtgrM/resizing_type:auto/width:300/height:0/gravity:sm/enlarge:1/ext:webp/strip_metadata:1/quality:90/bG9jYWw6Ly8vaWdhbWluZ2J1c2luZXNzLmNvbS93cC1jb250ZW50L3VwbG9hZHMvMjAyMi8wOC9SaWNoYXJkLVNjaHdhcnR6LVJ1c2gtU3RyZWV0LUludGVyYWN0aXZlLXNjYWxlZC5qcGc.webp” alt=”rush street interactive Q1 LatAm” class=”wp-image-101479″/><figcaption class=”wp-element-caption”>RSI CEO Richard Schwartz believes mexico will leapfrog colombia as its biggest latam market</figcaption></figure></div>

<p>In Mexico, Rush Street Interactive noted year-on-year growth in Q1 was close to 50% as the company begins its third full year in the market.</p>

<p>“In terms of Mexico, we&#8217;re really seeing a lot of great growth out of that market,†Schwartz said. “It&#8217;s continued to be one that really excites us and things are moving in a really great direction for us there.</p>

<p>“And as we noted before, we expect over time it will be one of the largest markets in LatAm, larger than Colombia, ultimately. So, we feel really optimistic about Mexico.â€</p>

<p>The business is taking a slower approach in Peru, where it <a href=”https://igamingbusiness.com/legal-compliance/licensing/rush-street-latam-peru/” target=”_blank” rel=”noreferrer noopener”>launched its RushBet brand</a> in July 2024 as part of its “strategic advancement†into the LatAm region.</p>

<p>“Peru has been a story where we haven&#8217;t invested much in marketing yet, because we&#8217;re continuing to optimise the experience and localise it,†Schwartz continued.</p>

<p>“It&#8217;s something that we continue to feel positive about, but it has been a market that we haven&#8217;t ramped up yet. It&#8217;s still something that we&#8217;re excited to be able to do in the future given the relatively large population that country has.â€</p>

<h2 class=”wp-block-heading” id=”h-latam-expansion-opportunities-for-rush-street-interactive”><strong>LatAm expansion opportunities</strong> for Rush Street Interactive</h2>

<p>In the <a href=”https://s26.q4cdn.com/794539746/files/doc_financials/2025/q1/RSI-Q1-2025-Investor-Presentation_vF.pdf” target=”_blank” rel=”noreferrer noopener”>company’s results presentation</a>, it highlighted potential expansion markets in LatAm, including Chile, Argentina and Ecuador, as well as the newly regulated Brazil.</p>

<p>By the end of 2028, Rush Street Interactive could have a total addressable market of $15.9 billion in LatAm.</p>

<p>“There are other LatAm markets as well that we&#8217;ve been focused on and have been evaluating ways to enter those markets,†Schwartz added. “We haven&#8217;t announced anything and so I won&#8217;t be able to share anything with you today.</p>

<p>“But certainly, as you can imagine, once you have a great brand, a great platform, a great team, great marketing team, operations, local knowledge of experiences in those regions, it becomes a lot easier for us to be able to add and be successful in future markets.â€</p>

<h2 class=”wp-block-heading” id=”h-rush-street-interactive-ebitda-nearly-doubles-in-q1″><strong>Rush Street Interactive EBITDA nearly doubles in Q1</strong></h2>

<p>Alongside growth in revenue and net income, Rush Street Interactive also reported year-on-year adjusted EBITDA growth of 95% to $33.2 million in Q1.</p>

<p>This was despite adjusted sales and marketing expenses edging up by 3% to $38.8 million.</p>

<p>MAUs in the US and Canada also increased by 17% to 203,000, while average revenue per MAU in North America was significantly higher than in LatAm at $368 compared to $36.</p>

<p>Rush Street Interactive reiterated its FY2025 guidance, expecting revenue to be between $1.01 billion and $1.08 billion and adjusted EBITDA to reach $115 million-$135 million.</p>

<p>“These strong results are driven by our commitment to innovation and enhancing the quality of our player experience, alongside efficient acquisition and retention of high-value players,†Schwartz said.</p>