We came across a bullish thesis on Rush Street Interactive, Inc. on Stay Invested’s Substack by Denis Gorbunov. In this article, we will summarize the bulls’ thesis on RSI. Rush Street Interactive, Inc.'s share was trading at $18.77 as of January 13th. RSI’s trailing and forward P/E were 72.19 and 36.10 respectively according to Yahoo Finance. Jim Cramer Just Couldn't Stop Gushing About DraftKings Inc. (DKNG)'s Deals Ahead Of The NFL Season Rush Street Interactive (RSI) is an online casino and sports bet ...

Core Thesis - Rush Street Interactive, Inc. (RSI) is positioned as a strong investment opportunity due to its innovative AI-driven platform and significant growth in user engagement, particularly in Latin America [1][2][5]. Company Overview - RSI's share price was $18.77 as of January 13th, with trailing and forward P/E ratios of 72.19 and 36.10 respectively [1]. - The company operates in multiple markets including the U.S., Canada, Mexico, Colombia, and Peru, focusing on personalized gaming experiences [2]. Market Position - RSI has established early market access in key North American states such as Pennsylvania, West Virginia, Michigan, New Jersey, and Ontario, while holding a dominant presence in Latin America [3]. - Monthly active users have increased by 46% year-over-year in the U.S. and Canada, and by 30% in Latin America, indicating strong user engagement [3]. Financial Performance - RSI reported a 20% year-over-year revenue growth, with no debt, $88.9 million in free cash flow, and a cash balance of $273 million [3]. - The company's trailing twelve-month revenue is approximately $1 billion, with a total addressable market in Latin America estimated at $28.9 billion [4]. Regulatory Environment - Recent regulatory developments in Colombia, including the rejection of a proposed 19% online gambling VAT, have removed a potential margin headwind, strengthening the investment case for RSI [4]. Growth Potential - RSI's valuation stands at $4.3 billion, suggesting substantial upside potential driven by user growth, regional expansion, and its unique AI-driven strategy [5]. - The company is actively pursuing expansion into Brazil, Argentina, and Chile, further tapping into the Latin American market [4].