What happened
Shares of Rush Street Interactive (RSI -2.84%) are running 15.2% higher this week compared to where they closed last Friday, according to data from S&P Global Market Intelligence, after the online gaming and sports entertainment company said it would be introducing the Konami casino management system into its newest casino, the Rivers Casino Portsmouth in Virginia.
The casino is scheduled to open on Jan. 15, 2023, and will be the fifth venue in Rush Street's portfolio to feature Konami's SYNKROS, a seamlessly integrated rewards and loyalty engagement system.
Image source: Getty Images.
So what
Rivers Casino Portsmouth is Virginia's first permanent casino and features 1,448 slot machines, 57 table games, and 24 poker tables. In addition to the casino, the complex will also house a sportsbook, a hotel, event and conference venues, restaurants, and more.
Rush Street Interactive has a long history of partnering with Konami Gaming, which is a Las Vegas-based subsidiary of the Japanese entertainment developer Konami Group. Konami is arguably best known for its video game franchises, including Metal Gear, Silent Hill, and Frogger, as well as the Yu-Gi-Oh! Trading Card Game.
Rush Street reported third-quarter revenue last month of $148 million, up 20% year over year, which was the 14th consecutive quarter where it has posted record revenue. Although it also recorded a loss of $22.7 million for the period compared to net losses of $18.9 million last year, Rush Street CEO Richard Schwartz said the company is on target to produce positive earnings before interest, taxes, depreciation, and amortization (EBITDA) in the second half of 2023.
Now what
Rush Street has developed casinos in Pittsburgh; Philadelphia; Des Plaines, Illinois; and Schenectady, New York, and will soon be opening Virginia's second casino in the Hampton Roads region.
The company also has a series of firsts to its credit, being the first company to launch legal online sportsbooks in Pennsylvania, Colorado, Indiana, and Illinois under the PlaySugarHouse and BetRivers brands, as well as being the first to open a legal, land-based sportsbook in New York and in Illinois.
Rush Street also operates regulated online casinos in New Jersey and Pennsylvania. PlaySugarHouse and BetRivers have a 10% share of the online casino market and a 4.5% share of the sportsbook market based on gross gaming revenue.
