1x/ I am a bagholder of Rush Street Interactive ($RSI), which behavior lately has been in my opinion a bit out of the ordinary. I think people value the company from a sports betting point of view. Which I believe is faulty, as the company currently sits at a 3% market share.

2x/ Not to mention that more or less all of that comes down to their positioning in Illinois and Pennsylvania. I thought I would make a small rundown from the sports betting numbers I could find, to make a comparison between Q3 and Q4.

3x/ Handle Illinois (In millions)
Q3
July 50.8
August 117.9
September 98.5

Q4
October 101.5
November 126
December - 111.2 (legitimately got posted as I am writing this)

4x/ Handle and Revenue Pennsylvania (In millions)
Q3
July 24.3, 2.2
August 57.3, 4.2
September 62, 2.8

Q4
October 68.5, 4.9
November 57.3, 4
December 51, 2.8

5x/ As visible, the sportsbook margin varies quite a bit month to month. The company however produces a very nice sportsbook margin as a whole in comparison to Draftkings, who kept a handle of 131 mil in december, Pennsylvania. Yet only had a revenue of 5.4 mil.

6x/ Not being too delusional however, the company lost a bit of handle in Pennsylvania when Barstool arrived and even thought the spendings are beyond comparison, DK and Fanduel seems to step on the gas a bit more in Illinois.

7x/ To the final point however, the company posted a revenue of 78.2 millions in Q3. If we were apply to sportsbook margin of Pennsylvania to the handle of Illinois, the total revenue of Pennsylvania and Illinois would amount to roughly 26 millions.

8x/ If the same were to be applied to Q4 we would see a total revenue of 34 millions for these two states.

Rush Street based on the guidance of the Q3 report of 275 mil (which seems a bit conservative) is currently trading at an EV/Revenue of 12.

9x/ I don't believe the comparison to Draftkings and current EV/Revenue of 34 should be made, as Draftkings is the market leader and should carry a slightly higher valuation.

10x/ Rush Street however is the market leader in online casino, a market which (correct me on this) has an ever bigger TAM than betting. Online casino is currently legal in seven states. As America is following the European trend of online sports betting rapidly at the moment.

11x/ I find it unlikely that online casinos won't follow soon. Especially after the states have seen the tax revenues from sports betting. Hope you guys enjoyed the read. I felt like I had to share some of my thoughts since I feel like the market is misinterpreting $RSI.