Rush Street Interactive, Inc. (RSI): A Bull Case Theory

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.

Rush Street Interactive (RSI) is an online casino and sports betting platform leveraging AI to deliver a hyper-personalized gaming experience across multiple markets, including the U.S., Canada, Mexico, Colombia, and Peru. The platform’s AI-driven local approach—tailoring offerings to regional preferences such as NBA betting for Americans or football wagering for Colombians—serves as a competitive moat against larger peers like DraftKings (DKNG), which dominates in the U.S. through aggressive marketing and a broad product mix including daily fantasy sports and lottery-style games.

RSI’s early market access in Pennsylvania, West Virginia, Michigan, New Jersey, and Ontario has positioned it well in North America, but its real strength lies in Latin America, where it holds a dominant presence. Monthly active users are growing rapidly, up 46% year-over-year in the U.S. and Canada and 30% in Latin America, reflecting strong user engagement. Financially, $RSI is in a robust position with 20% year-over-year revenue growth, no debt, $88.9 million in free cash flow, and a $273 million cash balance.

While net income has fluctuated due to heavy promotional spending in Colombia, recent regulatory developments—specifically the Colombian Congress rejecting a proposed 19% online gambling VAT—remove a potential margin headwind and strengthen the bull case. Looking ahead, RSI is pursuing expansion into Brazil, Argentina, and Chile, tapping into a Latin American total addressable market of $28.9 billion, while its current trailing twelve-month revenue stands at roughly $1 billion.

Despite a modest market correction, RSI’s $4.3 billion valuation implies substantial upside potential, driven by continued user growth, regional expansion, and its differentiated AI-driven strategy, making it a compelling investment candidate.

Previously, we covered a bullish thesis on DraftKings Inc. (DKNG) by LongTermValue Research in April 2025, which highlighted DKNG’s dominance in U.S. online sports betting, strong brand, and state-by-state expansion. DKNG’s stock price has appreciated by 2.59% since our coverage due to a positive reaction to the prediction market launch. Denis Gorbunov shares a similar thesis on Rush Street Interactive, Inc. (RSI) but emphasizes AI-driven personalization, Latin American dominance, and rapid international growth.

Rush Street Interactive, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held RSI at the end of the third quarter which was 34 in the previous quarter. While we acknowledge the potential of RSI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.