Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Rush Street Interactive Fourth Quarter and Full Year 2025 Earnings Conference Call. Please note that this conference call is being recorded today, February 17, 2026. I will now turn the call over to Kyle Sauers, President and Chief Financial Officer. Thank you. You may go ahead.

Thank you, operator, and good afternoon. By now, everyone should have access to our fourth quarter and full year 2025 earnings release. It can be found under the heading Financials, Quarterly Results in the Investors section of the RSI website at rushstreetinteractive.com. Some of our comments will be forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not statements of historical fact and are usually identified by the use of words such as will, expect, should or other similar phrases and are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. We assume no responsibility for updating any forward-looking statements. Therefore, you should exercise caution in interpreting and relying on them. We refer you to our SEC filings for a more detailed discussion of the risks that could impact our future operating results and financial condition. During the call, we will discuss our non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. We will be discussing adjusted EBITDA, which we define as net income or loss before interest, income taxes, depreciation and amortization, share-based compensation, adjustments for certain one-time or nonrecurring items and other adjustments that are either noncash or not related to our underlying business performance. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is available in our fourth quarter and full year 2025 earnings release and our investor deck, which is available in the Investors section of the RSI website at rushstreetinteractive.com. For purposes of today's call, unless noted otherwise, when discussing profitability, EBITDA or other income statement measures other than revenue, we refer to those items on a non-GAAP adjusted EBITDA basis. With me on the call today, we have Richard Schwartz, Chief Executive Officer. We will first provide some opening remarks and then open the call to questions. And with that, I'll turn the call over to Richard.

Thanks, Kyle. Good afternoon, and welcome to our fourth quarter and full year 2025 earnings call. I want to begin by expressing my profound gratitude to the entire RSI team for delivering what can only be described as an extraordinary year. Their dedication, innovation and relentless focus on excellence in delivering exceptional results have been the driving force behind our success. I couldn't be more proud of what we've accomplished together. As I reflect on our performance in 2025, this has been a record year, hitting new highs across virtually every metric. We continue to set new records in revenue, profitability, cash flow and user counts as well as other core KPIs. In 2025, without the benefit of any new markets, we achieved record revenue of $1.13 billion, representing 23% year-over-year growth and exceeding the high end of our raised guidance range. Even more impressive, we grew adjusted EBITDA by 66% year-over-year to a record of $153.7 million, also exceeding the high end of our raised guidance and demonstrating the powerful operating leverage inherent in our business model. In 2025, we also materially grew the bottom line with net income of $74 million compared to $7.2 million in 2024. What makes these results particularly compelling is their consistency and breadth. This strong performance is evident across all geographies and product verticals. Our player engagement remains exceptionally strong as evidenced by record-setting monthly active users in 2025. In North America, our MAUs grew 37% year-over-year in the fourth quarter to over 278,000, including an impressive 51% in online casino markets. Not to be outdone, in Latin America, we grew MAUs 47% to over 493,000, demonstrating impressive growth and resilience amongst temporary tax headwinds. When discussing the strength of our 2025 results, we are frequently asked about the secret that is driving our accelerating growth and profitability. What is the magic bullet that's driving our success? The answer is there isn't one single factor that is responsible for our success. Our exceptional performance is a product of our intense focus on our customers and the cumulative improvements we've made across every aspect of our business. Over the past several years, we've systematically enhanced our capabilities throughout the entire customer journey. We've advanced our customer acquisition strategies, diversifying our marketing channels and optimizing each one to reach the right customers at the right time with the right message. We've reduced friction in our user experience, making it easier for players to discover, engage with and enjoy our platform. We've invested heavily in enhancements to our loyalty programs and retention strategies, creating more personalized experiences that we believe keep players coming back. These improvements span every touch point with our players, from the moment they first discover our brand to their ongoing relationship with us. We've also enhanced our data analytics capabilities, allowing us to make more informed decisions about player preferences and behaviors. We've improved our customer service operations, ensuring that every interaction reinforces our commitment to player satisfaction. And we've continuously innovated our product offerings to create unique differentiated experiences that players won't find elsewhere. Throughout 2025, we also continued to invest in operational excellence and technological innovation that differentiate our platform. These innovations aren't only about technology. They're about understanding what our players want and delivering experiences that exceed their expectations. Our focus on customer centricity drives everything we do from product development to customer service to marketing strategy. The result of these cross-functional improvements is a virtuous cycle. Stronger customer acquisition brings in higher-quality players. Improved retention keeps players better engaged, and enhanced experiences drive increased player value. When you execute well across all these areas simultaneously, the cumulative impact is significant and yields sustainable growth. Our casino-first strategy continues to be a fundamental differentiator of our business. While we maintain a growing and profitable sports betting business, our focus on leading with online casino has positioned us uniquely in the market. This strategic focus has proven particularly valuable in 2025. Our North American online casino markets continue to drive exceptional growth, as stated earlier, with MAUs increasing 51% in the fourth quarter, representing our second highest quarterly growth rate during the past 4.5 years and impressively achieved on a much larger player base and without the benefit of new market launches. What's even more encouraging is that in each successive quarter of 2025, we saw the continued acceleration of year-over-year growth in monthly active users in our North American online casino markets. Our casino-first approach allows us to focus our resources and expertise where we believe that we can create the greatest value. Online casino players typically demonstrate higher lifetime values, better retention rates and more consistent engagement patterns compared to sports-only customers. By prioritizing these markets and continuously improving our casino experience, we've been able to drive both growth and profitability simultaneously. In fact, in 2026, in support of our casino-first strategy, we plan to increase our investments in developing differentiated casino content and online casino legalization efforts. Another significant accomplishment of 2025 was our successful navigation of the challenging tax environment in Colombia, one of our core Lat Am markets. I'm proud to report that not only did we successfully manage through this period, but we're confident that we gained market share from our competitors, setting ourselves up for continued success. Our approach in Colombia was measured and strategic. Rather than immediately passing the VAT tax cost on to our players, we absorbed much of the tax impact through adjusted bonusing strategies, which inherently reduced revenue. This allowed us to maintain player engagement and loyalty while still attracting a significant number of new customers. The results speak for themselves, but despite a temporary drop in net revenue last year, for the full year, we achieved annual GGR growth of 66% and increased MAUs by 34%. Looking ahead, the temporary VAT tax that was in place during 2025 has now expired. There was a new emergency decree issued in late December 2025, along with associated tax decrees that were issued for 2026. This structure has a more traditional but lesser impact on our business as a tax on revenue rather than tax on deposits, which we offset in 2025 through a higher bonusing. However, this emergency tax decree was suspended less than a month after it was issued in late January 2026 by the Constitutional Court and will be under further review in the months ahead. This is a positive step towards recalibrating to the previous and what we view as the more appropriate tax structure in Colombia. Our experience in Colombia demonstrates our ability to navigate regulatory changes while maintaining our focus on long-term player relationships and market leadership. Now I want to briefly address the topic of prediction markets, which has been highly topical in recent industry discussions. At RSI, we're constantly evaluating the evolving industry landscape. Prediction markets today are primarily benefiting from sports event contracts, which is not an area of high priority for us. We will continue to monitor developments in the event contract space and in the meanwhile, continue to focus on executing our proven casino-first strategy and delivering exceptional experiences in our current markets while capitalizing on significant growth opportunities ahead of us. As we look to 2026 and beyond, we have tremendous confidence in our growth trajectory and strategic positioning. We're particularly excited about our upcoming launch in Alberta, where the regulatory environment is progressing toward a launch time line that could occur in the coming quarters, sooner than we were anticipating during our last earnings call. This represents a significant opportunity for us to leverage our success in other North American online casino markets, particularly given our strong performance in Ontario and our established and growing brand recognition across Canada. Beyond Alberta, we continue to evaluate additional expansion opportunities in both North America and Latin America. The success of our selective disciplined approach to market entry has enabled us to achieve strong returns on our investments while building sustainable competitive positions. We will continue to prioritize markets where we can deploy our full suite of gaming offerings and create meaningful value for both players and shareholders. The 2026 calendar is also filled with marquee international sporting events, such as the current Winter Olympics and the upcoming World Cup. We are well positioned to capitalize on these multinational events across both our sports betting and online casino products. Overall, 2025 was a transformational year for RSI. We demonstrated the power of our business model, the effectiveness of our strategic approach and the dedication and execution abilities of our team. We've built a strong foundation for expected continued growth while maintaining the operational discipline that has driven our success. We're excited about the opportunities ahead and confident in our ability to continue delivering strong results for our shareholders while providing industry-leading experiences for our players. We have a clear path forward, strong financial resources and a team that is executing at the highest level. With that overview, let me turn the call over to Kyle to walk through our detailed financial results and provide guidance for 2026.

Thanks, Richard. I'm excited to walk you through what was truly an outstanding fourth quarter and full year 2025 with record-breaking performance. Fourth quarter revenue of $324.9 million, up 28% year-over-year, set another record high and marks our 11th consecutive quarter of sequential revenue growth. Full year 2025 revenue of $1.13 billion grew 23% compared to 2024, exceeding the high end of our raised guidance range. This strong top line performance was driven by exceptional user growth and engagement across our platform. Our gross margins during the fourth quarter were 34.4%, reflecting the continued shift we've made to higher-margin markets. For the full year, our gross margins were 34.6%, in line with the prior year. On the expense side, we continue to drive operating leverage through our disciplined approach. Marketing expenses in the quarter were $45.4 million, an increase of 5% year-over-year and 14% of total revenue. For the full year, marketing expenses were $158.4 million, representing a 2% year-over-year increase and 14% of total revenue. Compared to the full year 2024, marketing spend as a percentage of revenue decreased by 290 basis points. This demonstrates our team's ability to continue to optimize our acquisition channels and improve our player acquisition costs while simultaneously growing our player base and hitting new records for first-time depositors each of the last 3 quarters. G&A for the fourth quarter was $22.3 million or 6.9% of revenue compared to 7.5% in the prior year period. For the full year, G&A was $81 million or 7.1% of revenue compared to 8.1% in 2024. This reflects our continued investment in technology, personnel and infrastructure to support our growth while maintaining operational leverage. Fourth quarter adjusted EBITDA of $44.1 million set a new quarterly record and increased 44% year-over-year. Full year adjusted EBITDA reached $153.7 million, an impressive 66% increase year-over-year, above the high end of our raised estimates and reflects our disciplined approach to growth and operational efficiency. The foundation of our financial success continues to be our exceptional user acquisition and retention performance. In the fourth quarter, North American MAUs grew 37% year-over-year to 278,000 total users. What's particularly impressive is our performance in North American online casino markets, where MAUs grew 51% year-over-year in Q4, which represents our second highest quarterly growth rate during the past 4.5 years and again, achieved on a much larger base of players. In Latin America, we delivered equally strong results with MAU growth of 47% year-over-year in Q4, reaching 493,000 total users. This growth demonstrates the strength of our platform, operations and brand recognition across the region, even as we have navigated the challenging tax environment in Colombia. North American ARPMAU declined 5% year-over-year, which reflects the healthy and expected dilution that comes along with our exceptional growth in user volumes. When you're growing your player base at the rates we've achieved, some ARPMAU compression was not only expected but confirms that we're successfully attracting large volumes of new players to our platform, who initially have lower ARPMAU than established players. The key is that we're acquiring these players efficiently and retaining them effectively, which positions us for strong long-term value creation. In Q4, Latin America ARPMAU was down 21% year-over-year due largely to the extra bonusing in Colombia. However, Q4 player values in Colombia were at their highest point of the last 3 quarters, validating the continued strength in our user experience. ARPMAU should return to meaningful year-over-year growth in Lat Am with the removal of our VAT bonusing strategy as of the end of last year. Breaking down our performance by geography and product, we saw strength across all segments. North America and online casino continue to be our primary growth drivers, benefiting from our strategic focus on these higher-value markets. Our sports betting business also contributed meaningfully to our results, growing consistently throughout the year. In the fourth quarter, online casino revenues grew 30% and grew 28% for the full year. Online sports betting revenue grew 20% in the fourth quarter and grew 7% for the full year. Regionally, revenue in North America grew 29% in the fourth quarter and grew 25% for the full year. Revenue in Latin America grew 17% in the fourth quarter and grew 12% for the full year. Of note, all these growth rates include the burden of the extra Colombia bonusing that stopped at the end of 2025. As Richard previously mentioned, the tax situation in Colombia remains dynamic. Let me provide more detail and discuss the implications for 2026 in our guidance. The temporary 19% VAT tax on deposits that impacted us throughout much of 2025, which was implemented through an emergency decree, expired at the end of the year as we expected. Under a new emergency decree, a new tax was implemented for 2026 with a 19% VAT on revenue. Compared to the tax on deposits that we navigated in 2025, this tax on revenue will have less of a punitive impact on our business from a profitability perspective. However, the Constitutional Court of Colombia suspended the emergency decree and associated decreed taxes at the end of January. The results of this review should be concluded in the next few months, and we're optimistic that it will be resolved in our favor. In any event, we expect the additional tax to be paid for the month of January before the suspension occurred. And given the dynamic nature of this situation, for the purposes of our guidance, we assume that this new 19% tax on revenue will be in place for the full year 2026. This new tax environment, combined with the market share gains we achieved in 2025, positions us well for strong growth in Colombia and across Latin America. Our balance sheet remains strong with $336 million in cash on hand at the end of the year. Net of stock repurchases, we generated $142 million of cash during 2025. Our cash generation capabilities have improved dramatically, and we expect to continue building our cash position throughout 2026. During the fourth quarter, we did not repurchase any shares under our previously announced $50 million share repurchase program, which has approximately $42 million remaining. As we look ahead to 2026, our guidance philosophy reflects both confidence in our business momentum and prudent assumptions about market dynamics. There are some key growth drivers that influence our 2026 outlook. First, we expect continued strong performance in our North American online casino markets, which have shown consistent acceleration throughout 2025. Second, the incrementally improved tax environment in Colombia should allow us to capture more of the strong underlying growth in that market. And although not included in guidance, our anticipated launch in Alberta as well as other potential new markets provide additional upside. For 2026, we expect revenue in the range of $1.375 billion to $1.425 billion, representing growth of 21% to 26% year-over-year. We expect adjusted EBITDA in the range of $210 million to $230 million, representing growth of 37% to 50% year-over-year. When it comes to cadence throughout the year, we would generally expect both revenue and EBITDA to improve as the year progresses, similar to what we've seen in years past. Regarding other line items in our financials and where we'll see leverage, gross margins should improve modestly in 2026 compared to 2025. We continue to improve our cost structure, drive revenue growth faster in higher-margin markets but are absorbing the impact of some higher gaming taxes, including the 19% emergency decreed tax on revenue in Colombia. We have continued to get more efficient with marketing spend, which gives the opportunity to keep increasing investment in this area. So we expect meaningful increases in marketing spend in 2026 but at a rate slower than our expected revenue growth, driving leverage across that line item. Regarding G&A, we continue to see opportunities to improve the product, improve our player experience and explore new opportunities. So we expect G&A to grow more closely in line with our revenue growth. This guidance reflects our confidence in the underlying strength of our business while incorporating prudent assumptions about market maturation and competitive dynamics. We believe this positions us to continue delivering strong shareholder returns while investing appropriately in innovation and long-term growth opportunities. And with that, operator, please open the line for questions.

Our first question comes from the line of Dan Politzer with JPMorgan.

I wanted to touch on Colombia. You gave a lot of helpful commentary in the remarks about how this could play out in terms of the timing and the year. But is there any way to perhaps put some numbers around maybe what the impact was in 2025 in terms of revenue and EBITDA with the tax on deposits versus maybe what you're forecasting if it is, in fact, in place for the full year in '26? Is it the tax on revenue?

Yes, Dan, let me provide some additional detail. In the third quarter, Colombia faced more difficult sales in sports, which affected our deposit bonuses and subsequently reduced revenue. In Q4, that issue was not present, and you can see this reflected in our results. For 2025, we incurred about $75 million in additional bonuses due to the VAT tax on players, which directly reduced revenue. This likely cost us between $25 million and $30 million in EBITDA for the year. Despite the challenges, we still achieved positive results, growing gross gaming revenue by 66% and increasing our user base by 34%, while also capturing a significant share of the market. The issue with deposit bonuses will be resolved in 2026 as we will not be compensating for the VAT on players. Consequently, for 2026, our guidance does not include the revenue loss associated with these extra bonuses. Additionally, we will bear the 19% tax on revenue for the entire year of 2026. It's difficult to quantify the exact impact of this tax, especially since we are not providing a specific revenue forecast for Colombia. We do expect to incur this tax for January, and it represents a 19% tax on revenue. However, the actual effect is lower than 19% due to various variable costs tied to revenue after tax, which should help clarify the situation a bit.

No, that's helpful. And just in terms of Canada, obviously, you have the Alberta launch at some point. I don't know if there's any additional detail in terms of the expectation of when that might happen? And then also along those lines in terms of framing that expectation, Ontario, could you just remind us maybe ballpark of what your approximate iGaming and sports betting share is there?

Sure. I'll address the first question regarding Alberta. The timing appears to be at the end of Q2 or early Q3, and we are optimistic. The regulators seem to be progressing quickly, so there is a possibility for a Q2 opportunity towards the end of that quarter.

Yes. In Ontario, our casino share is in the mid- to low single digits, and sports betting is slightly lower. We're very optimistic about Alberta. We don't have revenue or incremental cost projections for it yet, but once we have a clearer timeline, there will be some associated marketing expenses. We believe we are well-positioned for success there. It’s also worth noting that in every North American online casino market we've entered, we have achieved profitability by the fourth quarter of operations, and we expect Alberta to follow this trend. We're looking forward to launching another iCasino market soon.

Our next question comes from the line of Bernie McTernan with Needham.

I’d like to follow up on Dan's first question. If I adjust your revenue for Latin America in 2025 by adding back $75 million, the average revenue per user would be in the mid-40s. Looking at the trend from 2022 through 2024, it appears that average revenue per user is decreasing slightly. Adding back that $75 million would result in a noticeable increase. Were there any observations from a cohort perspective or user maturity that contributed to this increase in average revenue per user, assuming my calculations are accurate?

Yes. To address the trends in ARPU and its decline, it's important to consider the currency fluctuations that have occurred over the years, as we report in U.S. dollars. Normalizing for those fluctuations is essential. We are confident that without the deposit tax bonusing, we expect a positive rebound in our ARPMAU in Colombia, which will also reflect positively on our overall performance in Latin America. Additionally, it's worth noting that Mexico is becoming an increasingly significant part of our business in the region. We are seeing strong results there, and player values are higher in Mexico compared to Colombia, which will impact the numbers moving forward.

Understood. That's really helpful. I want to follow up on a comment you made earlier about the investment in content and legalization planned for 2026. Focusing on the content side, considering that general and administrative expenses are expected to grow more in line with revenue, does this mean we will be bringing on more engineers? How should we think about what will actually be released to the market with these investments?

Yes, I have a strong passion for the content side of the business that began over ten years ago when I started working at a slot machine supplier. I understand the importance of great content and how it allows us to stand out with unique and proprietary game libraries. We have included all costs and anticipated revenue increases from new content in our guidance for the rest of the year. We have been building our studio and technology roadmap, and we will begin launching new games this year to strengthen our position as a leader in the casino industry. It's essential to focus on quality over quantity, ensuring that any content we produce is of a competitive and high-quality level that engages players, not just from incentives but because of the enjoyable experience. Regarding legalization, we are actively working to capitalize on the current market opportunities, where some states may see a decrease in tax revenue or federal aid, and we aim to encourage more states to open up in ways that would benefit our company.

Our next question comes from the line of Jordan Bender with Citizens.

I want to start with the tax increases, particularly in Illinois, where I noticed your minimum bet increased from $1 to $5. My first question is whether that change was specifically related to the city tax that was implemented, or if there was another factor in that market that influenced your strategy. More broadly, do you believe that this minimum bet strategy is something we can expect to see in other states, whether this year or in the future, as a way to counteract potential tax increases?

Yes. So Jordan, the minimum bet was not necessarily in response to the Chicago tax. So at this point, we're not passing through a transaction fee like some of our competitors are. We've chosen to use a minimum bet strategy. Could we use that in other markets in response to some sort of different tax structure? Absolutely. I think we want to make sure we're using all the levers we have that we think make the most sense both for us financially as a company and so that we're treating players as fairly as we can under a construct. I mean, certainly, when you look at Illinois, the activity levels have not shown that, that tax is probably good for the consumers. So we'll see how that plays out in other markets.

Great. For my follow-up, was the comment about entering the North American market specifically related to Alberta? Or is it more about a broader strategy to explore markets we are not currently present in to launch a sports betting product?

I'm not entirely sure which comment you're referencing, but I believe we can address the question either way. It's primarily about Alberta or other potential North American online markets that may legalize soon, rather than revisiting previous decisions. We continue to monitor various markets, but we've made it clear that we've declined most sportsbook-only markets for good reasons, and focusing on iCasino specifically in North America has proven to be very successful for us.

Our next question comes from the line of David Katz with Jefferies.

Thank you for taking my question. I know you mentioned prediction markets in your prepared remarks, but we keep hearing about the potential for more traditional gaming products being developed using prediction-based math models. Have you considered and explored this, as it seems it could be more relevant to your core business?

David, thank you for the question. I expected you might ask about predictions, as you've brought it up every quarter this year. It's a significant topic, and we have been closely monitoring it, as we've mentioned before. Our approach to monitoring is thorough; we examine every angle we can. Our organization is agile, so if we need to respond to changes, we are equipped to do so. Regarding your specific question, it is more difficult to justify a prediction market when the underlying event involves stakes. Betting on an event complicates the regulation of that type of market. That said, there is ongoing discussion in the courts, and I noticed a ruling from the Ninth Circuit earlier today. We will continue to observe the perspectives of stakeholders, including regulators and legislators, to stay informed about potential opportunities in this area, which I believe will evolve further.

Okay. And perhaps a simpler question, and I hope you haven't addressed this already. Kyle, in your comments, you mentioned that general and administrative expenses grow in line with revenue. Could you elaborate on what contributes to that? Are there some technology upgrades involved? Or why does that increase along with revenue?

I believe it's important to note that our growth is expected to accelerate compared to the last few years. We are recognized as a company that is careful with its investments. Richard mentioned this briefly, but we see a significant opportunity to invest more in unique casino content that we offer, as well as to boost our lobbying efforts at a time when we believe there is a real chance to achieve iCasino legalization in the next couple of years. We continually invest in our workforce, and we have implemented pay increases. For modeling purposes, we have mentioned previously that our largest increase in general and administrative expenses occurs from the fourth quarter to the first quarter. We truly believe this is an opportune time to invest in these areas, and this is factored into our guidance for 2026.

Our next question comes from the line of Ryan Sigdahl with Craig-Hallum.

Richard, Kyle, another really nice strong quarter and guidance. I want to start with the North America MAUs, grew 51% online casino. I mean I'd ask the generic question just how that's possible. I think, Richard, you gave some of that in the prepared remarks. But more specifically, are there specific acquisition channels that you're opening up or that you're leaning into? Or really, where is that acceleration coming from in a very competitive market?

Yes, it's very broad-based, Ryan. I think our team keeps improving. You're right; it's an impressive number. Our player acquisition costs are the lowest they've been since before we went public when we didn't have the funding to invest properly. Our teams are continually exploring different channels and creative strategies. It's definitely beneficial to have a product that encourages repeat engagement because that number includes more than just first-time depositors. Although we haven't launched in any new markets, we've achieved record first-time deposit numbers for three consecutive quarters, which boosts our top-of-the-funnel. However, it’s essential to ensure those players return and to reactivate those who may have been inactive for a while. It's a combination of many factors, but our teams are doing an excellent job of attracting new players, informing them about the product, and presenting a great product when they arrive.

I'll just add that...

Go ahead, Richard.

Sorry, Ryan. Just one quick thing. We have a focus on offering the best user experience, but high quality is great but also differentiated. And again, if you just differentiate something but you don't get the experience right, it doesn't matter if you're different, if players don't really find what you've done differently to be all that compelling. So for us, being better and different has been a goal, and everyone in the organization is working towards achieving those high-level goals. And through that, you then have all sorts of A/B testing and all kinds of technical tools that we're using to ensure that we're sort of delivering the right type of customers, the right type of experience that matches their interests.

And just I'll pile on one more, Ryan, just because it would be a shame if I didn't mention it. But I think another piece of the puzzle is customer service and the way we treat customers and making it easy and friendly for them to get through the first time they show up to easily getting a deposit on the platform, easily getting their money off the platform. And when they have any issues, that we're responsive and treat them the right way. So I think we focus a lot on that and do a really good job at it. Now I'll let you ask about Maine.

All very helpful color. Yes, Maine would be the follow-up question here, just legalizing iGaming. Is that a strategic state for RSI and then your confidence level that you could get a skin agreement with 1 of the 4 tribe licensees there?

Maine is an attractive market because our strength in online casino operations will be available there. There are four tribal partners in the state that currently hold licenses. It's important for us to find the right fit and establish valuable relationships for successful partnerships. We have demonstrated our effectiveness as a partner in other states, collaborating well with various tribes and lotteries. Our track record in smaller states with lower populations shows our ability to capture significant market share. A casino operator with a poker platform would find value in partnering with us in a smaller state like Maine. We are exploring options to potentially enter that market in the future.

Our next question comes from the line of Mike Hickey with StoneX.

Richard, Kyle, congrats, guys. Great quarter, great year, great guide. You're sort of a beacon of light here in a tough market. Just 2 questions, both, I think, on the prediction market. So forgive us, Richard. I don't think it's your favorite topic, but obviously, it's important here. I guess, first, it looks like there's some evidence now of some handle share loss to prediction market. So just curious your view, especially in concentrated markets like Delaware, where you're 100% share, if you're seeing anything there. The second piece would be the opportunity, also hearing sort of guidance, offering sort of incremental TAM or TAM expansion. So curious if you're also obviously seeing some level of that. And then I'm wondering, Richard, your ability, if you see it over time, still early days, but if you see a migration path from prediction market players to traditional products, where they're looking to sort of get a better value, better parlay, obviously, a better overall experience, if you see an opportunity there and in particular, if you see an opportunity on getting them on to your casino product. Obviously, the cross-sell is very strong. This wouldn't be a pure cross-sell. But given that you're the only casino offering in Delaware and other states, it seems like an opportunity for you guys.

All right, Mike, I'll start and Richard can add if he wants. There are a lot of questions to address, so I'll do my best to cover them all. For the first question, it's difficult to provide a clear answer. It doesn't seem to be impacting our OSB business, but it's certainly challenging to quantify. Regarding Delaware, if you look at the past four months, including January, we've seen over a 50% increase in revenue year-over-year for each of those months. It's tough to measure, but those are strong results. Regarding the expansion of the total addressable market, all of this activity raises consumer awareness. There's definitely a component there that can attract more interest. Richard, would you like to share your thoughts on the product and its connection to current prediction markets?

On the technology side, many elements of the CFTC-approved platforms are not as technically advanced as what we have in our industry. Many of the player account management systems available could be adapted for prediction markets. If we were to have a prediction market product, I can see opportunities for cross-selling between different verticals, treating prediction markets similarly to poker, whether on a third-party platform or an in-house one, across various jurisdictions where an operator is active. There are definitely cross-sell opportunities depending on the types of mechanics and products involved. A product that requires skill may attract players interested in different types of prediction markets. If chance elements are involved, which are still being clarified legally, that represents a different kind of cross-sell. There is significant potential to learn what works and what doesn’t in terms of cross-selling. From a core technology perspective, there are many similarities between the platforms currently used in CFTC markets and real money gambling platforms.

I just want to follow up. A couple of quarters ago, we inquired about your perspective, knowing your expertise in product development, which has contributed to your strong market share. In considering the prediction market platforms, are there specific features, such as user-friendliness or the visibility of the cash-out process, that you believe could appeal to your traditional gaming customers, prompting potential product enhancements in the future?

Yes. I mean there's always innovation in all kinds of areas. I think one thing about prediction markets is that operators are self-certifying, which means a little bit of an easier process perhaps to try things out that maybe would be harder to do in a state-level regulatory environment. I think it's still too early to really appreciate all the different elements of what's going to be improved or not, but certainly, you're going to see improvements made in prediction market operators. And I think some are going to come from the approach of trying to replicate a sportsbook interface, and others are going to probably come up with approaches that are going to be novel and differentiated and bring a different element of experience to a user that may be different from what they can get in a more conventional sportsbook. So I think there's still a lot of the leading minds in our industry who historically have kind of moved from one vertical to next, are focused very heavily on prediction markets right now. So I think you'll start to see some of those types of innovations come to market.

Our next question comes from the line of Jed Kelly with Oppenheimer.

Going back to the MAU growth, it is very healthy once again. Is the strength coming from casino-first players, or are you seeing more success with sports-first players? I would appreciate some background on that.

Yes, Jed. So just to be clear, that 51%, I'm sorry, is the growth in North America in markets that have iCasino. If you look at just North America in total, which includes all of our sports-only markets, it grew 37%. So that strength is really coming from the online casino markets. I mean not coincidentally, that's where we're investing most of our marketing dollars and our efforts there from a marketing perspective, and we're seeing the returns.

Got it. And then just as some of your larger competitors start to market the prediction market products, are you seeing any changes in the promotional environment where you may have an opportunity to take share?

I don't believe we've observed a significant change in the promotional intensity across the industry, although different operators may adopt varying strategies at different times, with some being more aggressive.

I would just add that our strategy is really not to try to gain share through incentives but by focusing when others may be distracted and by delivering innovative experiences that are unique and different for the player. The goal is that when players find us, they stay with us. Our focus is less about using incentives to encourage players to remain with us and more about ensuring they stay for the reasons we discussed earlier, which Kyle also mentioned, including our customer service, reducing friction for the players, and demonstrating that we are fair, honest, and treating them well.

Our next question comes from the line of Chad Beynon with Macquarie.

I wanted to ask about the sports betting hold maybe for the year, for 2025. I know there was some nice improvement just from a parlay mix standpoint. But can you talk about the year-over-year hold growth that you had in the year? And then more importantly, for '26, are there still opportunities to increase that hold? And is that a part of the guidance?

Yes, I'll begin with the last point. We have established a guidance range that reflects various possible outcomes, and our expectations for hold are incorporated into that guidance. While we aren't anticipating dramatic improvements on the sports side, there is potential for continued enhancement. Over the past few years, we have made significant strides in our product offerings, and the depth of our markets has improved considerably. The proportion of our parlays and prop bets has also seen a steady increase. In the third quarter of last year, despite facing challenges with sports hold, we achieved our highest sports hold in U.S. history, and we repeated this feat in the fourth quarter. The outcomes in Q4 were slightly better for the industry, and we are confident that these improvements can persist. We believe our product will keep evolving, and we expect to see a continued shift towards more parlay bets. Did I address all of your questions?

Yes, that's perfect. I have a follow-up. I know you have a slide that discusses the poker opportunity and how it sets you apart from some competitors. What is the current status of the poker journey from both Rush Street’s perspective and regarding North American consumer awareness?

Sure, I can address that. Poker was initially expected to become a much larger market when New Jersey first regulated it. However, due to its historical status as a national liquidity game that only launched in a couple of states—Nevada and New Jersey—there wasn't enough liquidity to support sustainable table sizes, tournament sizes, and various bet sizes. In the past year, we've launched poker in four states and connected them to share liquidity. Currently, no operator in the U.S. has more than four states, and we have plans to add a fifth state this year, making us the first operator in five states. We believe poker appeals to a wide range of gamblers, and players who enjoy poker often like other casino games. If we can attract a customer who enjoys poker and get them to play casino games with us, it benefits us significantly. Similarly, if we engage a customer actively playing poker with us, they won't need to switch to a competitor's brand during tournament times. Therefore, we feel that poker enhances our ecosystem and serves as an effective retention tool. Additionally, we have a TV platform called Poker Night in America, which has been nationally broadcast on CBS Sports for several years. This helps us with brand building, adds personality to our brand, and engages bettors. Ultimately, our goal is to grow our brand and attract and retain customers.

There are no further questions at this time. I would now like to pass the call back to Richard Schwartz for closing remarks.

Thank you for joining us today. We're excited about the road ahead and look forward to sharing our first quarter results in late April.

That concludes today's call. Thank you for your participation, and enjoy the rest of your day.