All right. Thanks, everyone, for joining us this afternoon at the Oppenheimer 29th Annual Technology Internet and Communications Conference. My pleasure to have Richard Schwartz, CEO, Kyle Sowers, president and CFO of Rush Street Interactive. Rush Street Interactive, I think if you look over the last two to three years, has been the best performing name in a very tricky sector for investors. So they've executed very well, very strong. So pumped to have them here to answer some questions. And Richard and Kyle, thanks for joining us. Great to be here, Chad. Thanks, Chad. All right. So you reported earnings at the end of July, gave a solid beat and raise cadence across North America and Latin America. Can you just talk about where you are seeing these pockets of strength across the businesses and what gave you the confidence to raise your full-year outlook.

Yeah, so I can jump in if you want, Richard, certainly add on. But I don't know if I'd call it pockets because it's pretty broad-based. And it's really, I'd point to two main things. One is Latin America continues to be a big growth driver for us. Obviously, The World Cup was a benefit to have that event in June. Obviously, it'll impact Q3 with July as well, but that was a great event for us. And even without World Cup, our Latin American operations in Colombia, Mexico, Peru have been growing really nicely, and we expect that to continue. And then in North America, I think we continued to outpace market growth in just about all of the North American casino markets that we're in. That's the primary focus for us in North America for player acquisition and product innovation and experience, and it's paying off for us nicely. So as you pointed out, we've beaten raised again for, it might be like 15 in the last 16 quarters here. So we've continued to be able to execute.

And kind of want to get into some of the month growth, but this just, you just make a good point. I think there's not a lot of companies in the digital gaming space that have beaten raised in the last three years, four years. So is this kind of shows the power of having like an 80% iGaming mix in North America and just sort of the revenue predictability you're able to get off that algorithm?

Well, certainly it makes our jobs easier when talking to investors to be more focused on iCasino because you point out it is more predictable. You know, nothing's certain, but when you're focused more on the slots category in North America, the tolerance is much tighter, volatility is less, you don't have the same level of seasonality that you do in sports. Although we enjoy that seasonality for the sports part of our business that works really well in North America and also in Latin America. But your point is right, that being more focused on iCasino allows us to predict what's going to happen with our business quite a bit better. It allows us to focus on what the value of players is likely to be and therefore what we're willing to spend to acquire new players, which obviously we've been doing at record rates. And we're actually even doubling down a bit more in the back half of this year because our cost to acquire players has continued to go down. So, absolutely, it helps with the predictability. It helps with our ability to plan for investments not only in marketing but in people and product and technology. So, I see it as an advantage.

I would just add as well that besides the predictability, I think it's also nice that we have the focus. We know clearly what the economic engine is of our business. And by being able to focus on the casino markets, we've been able to grow market share in North America Casino for four quarters in a row. Again, validating that when you focus on the right things and you have the predictability that Kyle mentioned, we also have the focus which allows us to continue to do the things we need to do to innovate and improve the user experience and deliver the results you're seeing from us.

Do you see a lower churn among your iGaming cohort versus your sportsbook cohort in North America?

You do. It kind of goes back to your consistency of of results. You have more consistency in the play. You don't have people who who take a break for for Major League Baseball because they like NBA and NFL as an example.

So it is a it is a stickier audience. got it and when i kind of look at it the the one thing that always sticks out of the last three or four reports is the north american i-gaming mup growth i think this year this last quarter accelerated six to 64 percent when i look at where you are versus your peers i think that growth's right right four to five times the industry some of the states you're operating in there you know some of these are like five plus years with iGaming. So where do you see this significant relative outperformances? Is it better marketing, bonusing, or better game inventory? Can you kind of give us a sense of what's going out there without spilling your secret sauce to competitors?

Yeah, well, we try to be careful on that front. But the truth is, is that it takes all aspects of the user journey to be right. It takes the marketing, the right messaging, the right audience, the right tools to attribute marketing to the right tools to ensure you measure the right ROI in every jurisdiction, but also ultimately comes down to what the players feel about us as a brand and the user experience. Because our brand is really Rivers is a primary brand in North America, it's truly an authentic casino brand. We're not having to sort of dress up a sports brand as a slot brand because it naturally is already a casino-first brand. And then we've really built over a decade a user experience that really caters to the casino user in a way that others, I think, haven't done to the same degree. And so, for example, we have built a real-time reward engine directly into our platform. So when you're playing any game on the site, including games that everyone offers from, let's say, the Wheel of Fortune from IGT, which is a very popular game, our players are playing that. And in addition to just playing that great game, we have fun, exciting pop-up rewards layered on top of the popular casino games that players already love. So when you play with us, you're not just playing that game in Wheel of Fortune, you're also playing our version of it, which adds extra dimensions of fun. So we built slot tournaments and bingo games and random prizes and chances to win jackpots all on top of that journey. And so we built something very innovative and very differentiated, which creates a perception of greater generosity for the players and unexpectedness for the players, which really ultimately delivers a loyalty, which allows us to get the highest, you know, we do the highest average player values anyone published by a substantial amount, which is an indication that the players are loyal with us and they stay and they prefer to play with us with a higher percentage of their entertainment budget than they would other brands. So I think it comes down to really treating the players well, innovating on the product and user experience. We build community into the player experience as well. We're the only ones that do this, where players are chatting with each other and with us in real time while they're playing with us. And so we combine that with all the innovation I described earlier. We truly have a differentiated experience. It's high quality that then retains the players. And ultimately, that's what the key to the game is in our industry is not commoditizing your product, of building innovation and having insights to know what to build having the teams with the knowledge and capabilities to build these innovative experiences and then make sure we have a customer service team that's truly creating an environment for the players where we earn their trust and they feel like we're helpful and we're friendly and we're going to do little things that make the player feel like we're being thoughtful towards them when you put the whole package together it delivers a better experience i think than what you get at other brands and so that we or if we're able to kind of grow our casino business, which, by the way, is the engine of our industry. We're in the States that are both sports and casino legal. We're seeing that casinos are earning four times the sportsbook revenues. And this is prior to any impact for prediction markets, if there is any, which, of course, we haven't seen, but, you know, it's very minimal. But the point is, is that casinos, we want to be strong, and that's what we focused on since the beginning of this company. And so I think we're seeing the fruits of that labor payoff now.

Yeah, John, the only thing I would add to that, For all those reasons, we're highly confident that if people show up and download our app and make a deposit and start playing, that they're going to love the experience and they're going to stick around. But another reason for all this player count growth is because we're filling the top of the funnel faster than we ever have. I think it's four straight quarters now of record first-time depositors. So these are new people who are showing up with solid player values. And we're doing it at ever lower prices, which is why we're leaning into more marketing spend in the second half.

Is there something that's changed, whether it's VAI or is it adding maybe more of your only exclusive content or more of your in-house studios? Has there just been just blocking and tackling? Because it does seem like you're taking a significant amount of share.

Go ahead, Richard. Well, yes, we have exclusive games, and that helps a little bit, but it's actually really the program I just described to you that allows us to bring these unique games to all players, no matter what base game they're playing. So it's not like if you get an exclusive game, which is what some of our peers are trying to do to differentiate. The problem is for that strategy is it only appeals to a small segment of the players who are playing that one game. We have 10,000 games on your site. When you're playing the other 9,999 games, you're not getting anything unique. With us, when you're playing any of the 10,000 games, we're always bringing unique experiences to players in real time. So I think it delivers more unique experiences all the time for our players, which is what I think a consumer wants is something fresh and different, which is why you go to a movie theater and not that many people want to see the same movie 10 times. You want to see a different variety of experiences. And so we've built up over a long period of time. We've built a moat around this product experience that's truly differentiated and unique that has been built over 12 years now. So I think that's really ultimately what allows us to differentiate.

Yeah. And maybe just, it's not, it isn't one thing, Jed, or two things. It's a, it's a host of a lot of different things that all, a bunch of our teams are doing much better. And I think the good news is we've got a long list of things we can keep doing better as well. So as much progress as we've made, there's, there's a lot of things that we still have on the list that we think will make, make the experience for players even better.

Got it. And we are, you know, coming out of this quarter, we are starting to see sort of some higher promotional activity or, you know, category leaders signaled they're potentially going to promote more aggressively into online sports betting. They also have a pretty significant iGaming base. Do you have any concern of some of that, you know, higher promotional activity we see in sports betting carrying over to iGaming?

I don't think, I personally don't because I haven't seen a change in strategy that you've seen for several years of a lot of the larger companies are sort of been trying to, historically larger companies, we're now one of the larger ones, but they're trying to sort of get to the casino audience. But as I said earlier, we have a dual strategy. I didn't say this earlier, but one of our strategies, we do the cross out from sports to casino in the markets where we have both casino and sports is where we emphasize our marketing budget and spend. But we also have a slot and casino first player acquisition strategy that we really are unique in that we can deliver on it because we have the brand and the experience that caters to that type of player really resonates with what we're doing. So I would say that while you're always going to have intensity, I think part of the intensity is also focusing on the prediction markets for a couple of, you know, for FanDuel and DraftKings primarily. The results are showing, though, that our acquisition costs keep improving. It's the lowest since we've been public recently. And we had another record of first-time depositors, as Kyle said. So I think what we're doing is working extremely well and we're very focused, which I continue to think is a big advantage for us.

And then getting more on the competition front in North America, we have seen some incumbents in sports, primarily Fanatics and Bet365 have some success growing their handle share, engagement share in OSB. Are you seeing any level of shared different shifts in iGaming in terms of emerging competitors? Maybe somebody like a Hard Rock might come to mind, or has the competitive environment been pretty stable?

I think for years, we've had others coming in and spending and trying to grow their positions. It's as competitive as it's ever been. I think a lot of companies have been focusing on casino. We've been growing, like I said, market share for four quarters in a row, despite all that effort from so many companies. So I would say that ultimately, you know, we are the fourth large online casino operator in the U.S. We've gained share four quarters in a row. We have really built a decade of casino-specific product and player engagement expertise that is just not existing in most of our peers. They haven't prioritized casino the way we have since inception. So I think you're starting to see results of that. So I think, you know, you mentioned Hard Rock. I think they've done a nice job. Certainly they have an exclusivity in Florida, not just sports, but they've been able to kind of build a casino-like product using motor racing results. But I certainly think in the other jurisdictions, we continue to sort of grow faster substantially than the rest of the market, which is validating that our strategy and approach is working. Got it.

And I think you gave some encouraging stats on Alberta on the conference call.

Can you just give us any update how that's trending and relative to Ontario, which i think is what about a four-year-old market now yeah and so so yeah on our call we talked about the fact that um uh so obviously excited about alberta uh first eye casino launch in a while so that's exciting um it's a smaller population but on a when you adjust for population uh our our player registrations active users at the time of our call a couple weeks ago were 2x what they were in Ontario. And that comparables actually gotten even better for Alberta in the last couple of weeks here. So very excited about it. It'll take a little while for that to build, given that it was an existing gray market, but it's off to a great start. We're very excited about it.

And just for people that might be on the call that might not be in as much in the weeds, It's how does it when they hear gray market, can you just kind of give us a sense like any structural differences and how you sort of ramp that market? Because you do have, I guess, gray operators going to regulated. So can you just give people like a quick overview?

Yeah, sure. I mean, the gray would be sort of unlicensed operators that really are operating without a clear license and without paying taxes locally. And so the goal of a government should be to transition the unregulated gray market operators to regulated plays so they can generate the benefits of tax revenues and player protections, which are typically almost always done better in the regulated market. So I think in Alberta, similar to Ontario, it started with some of the green market operators that were there were able to sort of transition without really any consequence from a pre-regulated market to regulated and kind of bring within their database of players and their brands, which were already known. So there were some sort of advantages from operating in an unlicensed environment in those two jurisdictions. We've had to start from scratch, which we have done very successfully in Ontario. We're doing very well there and growing nicely as we are in all of our online casino markets. But we also launched very quickly in Alberta and we did a really comprehensive plan that lets people know that we're a trustworthy brand, very much localized the user experience to the Alberta audience to show the players there who might be newer for them as a brand that we are sort of legal and licensed license and the standpoint of approval of the government, which I think helps to kind of migrate some of those players from the unregulated to regulated. What also helps is that the regulated sites like us, when you do launch, have a greater variety of proven games of suppliers that aren't able to service the unlicensed markets, which are able to participate or eager to help support a regulated market like us operating there. So there's some advantages in terms of content catalog being available now for the first time in Alberta, which we're using to our advantage as well.

Makes sense. And then just an update on state regulations. I mean, it's been a while since we've seen a competitive launch. I know you launched in Delaware about two years ago. Seems like we got close with Virginia. You know, maybe people mentioned potentially New York, Illinois. Just kind of, can you give us a lay of the land on anything we should be thinking about over the next 12 to 24 months?

Well, I think it's what's most exciting for investors, I think, because only 12% of the U.S. population has access to legalized online casino today. And compare that with 61% that have access to online sportsbooks. So it's a big gap there, big opportunity. And states that already have sports, it's very easy to add casino because you already have the infrastructure in place. You have the servers, you have the regulators, you have the licenses, et cetera. So really, it's just a matter of adding a server to the existing sportsbook and being able to offer a bigger variety, which, as I said earlier, generates now roughly four times the revenues for taxes that Sportsbook does in a state, and especially the pressures for prediction markets, casino is a lot more shielded and more of an upside opportunity, which we think could play into some states' views on it. I think historically, the budget gaps in states has been a reason why you would want to maybe legal and regularize online casino. That's going to only grow starting after the midterms when some of the federal funding on things like Medicaid and And food stamps maybe are reduced to the states from what they've had historically. So there will be some increasingly larger budget gaps in states. Obviously, consumer protections is very important for the government as well. And regulated does bring that to the table. I think historically, you haven't seen as much alignment as you have today among our peers who all recognize that online casino is an economic engine worth all of us having access to. So I think there's more effort to support the legalization of online casino. And you mentioned Virginia was very close. There'll be, I'm sure, an effort made again this year. Other states are also moving along, and there's some positive developments that we're working with. And I think it just comes down to educating a lot of the legislators that, hey, anyone who's concerned about having an online casino available to people more accessible has to realize that these products are already available in everyone's pockets through crypto casinos and sweepstakes casinos and prediction market-style casinos. And so I think ultimately, it's really a matter of if it's going to be there, we'd rather protect your consumers and fill pretty sizable budget gaps. And so we're excited for the next sessions coming up next year, and we're working to prepare for an effort in multiple states.

You think the threat of prediction markets is an accelerant for more legalization?

Certainly for some stakeholders, there's a recognition, some political stakeholders, that's a concern because it is, if you're having a proliferation of prediction markets, then you're going to certainly realize that it's now available in your states to do these types of betting mechanics, whether or not it's through a state-issued license. But if you're a state, you'd rather capture that opportunity yourself than to sort of have, I think, the federal government generate it and sort of get the upside and be able to regulate it the way your state wants to. So I think this certainly is a factor.

And it would probably protect their sports betting, right? Because you said earlier, iGaming is four times sports books in dual product states.

If you have a cross-sell casino, it gives you an advantage as a state that you don't have otherwise.

But if you look at states like Illinois and New York, right, that operate at pretty high tax rates, if they didn't have iGaming, it probably makes sense to run a prediction market. but they had iGaming, the state could probably say, if you want the iGaming license, you must, you cannot operate a prediction market in our state.

I think that's fair. That would generate a lot of interest in companies who want to be part of that iGaming regulated marketplace. So that could change people's strategies on how to participate and whether to participate in prediction markets.

And before we dive in the Latin American portion of the business, can you just give us an update on your sports strategy? if you're seeing any cannibalization from prediction markets, just kind of where that business is?

Yeah, we work a casino first, as you know. And so we're not seeing an impact. And as I referenced earlier, acquisition costs continue to improve. Our active players are up over 54% from year over year. So we're seeing a really healthy business. We did file a CFTC application in June just to kind of preserve optionality. So, we have the flexibility. If it becomes a relevant business to our future, we have the flexibility to participate potentially. So, I think we're just monitoring the market. We certainly haven't seen an impact to our sportsbook in the licensed states we operate. But it's also important for, I think, investors to realize that a very small part of our business is tied to U.S. sportsbook. A larger percentage of our sportsbook business is international. And so, I think any impact from U.S. sports, if there was any, wouldn't really impact us anywhere close to how it might impact others.

Got it. Makes sense. And that license you filed with the CTC, was that like an FCM or become an introductory broker?

Yeah, it's an FCM.

Okay. Okay. So switching gears to Latin America, seeing real strong growth there. I think your users were up 62%, $55 ART month. So that business is almost scaling to like $400 billion by year end. So just can you give us a sense on the opportunity where you're strong, where you're seeing good share growth? Just give us a sense of what's working there.

Yeah, you want me to go, Richard? Yeah. So I think it's all of the markets that we're in are seeing very nice growth. And I think the opportunity is strong in all of them. So we'll just go down the list here. Columbia is a more sports-focused market for us in terms of revenue mix. But iCasino is actually growing faster the last several quarters than sports. So we've got a lot of opportunity to grow both sides there. We don't know the exact market shares because it's not reported. But given our growth profile, it'd be hard to suggest that we aren't taking share there. But we see a lot of opportunity. In Mexico, we've still got kind of low to mid single digit market share growing very quickly. real opportunity for us to build a really nice business there. If you compare Mexico to Colombia in terms of the time post-launch, we're right on the same path that we were in Colombia. So if we can, Mexico is a much bigger market, but if we can make it look anything like Colombia, that'd be a big success story. And then Peru is still pretty small, but it's the fastest growing of the three, and we're starting to see some nice momentum there. So, it's been a great opportunity for us to be down there, and I think we're taking advantage of it.

If I could add one more thing about your question earlier about states legalizing an online casino, Jeff, what's really exciting, I think, for any investor with us is that we have the rest of Latin America available. And in many cases, markets, very large population markets with 210 million people in Brazil, already legal for online casino and regulation, already regulated. Argentina is licensed and regulated. You have markets like Ecuador and Panama and Chile that are also still available for options. So while we're waiting and pushing to get U.S. markets open, there's no shortage of markets already legal, already regulated, that allow us to massively expand our service there. And markets that we're already proving to be able to grow share consistently quarter after quarter. So I think what we like about our strategy is that we're not limited only to the U.S. legal and online casino. We're getting extremely excited for all the ability to leverage our existing teams and brands and assets already performing really well in Latin America to additional markets. So there are new market opportunities there for us.

And is there like a, if we kind of look at these markets, is there like a target share that you want to be? Are they more competitive?

I mean, you look at Brazil, you look at some of the, that seems like a very competitive market. so sort of how do you kind of target the share gains you want in certain markets and then how do you decide what new markets you would potentially want to enter yeah so we're looking into uh all for which new market enter it's a very thorough analysis of size of market do they have casino as well what's the adjacencies of our brand awareness from other jurisdictions we're already operating what's the tax rate what's the stable stability of the environment what's the size of the market size, what's the competitive state of the competitors there. So, all those are factors that we look at. I think so far, we've chosen the countries, I think we've re-choose the same countries over again. They've all been really successful. I think we've grown in every jurisdiction down there consistently since we've launched. So, we have a high degree of confidence that the product we have, mainly because so much of it is so innovative in a very highly competitive market like the U.S., we're still growing shares, we've talked about, performing. So, when you bring that same level of capability to Latin America, where maybe some of the existing operators there haven't focused as much on product as you've seen in the U.S., I think our product really shines even more. And when you combine that with a really high-quality operations team down there as well, you start to see the growth. So, I think it comes down to that even in, quote, competitive markets, when you bring something that's high-quality and unique, you're going to see that you're going to grow everywhere. And that's why we consistently are growing across our business in all of our casino markets. I don't know if there's any parts of that question that maybe I missed or Kyle.

Yeah, I was just going to jump in on the target market share. It's less for us about coming up with a market share that we think we are entitled to or can get and more about, is this market going to have reasonable or attractive economics? Are we going to be able to compete well? And the answer to that, we believe, is always yes. And then how much money can we put to work, how quickly, and at what point in our maturity in that market and our brand awareness, and how much can we spend relative to the value of the players we're bringing in is going to help dictate how quickly we're going to grow in that market. Now, if we would have, I wasn't around when we launched Columbia, but if we would have told people we were going to get 25% plus market share and be the number two operator there when we launched, probably would have looked a little silly, but it doesn't so much I was there when we made a decision. I know you were.

But the truth is, is that if you understand the user and you build the experience to the way it needs to be localized properly, we can do that. We're seeing that across the board everywhere we operate.

And are you the largest cap by, I guess, company-wide market cap or cash generation? Are you the largest player globally in those markets? Because you're competing mostly against local operators, right?

Well, there are operators that are in other markets in Latin America, some that are in European markets, but not necessarily from maybe the direct peer set that our investors look at. There's not much competition down there, if any, really, from a pure play perspective on our U.S. peers.

So I guess the one advantage you do have, too, is you've got your US market, which probably generates, what, almost six times an ARPU that the Latin American market does. So is there an ability to take that higher economic profit dollars from the US market and deploy more in Latin America just to accelerate share?

Well, I think we've, listen, we're producing a lot of profitability, and it's increasing at a rapid rate. So it does, all the time, we're looking at what's the right amount to drop to the bottom line versus reinvest. And I think we've been making good decisions there. One of the things, I think I mentioned it already on this call, is that we are going to spend more in marketing in the back half. But it's less about saying we're successful here, so should we invest more or overinvest over here? And it's more about analyzing each market, the profitability of that market based on the cost structure, which usually comes down to tax rate, what it costs for us to acquire more players, and the incremental cost to acquire players, and how much money can we put to work. And I think we've been doing a good job managing that, but it's not necessarily trying to reallocate because we made a bunch over here that we should invest more here. Each market we look at really on its own merits and how much can we invest and be successful financially.

Got it, got it. And then obviously the other key topic in Latin America is Columbia, you've got the VAT tax. decree, the VAT decree lapsing. How should investors basically frame the potential profitability impacts with what's going on with Colombia, new president, all that's going on?

Yes. As you know, a new president took office last Friday. It's a president that we were hoping him would win the election. He's very pro-business, you know, less government, low tax is the platform that he largely ran on. So we're very excited about that and what it could mean for the stability of the taxation of our industry. We have this temporary tax in place that's 16% of revenue that went into place in mid-March. I think, as you point out, that expires at the end of the year, according to the decree. The Constitutional Court is, as we understand it, reviewing that emergency decree and the associated taxes with it and could come out in the coming weeks here with a resolution on that, whether it sticks or whether it goes away. So we'll see how that plays out. The president may look at some of these emergency decrees from the previous administration and think about whether he wants to do something about those, whether ours would be included in that. We don't know yet. But in any event, this goes away at the end of the year. Maybe one way to frame it is we had about a $7 million benefit in Q1 from the tax, this temporary tax not being in place for two and a half months. So annualizing that as roughly $35 million benefit that would have been associated with kind of the revenue runway we had earlier in the year. So presuming we continue to grow, that amount could be bigger than that as we get into next year. So a big opportunity, be great to have some stability around the tax structure in Columbia. I think that provides a lot more certainty for us and for investors.

So currently, with everything right now, the effective tax rate on GGR is what, in the low 30s?

Yeah, exactly.

So that's another way to frame it. Got it. Very helpful. And then capital allocation, I think your cash balance is close to $350. 50, no debt. How should we think about how you're thinking about deploying capital?

You want to take that one, Carl? Sure. Yeah, yeah. So as you point out, we're very strong balance sheet. We don't need debt. We are a cash generating business, and that'll continue to be the case. So we should be in a good spot for the foreseeable future. Obviously, launching new markets like Alberta, take a little bit of upfront capital, but certainly something that's easy for us to manage. Hopefully, as Richard was talking about earlier, we'll have some U.S. states that legalize that we'll put money to work into launching. And then we continue to look at M&A, and that can be things that would be additive to our product portfolio or bring things in-house that maybe we're using partners for that could be in the form of entry into a new market in Latin America. And then obviously, we've got our buyback out there, newly updated $100 million buyback that we put in place a couple months ago that gives us the flexibility to buy back stock, which I think is a good use of capital as well.

Do you kind of want to stick to Latin America, stick to what's working, or do you look at some of these other markets? Africa looks pretty attractive. If you look at some of the economics, some of the public companies there, I think Europe's pretty competitive. Anything outside of the Western, maybe looking into Europe or Africa?

Our goal is to be a leader of the Americas. And we're fortunate that the two parts of America, because Latin and North America are the two markets you'd want to be in globally in this industry because they have a lot of growth left ahead of them. And so, I think we have our strategy pretty clear. We do get approached by others globally, admiring our solutions, our products, thinking other opportunities. And so, we do pay attention, but ultimately, we've been pretty disciplined in realizing that the real opportunities for us is to keep reinvesting in what's working and where we have a foundation and a base that allows us to continue to succeed like we have. So what's exciting is our existing markets are growing really fast for us, and we're growing faster than them. And all these new market opportunities we described in the call are so many that I think we have enough opportunity here to kind of be able to continue doing what we're doing for years.

Got it. And you just, we're running out of time, but when you look at, and I didn't add this in the queue, but when you sort of look what's going on with crypto and some of these Bitcoin markets. And there does seem to be the opportunity to potentially prediction markets offer some sort of a slight slot type experience. And they're pretty aggressive. Does that concern you at all? Or how do you view some of the stuff they could potentially do with these minuscule crypto markets?

Yeah. What I'll say is that we're We've been studying the prediction markets for several years, and so we are very well aware of all the possibilities and permeations. And, you know, I think our strategy was to file the application of the CFTC so that we are prepared should there ever be a market like that that evolves that could stakeholder buy-in among the regulators and the courts so that there would be an opportunity for, you know, for us to be prepared for that. We never want to be caught flat-footed. So, I think there are lots of creative solutions, but some of the arguments being made to justify why the sports prediction market should be legal are sort of saying, it's not gaming. So, if you start to say, well, now I'm just bringing some gaming casino markets to this prediction market, it kind of defeats this core strategy of legally being argued. So, I think there's certainly something we're monitoring very closely, and we will be prepared no matter what the outcome is. It's hard to know what's better or worse, because it's hard to know what the rules are of engagement that you're going to be in someday. But all we can do is make sure that we are prepared under all circumstances, which we are.

Got it. So we're coming to the bottom of the session. Anything important that we didn't touch on or anything key that you want to get to investors here that you think is pretty important for Rush Street into the back half of the year?

Well, I'll just sort of share on the call, but just to make sure it's clear that we've had the fastest growth in four years this last quarter. So, you know, our now, our active user bases are exploding in all of our markets, North America and LATAM from our growth percentages that we shared. You know, we casino North America, which we referenced as really competitive or people are trying at it. We grew last quarter 62% year over year. So really, really, really incredible growth. I've already large installed base. So others in our segment are not seeing anything close to that. So we feel really confident that all the labor we put in, all the work, all the innovation experiences we've talked about are being noticed by players. And I think a big story that's worth thinking about is that because our brand is lesser known than our peers, the Caesars at MGM, DraftKings at FanDuel. There's a lot of players in our states where we operate casino online in the U.S. that have never heard of our brand yet. And so we're having a chance to capture those players for the first time. And when they experienced the signup registration with us and they realized the little things that we do, we think we helped to kind of grow those into loyal customers. So I think we have a large opportunity to grow our existing share by just introducing our brand to a large percentage of the player base that doesn't yet know us because we didn't start with a brand that's as well known as many others are. So I think that's a really exciting thing for an investor to think about.

All right. So last question, if you think we're sitting here a year from today, how many states legalize iGaming? Over under one?

I think you probably have a couple of realistic opportunities that maybe you're looking at one to uh i think that's all we need every year ultimately because we have like listen we have so many states left you just need them to start start moving again uh and i think it's a couple states that are really close i mean virginia got extremely close last year and we know there'll be a similar effort made and similar stakeholders are involved again so i think the opportunity does that create like a domino effect that you've seen in osb in like 22 and 23 like when new york went i said massachusetts when a bunch of states went like does that start to you kind of get There's a copycat mentality to the thing. I mean, you saw it at Lambus Casinos for decades ago, where once they got it, the adjacent states wanted to do riverboats, and it kind of spread like wildfire. You saw the same thing happen with sportsbooks. I've had two examples of markets like that where that has happened, and there's no reason to think that when you see that, it couldn't happen. When you look at the amount of revenues a state like Michigan is generating, we're talking billions of dollars over the first five years. That's a very meaningful tax generation, far beyond what most tax initiatives can generate. So when you see how reliable, how proven, and the scale and scope of the revenue is generated, I think it becomes a very appealing thing for states. And when you start to realize it's already operating, you can already play these same slot games or very close versions already without regulation, without taxation. It becomes a little logical that you would start to see it. So I think hopefully there's another wave that comes and you'll see that same mechanic of copying other states and not wanting to miss out on that on the protections for consumers and the tax generation start to carry the day.

Yeah, because it does seem like people have kind of the prediction markets have caused people to take their eyes off the sweeps. It does seem like that if you've kind of.

Well, yeah, the prediction markets have been the dominant conversation the last six months to a year. Yeah, so. Well, we're focusing on that. or just focus on casino growth. And that takes a lot of effort to get it to deliver results. But I think that's exciting for us that we're not distracted in the way that many of the peers seem to be.

Well, I think that focus has been why you've been the best performing stock in your peer group over the last three years. So congrats and keep up the great work. And thanks for joining us, Richard and Kyle.