Rush Street Interactive (RSI) CEO Richard Schwartz argued that technology is “not a sexy thing to talk about” but is an important factor for carriers as they look to grow. .
In a lecture on the 19thth At the annual Needham Technology Media and Consumer Conference in New York, the CEO asserted that technology is the company's core competency when it comes to customer retention.
With a proprietary platform, RSI is present in 15 U.S. states and has grown to be one of the top challenger brands in the market.
At the conference, Schwartz talked about how market services in the sports betting and casino space are often highlighted by “more parlays, more prop bets, and more variety of bets,” the features that get the most attention. Ta.
The CEO chose to use a soccer analogy to get his point across, in that while markets and betting options are important, it is the underlying technology that separates the winners from the losers.
Schwartz explained: [betting options] They are the stars of the industry. They're like the quarterbacks in a football game. And let's use that analogy when we all want to talk about stars, what props are available, what parlays are available, how many people are available. I am.
“The position players get the attention in sports – receivers, running backs, quarterbacks – and that's important, but wars are won in the trenches.”
He went on to liken technology to an American football offensive line, arguing that technology is not a highly discussed element in the industry, but is essential to success.
“I think the equivalent of offensive linemen in our industry is technology platforms. It's a business. It's not a sexy story.
“Most of us aren't really interested in learning about it. But the truth is, that's where the money is made in our industry. It's how to convert players and how to automate systems. By doing so, you can increase your conversion rate like a waterfall.”
Schwartz went on to add that the years of effort spent developing RSI's technology are a major reason for the company's success.
The Chicago-based operator announced record first-quarter results earlier this month, with revenue of $217.4 million, up year-over-year (YOY) from $162 million in Q1 2023. ) increased by 33.9%.
Adjusted EBITDA improved significantly in the first quarter of this year, with an RSI of $17.1 million, compared to a loss of $8.5 million in the year-ago period.
Schwartz said: “What we're saying here is that a lot of our success is due to all these investments we've made over 10 years in technology platforms and conversion retention and how they're working in ways that players don't feel. In fact, we're impressed by what we do differently than other platforms.
“So we think we're investing a lot there, and we have a dedicated organizational team focused on every part of the user journey.
“The whole journey, from the first time a player accesses our app, to making their first bet, to their first deposit, to their customer service needs. It's the little details that matter.
“I think that's why we're able to achieve great results even though we have a much smaller marketing budget than our peers,” he concluded.
