# EDGAR Filing Document

**Accession Number:** 0001793659
**File Stem:** 0001793659-23-000006
**Filing Date:** 2023-3
**Character Count:** 29465
**Document Hash:** 0a755119670f0563af875a08d1386cac
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001793659-23-000006.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001793659-23-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Rush Street Interactive, Inc.
- **CENTRAL INDEX KEY:** 0001793659
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39232
- **FILM NUMBER:** 23693966

**BUSINESS ADDRESS:**
- **STREET 1:** 900 N. MICHIGAN AVENUE, SUITE 950
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60611
- **BUSINESS PHONE:** 773-893-5855

**MAIL ADDRESS:**
- **STREET 1:** 900 N. MICHIGAN AVENUE, SUITE 950
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60611

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** dMY Technology Group, Inc.
- **DATE OF NAME CHANGE:** 20191108

?xml version="1.0" ? rsi-20230301

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d)**

**OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of Report (Date of earliest event reported): March 1, 2023**

**RUSH STREET INTERACTIVE, INC.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-39232** | **84-3626708** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

**900 N. Michigan Avenue, Suite 950**

**Chicago, Illinois 60611**

**(Address of principal executive offices, including zip code)**

**Registrant's telephone number, including area code: (773) 893-5855**

**Not Applicable**

**(Former name or former address, if changed since last report)**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

□ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

□ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

□ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

□ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol(s)** | **Name of each exchange<br>on which registered** |
| **Class A common stock, par value $0.0001 per share** | **RSI** | **The New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

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**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On March 1, 2023, Rush Street Interactive, Inc. (the "Company") issued a press release announcing the Company's financial results for the fourth quarter and year ended December 31, 2022.

A copy of the Company's press release is attached hereto as Exhibit 99.1 and is hereby incorporated by reference in this Item 2.02. The information and exhibit contained in this Item 2.02 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 99.1 | <u>[Press Release, dated March](rsi-2022exhibit991.htm)[1](rsi-2022exhibit991.htm)[, 202](rsi-2022exhibit991.htm)[3](rsi-2022exhibit991.htm)[, reporting financial results for the fourth quarter and year ended December 31, 202](rsi-2022exhibit991.htm)[2](rsi-2022exhibit991.htm)[.](rsi-2022exhibit991.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **RUSH STREET INTERACTIVE, INC.** | **RUSH STREET INTERACTIVE, INC.** |
| | By: | /s/ Kyle Sauers |
| | | Name: Kyle Sauers |
| | | Title: Chief Financial Officer |
| Dated: March 1, 2023 |  |  |

---

## Exhibit 99.1

**Exhibit 99.1**

![image_0a.jpg](image_0a.jpg)

**RUSH STREET INTERACTIVE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 RESULTS**

*- Fourth Quarter Revenue of $166 Million, up 27% Year-over-Year -*

*- Full Year 2022 Revenue of $592 Million, up 21% Year-over-Year -*

*- Initiating Full Year 2023 Revenue Guidance of between $630 and $700 Million -*

*- Expect to Achieve Positive Adjusted EBITDA for the Second Half of 2023 –*

**CHICAGO – March 1, 2023 –** Rush Street Interactive, Inc. (NYSE: RSI) ("RSI"), a leading online casino and sports betting company in the United States and the rest of the Americas, today announced financial results for the fourth quarter and full year ended December 31, 2022.

**Fourth Quarter 2022 Financial Highlights**

• Revenue was $165.5 million during the fourth quarter of 2022, an increase of 27%, compared to $130.6 million during the fourth quarter of 2021.

• Net loss was $31.1 million during the fourth quarter of 2022, compared to a net loss of $38.1 million during the fourth quarter of 2021.

• Adjusted EBITDA<sup>1</sup> was a loss of $17.3 million during the fourth quarter of 2022, compared to an Adjusted EBITDA loss of $31.2 million during the fourth quarter of 2021.

• Adjusted advertising and promotions expense<sup>1</sup> was $63.2 million during the fourth quarter of 2022, compared to $64.0 million during the fourth quarter of 2021.

• Real-Money Monthly Active Users ("MAUs") in the United States and Canada for the fourth quarter of 2022 were up 22% year-over-year with average revenue per MAU ("ARPMAU") of $327 during the fourth quarter of 2022.

• As of December 31, 2022, RSI had $180 million of unrestricted cash and cash equivalents.

**Full Year 2022 Financial Highlights**

• Revenue was $592.2 million during full year 2022, an increase of 21%, compared to $488.1 million during full year 2021.

• Net loss was $134.3 million during full year 2022, compared to a net loss of $71.1 million during full year 2021.

• Adjusted EBITDA<sup>1</sup> was a loss of $91.8 million during full year 2022, compared to $65.1 million during full year 2021.

• Adjusted advertising and promotions expense<sup>1</sup> was $218.4 million during the full year 2022, compared to $186.9 million during the full year of 2021.

• MAUs in the United States and Canada for the full year 2022 were up 29% year-over-year with ARPMAU of $315 during the year, down 9% year-over-year.

Richard Schwartz, Chief Executive Officer of RSI, said, "We are proud to report another strong quarter and record results for the year, spurred by 95% annual growth in our Latin American and new North American markets launched after 2020. We expect to achieve positive Adjusted EBITDA for the second half of 2023 and continue to be selective as we prioritize investments in markets with higher returns."

<sup>1</sup> This is a non-GAAP financial measure. Please see "Non-GAAP Financial Measures" for more information about this non-GAAP financial measure and "Reconciliations of GAAP to Non-GAAP Financial Measures" for a reconciliation of the most comparable measure calculated in accordance with GAAP to this non-GAAP financial measure.

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"Looking forward, we will continue to focus on earning and retaining customer loyalty, by treating them well, being thoughtful, developing seamless experiences and reducing friction at every possible point. We have built our proprietary platform and culture around a disciplined operating philosophy, which is reflected in our results."

**Guidance**

RSI is initiating revenue guidance for the full year 2023. It expects revenues for the full year ending December 31, 2023 to be between $630 and $700 million. At the midpoint of the range, revenue of $665 million represents 12% year-over-year growth when compared to $592 million of revenues for 2022.

This range is based on certain assumptions, including that (i) only operations in live jurisdictions as of today's date are included, (ii) all professional and college sports calendars that have been announced come to fruition, including the completion of their 2023 seasons, and (iii) RSI continues to operate in markets in which it is live today.

**Recent Business Highlights**

• BetRivers went live with online and mobile sportsbook wagering in Maryland in November and in Ohio on New Year's Day 2023.

• Enhanced technology platform to further personalize casino experiences by player segmentations

• Successful launch of a fully integrated and innovative squares game in our sportsbook.

• Expanded Latin American presence, opening two new state-of-the-art offices in Colombia in advance of additional growth opportunities ahead.

• Continued as an industry leader in responsible gaming achieving the distinction as the first U.S.-based online gaming and betting company to receive accreditations under the Responsible Gambling Council's RG Check.

**Earnings Conference Call and Webcast Details**

RSI will host a conference call and audio webcast today at 5:00 p.m. Eastern Time (4:00 p.m. Central Time), during which management will discuss fourth quarter and full year results and provide commentary on business performance and its current outlook for 2023. A question-and-answer session will follow the prepared remarks.

The conference call may be accessed by dialing 1-844-200-6205 for domestic callers or 1-929-526-1599 for international callers. The conference call access code is 885159.

A live audio webcast of the earnings conference call may be accessed on RSI's website at ir.rushstreetinteractive.com, along with a copy of this press release and an investor slide presentation. The audio webcast and investor slide presentation will be available on RSI's investor relations website until at least April 1, 2023.

**About Rush Street Interactive**

RSI is a trusted online gaming and sports entertainment company focused on markets in the United States, Canada and Latin America. Through its brands, BetRivers, PlaySugarHouse and RushBet, RSI was an early entrant in many regulated jurisdictions. It currently offers real-money mobile and online operations in fifteen U.S. states: Pennsylvania, Illinois, New Jersey, New York, Ohio, Connecticut, Michigan, Indiana, Virginia, Colorado, Maryland, Iowa, West Virginia, Arizona and Louisiana, as well as in the regulated international markets of Ontario, Canada, Colombia and Mexico. RSI offers, through its proprietary online gaming platform, some of the

------

most popular online casino games and sports betting options in the United States. Founded in 2012 in Chicago by gaming industry veterans, RSI was named the 2022 EGR North America Awards Operator of the Year, Customer Services Operator of the Year and Social Gaming Operator of the Year, and the 2021 SBC Latinoamérica Awards Sportsbook Operator of the Year. RSI was the first U.S.-based online casino and sports betting operator to receive RG Check iGaming Accreditation from the Responsible Gaming Council. For more information, visit www.rushstreetinteractive.com.

**Non-GAAP Financial Measures**

In addition to providing financial measurements based on accounting principles generally accepted in the United States ("GAAP"), this press release includes certain financial measures that are not prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Operating Costs and Expenses, Adjusted Net Loss Per Share, Adjusted Net Loss and Adjusted Weighted Average Common Shares Outstanding, each of which is a non-GAAP performance measure that RSI uses to supplement its results presented in accordance with GAAP. A reconciliation of each such non-GAAP financial measure to the most directly comparable GAAP financial measure can be found below. RSI believes that presentation of these non-GAAP financial measures provides useful information to investors regarding RSI's results of operations and operating performance, as they are similar to measures reported by its public competitors and are regularly used by securities analysts, institutional investors and other interested parties in analyzing operating performance and prospects. These non-GAAP financial measures are not intended to be considered in isolation or as a substitute for any GAAP financial measures and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

RSI defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation and amortization, share-based compensation, adjustments for certain one-time or non-recurring items and other adjustments. Adjusted EBITDA excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (i.e., depreciation and amortization, and share-based compensation) or are not related to our underlying business performance (i.e., interest income or expense).

RSI defines Adjusted Operating Costs and Expenses as RSI's GAAP operating costs and expenses adjusted to exclude the impacts of share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Operating Costs and Expenses excludes certain expenses that are required in accordance with GAAP because certain expenses are either non-cash (i.e., share-based compensation) or are not related to our underlying business performance.

RSI defines Adjusted Net Loss Per Share as Adjusted Net Loss divided by Adjusted Weighted Average Common Shares Outstanding. Adjusted Net Loss is defined as net loss attributable to Rush Street Interactive, Inc. as used in the diluted net loss per share calculation, adjusted for the reallocation of net loss attributable to non-controlling interests, share-based compensation, certain one-time or non-recurring items and other adjustments. Adjusted Weighted Average Common Shares Outstanding is defined as the weighted average number of common shares outstanding as used in the diluted net loss per share calculation, adjusted for the assumed conversion of the non-controlling interest's Rush Street Interactive, LP Class A units to Class A common stock of RSI on a one-to-one-basis.

RSI includes these non-GAAP financial measures because management uses them to evaluate RSI's core operating performance and trends and to make strategic decisions regarding the allocation of capital and new investments. Management believes that these non-GAAP financial

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measures provide investors with useful information on RSI's past financial and operating performance, enable comparison of financial results from period-to-period where certain items may vary independent of business performance, and allow for greater transparency with respect to metrics used by RSI's management in operating our business. Management also believes these non-GAAP financial measures are useful in evaluating our operating performance compared to that of other companies in our industry, as these metrics generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

**Key Metrics** 

RSI provides certain key metrics, including MAUs and ARPMAU, in this press release. RSI defines MAUs as the number of unique users per month who have placed at least one real-money bet across one or more of our online casino or online sports betting offerings, and it defines ARPMAU as average revenue for the applicable period divided by the average MAUs for the same period.

The numbers RSI uses to calculate MAUs and ARPMAU are based on internal RSI data. While these numbers are based on what RSI believes to be reasonable judgments and estimates of its customer base for the applicable period of measurement, there are inherent challenges in measuring usage and engagement with respect to RSI's online offerings across its customer base. Such challenges and limitations may also affect RSI's understanding of certain details of its business. In addition, RSI's key metrics and related estimates, including the definitions and calculations of the same, may differ from estimates published by third parties or from similarly-titled metrics of its competitors due to differences in operations, offerings, methodology and access to information. RSI regularly reviews, and may adjust its processes for calculating, its internal metrics to improve their accuracy.

**Forward-Looking Statements**

This press release includes "forward-looking statements" within the meaning of the "safe harbor"

provisions of the Private Securities Litigation Reform Act of 1995. RSI's actual results may differ

from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, statements regarding guidance, RSI's future results of operations, financial condition or profitability, currency fluctuations, RSI's strategic plans and focus, anticipated launches of RSI's current or new offerings in existing or future jurisdictions, player growth and engagement, product initiatives and the objectives of management for future operations. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside RSI's control and are difficult to predict. Factors that may cause such differences include, without limitation: changes in applicable laws or regulations; RSI's ability to manage and sustain growth; RSI's ability to execute its business plan, meet its projections and obtain relevant market access and/or gaming licenses; unanticipated product or service delays; general economic and market conditions impacting the demand for RSI's products and services; economic and market conditions in the gaming, entertainment and leisure industry in the markets in which RSI operates; the potential adverse effects of COVID-19 on capital markets, general economic conditions, inflation rates, unemployment and RSI's liquidity, operations and personnel; and other risks and uncertainties indicated from time to time in RSI's filings with the SEC. RSI cautions that the foregoing list of factors is not exclusive. RSI cautions readers not to place

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undue reliance upon any forward-looking statements, which speak only as of the date made. RSI does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

**Media Contacts:**

Lisa Johnson

(609) 788-8548

lisa@lisajohnsoncommunications.com

**Investor Contact:**

ir@rushstreetinteractive.com

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**Rush Street Interactive, Inc.**

**Consolidated Condensed Statements of Operations**

*(Unaudited and in thousands, except per share data)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Revenue** | $**165534** | $**130565** | $**592212** | $**488105** |
| **Operating costs and expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of revenue | 106603 | 86477 | 414664 | 332145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising and promotions | 63666 | 64640 | 220460 | 190476 |
| &nbsp;&nbsp;&nbsp;&nbsp;General administration and other | 19371 | 14868 | 67561 | 55518 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 4259 | 1650 | 14325 | 4245 |
| Total operating costs and expenses | 193899 | 167635 | 717010 | 582384 |
| **Loss from operations** | **(28365)** | **(37070)** | **(124798)** | **(94279)** |
| **Other income (expenses)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expense), net | 91 | (146) | (573) | (187) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities |  |  |  | 41802 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earnout interests liability |  |  |  | (13740) |
| Total other income (expense) | 91 | (146) | (573) | 27875 |
| **Loss before income taxes** | **(28274)** | **(37216)** | **(125371)** | **(66404)** |
| Income tax expense | 2785 | 907 | 8961 | 4688 |
| **Net loss** | **(31059)** | **(38123)** | **(134332)** | **(71092)** |
| Net loss attributable to non-controlling interests | (22070) | (27718) | (95701) | (51603) |
| **Net loss attributable to Rush Street Interactive, Inc.** | $**(8989)** | $**(10405)** | $**(38631)** | $**(19489)** |
| Net loss per common share attributable to Rush Street Interactive, Inc. – basic | $(0.14) | $(0.17) | $(0.61) | $(0.35) |
| Weighted average common shares outstanding – basic | 64272722 | 59581075 | 63532906 | 56265541 |
| Net loss per common share attributable to Rush Street Interactive, Inc. – diluted | $(0.14) | $(0.17) | $(0.61) | $(0.51) |
| Weighted average common shares outstanding – diluted | 64272722 | 59581075 | 63532906 | 57426885 |

---

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**Rush Street Interactive, Inc.**

**Consolidated Statements of Comprehensive Loss**

*(Unaudited and in thousands)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Net loss** | $**(31059)** | $**(38123)** | $**(134332)** | $**(71092)** |
| **Other comprehensive loss** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign currency translation adjustment | (2109) | (1051) | (3886) | (2111) |
| **Comprehensive loss** | **(33168)** | **(39174)** | **(138218)** | **(73203)** |
| Comprehensive loss attributable to non-controlling interests | (23564) | (28483) | (98441) | (53168) |
| **Comprehensive loss attributable to Rush Street Interactive, Inc.** | $**(9604)** | $**(10691)** | $**(39777)** | $**(20035)** |

---

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**Rush Street Interactive, Inc.**

**Reconciliations of GAAP to Non-GAAP Financial Measures**

*(Unaudited and in thousands)*

**Adjusted EBITDA:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Net loss** | $**(31059)** | $**(38123)** | $**(134332)** | $**(71092)** |
| Interest (income) expense, net | (91) | 146 | 573 | 187 |
| Income tax expense | 2785 | 907 | 8961 | 4688 |
| Depreciation and amortization | 4259 | 1650 | 14325 | 4245 |
| Change in fair value of warrant liability |  |  |  | (41802) |
| Change in fair value of earnout interests liability |  |  |  | 13740 |
| Share-based compensation expense | 6790 | 4207 | 18691 | 24912 |
| **Adjusted EBITDA** | $**(17316)** | $**(31213)** | $**(91782)** | $**(65122)** |

---

**Adjusted Operating Costs and Expenses:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **GAAP operating costs and expenses:** |  |  |  |  |
| Costs of revenue | $106603 | $86477 | $414664 | $332145 |
| Advertising and promotions | 63666 | 64640 | 220460 | 190476 |
| General administration and other | 19371 | 14868 | 67561 | 55518 |
| Depreciation and amortization | 4259 | 1650 | 14325 | 4245 |
| **Total GAAP operating costs and expenses** | $**193899** | $**167635** | $**717010** | $**582384** |
| **Non-GAAP operating cost and expense adjustments:** |  |  |  |  |
| Costs of revenue<sup>1</sup> | $(248) | $(297) | $(987) | $(1808) |
| Advertising and promotions<sup>1</sup> | (516) | (634) | (2048) | (3605) |
| General administration and other<sup>1</sup> | (6026) | (3276) | (15656) | (19499) |
| Depreciation and amortization |  |  |  |  |
| **Total non-GAAP operating cost and expense adjustments** | $**(6790)** | $**(4207)** | $**(18691)** | $**(24912)** |
| **Adjusted operating costs and expenses:** |  |  |  |  |
| Costs of revenue | $106355 | $86180 | $413677 | $330337 |
| Advertising and promotions | 63150 | 64006 | 218412 | 186871 |
| General administration and other | 13345 | 11592 | 51905 | 36019 |
| Depreciation and amortization | 4259 | 1650 | 14325 | 4245 |
| **Total adjusted operating costs and expenses** | $**187109** | $**163428** | $**698319** | $**557472** |

---

<sup>1</sup>Non-GAAP operating cost and expense adjustments for the three-and-twelve months ended December 31, 2022 and 2021 include Share-based compensation expense.

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**Rush Street Interactive, Inc.**

**Reconciliations of GAAP to Non-GAAP Financial Measures**

*(Unaudited and in thousands, except share and per share data)*

**Adjusted Net Loss, Adjusted Weighted Average Common Shares Outstanding and Adjusted Net Loss Per Share:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended December 31,** | **Three months ended December 31,** | **Twelve months ended December 31,** | **Twelve months ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Adjusted Net Loss** |  |  |  |  |
| Net loss attributable to Rush Street Interactive, Inc. – diluted<sup>1</sup> | $(8989) | $(10405) | $(38631) | $(29058) |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to non-controlling interests | (22070) | (27718) | (95701) | (51603) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities attributable to non-controlling interests |  |  |  | (32233) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of earnout interests liability |  |  |  | 13740 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 6790 | 4207 | 18691 | 24912 |
| **Adjusted Net Loss** | $**(24269)** | $**(33916)** | $**(115641)** | $**(74242)** |
| **Adjusted Weighted Average Common Shares Outstanding** |  |  |  |  |
| Weighted average common shares outstanding – diluted<sup>2</sup> | 64272722 | 59581075 | 63532906 | 57426885 |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversion of weighted average RSILP units to Class A Common Shares | 156255867 | 159657590 | 156660156 | 159335977 |
| **Adjusted Weighted Average Common Shares Outstanding** | **220528589** | **219238665** | **220193062** | **216762862** |
| Net loss per common share attributable to Rush Street Interactive, Inc. – diluted | $(0.14) | $(0.17) | $(0.61) | $(0.51) |
| **Adjusted Net Loss per Share** | $**(0.11)** | $**(0.15)** | $**(0.53)** | $**(0.34)** |

---

<sup>1</sup>Net loss attributable to Rush Street Interactive, Inc. – diluted for the twelve months ended December 31, 2021, includes the Net loss attributable to Rush Street Interactive, Inc. adjusted for the dilutive effect of previously outstanding warrants that were redeemed in March 2021 (i.e., the portion of the change in fair value of warrants attributed to Rush Street Interactive Inc.). There was no dilutive effect for the three months ended December 31, 2021 or the three-and-twelve months ended December 31, 2022.

<sup>2</sup>Weighted average common shares outstanding – diluted for the twelve months ended December 31, 2021, includes the basic number of weighted average common shares outstanding, adjusted for the dilutive effect of previously outstanding warrants that were redeemed in March 2021 using the Treasury Stock Method. There was no dilutive effect for the three months ended December 31, 2021 or the three-and-twelve months ended December 31, 2022.