Financial Analysis

Commitments and Contingencies Legal Matters The Company is not a party to any material legal proceedings and is not aware of any material pending or threatened claims. From time to time, however, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Other Contractual Obligations The Company is a party to several non-cancelable contracts with vendors and licensors for marketing, other strategic partnership-related agreements and leases where the Company is obligated to make future minimum payments under the non-cancelable terms of these contracts as follows ($ in thousands): From July 1, 2026 to December 31, 2026 $ 10,583 Year ending December 31, 2027 17,596 Year ending December 31, 2028 11,125 Year ending December 31, 2029 9,668 Year ending December 31, 2030 7,498 Thereafter 10,915 Total (1) $ 67,385 _____________________________________ (1) Includes obligations under license and market access commitments totaling $29.9 million, obligations under non-cancelable contracts with marketing vendors totaling $31.9 million and non-cancelable lease contracts totaling $5.6 million. Certain market access arrangements require the Company to make additional payments at a contractual milestone date if the market access fees paid through that milestone date do not meet a minimum contractual threshold. In these instances, the Company calculates the future minimum payment as the total milestone payment less any amount …

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Disaggregation of revenue for the three and six months ended June 30, 2026 and 2025, was as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Online casino and online sports betting $ 392,202 $ 267,520 $ 761,090 $ 528,401 Retail sports betting 452 464 708 791 Social gaming 1,122 1,233 2,339 2,432 Total revenue $ 393,776 $ 269,217 $ 764,137 $ 531,624

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Share-Based Compensation Incentive Plan The Company adopted the Rush Street Interactive, Inc. 2020 Omnibus Equity Incentive Plan, as amended from time to time (the 2020 Plan), to attract, retain and incentivize employees, certain consultants and directors who will contribute to the success of the Company. Awards that may be granted under the 2020 Plan include incentive stock options, non-qualified stock options, stock appreciation rights, restricted awards, performance share awards, cash awards and other equity-based awards. There is an aggregate of approximately 35.8 million shares of Class A Common Stock reserved under the 2020 Plan. The 2020 Plan will terminate on December 29, 2030. Restricted Stock Units (RSUs) The Company grants RSUs with service-based (time-based), performance-based (e.g., financial performance targets), and market-based (e.g., total shareholder return) vesting conditions. RSUs with service-based conditions generally vest over three to four years, with each tranche vesting annually. RSUs with performance-based and market-based conditions vest over a three-year period, subject to continued employment and the achievement of specified performance criteria. The grant-date fair value of RSUs with service-based and performance-based conditions is determined based on the quoted market price of the Companys Class A Common Stock, while RSUs with market-based conditions are valued using a Monte Carlo simulation. Share-based compensation expense is recognized over …

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Income Taxes Income tax expense (benefit) for the three and six months ended June 30, 2026 and 2025 was as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Income tax expense (benefit) $ 20,366 $ (115,017) $ 39,932 $ (109,952) The Company recognized a federal, state and foreign income tax expense of $20.4 million and $39.9 million during the three and six months ended June 30, 2026, respectively, compared to an income tax benefit of $115.0 million and $110.0 million during the same respective periods in 2025. The effective tax rates for the three and six months ended June 30, 2026 were 41.0% and 41.8%, respectively, and were 133.5% and 157.3% during the same respective periods in 2025. The difference between the Companys year-to-date effective tax rate and the U.S. statutory tax rate of 21% was primarily due to non-taxable income (loss) attributable to non-controlling interest, valuation allowance recorded on foreign tax credits, income tax rate differences related to the Companys foreign operations, and non-deductible expenses. On a quarterly basis, management considers new evidence, both positive and negative, that could affect its view of the future realization of its deferred tax asset and adjusts the valuation allowance when it is more likely than not that all or a portion of the deferred tax asset may not be realized. For purposes of forecasting taxable income, the Company relied on historical pre-tax earnings trends an …

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Recently Adopted Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , to modernize the accounting guidance for the costs to develop software for internal use. ASU 2025-06 amends the existing standard that refers to various stages of a software development project to align better with current software development methods, such as agile programming. Under the new standard, entities will commence capitalizing eligible costs when (i) management has authorized and committed to funding the software project, and (ii) it is probable that the project will be completed and the software will be used to perform the intended function. The new standard also supersedes the guidance related to costs incurred to develop a website. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments in this update permit an entity to apply the new guidance using a prospective, retrospective or modified transition approach. The Company early adopted ASU 2025-06 on a prospective basis effective for the fiscal year beginning January 1, 2026 and the adoption did not have a material impact on its condensed consolidated f …

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Related Parties The Companys related party transactions are described in more detail in the Companys 2025 Annual Report on Form 10-K. Any significant changes to those related party relationships during the three and six months ended June 30, 2026 are described below. Affiliated Land-Based Casinos Neil Bluhm and his adult children (including Mr. Andrew Bluhm and Ms. Leslie Bluhm, both members of the Board), through their individual capacities, entities or trusts that they have created for the benefit of themselves or their family members, and Greg Carlin, through his individual capacity, entities or trusts that he has created for the benefit of himself or his family members, are direct or indirect owners, directors and/or officers of certain land-based casinos. The Company has entered into certain agreements with these affiliated land-based casinos that create strategic partnerships aimed to capture the online gaming, online sports betting and retail sports services markets in the various states and municipalities where the land-based casinos operate. Royalties related to arrangements with affiliated casinos were $22.5 million and $41.3 million for the three and six months ended June 30, 2026, respectively, and $16.0 million and $33.4 million for the same respective periods in 2025, which were net of any consideration received from the affiliated casino for reimbursable costs, as well as costs that are paid directly by the affiliate casino on the Companys behalf. Receivables d …

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Revenue Recognition The Companys revenue from contracts with customers is derived from online casino, online sports betting, retail sports betting and social gaming. Disaggregation of revenue for the three and six months ended June 30, 2026 and 2025, was as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Online casino and online sports betting $ 392,202 $ 267,520 $ 761,090 $ 528,401 Retail sports betting 452 464 708 791 Social gaming 1,122 1,233 2,339 2,432 Total revenue $ 393,776 $ 269,217 $ 764,137 $ 531,624 Revenue by geographic region for the three and six months ended June 30, 2026 and 2025, was as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 United States and Canada $ 285,864 $ 232,613 $ 568,446 $ 457,475 Latin America, including Mexico 107,912 36,604 195,691 74,149 Total revenue $ 393,776 $ 269,217 $ 764,137 $ 531,624 Deferred revenue associated with online casino and online sports betting revenue and retail sports betting revenue includes unsettled customer bets and is included within players liabilities in the condensed consolidated balance sheets. Deferred revenue balances as of June 30, 2026 and December 31, 2025 were $11.1 million and $11.7 million, respectively. Deferred revenue that existed as of December 31, 2025 that remained unrecognized as of June 30, 2026 was immaterial. Deferred revenue balances as of June 30, 2025 and December 31, 2024 were $8.6 mill …

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Segment Reporting An operating segment is a component of an entity that: (i) engages in business activities from which it may earn revenues and incur expenses; (ii) has discrete financial information available; and (iii) is regularly reviewed by the entitys chief operating decision maker (CODM) for purposes of performance assessment and resource allocation. The Companys CODM is its chief executive officer. The Company manages its operations as a single operating segment that engages in online gaming and retail sports betting business activities. The Company derives its revenues from its gaming offerings such as real-money online casino, online sports betting and retail sports betting (i.e., sports betting services provided at bricks-and-mortar locations), as well as social gaming, which involves free-to-play games using virtual credits that users can earn or purchase. The accounting policies for this segment are consistent with those described in the summary of significant accounting policies. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets. The Companys revenue, significant expenses and net income for its consolidated segment are as follows: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands) 2026 2025 2026 2025 Revenue $ 393,776 $ 269,217 $ 764,137 $ 531,624 Less: Costs of revenue (1) 254,034 174,068 492,160 344,888 Sales and marketing (1) 48,579 36,177 94,810 74,992 General and administr …

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Summary of Significant Accounting Policies and Recent Accounting Pronouncements Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated balance sheet as of June 30, 2026 and the condensed consolidated statements of operations, comprehensive income, changes in stockholders equity and cash flows for the three and six months ended June 30, 2026 and 2025 are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable regulations of the U.S. Securities and Exchange Commission (SEC) regarding interim financial reporting. The condensed consolidated balance sheet as of December 31, 2025 was derived from audited consolidated financial statements. Certain information and note disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2025 included in the Companys Annual Report on Form 10-K, as filed with the SEC on February 18, 2026. The interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, whic …

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Stockholders Equity Non-Controlling Interests Non-controlling interests represent the Class A Common Units of RSILP (the RSILP Units) held by holders other than the Company. Non-controlling interests owned 50.18% and 56.46% of the RSILP Units outstanding as of June 30, 2026 and December 31, 2025, respectively. The table below illustrates a rollforward of the non-controlling interests ownership during the six months ended June 30, 2026: Non-Controlling Interest % Non-controlling interests ownership % as of December 31, 2025: 56.46 % Issuance of Class A Common Stock upon RSILP Unit Exchanges (5.72) % Issuance of Class A Common Stock and treasury stock under the equity compensation plan, net of shares withheld for employee taxes (0.76) % Issuance of Class A Common Stock in connection with the exercise of stock options (0.05) % Repurchase and retirement of Class A Common Stock 0.25 % Non-controlling interests ownership % as of June 30, 2026: 50.18 % Non-controlling interests owned 58.31% and 60.00% of the RSILP Units outstanding as of June 30, 2025 and December 31, 2024, respectively. The table below illustrates a rollforward of the non-controlling interests ownership during the six months ended June 30, 2025: Non-Controlling Interest % Non-controlling interests ownership % as of December 31, 2024: 60.00 % Issuance of Class A Common Stock upon RSILP Unit Exchanges (1.10) % Issuance of Class A Common Stock under the equity compensation plan, net of shares withheld for employee tax …

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