Rush Street Interactive president: Operators don’t recognize the value of a good PAM
Richard Schwartz attributes part of Q3 revenue growth to the “under-appreciated” element of in-house account management technology
Rush Street Interactive (RSI) president Richard Schwartz has put the US operator’s 370% year-on year-revenue increase during Q3 partly down to the quality of its in-house technology stack.
Schwartz insisted one of the most valuable aspects of the platform is its player account management system (PAM), a component he believes is often overlooked by other operators.
“I feel that the quality differences between platforms is under-appreciated as it feels like many in the industry feel like all PAMs perform similar functions so will perform similarly,” Schwartz told EGR recently.
“Just like not all sportsbooks are the same quality, not all PAMs are the same in quality either, some convert and retain players materially better and have all kinds of functionality that makes them perform at premium levels.
“Many operators want to pay as little as possible for a PAM, not recognizing nor appreciating the massive disparity in performance between how the higher quality and average ones,” he added.
RSI uses Kambi’s sports betting engine as its sportsbook back-end but operates largely its own technology otherwise.
The operator’s in-house platform was key in securing early-stage PIPE investment after it announced it was going public via a SPAC.
“I think the technology barrier between those who have in-house capabilities and those who do not is really important when it comes to differentiating the player experience.
“Operators who have their own high-quality engineering teams, have the ability themselves to build extensions to the player experience yourself that players will notice and appreciate if done well,” Schwartz said.
RSI will likely close its reverse merger with dMY Technology this month after the SPAC holds a special shareholder meeting to vote on the deal on 29 December.