Prediction Markets Surprise: Rush Street Interactive May Enter the Arena
Posted on: May 27, 2026, 06:03h.
Last updated on: May 27, 2026, 06:03h.
- Rush Street Interactive recently filed for a designated contract market (DCMs) license
- That could pave the way for the gaming company to enter the prediction market industry
- The stock has long been viewed as protection against protection markets expansion
Rush Street Interactive (NYSE: RSI) last week filed for a designated contract market (DCMs) license, indicating the iGaming operator may be considering entering the prediction markets arena.
That’s something of a surprise because Rush Street Interactive, which recently increased its 2026 outlook, has been somewhat standoffish regarding possibly entering the prediction markets space. However, Wall Street likes the move particularly against the backdrop of President Trump making clear he wants the Commodities Futures Trading Commission (CFTC) to maintain regulatory oversight of the event contracts industry.
With President Trump’s endorsement yesterday that the CFTC maintain exclusive authority over PM (not the states), the pending rule-making process by the CFTC becomes even more important (we estimate a 3Q26 release where some of the props markets are likely to be narrowed given what we think is the CFTC’s bright line on clarifying settlement mechanisms),” said Susquehanna analyst Joseph Strauff in a report to clients.
In a Tuesday social media post, Trump said it’s critical the CFTC continue regulating prediction while applauding the efforts of Chairman Michael and bashing several Democrat politicians for opposing the industry’s growth.
RSI Has Prediction Markets Flexibility
The DCM license is needed for any aspiring prediction market operator in the US, but even if Rush Street Interactive is approved for it, that doesn’t mean the company needs to pursue developing or acquiring a yes/no exchange.
Strauff highlighted that flexibility and it may come as some relief to investors that have boosted the stock on the grounds that it’s the “anti”-prediction markets play. While shares of sportsbook-centric competitors such as DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT) tumbled over the past year, shares of Rush Street Interactive are higher by 126.8% over that period due in large part to the operator’s iGaming-first approach.
The company’s focus on internet casinos has generated consistently stronger financial performance while keeping it out of prediction market crosshairs, providing investors with an avenue for expressing online gaming views while gaining some insulation from the prediction market competitive threat.
Are There Prediction Market Risks for RSI?
As of yet, Rush Street Interactive hasn’t confirmed that it wants to run a prediction market. It’s possible the DCM filing is nothing more than the company covering its bases.
Still, there are potential risks should the company move into the prediction market space. First, it’s an ultracompetitive industry populated by larger, well-heeled operators from across the financial services and sports betting landscapes.
Second, there’s speculation that with states unable to wring tax benefits from federally regulated prediction markets, more may legalize iGaming. That’d likely be to Rush Street’s benefit, but some state regulators have cautioned operators licenses could be at risk if they pursue event contracts exposure.
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