Rush Street iGaming Emphasis Wards Off Prediction Market Threat
Posted on: April 29, 2026, 01:14h.
Last updated on: April 29, 2026, 01:14h.
- Rush Street Interactive isn’t feeling a prediction markets squeeze
- Its focus on iGaming is a big reason why
- The company says it’s catering to different clients
After posting banner first-quarter results and raising its 2026 guidance late Tuesday, Rush Street Interactive (NYSE: RSI) raced to an all-time high today. Not to be lost in the shuffle are the company’s comments around prediction markets.
Long viewed as one of the gaming stocks that offers protection from prediction markets’ rapid expansion, Rush Street, not in so many words, confirmed it’s thriving against a backdrop that’s increasingly onerous for some competitors. That boils down to an iGamng-centric strategy, which is beneficial in terms of keeping cost per acquisition (CPA) in a tolerable range.
I think it’s fair to say that we haven’t seen pressure from those entrants (prediction markets),” said CFO Kyle Sauers in response to a question from Macquarie analyst Chad Beynon on a Tuesday conference call. “I think a lot of that is that we’re searching for different types of players, and we’re searching for them in different places.”
The Rush Street financial boss added that with the company’s CPAs being as low as they’ve ever been, that’s “a pretty good indication” the operator isn’t adversely affected by the proliferation of yes/no exchanges.
Why It Matters to Rush Street Investors
Alone, the stock’s ascent to an all-time high today confirms Rush Street Interactive is in a fine state even as prediction markets boom and that may be enough for many investors, but there’s more to the story.
The operator’s commentary around low CPAs is particularly meaningful at a time when some rivals are decrying increased advertising expenses, much of which they blame on prediction markets buying up sports betting advertising space.
That leads into another important point. Rush Street Interactive generates approximately 80% of its revenue from iGaming. Not only is that a higher margin segment than online sports betting, but it keeps RSI’s prediction market vulnerabilities low relative to rivals.
Patient investors have been rewarded by RSI’s iGaming first strategy. Roughly three years ago, this was a $3 stock, but it resides north of $27 at this writing. During that time, the gaming company grew revenue at a 24% compound annual growth rate (CAGR) and earnings before interest, taxes, depreciation and amortization at a CAGR of 89%.
More iGaming Rewards Could Materialize
Unlike competitors such as DraftKings and FanDuel, Rush Street Interactive hasn’t pushed its own event contracts platform and it seems unlikely it will because with more states looking to raise revenue, particularly because they can’t yet tax prediction markets, more iGaming approvals could materialize in the years ahead,
Virginia is front-and-center in that conversation. Earlier this year, iGaming legislation advanced surprisingly far in the commonwealth and while it ultimately failed, there’s hope it will cross the finish line in 2027.
“We view Virginia as a real opportunity,” said RSI CEO Richard Schwartz on the conference call. “It’s encouraging the legislation progressed as far as it did this year, with versions passing both the Senate and the House. And so it’s a market that we have — we’re working with — collaborating with our peers. And it seems like a really exciting opportunity potentially for us in the next year.”
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