Rush Street Responds to Illinois Tax Hike with $1 Minimum on Sports Bets
Posted on: July 31, 2025, 01:25h.
Last updated on: July 31, 2025, 01:31h.
- Operator is the sixth to respond to Illinois’ tax increase
- Stock is soaring on bullish 2025 guidance
Count Rush Street Interactive (NYSE: RSI) among the gaming companies employing novel tactics for dealing with a recent sports wagering tax increase in its home state of Illinois. The company recently set a $1 minimum bet requirement in the state.
Rush Street is the sixth operator to respond to the state’s latest sports wagering tax increase that places a new levy of 25 cents per wager on an operator’s first 20 million booked bets, with that rate doubling to 50 cents per bet for each wager placed after that initial 20 million. The company is the third to set a minimum bet mandate, joining BetMGM and Hard Rock Bet in doing so. RSI’s $1 minimum is well below Hard Rock’s $2 minimum and BetMGM’s $2.50.
We haven’t shared plans yet on exactly what we plan to do. We’re trying to make sure that we’re blending goals of a great player experience, but also appropriate economics for us,” said CFO Kyle Sauers on the company’s second-quarter earnings conference call Wednesday. “What we have done to date is we’ve moved the minimum bet up to $1. So that’s the move thus far, but we’re remaining flexible to figure out the right way to approach it as we get towards NFL season.”
In the Land of Lincoln, DraftKings, Fanatics, and FanDuel aren’t imposing bet size mandates, but those companies are charging per bet transaction fees.
Rush Street Interactive Investors Don’t Mind at All
When the Illinois sports betting tax increase — the state’s second in a year — was revealed nearly two months ago, there was some chatter that Rush Street wouldn’t be financially pinched on par with rivals DraftKings and FanDuel. That could imply the minimum bet mandate is surprising.
Investors don’t mind. In late trading the day after the gaming company increased its 2025 guidance while delivering second-quarter results, shares of Rush Street Interactive are higher by 21.17% on volume that’s more than quadruple the daily average.
RSI told investors it expects 2025 revenue of $1.05 billion to $1.1 billion on earnings before interest, taxes, depreciation, and amortization (EBITDA) of $133 million to $147 million. At the midpoints of those ranges, implied growth is 51% and 16%, respectively.
“The $30M increase to revenue at the midpoint incorporates the better-than-expected results in the quarter but highlights the efficiencies across the business in 2H25 for its iGaming-focused operations,” wrote Citizens Equity Research Analyst Jordan Bender in a new report.
Rush Street Stock Not Cheap, But It’s Soaring
Aided by Thursday’s surge, Rush Street is higher by nearly 42% year to date, good for one of the best showings among all gaming equities. That performance is relevant because it shows the stock is delivering for investors while being richly valued.
Shares are trading at 16.4x consensus 2027 EBITDA, representing one of the most expensive names across the gaming, lodging, and leisure space, and in line with historical premium multiples across international gaming markets,” adds Bender.
RSI concluded the second quarter with $241 million in cash on hand, or $90 million above the low point seen two years ago.
No comments yet