Rush Street’s Casino-First Strategy Pays Off as Sportsbooks Slow

Rush Street Interactive’s focus on online casino gaming helped drive record second-quarter results as several larger U.S. competitors continued to wrestle with slowing sportsbook activity, higher promotional costs, and unpredictable sports outcomes.

Key Takeaways

• Rush Street Interactive posted record quarterly revenue and adjusted EBITDA, driven by continued strength in its online casino business.
  
  
• The company said online casino generated 72% of revenue, reinforcing its casino-first strategy as sportsbook growth slows across the industry.
  
  
• RSI raised its full-year guidance while highlighting that casino customers generate significantly more value than sportsbook-only players.

RSI generated $393.8 million in revenue during the three months ending June 30, an increase of 46% from the same quarter in 2025 and its fastest growth rate in more than four years. Adjusted EBITDA increased 61% to a record $64.6 million, giving RSI a quarterly adjusted EBITDA margin above 16%. 

The results highlight the value of RSI’s casino-first strategy at a time when sportsbook growth has become more difficult for some of the country’s largest operators. Online casino accounted for 72% of RSI’s second-quarter revenue, while the vertical’s revenue increased 40% year over year. 

“Our casino-first strategy continues to be the foundation of our business,” RSI CEO Richard Schwartz said in a statement announcing the results Wednesday. 

Enjoying Covers content? Add us as a preferred source on your Google account

Casino players deliver value

North American monthly active users increased 51% to approximately 296,000, led by a 64% increase in markets offering online casino gaming. Casino revenue increased 41% in Delaware, 27% in Michigan, and 42% in New Jersey.

BetRivers' parent company also reported a record number of first-time depositors for the fourth consecutive quarter. 

The growth helped RSI raise its full-year revenue guidance to between $1.56 billion and $1.6 billion, which would represent an increase of 38% to 41% from 2025. The company now expects adjusted EBITDA between $245 million and $265 million, up 59% to 72%. 

RSI’s investor presentation underscored the economics behind its online casino focus. The company estimates an iCasino player generates more than four times the gross gaming revenue of a sportsbook-only customer. A customer using both products generates nearly 12 times as much GGR as a sportsbook-only player.

Online casino also gives RSI access to a broader customer base. Women account for 51% of its North American casino customers but only 15% of its sportsbook-only users. Casino customers are also slightly older, averaging 40.1 years compared with 37.4 for sportsbook players. 

Larger operators feel sportsbook pressure

That customer mix has helped insulate RSI from some of the pressures affecting its larger, more sportsbook-focused competitors.

FanDuel parent Flutter reported that its first-quarter U.S. sportsbook handle declined 9% ,while sportsbook revenue increased only 1%. Sportsbook monthly players fell 6% as Flutter said FanDuel entered 2026 with a smaller customer base than expected following unfavorable late-2025 results. 

FanDuel's U.S. iGaming revenue increased 19%, although Flutter said profitability reflected prediction-market investments and new-state launch costs.

DraftKings produced stronger sportsbook revenue growth, but its underlying wagering volume also showed signs of moderation. First-quarter sportsbook handle increased approximately 1.5% to $14.08 billion from $13.88 billion. Sportsbook revenue grew 24%, primarily because its net revenue margin improved to 7.8% from 6.4%. 

The contrast suggests sportsbook operators are increasingly depending on higher hold percentages and more profitable wager types instead of the rapid handle expansion that characterized the industry’s earlier years.

BetMGM reported an even clearer split between its two online verticals during the second quarter. Its iGaming revenue increased 8% to $483 million, while online sports revenue was flat at $228 million. Sportsbook handle increased only 2% and monthly active users declined 3%.

The No. 3 combined U.S. online casino gaming and sportsbook operator also said it expects full-year revenue and adjusted EBITDA near the lower ends of its existing guidance ranges. The operator no longer expects to reach $500 million in adjusted EBITDA by 2027, citing the current market environment and prediction market regulatory complications. BetMGM reported Q2 adjusted EBITDA of $74 million, down 15% year over year.

Caesars Digital, which includes Caesars Sportsbook and online casino operations, reported Tuesday it generated $362 million in second-quarter revenue, up 8.7%. However, its adjusted EBITDA declined 15% to $68 million.

RSI made clear in Wednesday’s earnings report the company is not abandoning sports betting. 

Its sportsbook revenue increased 64% during the quarter as its markets benefited from the World Cup. The company also launched a shared-liquidity poker network across Pennsylvania, Michigan, Delaware, and West Virginia while expanding both online casino and sports betting into Alberta earlier this month.

Still, management views iCasino as the foundation connecting those products and generating higher-value customers over time.

“Looking ahead, we are confident in the strength and durability of our business,” Schwartz wrote. “We're executing well across our core markets, we're off to a strong start in Alberta, and we continue to see meaningful long-term opportunities ahead of us.”

Pages related to this topic