Rush Street Interactive (RSI), the digital gaming arm of Rush Street Gaming, used its third-quarter 2025 earnings call to emphasize a disciplined approach to prediction markets while highlighting momentum in its regulated core.
CEO Richard Schwartz said the company will not pioneer prediction-market offerings amid unsettled federal and state legality.
Key Takeaways
- RSI will not be a first mover in prediction markets; compliance and license protection take precedence.
- The strategic focus remains on its regulated iCasino and sportsbook, where RSI sees durable growth and superior retention.
- Prediction markets are viewed more as a policy catalyst that could speed iCasino legalization than as a current product priority.
Schwartz emphasized that safeguarding state gaming licenses outweighs chasing a still-ambiguous category. "We aren't going to be a pioneer," he noted, framing any future participation as contingent on clear, uniform rules and an even competitive field.
RSI is concentrating leadership time, capital, and product resources on its highest-value engine: online casinos, complemented by a steadily improving sportsbook. The company highlighted its record sales and faster user growth in North American iGaming markets, attributing these gains to its own technology, improved marketing efficiency, and accelerated product iteration.
Schwartz also cast prediction markets as a potential legislative accelerant rather than a near-term product lane. If they erode taxable sportsbook revenue, he argued, states could move faster to legalize online casinos, an outcome that would favor RSI's capabilities and economics.
The company reiterated it will continue to watch prediction markets and adopt proven features only within a clearly regulated framework. In the meantime, RSI's focus remains on expanding into jurisdictions where iGaming is legal or imminent and on advancing product differentiation and payment innovation that deepen retention in its core.
Caesars maintains cautious approach to prediction markets
Large hospitality and gambling conglomerates, such as Caesars Entertainment, are also exercising caution regarding prediction markets.
During the operator's Q3 2025 earnings call Oct. 28, CEO Tom Reeg reaffirmed that Caesars won't risk any of its licenses by engaging in unregulated contract-trading platforms, which many regulators have equated with sports betting.
Reeg said Caesars would only enter the prediction markets space "if there's a path that develops" that can ensure regulatory compliance. He added that the company is monitoring developments closely but will prioritize protecting its gaming licenses.
Caesars Digital president Eric Hession confirmed prediction market integration remains under review but said the company is in no rush to commit, preferring to see how competitors manage regulatory challenges first.
Regulators in Nevada, Pennsylvania, Michigan, and Arizona have all issued warnings that event-contract trading could violate gambling laws. As a result, many operators have paused or limited activities in these states until the legal status of prediction markets becomes clearer.
