Online gambling company Rush Street Interactive is leaning into its iGaming offerings as the company continues to enjoy sustained growth.
Richard Schwartz, CEO of Rush Street Interactive, said on Wednesday that iGaming was the “profit engine” of the gambling industry and would help the company “control its destiny.”
Key Takeaways
- CEO said the possibility for iGaming expansion is stronger than sports betting
- Schwartz views states with legal sports betting as attractive iGaming markets
- The company's sports betting revenue increased 15 percent year-over-year
Schwartz’s comments were made during Oppenheimer’s 28th Annual Technology, Internet & Communications Conference on Wednesday morning.
Joined by Rush Street Interactive CFO Kyle Sauers, Schwartz indicated that iGaming will continue to be the engine for his company for the foreseeable future.
“I think that would be right for us as a growth engine, and I think you’ll see from the states that report the data… online casinos are three times the size of the sportsbooks,” said Schwartz. “The excitement for this segment, and for our company, is that you only have (seven) U.S. states where it's legal, and represents only 12 percent of the U.S. population.
Rush Street’s CEO used New Jersey as an example for how iGaming growth is still occurring in a mature market. He said the Garden State, which legalized online casinos in 2013, is still growing “20 percent-plus per year,” while other states have shown even faster progress.
Schwartz also said that iGaming’s potential for development, combined with costs below those of traditional casinos, makes it an attractive industry in which to invest for the future.
“There’s so many more things we want to do,” said Schwartz. “Better methods for payments, more intuitive designs, more innovative features, and just being able to improve all aspects of the service we offer.
“From a cost standpoint, this is the most affordable way of having high-quality entertainment. You’re not having to travel, you’re not having gas, you’re not incurring hotel costs, or flight costs, or eating out costs, or… you can play a blackjack game for a nickel, compared to $10, $15, $20 minimums at a land-based property.”
Untapped potential
While sports betting is legal in 39 states, online casinos have many more jurisdictions they can still tap into.
Schwartz, when asked about which states he wanted to target, declined to name any directly, but said that there are market opportunities.
“I look at the states that have a larger deficit and ones that haven't legalized online casinos; ones that have sports betting are probably easier because you already have a regulatory framework set up,” said Schwartz. “I think states that are really heavy in the medicaid situation, there’s no way around it, you have to find incremental sources of revenue, and we’re sitting on the shelf as a very convenient, easy, reliable, consistent way of doing that.”
Despite its success in iGaming, Rush Street also doesn’t have any plans to back out of the sports betting mix.
According to Schwartz, giving customers more opportunities leads to a better product, better engagement, and better overall retention.
“Like poker, it’s important to have sports as a product and part of the mix,” he said. “A lot of states don’t allow online casinos, [but] sports are allowed, some of those states are going to add [internet] casinos. So being in those markets with a presence is important from an early start opportunity and crossing existing sportsbook players to casinos, which we know is a proven method of acquisition.”
Growth in 2025
Rush Street Interactive has had a highly successful 2025, showing accelerated online casino growth during Q2. It also increased its gross gaming revenue in Colombia by more than 50 percent, its market share growth rate by 25 percent in Ontario, and its sportsbook revenue by 15 percent year-over-year.
The company also now has a poker platform in Delaware, Michigan, Pennsylvania, and West Virginia, and has plans for New Jersey. It was also the first operator in West Virginia and is an exclusive operator in Delaware.
