Rush Street Interactive Bets on iGaming Expansion as Prediction Market Competition Shifts the Landscape

Rush Street Interactive, the company behind the BetRivers brand, is leaning into online casino growth rather than chasing the prediction market boom, with CEO Richard Schwartz telling investors on Thursday that the competitive upheaval in sports betting is actually creating an opening for iGaming expansion. The comments came during a fireside chat in which Schwartz outlined how his company views the prediction market landscape as a tailwind for their casino-first strategy.

Schwartz said that as rivals DraftKings, FanDuel, fanatics/”>Fanatics, and others pour resources into prediction market products and regulatory battles, Rush Street is directing its attention toward states that may be receptive to online casino legalization. The company posted record first-quarter 2026 results, with revenue reaching 370.4 million dollars, a 41 percent increase year over year, driven largely by its North American online casino business.

The Strategic Logic Behind Staying Focused on Casino

“As others are distracted and focusing on that part of their business and having to spend huge amounts of money and executive attention on that, we’re focusing on executing and innovating further in the casino-first space,” Schwartz said. “And frankly, it’s given us a great chance to legalize online casino in some jurisdictions that are at risk of losing, in their perception, some of the revenues from sports betting and having less certainty on the future of that revenue stream.”

The reasoning is straightforward: if states see their sports betting revenue at risk from federally regulated prediction market platforms, they may be more willing to authorize iGaming as an alternative revenue source. Rush Street is positioning itself to be first in line when those conversations advance. Virginia came close to legalizing online casinos in 2026, with both chambers approving bills, but the House and Senate could not reconcile their competing proposals. Rush Street president Kyle Sauers described Virginia as approaching a 300 million dollar gross gaming revenue run rate similar to what the company is achieving in Michigan, calling it a “meaningful market.”

States on Rush Street’s Radar

Beyond Virginia, Rush Street is watching New York and Illinois, two populous states with lucrative sports betting markets that have not yet authorized commercial online casinos. Maine became the only U.S. jurisdiction to legalize online casinos in 2026, but a lawsuit has slowed the launch process. Sauers said Rush Street will remain “actively involved” in expanding to Maine once the legal process is resolved.

The company also cited a July 13, 2026 launch in Alberta, Canada, as a near-term expansion opportunity. Rush Street plans to be among more than 30 gaming operators entering the Alberta market when it opens, though executives acknowledged an expected 10 million dollar headwind from marketing and launch costs in the initial period.

For existing markets, the strategy is holding up well. Rush Street’s North American online casino monthly active users surged 62 percent year over year in the first quarter, and the company raised its full-year 2026 revenue guidance to a range of 1.49 billion to 1.54 billion dollars. Adjusted EBITDA guidance was lifted to 230 million to 250 million dollars.

Monitoring But Not Entering Prediction Markets Yet

Schwartz was careful not to dismiss prediction markets entirely. He said Rush Street continues to monitor the space and has strategies prepared in case an opportunity emerges. “We certainly are never going to be caught flat-footed. We’re always monitoring and have strategies in place should there be an opportunity that makes sense for us,” Schwartz said.

For now, the company is not competing directly with Kalshi, Polymarket, or the prediction market products launched by DraftKings and FanDuel. The position reflects both strategic choice and the regulatory uncertainty surrounding prediction markets, which are currently the subject of litigation in multiple states and active rulemaking at the federal level.

Rush Street’s casino-led approach is producing results at a moment when industry attention is divided across multiple fronts. Players looking for online casino options through BetRivers have access to the platform in states including New Jersey, Pennsylvania, Michigan, and West Virginia, with more states potentially on the horizon if iGaming legislation advances.