Rush Street Interactive Prioritizes Caution on Prediction Markets Amid Strong Q3 Growth

Rush Street Interactive (RSI) struck a confident yet measured tone in its Q3 2025 earnings call, making clear it will stay on the sidelines of the still-uncertain prediction market space while doubling down on regulated iGaming and sportsbook operations.

Good to Know

• RSI reported Q3 2025 revenue of $277.9 million, up 20% year-over-year.
• North American online casino MAUs rose 46%, while Latin America MAUs grew 30%.
• The company raised its full-year revenue outlook to $1.10–$1.12 billion.

CEO Richard Schwartz made it clear that preserving regulatory stability remains a higher priority than exploring legally gray areas. “We aren’t going to be a pioneer,” he said, emphasizing that any future entry into prediction markets would depend on consistent, transparent rules across states.

Instead, RSI is concentrating on what it already does best: online casinos and a steadily improving sportsbook. Schwartz noted that these segments remain the company’s primary growth drivers, powered by its proprietary technology, improved marketing efficiency, and faster product development cycles.

The company posted a record-breaking quarter with revenue rising 20% year-on-year to $277.9 million and net income climbing to $14.8 million from $3.2 million a year earlier. Adjusted EBITDA rose 54% to $36 million, while adjusted marketing expenses declined slightly to $38.1 million — underscoring RSI’s focus on profitability and disciplined spending.

In the United States and Canada, RSI reached about 225,000 Monthly Active Users (MAUs), up 34% year-over-year, with an ARPMAU of $365. In Latin America, MAUs climbed to 415,000, a 30% increase, with an ARPMAU of $27. The company attributed these gains to ongoing expansion in regulated iGaming markets and better retention through payment and product innovation.

Schwartz said the company views prediction markets as an interesting but secondary development. He described them as a “potential legislative accelerant” that could, over time, prompt states to legalize online casinos more broadly if they start eroding taxable sportsbook revenue. That shift, he added, would play directly to RSI’s strengths.

The company reaffirmed its commitment to monitoring the evolution of prediction markets but reiterated that it will only integrate such features once a clear regulatory path emerges. For now, the focus remains on expansion into legal jurisdictions and improving the customer experience through innovation and operational precision.

RSI also raised its full-year 2025 guidance, projecting revenue between $1.10 and $1.12 billion and Adjusted EBITDA of $147–$153 million, implying growth of around 20% and 62% respectively compared to 2024.

Richard Schwartz summarized the company’s approach succinctly:

“We’re pleased to report another strong quarter that underscores the resilience of our business model and player-first approach. Our third quarter results demonstrate continued momentum and acceleration of growth across key markets, led by our continued outperformance in the online casino space. Another quarter of record revenue, up 20% year-over-year, marks our tenth consecutive quarter of sequential revenue growth over the prior quarter. This growth was driven by record player acquisition and strong player engagement across our higher-value markets.”

He further highlighted the strength of RSI’s North American growth:

“What makes these results particularly compelling is the continued acceleration of growth in North American online casino markets. Delivering exceptional 46% year-over-year MAU growth, our United States and Canada online casino markets recorded the second highest quarterly growth rate since early 2021, achieved off a much larger player base. We’ve now seen accelerating year-over-year growth in this player base every single month since March, indicating strong underlying momentum that extends well beyond seasonal factors. We also had a record quarter as it relates to first-time depositors, beating our prior record by more than 10% while reducing marketing spend compared to the same period last year. This broad-based acceleration, even across our most mature markets validates our strategic approach of focusing on product differentiation and a high-quality customer experience.”

Looking ahead, RSI expects its momentum to continue as it scales operations across North America and Latin America while keeping its focus on player engagement and sustainable growth.

“As we look ahead, we remain deeply committed to our player-first approach, delivering exceptional experiences and innovating in ways to drive engagement, positioning us for continued momentum and long-term success,” Schwartz concluded.

FAQ

Why is RSI avoiding prediction markets for now?

The company believes the regulatory landscape remains unclear and prefers to wait for consistent federal and state rules before entering.

Where is RSI seeing the most growth?

North American online casino markets lead the way, with 46% MAU growth and record engagement levels.

What is RSI’s 2025 guidance?

Revenue is projected between $1.10 and $1.12 billion, and Adjusted EBITDA between $147 and $153 million.

Who is managing RSI’s strategy?

CEO Richard Schwartz continues to steer the company toward profitability through disciplined marketing, strong product execution, and regulated expansion.

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