Rush Street Interactive posted another record quarter while doubling down on its casino-first strategy as rivals explore prediction markets.
The BetRivers and PlaySugarHouse parent reported fourth-quarter revenue of $324.9 million, beating analyst expectations. Full-year revenue reached $1.13 billion, exceeding the high end of prior company guidance, while adjusted EBITDA rose 66% to $153.7 million.
It announced 2026 adjusted EBITDA guidance of between $210 million and $230 million from revenue of $1.375 billion to $1.425 billion, roughly 5% above Street estimates.
RSI popped 20% after its earnings release to open Wednesday at $20.33, but that momentum was washed out by a 10.6% drop to close Wednesday at $18.18.
Strong quarter led by online casino
Online casino continues to drive the business. North American monthly active users grew 37% in the fourth quarter, including 51% growth in casino markets despite no new state launches.
Online casino revenue increased 30% in Q4 compared to 20% growth in sports betting.
Sports betting revenue grew 7% for the year. CFO Kyle Sauers attributed that to improved hold, a higher mix of parlays and expanded market offerings. He said that RSI recorded its highest U.S. sports hold levels on record in both Q3 and Q4, despite ongoing margin volatility across the industry.
“Our casino-first strategy continues to be a fundamental differentiator,” CEO Richard Schwartz said. “While we maintain a growing and profitable sports betting business, our focus on leading with online casino has positioned us uniquely in the market.”
Prediction markets watch continues
Analysts pressed executives repeatedly on prediction markets during the call as event contracts become increasingly central to the sports betting investment narrative.
Schwartz called it “not an area of high priority for us,” reiterating that online casino remains the company’s core focus.
“We have been monitoring it very, very closely,” Schwartz said. “If we need to react in some way at some point, we are able to do so.”
He described the nascent sector’s legal future as murky, calling it “more challenging to justify” prediction markets that center on an event being played for stakes, the same cautious stance the sportsbook industry had held for much of last year until recent launches from FanDuel, DraftKings and Fanatics.
He said prediction markets could eventually present cross-sell opportunities if the vertical matures, citing shared wallet infrastructure and player account systems across platforms.
BetRivers ‘doesn’t appear’ impacted
When asked whether the rise of platforms such as Kalshi and Polymarket has impacted sportsbook handle, Sauers said it is difficult to quantify.
“It doesn’t appear that it’s hurting our OSB business and handle, but it’s definitely hard to measure,” Sauers said.
Sauers added that RSI has not seen meaningful changes in promotional intensity across the competitive landscape even as sportsbook operators roll out their own prediction markets.
