Rush Street Interactive is keeping prediction markets at arm’s length while ensuring it has a way into the sector if the competitive or regulatory landscape changes.
During its second-quarter earnings call, the BetRivers parent publicly explained the reasoning behind two pending Commodity Futures Trading Commission (CFTC) applications filed in May. CEO Richard Schwartz described the applications as a precaution that would leave RSI prepared to respond if conditions change, rather than signal an imminent product launch.
“We do view the applications as a way to preserve our strategic flexibility, to maintain our optionality … [and] ensure that we’re not caught flat-footed should the market or regulatory environment evolve in a way that becomes relevant for our business,” Schwartz said. “It’s really just being prepared and preserving optionality.”
The comments came during RSI’s first earnings call since the Eventive applications were publicly linked to the company. Approval of the applications for designated contract market (DCM) and derivatives clearing organization (DCO) could give RSI control of both an exchange and the infrastructure used to clear and settle its contracts.
The filings amount to a cautious hedge from a company that says prediction markets have not materially affected its business. While DraftKings, FanDuel and Fanatics have moved into federally regulated event contracts, several other iGaming and sportsbook operators have remained on the sidelines, warning about regulatory risk and saying they will continue to monitor the market.
RSI moves beyond wait-and-see stance
Until recently, RSI counted itself among the operators taking a wait-and-see approach.
During the company’s 2025 Q4 earnings call in February, Schwartz noted that sports contracts were driving much of the activity in prediction markets, an area outside RSI’s primary focus.
“Prediction markets today are primarily benefiting from sports event contracts, which is not an area of high priority for us,” Schwartz said.
During the Q&A portion of the call, Schwartz said RSI had been closely monitoring the sector and could respond if necessary. CFO Kyle Sauers said the company had not detected a clear effect on its sportsbook results.
“It doesn’t appear that it’s hurting our OSB business and handle, but it’s definitely hard to measure,” Sauers said.
RSI also emphasized its casino-first strategy during a May 14 Needham investor conference. Schwartz described the resources and attention rivals were devoting to prediction markets as a distraction that created an opportunity for RSI to remain focused on growing its online casino business. He also said the company was monitoring the sector and had strategies in place to avoid being caught unprepared if an attractive opportunity emerged.
By then, Eventive IV had already submitted its DCO application. Eventive III filed its DCM application six days after Schwartz’s remarks.
Regulatory uncertainty makes flexibility valuable
The Q2 call made explicit how those filings fit into RSI’s strategy. In his prepared remarks, Schwartz drew a distinction between the company’s current priorities and its reason for seeking federal approval.
“As we have stated previously, we continue to operate with a casino-first focus and do not intend to lean into the crowded sports-focused prediction market space,” Schwartz said. “However, the prediction markets landscape is highly dynamic, and we will continue to monitor developments in the space. This filing ensures we have the flexibility to navigate all possible outcomes.”
Those outcomes remain uncertain. The CFTC is considering new rules governing sports and other event contracts, as a growing series of state and federal lawsuits tests whether states can apply their gambling laws to federally regulated exchanges. Some states have sued or taken enforcement action to restrict sports event contracts, prompting the CFTC to file its own cases asserting exclusive federal jurisdiction over the markets.
A durable federal path could make RSI’s exchange and clearinghouse approvals more valuable. Contract restrictions could make a sports-focused launch less attractive. The applications allow RSI to prepare for either direction without committing to enter the market now.
Other major iGaming operators remain cautious
RSI’s applications stand out among iGaming and sportsbook operators that have remained outside prediction markets, even as some report mounting pressure from the sector.
BetMGM CEO Adam Greenblatt identified prediction markets as the “primary macro impact” affecting the company’s online sportsbook during its Q2 business update. BetMGM has reduced marketing in some states as it competes with prediction market operators for customers, but has not announced plans to enter the sector. Management instead said restrictions on sports event contracts could return some activity to licensed sportsbooks.
PENN Entertainment has also linked prediction market spending to increased customer-acquisition costs and potential pressure on sportsbook handle. CEO Jay Snowden said during PENN’s first-quarter earnings call that the company remained focused on Canada and online casino expansion rather than responding directly to prediction market competition.
Caesars has taken a similarly cautious position. CEO Tom Reeg said during the company’s 2025 Q4 earnings call that Caesars did not expect to participate in prediction markets under the current regulatory framework because doing so could put its brick-and-mortar gaming licenses at risk, while leaving open the possibility of entering if a path acceptable to state regulators emerges. Caesars did not mention prediction markets in its recent Q2 earnings release. Its longer-term position is also less certain because the company has agreed to be acquired by Fertitta Entertainment, although Caesars said Reeg and the existing management team are expected to remain after the transaction closes.
Bet365 is similarly staying away from prediction markets for now. A person familiar with bet365’s U.S. strategy told DeFi Rate in June that event contracts were not currently part of its plans, although the company was continuing to watch the sector.
Those public positions do not necessarily reveal everything happening internally. Operators that say they are monitoring prediction markets could be developing partnerships, pursuing registrations or preparing other strategies that have not yet surfaced through regulatory filings or company announcements.
RSI starts with exchange infrastructure
Based on publicly known information, RSI is taking a different path from the major gaming companies that have already launched prediction market products.
FanDuel entered through a joint venture with CME Group. FanDuel Predicts operates through a non-clearing futures commission merchant (FCM) and initially offered contracts listed on CME’s exchange, allowing the company to launch the product without owning a DCM.
Fanatics Markets also began as an intermediary. Its registered introducing broker connected customers to contracts listed by Crypto.com’s CDNA exchange. Fanatics is now moving toward greater control through its planned acquisition of Water Street Labs and CX Clearinghouse, which would give it its own DCM and DCO.
DraftKings Predictions launched through a registered introducing broker, with Wedbush Securities providing FCM services. It initially offered contracts from CME Group and later added Crypto.com markets. DraftKings had already acquired the CFTC-approved Railbird exchange but continued using outside exchanges while preparing the venue for launch. The company launched and integrated its proprietary DKeX exchange in June.
Rather than launching first through an outside exchange, RSI is seeking exchange and clearinghouse approvals before committing to a consumer-facing prediction market product. If the CFTC approves both applications, it could eventually launch with control of the exchange that lists its contracts and the clearinghouse that processes them, rather than depending on third-party market infrastructure.
RSI did not respond to DeFi Rate’s request for additional comment about the Eventive applications or what could lead the company to launch a prediction market product. We will update this story if the company does respond.
