Rush Street Interactive (RSI), the company behind BetRivers, may be preparing to enter the prediction markets business through a newly filed application tied to a federally regulated exchange, offering bettors an alternative to traditional offshore betting sites.
Testing the Waters?
A corporate entity identified as Eventive III has filed an application with the Commodity Futures Trading Commission (CFTC) that appears to be a link to Chicago-based gaming giant Rush Street Interactive, parent company of the mobile sportsbook, BetRivers.
While the filings do not directly name RSI, Susquehanna analyst Joseph Strauff said the structure appears to provide the sportsbook operator with a potential pathway into sports event contracts, navigating the evolving landscape of sports betting laws by state. According to Strauff, the arrangement would allow RSI to explore the sector without immediately committing significant resources to a full-scale launch.
An RSI representative declined to comment when asked about the report.
If the connection is confirmed, RSI would join a growing list of established sportsbook companies that have moved into prediction markets. Over the past year, operators including DraftKings, Fanatics, FanDuel, PrizePicks, and Underdog have all introduced products linked to event contracts or taken steps towards participation in the space.
The expansion comes as regulators continue to debate who should oversee these products. At the center of the dispute is whether sports event contracts are financial instruments governed by federal commodities laws or a form of sports wagering that falls under state gaming regulations.
RSI currently operates online sportsbooks in 15 states and offers online casino products in five states, along with Ontario. The company is also preparing to enter Alberta, where a regulated online gambling market is expected to launch in July.
Sportsbooks Pivoting to Prediction Market Sector
Elsewhere in the industry, DraftKings recently moved further into the prediction market business by self-certifying sports event contracts through Railbird, an exchange it acquired. The deal gives DraftKings direct control over the contracts it offers rather than relying on an outside exchange.
Yet, the major sportsbooks like DraftKings that have already pivoted into the prediction market space assert that they will not operate those prediction market brands in states where they are currently licensed as mobile sportsbook platforms.
For sportsbook operators, prediction markets represent an opportunity to reach customers in major states where online sports betting remains unavailable. California and Texas are often cited as key targets. In some cases, companies have begun integrating event contracts into their existing platforms, making the user experience look increasingly similar to traditional sports betting products.
Interest in the category surged after Kalshi expanded into sports-related contracts following President Donald Trump’s return to office. The company has said that sports contracts now account for more than 85% of its total trading activity.
The legal fight surrounding prediction markets shows no signs of slowing down. The CFTC has taken legal action against six states—Arizona, Connecticut, Illinois, Minnesota, New York, and Wisconsin—arguing that federal law gives the agency exclusive authority over event contracts.
State regulators, tribal gaming organizations, and many members of the gambling industry disagree. Their position is that sports event contracts closely resemble sports betting and should therefore be subject to state oversight and taxation.
The American Gaming Association has estimated that states could be losing more than $1 billion in tax revenue because of prediction markets. Kalshi has rejected that assessment, calling the calculation inaccurate and driven by casino-industry interests.
Although several states have warned operators about potential licensing consequences, Nevada remains the only jurisdiction to take formal action. Regulators there required DraftKings and FanDuel to withdraw licenses and related applications connected to the state.
For now, some of the industry’s largest casino-affiliated companies—including MGM Resorts, Caesars, and Penn Entertainment—have largely stayed on the sidelines. Their extensive operations in Nevada may make participation in prediction markets a more complicated decision than it is for competitors with fewer ties to the Silver State’s gaming sector, where strict regulatory standards and resources on how to gamble responsibly remain central to operations.
