Rush Street Interactive (RSI), the parent company of the popular online sportsbook BetRivers, announced during its fourth-quarter earnings call that its success is attributable to the company’s focus on online gaming.
Rolling the Virtual Dice
Rush Street Interactive, parent company to the BetRivers and PlaySugarHouse brands, posted record numbers for the fourth quarter. The company “beat the Street” with $324.9 million in revenue for the final quarter of 2025, and revenue for last year was $1.13 billion, while EBITDA rose to $153.7 million, a 66% increase.
In the fourth quarter alone, the company’s online casino business activity rose 51% despite no expansions into other markets. BetRivers runs iGaming platforms in Michigan, New Jersey, Pennsylvania, and West Virginia while also operating as Delaware’s exclusive online casino and sports betting operator.
iGaming revenue increased 30% in Q4 versus 20% for mobile sports betting. Although sports betting revenue proved to be increasing last year, the company’s focus is on the more lucrative online casino gambling.
When asked whether RSI and BetRivers executives were concerned about the emerging prediction platform markets that are regulated by the Commodity Futures Trading Commission, Schwartz appeared unconcerned, stating, “We have been monitoring it very, very closely. If we need to react in some way at some point, we are able to do so.”
However, the company is so squarely focused on its iGaming segment that the perceived threat in the mobile sports betting world by the likes of Kalshi and other prediction markets is “not an area of high priority for us,” Schwartz reiterated.
Online Casino Gaming Is the Golden Goose
There is a distinct financial pecking order in the world of online gaming.
Daily fantasy sports (DFS) was the initial foray into the digital gaming landscape, followed by mobile sports betting, responsible for approximately 90% of the nationwide sports betting handle, while retail sportsbooks, normally housed inside casinos, comprise the other 10 percent.
However, online casino gambling, often referred to as iGaming, is the online gaming gold standard in terms of revenue. It has a guaranteed hold (win rate), and its revenue dwarfs that of mobile sports betting. Unfortunately for mobile sportsbooks that double as online casino platforms, states have not been nearly as welcoming to iGaming as they have to mobile sports betting.
Despite the allure of significant tax revenue generated by iGaming, state legislators have been apprehensive due to the addictive nature of their constituents having a 24-hour casino at the ready on a PC or mobile device.
However, iGaming has only been welcomed in eight states, with Maine becoming the latest to pass online casino gambling legislation this year.
Its industry is expected to launch in 2027, but as more states adopt it, the stigma is likely to dissipate, which is good news for the likes of BetRivers and all of those iGaming platforms looking to expand their national footprint.
