Rush Street Interactive (RSI) had not publicly announced a response to the new per-wager tax rate implemented by Illinois on licensed online sports betting operators but executives confirmed on Wednesday evening that they have acted.
Speaking on the BetRivers operator’s Q2 earnings call on July 30, RSI leaders were asked about the impacts of recent tax changes in both Illinois, which began charging online sportsbooks at least 25 cents per wager, and New Jersey, which raised its tax rate for online sportsbooks and casinos to 19.75%.
“On Illinois, we haven’t shared plans yet on exactly what we plan to do,” said Chief Financial Officer Kyle Sauers. “We’re trying to make sure we’re blending goals of a great player experience but also appropriate economics for us.
“What we have done to date is we’ve moved the minimum bet up to $1. That’s the move thus far, but we’re remaining flexible to figure out the right way to approach it as we get towards NFL season.”
RSI confirmed to SBC Americas that it has a 10-cent minimum bet in all other markets, and that was the minimum in Illinois until the recent change.
With BetRivers’ $1 minimum bet in place, that now makes at least six online sportsbooks that have announced a mitigation measure in Illinois. FanDuel, DraftKings and Fanatics have all declared that they will pass the costs onto their customers in the form of a transaction fee on every bet placed. FanDuel and DraftKings proportionally pay more tax on their revenue in Illinois than other operators after the state moved to a progressive sports betting tax rate last year.
Meanwhile, BetMGM and Hard Rock Bet each confirmed to SBC Americas earlier this month that they have installed minimum bet stakes in the state, rather than a transaction fee. BetMGM and Hard Rock’s minimum bet amounts in Illinois are both higher than BetRivers’, at $2.50 and $2, respectively.
RSI rushes to another record quarter
Sauers and RSI CEO Richard Schwartz were speaking after the company announced new record revenue and adjusted EBITDA for a ninth quarter in a row.
Q2 2025 produced new highs in those two metrics, as well as profitability, EBITDA margin and active player counts. Adjusted EBITDA soared 88% year over year to $40.2 million, revenue was up 22% to $269.2 million and RSI posted a net income of $28.8 million versus a net loss of $0.3 million during the second quarter of 2024.
The growth was driven by online casino, where revenue rose 25%. BetRivers’ online sports betting revenue grew 15%. Monthly active users in North America rose by 30% and MAUs had an average revenue per user of nearly $400. Schwartz picked out Michigan, West Virginia and Delaware as particular U.S. highlights; revenue grew by more than 40% YOY in all three of those states.
In all of those markets, RSI offers both online sports betting and online casino gaming. Schwartz and Sauers both stressed on the call that RSI sees itself as an iGaming-first operator that also offers sports wagering. On the sports front, the CFO noted that improved sports outcomes for operators in Q2 compared to prior quarters meant that “North American hold in sports probably picked us up around $5 million in revenue.”
Prediction markets ‘could work out well for us’
While no new states have legalized online casino so far in 2025, Schwartz echoed what several of his counterparts at other major operators have said recently by suggesting that the number of states discussing the possibility in the legislature offers momentum and hope for further market expansion.
“We have a lot of emerging opportunities, I think, in the future that are going to exist for iCasino,” the CEO ventured.
And, as has become the trend on gambling operators’ earnings calls, Schwartz was asked for his perspective on prediction markets offering sports events contracts.
“For us, we are a casino-first company, so we don’t see the same risks to our existing business as others do,” he responded. “On the contrary: if prediction markets increase the chances of tax dollar erosion for states that have legal online sports betting, I think a very real possibility is that it could accelerate the legalization of iCasino, which doesn’t have the same level of risk.
“So, I think it could work out well for us, ultimately.”
