Rush Street Interactive’s CEO confirmed Wednesday that the company applied for designated contract market (DCM) registration with the Commodity Futures Trading Commission (CFTC).
However, Richard Schwartz told investors and analysts that they should not interpret that as anything more than a step to ensure that it can act nimbly and quickly in the future, should it choose to do so. A company called Eventive III, LLC with ties to Rush Street applied for DCM registration in May.
“This past quarter, we filed an application for a CFTC-designated contract market license,” Schwartz said in his prepared remarks on a second-quarter earnings call.
“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. The prediction markets landscape is highly dynamic and we will continue to monitor developments in this space, and this filing ensures we have the flexibility to navigate all possible outcomes as we look to the second half of 2026.”
Rush Street Interactive stays on PM sidelines
Asked about the application, Schwartz reiterated that the intention to become a registered DCM does not necessarily mean that Rush Street Interactive will follow other gaming operators who have become or acquired DCMs, allowing them to offer event contracts on their own in-house trading exchanges. That cohort includes:
- DraftKings
- Novig
- ProphetX
- Sporttrade
- Underdog
Most recently, Fanatics announced it is buying CFTC-registered Water Street Labs and CX Clearinghouse from New York-based financial services BGC Group Inc.
In contrast, Rush Street Interactive has echoed other operators with land-based license considerations such as MGM Resorts and Caesars in staying out of the fray. Executives said on past earnings calls that the fact they are an iGaming-first operator focused on online casino growth means the sports event contracts opportunity is less compelling for their business.
On Wednesday, Schwartz suggested that BetRivers U.S. operations are not seeing much impact from the spread of sports prediction markets, noting that they do not cater to the kind of sharp bettors that observers suggest use prediction markets.
That does not mean they want to shut the door entirely, though.
“We view the application 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 added. “It is really just being prepared and preserving optionality.”
Online casino fuels new quarterly records for RSI
Schwartz made those comments after Rush Street Interactive reported new quarterly records in revenue ($393.8m, up 46% year over year), adjusted EBITDA ($64.6m, up 61% year over year), and net income ($29.3m, up 1.7% year over year) for Q2. Its year-over-year revenue increase represented its fastest growth rate in over four years, which Schwartz noted came “even while operating from a significantly larger revenue base.”
Citizens analyst Jordan Bender noted that the EBITDA figure came in 8% ahead of consensus expectations. As a result, the operator raised its guidance for the full year, lifting the revenue projection to between $1.56bn and $1.6bn and its adjusted EBITDA outlook to $245-$265m. That would represent year-over-year growth of 39% and 66% at the midpoints, respectively.
Regionally, North American revenue grew 23%, while Latin American revenue almost tripled at +195%. Of Rush Street Interactive’s record 949,000 monthly active users across all markets, almost 300,000 were in North America and the number of MAUs on the continent grew 51% from Q2 2025.
Online casino represented 72% of the company’s revenue, said Schwartz, as the vertical “continues to be the foundation of our business.” Rush Street Interactive ranks in the top four operators for net online casino revenue across the U.S. and Schwartz added that the operator has been able to consistently take market share in that area.
In an investor presentation, the company noted that users of iCasino show higher engagement and greater spend per year than online sports betting-only users, and produce a gross gaming revenue that is more than four times higher than an online sports betting-only user.
Through its BetRivers, PlaySugarHouse and RushBet brands, Rush Street Interactive operates in 15 states and two Canadian provinces. It most recently launched in Alberta’s new dual-vertical market on day one on July 13.
Could bringing RushBet to US capitalize on Hispanic demographic?
RushBet is Rush Street Interactive’s primary LatAm-facing brand.
Bender asked Schwartz whether the company has considered bringing that platform to the U.S. to cater to the Spanish-speaking demographic. In a notable move, DraftKings launched a Spanish-language version of its app late last year, shortly before it rolled out sports prediction markets in states such as California and Texas.
“It is a conversation we do have internally at times, and certainly it is something we have considered,” Schwartz replied. “I think certainly a multi-brand strategy is something that every operator should consider at some point … Some jurisdictions are easier to have multiple brands, some are more challenging.
“But, ultimately, I do think that we have an opportunity to really cater to some of the Spanish-speaking Americans who would probably prefer at times to play a site that is very native for their preferred language.”
