Rush Street Interactive (RSI), the parent company of BetRivers, has been linked to a new venture aiming to break into the federally regulated prediction markets. This step highlights RSI’s strategic interest in a segment that has sparked regulatory debates. According to Susquehanna analyst Joseph Strauff, the move positions RSI to potentially roll out its sports event contracts without diving headfirst into the unpredictable waters of prediction markets. A spokesperson for RSI opted not to comment on the report.
In This News
Eventive III Application Raises Eyebrows
The recent application was initially surfacing in the Event Horizon newsletter, identifying Eventive III as the applicant. Filed with the Commodity Futures Trading Commission (CFTC) on May 20, the application hints at RSI’s broader play, despite their name not appearing in the public documents. And this follows a trend initiated by peers like DraftKings, Fanatics, FanDuel, PrizePicks, and Underdog, who have all carved a niche in prediction markets since late 2025. The legal market remains murky, with disputes ongoing over whether state or federal bodies should regulate these markets. BetRivers has a notable footprint, offering online sports betting in 15 U.S. And states and online casinos in five states plus Ontario. The launch of Alberta’s online casino and sportsbook market in July will mark RSI’s second foray into Canada.
DraftKings and Railbird: A Parallel Approach
DraftKings, not to be left behind, has self-certified its first sports event contracts through Railbird, an exchange distinctly under its control. This strategic move allows DraftKings to manage their contracts directly, sidestepping the need for external designated contract markets. Prediction markets have become a sweet spot for expansion, particularly in states like California and Texas where traditional sports betting remains illegal. The blurred lines between traditional betting and prediction markets have facilitated these operators to pivot seamlessly. A catalyst for this interest was Kalshi’s launch of sports event contracts shortly after President Trump’s return to office. And kalshi now sees more than 85% of its trading volume coming from such contracts, underscoring the large market interest.
Legal Battles and Regulatory Tensions
As the prediction market market shifts, legal skirmishes continue. The CFTC has taken states such as Arizona, Connecticut, Illinois, Minnesota, New York, and Wisconsin to court, insisting it has sole regulatory authority over these event contracts. However, state regulators and tribal entities argue these should be treated as sports betting, falling under state jurisdiction. The American Gaming Association claims that states are losing over $1 billion in potential tax revenue—an assertion Kalshi has rebuked as misleading. Some states have issued warnings that sports event contracts could endanger gaming licenses, with Nevada taking the most decisive action by compelling DraftKings and FanDuel to backtrack on their licensing aspirations there. Meanwhile, major casino stakeholders like MGM Resorts, Caesars, and Penn Entertainment have kept their distance from prediction markets, largely due to their Nevada operations.
What’s Next for RSI and the Industry?
Looking ahead, RSI’s path into prediction markets could set a precedent for other operators weighing similar strategic shifts. As legal and regulatory frameworks evolve, operators will keep a keen eye on the outcomes of CFTC’s lawsuits and state-level decisions. The ongoing developments may reach a pivotal moment with the next round of regulatory reviews expected in the fall.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
