Rush Street Opens Process to Launch Prediction Markets

It appears another sportsbook may soon join the prediction industry.

Rush Street Interactive has filed an application with the Commodity Futures Trading Commission to offer Designated Contract Markets (DCMs). The company, which operates the BetRivers and SugarHouse brands, filed under the name Eventive III, LLC. 

The operator has not released an official statement on the filing.

While RSI has not announced plans to offer prediction markets, it has never ruled out the possibility. It's also important to note that the application process can take years, and doesn’t guarantee the operator will actually launch a platform. 

DCMs are currently regulated by the CFTC, allowing them to circumvent state laws and regulations. It also allows operators to skip paying the exorbitant tax rates most mobile sportsbooks now face. However, lawsuits filed by a bipartisan group of states and lawmakers are attempting to change that.

BetRivers is the largest of RSI’s betting brands, operating mobile sportsbooks in 15 states and casinos in five. It also operates retail gambling locations across the US.

RSI’s Path to Predictions Will be Complicated

BetRivers Sportsbook wouldn’t be the first sports betting brand to enter the prediction industry. DraftKings, Fanatics, FanDuel, PrizePicks, and Underdog have all done so and are offering sports markets in non-betting states. 

All of those operators faced blowback from states over their new platforms, but moved forward with them anyway. The three larger platforms were too large for states to ban, while the two smaller operators sacrificed their sportsbooks to pursue predictions. Unfortunately for RSI, neither of those options will be on the table.

Unlike the five sportsbooks above, RSI is heavily invested in retail gambling. That requires solid relations with states, which must sign off on permits, set regulations, approve renovations, and more. 

RSI’s biggest investments have come in its home state of Illinois, which is currently locked in a legal fight with the prediction industry and CFTC. Lawmakers accuse prediction platforms of offering unlicensed gambling, and recently added a tax on the industry. 

That fight may be why RSI was hoping to keep its filing quiet. Now that the news is out, expect the operator to face some tense meetings as it continues to weigh its options.