What Happened?

Shares of online casino and sports betting company Rush Street Interactive (NYSE: RSI) jumped 3.7% in the morning session after analysts at Benchmark reiterated a Buy rating on the stock, stating that a recent drop in the share price was 'entirely unwarranted'. 

The firm believed investor concerns about competition from federally regulated prediction markets, such as Kalshi and Polymarket, were misplaced. Benchmark's reasoning was that Rush Street Interactive's business was largely protected, with 80% of its exposure in iCasino and only a small share of the U.S. sports-betting market. The firm highlighted that it had seen no evidence of licensed operators losing market share in regulated areas. Benchmark described the company as having 'accelerating fundamentals and one of the cleanest growth and margin expansion stories in online gaming.' This positive view was shared by other analysts, who held a general 'Buy' consensus rating on the stock.

After the initial pop the shares cooled down to $18.79, up 3.1% from previous close.

Is now the time to buy Rush Street Interactive? Access our full analysis report here.

What Is The Market Telling Us

Rush Street Interactive’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock dropped 4.2% on the news that a confluence of negative economic data pointed to a weakening economy, raising concerns about consumer spending, and news of a major investment in a competing betting platform hit the gambling sector.

A survey from the New York Fed showed that households' short-term inflation expectations rose, while their outlook on the job market weakened. Consumers expressed more concern about potential job losses and expected lower earnings growth, which could impact non-essential spending. Compounding these worries, the chief economist at Moody’s Analytics warned that 22 states showed clear signs of a recession.

Rush Street Interactive is up 36.8% since the beginning of the year, but at $18.79 per share, it is still trading 16.6% below its 52-week high of $22.53 from September 2025. Investors who bought $1,000 worth of Rush Street Interactive’s shares 5 years ago would now be looking at an investment worth $1,579.

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.