Illinois taxes on sports bets rise due to Rush Street's implementation of a $1 minimum bet
Rush Street Interactive (NYSE: RSI) has experienced a surge in its stock price, with a year-to-date increase of nearly 42%, following the company's raised 2025 revenue and EBITDA guidance and record sales highs.
The company's stock closed around $19.35 on August 1, 2025, despite a slight intraday dip, and has experienced a 93.31% increase over the past 52 weeks. RSI's market cap is approximately $4.45 billion, with substantial trading volume and a forward P/E ratio near 49, indicating expectations of continued growth.
In response to increased sports wagering taxes in Illinois, Rush Street Interactive implemented a $1 minimum bet requirement, joining BetMGM and Hard Rock Bet in setting a minimum bet mandate. This move, aimed at maintaining operational profitability in the face of higher regulatory costs, aligns with the company's raised guidance.
Analysts remain positive on RSI stock, with an average rating of "Strong Buy," though the 12-month price target of $18.25 is slightly below recent trading levels. The high beta of 1.80 suggests RSI’s stock price volatility is above the market average, possibly influenced by recent operational changes like tax-driven betting minimums.
Rush Street Interactive's CFO, Kyle Sauers, mentioned that they are trying to balance a great player experience with appropriate economics for the company. The updated guidance, for revenue of $1.05 billion to $1.1 billion and EBITDA of $133 million to $147 million, was highlighted by Citizens Equity Research Analyst Jordan Bender. The midpoints of the updated ranges imply growth of 51% in revenue and 16% in EBITDA for 2025.
Despite the new sports wagering tax levy of 25 cents per wager on an operator's first 20 million booked bets, with a rate doubling to 50 cents per bet for each wager placed after that, Rush Street Interactive has demonstrated resilience in the challenging regulatory environment.
In other developments, Rush Street Interactive concluded the second quarter with $241 million in cash on hand, and the company has not yet shared plans on how they will further approach the tax increase. DraftKings, Fanatics, and FanDuel in Illinois are not imposing bet size mandates but are charging per bet transaction fees instead.
Rush Street Interactive's stock is higher by 21.17% in late trading after delivering second-quarter results, making it one of the most expensive names across the gaming, lodging, and leisure space. The company's strong market performance and strategic responses to regulatory challenges continue to garner investor confidence.
- The increased sports wagering taxes in Illinois have led Rush Street Interactive to implement a $1 minimum bet requirement, similar to BetMGM and Hard Rock Bet.
- Despite the new 25 cent per wager tax levy on the first 20 million booked bets, Rush Street Interactive has demonstrated resilience in the challenging regulatory environment.
- Rush Street Interactive's strong market performance and strategic responses to regulatory challenges have made its stock one of the most expensive names in the gaming, lodging, and leisure space.
- Regional news outlets have been reporting on Rush Street Interactive's financial success, including its raised 2025 revenue and EBITDA guidance and record sales highs, within the context of the growing sports betting industry.
