Online sports betting continues to chart “steady” expansion, and Rush Street Interactive (NYSE: RSI) has quietly emerged as one of the sector’s standout performers. Shares are up nearly 41% year to date, placing the company among the top gaming names of 2025—and several analysts expect that momentum to carry into 2026.
Jefferies analyst David Katz reaffirmed his “buy” rating in a Monday note, lifting his price target from $27 to $30. The new target suggests more than 50% upside from RSI’s December 22 closing price. Katz highlighted several catalysts heading into the new year, including the removal of a burdensome Colombian tax.
According to Katz, the elimination of Colombia’s value‑added tax (VAT) at year‑end 2025 should provide a meaningful earnings boost, prompting Jefferies to raise its FY26 adjusted EBITDA forecast by roughly 15%. Colombia had imposed a 19% VAT on player deposits earlier in the year as part of a fiscal emergency decree, creating a significant profitability drag for operators.
Positioned to Capture OSB Growth
While Rush Street isn’t the largest player in the U.S. online sports betting (OSB) landscape, it remains well‑positioned to benefit from what Katz describes as a consistently expanding market. Even with Missouri as the only new state launch in 2025, usage data shows OSB engagement climbing steadily since early 2022.
Daily and weekly participation among betting‑age adults continues to rise, and the demographic base is broadening. Growth remains strongest among men aged 18–44—up roughly 10 percentage points since January 2022—but women in the same age group have also increased participation by about 5 points, signaling a widening customer universe.
Katz also emphasized RSI’s multi‑year track record of profitability and management’s “demonstrated reliability,” both of which strengthen the company’s investment case.
A Beneficiary of Prediction Market Turbulence?
RSI’s standout 2025 performance is even more notable given the challenges faced by competitors like DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT), both of which were affected by regulatory scrutiny tied to prediction markets.
Rush Street has avoided those controversies, benefiting from its iGaming‑first strategy that keeps it clear of the regulatory spotlight. CEO Richard Schwartz has acknowledged monitoring the prediction‑market space, noting that if yes/no exchanges erode gaming tax revenues, states may be incentivized to legalize iGaming—an area where RSI is already well‑positioned.
