NEW YORK, December 31, 2025, 12:46 ET — Regular session.
- Rush Street Interactive shares fell about 3.6% in midday trade.
- MarketBeat reported Zacks Research cut its rating to “hold” from “strong-buy.”
- Major U.S.-listed online gambling peers were mixed, leaving RSI as an outlier.
Rush Street Interactive, Inc. shares were down 3.6% on Wednesday after Zacks Research downgraded the online-gambling operator to “hold,” MarketBeat reported. The stock was down 72.5 cents at $19.39 by 12:46 p.m. ET after trading between $19.36 and $20.27, on about 318,000 shares. MarketBeat said the stock still carries a “Moderate Buy” consensus rating and an average target price of $21.25, and pegged its market value at about $4.6 billion. MarketBeat
The drop matters because RSI has been one of the smaller, faster-growing names tied to the spread of regulated U.S. online gambling. In that corner of the market, shifts in analyst sentiment can move shares quickly as investors recalibrate growth expectations.
The timing also puts focus on what comes next: whether RSI can close out 2025 in line with its targets and set a clean runway into 2026. Traders typically lean on the next earnings update for hard numbers on customer growth, marketing spend and profit margins.
The broader market was slightly lower, with the SPDR S&P 500 ETF down about 0.3% and the Invesco QQQ Trust off roughly 0.3%. Larger online betting-linked names were mixed, with DraftKings up about 0.5%, Flutter Entertainment down about 0.4%, and PENN Entertainment up about 0.3%.
A “hold” rating is shorthand for an analyst view that a stock may perform roughly in line with the market or offer limited near-term upside. For momentum-driven names, that can be enough to trigger profit-taking or trimming by investors who key off rating changes.
In its most recent quarterly update, RSI reported record third-quarter revenue of $277.9 million and net income of $14.8 million, and said it was raising its full-year 2025 outlook. The company guided for $1.10 billion to $1.12 billion in revenue and $147 million to $153 million in adjusted EBITDA — a profit measure that strips out interest, taxes and non-cash items — and said it operates across the U.S., Canada and Latin America. “We’re pleased to report another strong quarter,” Chief Executive Richard Schwartz said at the time. Rush Street Interactive
Investors have been watching whether RSI can keep growing its online casino business — often called “iCasino,” meaning real-money casino play on phones and computers — without having to sharply ramp promotional spending. The company has highlighted growth in monthly active users as a key gauge of demand.
Competition remains intense, with operators spending heavily to acquire and retain players and regulators keeping a close eye on how bets are marketed. That backdrop can make quarterly updates on spending and customer trends as important as revenue.
For traders, Wednesday’s slide left the stock near the low end of its day’s range, a sign the selling had some follow-through rather than a brief dip. The next few hours of trading will show whether buyers step in around recent support levels.
Looking ahead, Rush Street has not confirmed its next earnings publication date, but MarketBeat lists an estimated release date of Wednesday, Feb. 25, 2026 based on past reporting patterns. That report is likely to be the next major catalyst for RSI shares, with investors looking for an update on 2026 growth and profitability targets. MarketBeat
Until then, investors are likely to track the stock’s reaction to analyst commentary and how it trades relative to bigger peers in the sector. A steady tape in the broader market can magnify stock-specific moves, especially when a downgrade hits sentiment mid-session.
