Since there is no gunpowder, what's up with the muzzle flash? Gas compression and release as it exits the barrel?
Not all railguns operate purely an electromagnetic field. Some use a thin layer of conductive propellant attached to the rear of the projectile, similar to the experimental designs for a caseless cartridge.
The key difference between this type of gun and a traditional firearm is that the propellant is often made of metal. The massive power dump causes the propellant to vaporize into a gas. This is the same process used by chemical propellants, except that the propellant is inert.
The other possibility is that the amount of energy being dumped creates a cloud of ionized gases or even a plasma cloud. Either could look very similar to a fireball as they exited the barrel.