Rush Street Interactive (RSI), the US online casino and sports betting operator has completed a merger with publicly traded special purpose acquisition company (SPAC) dMY Technology Group, Inc. and now plans to list the new entity on the NASDAQ.
RSI and dMY Technology Group, Inc. confirmed the arrangement with the acquisition company which went public in February 2020 to raise $230 million in its initial public offering.
The pending merger which is expected to close by the end of the year values the combined firm at around $1.78 billion or 5.6 times RSI’s projected revenue of $320 million for 2021. The deal was approved by the Boards of Directors of both RSI and dMY but is pending approval from dMY’s shareholders. The deal is also subject to other closing conditions, including some regulatory approvals.
In 2012 RSI was formed as the internet based gambling sector of regional casino operator Rush Street Gaming. RSI has online casinos and sports books in a number of US states, which includes Pennsylvania, Indiana, Colorado, Illinois and New Jersey. The company is the first US gambling operator to launch a legal gambling website in Latin America and is licensed to operate in Colombia’s regulated online gambling and sports wagering market. dMY will rebrand as Rush Street Interactive, Inc. and will change its NYSE ticker symbol to RSI once the merger is complete. CEO and Richard Schwartz who will continue to serve as President of the new entity said that the transaction will help RSI enhance and broaden its product offerings and attract more customers. Chairman, Neil Bluhm, who will keep his position on the Board of Directors added that the deal will provide RSI with access to growth capital allowing for expansion of the business.
