Rush Street Interactive finalizes dMY deal

Completing its combination with special purpose acquisition company dMY Technology Group, Rush Street Interactive began trading shares on the New York Stock Exchange on 30 December. 

After dMY shareholders favored the transaction at a shareholder meeting, the deal was finalized, and the combined company changed its stock market ticker to RSI.

The combination of iGaming company Rush Street Interactive and dMY has resulted in a major sports betting and online casino operator in New Jersey, Pennsylvania, Colorado, Illinois, Indiana, and Iowa, as well as in Colombia.

Rush Street has also obtained market access to three more states, including New York, with plans to expand into new gaming jurisdictions as they open up. Rush Street’s growth has exploded over the last year, with revenue for the first three quarters of 2020 up more than five times year-over-year.

A Statement from Rush Street’s Chief Executive

“Today marks a momentous milestone for Rush Street Interactive, as we enter public trading with a huge opportunity before us,” said Greg Carlin, Rush Street Interactive chief executive. “With online sports betting and online casinos still in the early stages in the US, we see significant growth potential for our business in both new and existing markets.

“Our unwavering focus on customer experience, our wide demographic reach, along with our proprietary technology platform, gives us what we believe are advantages to further our leading position as online gaming continues to mature.”

In December, 2020, Rush Street partnered with Century Casinos in West Virginia, to offer its wide range of online casino games, including hundreds of the latest table games and slots on its BetRivers brand. West Virginians will also be able to take advantage of Rush Street’s unique multi-tiered loyalty program.

“As Rush Street continues the expansion of our interactive gaming into more states, we look forward to earning the same preference and trust from West Virginians that we’ve earned from players across the country,” commented Richard Schwartz, president of Rush Street Interactive. “In neighboring Pennsylvania, we are the clear leader when it comes to online casino market share. That’s due to our player-first attitude, fast payouts, reliable and secure platform, transparent customer service, tremendous game library, and unique playing experiences. In partnership with Mountaineer Casino, Racetrack, and Resort, we’re pleased to have the chance to offer West Virginia gaming fans the unparalleled service and experience our customers have come to expect from BetRivers.”

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A Statement from dMY Technology Group’s CEO

Niccolo de Masi, dMY Technology Group CEO, added that the Special Purpose Acquisition Company has been impressed with Rush Street Interactive’s growth, and was thrilled to partner with its leadership team as it continues its expansion.

“Through Rush Street Interactive’s various offerings and its loyal users driven by player trust and robust engagement, we believe Rush Street is perfectly positioned to capitalize on the rapidly growing online sports betting and online casino market,” de Masi said. “Rush Street is firmly committed to excellence, and we think it has the best product, the best technology platform, and the best customer service in the market.”

More Than $240 Million in Cash

The transaction raised cash proceeds of around $230 million held in trust by dMY and $160 million from private investment in public equity, at $10.00 per share of dMY common stock, led by Fidelity Management and Research Company.

After payments to redeem equity were made from existing Rush Street Interactive equity holders, and other expenses and transaction fees were paid, the newly-listed combined company has more than $240 million in cash on its balance sheet. That cash will be used to accelerate Rush Street’s growth in both US and global markets.

Both Oakvale and Jeffries Capital acted as co-lead capital markets and financial advisors for Rush Street on the transaction, and Kirkland and Ellis acted as legal advisor.

Meanwhile, dMY received legal counsel from Cleary Gottlieb Steen and Hamilton, White and Case, and Greenberg Traurig. Goldman Sachs served as dMY financial advisor. Oakvale Capital and Needham and Company acted as placement agents for the private investment in a public equity transaction.

At the end of December, 2020, Shares in Rush Street Interactive were trading up 0.65% at $21.65 per share on the New York Exchange.

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