Rush Street Interactive has completed its business combination with dMY Technology Group, which will see the two merge and become publicly listed on the New York Stock Exchange.
The agreement was approved at a special meeting of dMY’s stockholders. Upon completion of the business combination, the two companies will merge and be known as Rush Street Interactive, Inc.
As of today, December 30 2020, the dMY tickers will be changed and the class A common stock and warrants of the merged firm will commence trading on the New York Stock Exchange under the new ticker symbols “RSI” and “RSI WS,” respectively.
Speaking on the conclusion of the deal, Greg Carlin, chief executive officer of RSI, noted: “Today marks a momentous milestone for RSI as we enter the public markets with a tremendous opportunity ahead of us.
“With online casino and online sports betting still in the early stages in the United States, we believe there is significant growth potential for our business in both existing and new markets. Eilers & Krejcik estimates the total US online casino market to be approximately $20bn at maturity, and projects $15bn for online sports betting.
“Our steadfast focus on customer experience and broad demographic reach, combined with our proprietary technology platform, provide us with what we believe are material advantages to further our leadership position as online gaming continues to mature.”
RSI currently operates in six states – New Jersey, Colorado, Pennsylvania, Indiana, Illinois, Iowa – as well as Colombia, and it has secured market access in three additional states, including New York, with plans to target other jurisdictions.
Furthermore, the company has experienced a revenue increase of nearly five times from the first nine months of 2019 to the first nine months of 2020.
“In a finite competitive landscape with high barriers to entry and strong secular growth trends, we were impressed with what RSI has been building since 2012 and are excited to partner with Greg Carlin, Richard Schwartz and their talented team as they continue to expand their market-leading platform,” said Niccolo de Masi, chief executive officer of dMY Technology Group.
“Through RSI’s differentiated offerings and loyal user base driven by strong player trust and engagement, we believe RSI is ideally positioned to capitalise on the rapid growth in online casino and online sports betting. RSI is firmly committed to operational excellence, and we believe it has the best product, the best tech platform and the best customer service in the market.”
Cash proceeds from the transaction consisted of dMY’s approximately $230m of cash in trust and approximately $160m from a PIPE investment led by Fidelity Management and Research Company at $10.00 per share in the class A common stock of dMY.
After the payment of amounts to redeem equity from existing RSI equity holders in accordance with the terms of the business combination agreement previously entered into amongst the parties, and the payment of transaction fees and expenses, the combined company had over $240m of cash on its consolidated balance sheet as of the closing. The funds are expected to be used to accelerate the combined company’s growth in both domestic and international markets, support marketing efforts and provide additional working capital.