Rush Street Interactive is now a publicly-traded company following approval by dMY Technology shareholders, with the newly-merged company entering 2021 on a strong and ambitious foot.
RSI Finalizes Mergers and Goes Public ahead of 2021
Rush Street Interactive is officially a publicly-traded company, following the approval of dMY Technology stockholders on Wednesday. Moving forward, the Chicago-based sports betting and iGaming company will be traded on the New York Stock Exchange (NYSE) under the RSI and RSI WS tickers. This is a result of a merger between Rush Street and dMY Technology which has created a new powerful stakeholder in the soaring betting market in the United States.
The transaction was led by Fidelity Management and Research Company and resulted in an estimated $230 million of cash in trust and another $160 million sourced from a PIPE investment. The transaction included Class A dMY common stock sold at $10.00 per share, with the combined cash at the time of closing estimated at $240 million.
Rush Street has been one of the early adopters in the US gaming and betting market, with operations now in six states, including Colorado, Indiana, Illinois, Iowa, New Jersey, and Pennsylvania, and in Latin America with Colombia. Rush Street is also rolling out products in three more states, including New York.
RSI Posts a Strong Year and New Opportunities
Despite the challenges 2020 threw at the betting industry, Rush Street has reported five times higher income over the first nine months of the year compared to 2019. Commenting on this and more, RSI CEO Greg Carlin had this to add:
“With online casino and online sports betting still in the early stages in the United States, we believe there is a significant growth potential for our business in both existing and new markets.”-RSI CEO Greg Carlin
DMY Technology chief executive Niccolo de Masi has also been pleased with the transaction and progress RSI has clocked in since the company launched in 2012. Carlin noted that despite the “finite competitive landscape,” RSI has been able to position itself, making it a great fit for dMY.
Masi believes that RSI is in a good position to capitalize on the rapid expansion of the iGaming segment in the state, bringing with it the necessary tools to boost player trust and engagement and build up a loyal customer base, the executive noted.
With a clear focus on sports betting, RSI is also breaking in the casino space which is projected to hit $20 billion at maturity in the United States.
Meanwhile, on a management level, most c-level positions will remain intact with Neil Bluhm remaining chairman of the board of directors, and Greg Carlin as chief executive, with Richard Schwartz serving as director, president, chief information officer, and Mattias Stetz filling in the shoes of the chief operating officer.