Rush Street Interactive, which will see the two combine and become publicly listed on the New York Stock Exchange, has completed its business combination with dMY Technology Group.
The agreement was accepted at a special meeting of stockholders of dMY. The two firms would combine and be listed as Rush Street Interactive, Inc. upon completion of the company combination.
The dMY tickers will be updated as of 30 December 2020, and the merged firm’s class A common stock and warrants will begin trading on the New York Stock Exchange under the new ticker symbols ‘RSI’ and ‘RSI WS,’ respectively.
Greg Carlin, Chief Executive Officer of RSI, commented on the conclusion of the deal, noting: “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, including New Jersey, Colorado, Pennsylvania, Indiana, Illinois, Iowa and Colombia, and it has secured market access with plans to target other jurisdictions in three additional states, including New York.
In addition, from the first nine months of 2019 to the first nine months of 2020, the company has undergone a sales rise of almost five times.
Niccolo de Masi, chief executive officer of dMY Technology Group said: “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.
“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.”
The transaction’s cash proceeds consisted of dMY’s approximately $230m of trust cash and approximately $160m of a PIPE investment led by Fidelity Management and Research Company at $10.00 per share of dMY’s class A common stock.
The merged entity had over $240 million in cash on its consolidated balance sheet as of closing, following the payment of sums to recover equity from current RSI equity investors in compliance with the terms of the business merger agreement previously entered into between the parties, and the payment of transaction fees and expenses. It is anticipated that the funds will be used to boost the growth of the merged business in the domestic and foreign markets, facilitate marketing activities and provide additional working capital.