According to a Bloomberg report, Rush Street Interactive is considering a merger with special purpose acquisition company dMY Technology Group, and may be the next gaming operator to go public.
DraftKings, who went public in late April, took the SPAC merger route and a report a week ago said sports data provider Sportradar was also looking for a partner. A SPAC, also known as a blank-check corporation, uses an IPO to buy fast-growing companies, speeding the process to be made public.
According to the Thursday Bloomberg report, which cited sources familiar with the conversations, the Rush Street-dMY agreement could be reached within days. The study also said that as part of the merger, dMY is attempting to raise additional equity from investors – more than $150 million.
Business representatives did not respond to requests for comment, Bloomberg said.
Rush Street Interactive, based in Chicago, was founded in 2012 and is the digital gaming subsidiary of Rush Street, a casino operator. It runs casino sites and electronic sportsbooks in New Jersey, Pennsylvania, Colorado, Indiana and Illinois, under the names BetRivers and SugarHouse.
On June 18th, the Rivers Casino in Des Plaines launched its online sportsbook, BetRivers.com, becoming Illinois’ first electronic sportsbook. The retail sportsbook Bet Rivers also took the state’s first legal sports bet on March 9.
Rush Street has partnered with Little River Casino Resort in Manistee in the emerging Michigan market, which, according to the casino ‘s website, launched sports betting on July 17.
The DraftKings merger with SBTech and Diamond Eagle Acquisition Corp. was an reported $3.3 billion transaction in December 2019 and was completed nearly six months later. DraftKings currently trades under the ticker symbol “DKNG” on the Nasdaq Global Select Market. It trades at about $35.00.
According to sources, last Friday’s Sportico article said Sportradar could potentially partner with an investment company run by Harry Sloan and Jeff Sagansky, who oversaw the DraftKings-Diamond Eagle Acquisition Corp. They have also launched a $600 million IPO with Flying Eagle Acquisition Corp. earlier this year, making it possible to fit in a reverse merger agreement with Sportradar, the reports said.