Rush Street Interactive (RSI) is the latest operator to go public on the New York Stock Exchange (NYSE) after accepting a reverse merger offer from the special purpose acquisition company dMY Technology Group (DTG).
The merger gained unanimous approval from the boards of both companies and is expected to be finalized within this year. RSI will be traded on the NYSE with an initial value of roughly $1.78 billion with the ticker symbol RSI. The value is 5.6 times higher than RSI’s revenue projections for the 2020 fiscal year, which was pegged at $320 million.
The merged company will have around $235 million on their balance sheet once the deal closes, with a market capitalization north of $2 billion.
RSI Seeks to Expand Reach into Burgeoning US Market
Greg Carlin, CEO for RSI said the firm was launched in 2012 with the intention of developing an immersive real money gaming experience for the U.S market. With their going public, Carlin expects that RSI will be able to expand their market reach, which would allow them to innovate more and grow their team.
RSI follows the lead of other U.S gambling firms, such as Golden Nugget Online Gaming, which went public on the NASDAQ in June 2020 and DraftKings, which went public after merging with SBTech.
RSI will be listed with DTG chairman, Harry You, and CEO, Niccolo de Masi, on its board of directors. de Masi was formerly the CEO and is the current chair of Glu Mobile, a social gaming firm. de Masi expressed his excitement at RSI’s prospects on the NYSE, stating that the firm is poised to maintain a long-term presence in the expanding US gambling market.
RSI’s Presence Growing in U.S Market
RSI is part of Rush Street Gaming (RSG), the operator of Rivers Casino. RSG also operates the BetRivers sportsbook and the online casino brand PlaySugarhouse. BetRivers—with technical support from Kambi is the first operator licensed to offer retail and online sports wagers in Illinois as well as in Indiana. RSI’s other bases of operation are Colorado, New Jersey, and Pennsylvania.
RSI’s president, Richard Schwartz, said that the reverse merger with DTG will enhance the firm’s ability to meet the needs of more U.S punters. According to Schwartz, RSI built their name on high quality products, responsive customer service, and honesty. The chairman of RSI’s board of directors, Neil Bluhm, stated that DTG’s resources can help RSI access the growth capital it needs to stake their claim on the nascent local sports betting scene.