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Rush Street Interactive completes NYSE listing


Rush Street Interactive has completed its combination with special purpose acquisition company (SPAC) dMY Technology Group, with trading of its shares on the New York Stock Exchange beginning on December 30. 

The deal was finalized after dMY shareholders backed the transaction at a shareholder meeting on December 29, resulting in the business changing its stock market ticker to RSI. 

Announced in July, the combination of Rush Street Interactive, the igaming arm of the land-based operator, and dMY creates a major online casino and sports betting operator active in New Jersey, Colorado, Pennsylvania, Indiana, Illinois and Iowa, as well as in Colombia. 

It has also secured market access to three additional states, including New York, with plans to expand into other jurisdictions. The business’ growth has accelerated over the past year, with revenue for the nine months to 30 September 2020 up more than five fold year-over-year. 

“Today marks a momentous milestone for RSI as we enter the public markets with a tremendous opportunity ahead of us,” Rush Street Interactive chief executive Greg Carlin said. “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. 

“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.”

dMY Technology Group CEO Niccolo de Masi added that the SPAC had been impressed with Rush Street Interactive’s growth since 2012, and was excited to partner with its leadership team as it pursues further expansion.

“Through RSI’s differentiated offerings and loyal user base driven by strong player trust and engagement, we believe RSI is ideally positioned to capitalize on the rapid growth in online casino and online sports betting,” de Masi said. “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 raised cash proceeds of approximately $230m held in trust by dMY and approximately $160m from a private investment in public equity (PIPE) led by Fidelity Management and Research Company at $10.00 per share of dMY common stock.

After payments were made to redeem equity from existing Rush Street Interactive equity holders, and transaction fees and expenses were paid, the newly-listed entity holds over $240m in cash on its balance sheet. These funds are to be used to accelerate growth in US and international markets. 

Jeffries and Oakvale Capital acted as co-lead capital markets and financial advisors to Rush Street Interactive for the transactions, with Kirkland & Ellis acting as legal advisor. 

dMY, meanwhile, received legal advice from White & Case, Cleary Gottlieb Steen & Hamilton, and Greenberg Traurig, with Goldman Sachs serving as financial advisor. Needham & Company and Oakvale Capital acted as placement agents for the PIPE transaction.

Shares in Rush Street Interactive Inc were trading up 0.65% at $21.65 per share in New York on Thursday December 31, 2020.