Rush Street Interactive (RSI), a prominent and rapidly expanding force in the United States’ online casino and sports betting industry, has officially announced its transition to a publicly listed company. This milestone was achieved through the successful completion of a business combination with dMY Technology Group, Inc., previously disclosed to the public. The merger received overwhelming approval from dMY stockholders at a special meeting held on Tuesday, December 29, 2020, paving the way for RSI’s debut on the New York Stock Exchange (NYSE).
Effective Wednesday, December 30, 2020, the combined entity will operate under the name Rush Street Interactive, Inc. and its Class A common stock and warrants will commence trading on the NYSE. Investors can now find Rush Street Interactive under the ticker symbols “RSI” and “RSI WS,” respectively, marking a significant shift from dMY’s previous tickers.
This strategic business combination establishes a leading online gaming powerhouse. Rush Street Interactive boasts a substantial U.S. market share in the online casino sector, positioning itself among the industry’s frontrunners. Furthermore, RSI’s online sports betting platform is recognized as a top-tier offering, attracting a wide demographic of players. The company’s diverse portfolio includes real-money online casino wagering, online and retail sports betting, and engaging social gaming options. Currently, Rush Street Interactive extends its operations across six states – New Jersey, Colorado, Pennsylvania, Indiana, Illinois, and Iowa – in addition to its presence in Colombia. Significantly, RSI has secured market access in three more states, including the highly anticipated New York market, with ambitious plans for further expansion into additional jurisdictions. The company’s growth trajectory is remarkable, evidenced by a nearly fivefold revenue surge comparing the first nine months of 2020 to the same period in 2019.
Greg Carlin, Chief Executive Officer of Rush Street Interactive, expressed his enthusiasm for this pivotal moment: “Today signifies a monumental achievement for RSI as we step into the public markets, presenting us with an exceptional path forward.” Carlin emphasized the immense growth potential within the U.S. online casino and sports betting markets, stating, “With online casino and online sports betting still in their infancy in the United States, we believe there is significant growth potential for our business in both existing and new markets.” Referencing industry projections, Carlin noted Eilers & Krejcik’s estimates of a mature U.S. online casino market reaching approximately $20 billion and an online sports betting market of $15 billion. He further highlighted Rush Street Interactive’s competitive advantages: “Our unwavering commitment to customer experience and broad demographic appeal, coupled with our exclusive technology platform, provides us with what we believe are significant advantages to solidify our leading position as the online gaming sector continues to evolve.”
Niccolo de Masi, Chief Executive Officer of dMY Technology Group, also commented on the merger: “In a landscape characterized by limited competition, high entry barriers, and strong long-term growth trends, we were deeply impressed by Rush Street Interactive’s accomplishments since 2012.” De Masi conveyed excitement about the partnership with Greg Carlin, Richard Schwartz, and the RSI team, stating, “We are excited to partner with Greg Carlin, Richard Schwartz and their talented team as they continue to expand their market-leading platform.” He lauded RSI’s market positioning, stating, “Through RSI’s differentiated offerings and loyal user base, fostered by robust player trust and engagement, we believe Rush Street Interactive is ideally positioned to capitalize on the rapid expansion of online casino and online sports betting.” De Masi concluded by affirming his confidence in RSI’s operational capabilities: “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 financial details reveal substantial capital infusion for Rush Street Interactive. Cash proceeds comprised approximately $230 million held in dMY’s trust account and around $160 million from a PIPE investment spearheaded by Fidelity Management and Research Company, priced at $10.00 per share of dMY Class A common stock. Following disbursements for equity redemption to existing RSI equity holders, transaction fees, and expenses, the newly formed Rush Street Interactive, Inc. holds over $240 million in cash on its consolidated balance sheet as of the closing date. These funds are strategically earmarked to accelerate the company’s expansion initiatives across both domestic and international markets, bolster marketing endeavors, and augment working capital.
The leadership team of Rush Street Interactive remains consistent post-merger, ensuring continuity and expertise. Neil Bluhm will continue to serve as Chairman of the Board of Directors, with Greg Carlin as Chief Executive Officer and Director, Richard Schwartz as President, Einar Roosileht as Chief Information Officer, and Mattias Stetz as Chief Operating Officer. This experienced management team is further supported by a deep bench of talent within the online gaming industry. In addition to Neil Bluhm and Greg Carlin, the Combined Company’s Board of Directors includes dMY’s Chairman, Harry You, and CEO, Niccolo de Masi, alongside Paul Wierbicki, Leslie Bluhm, James Gordon, Judith Gold, and Sheli Rosenberg.
The merger involved key advisors from the financial and legal sectors. Jefferies LLC and Oakvale Capital LLP served as co-lead capital markets and financial advisors to Rush Street Interactive. Legal counsel for RSI was provided by Kirkland & Ellis LLP. dMY Technology Group received legal counsel from White & Case LLP, Cleary Gottlieb Steen & Hamilton LLP, and Greenberg Traurig LLP. Goldman Sachs & Co. LLC acted as financial advisor to dMY. Needham & Company and Oakvale Capital served as placement agents for the PIPE transaction.
About Rush Street Interactive
Established in 2012 by seasoned gaming industry professionals, Rush Street Interactive has emerged as a market leader in the U.S. online casino and sports betting arena. RSI launched its inaugural online gaming casino site, PlaySugarHouse.com, in New Jersey in September 2016, achieving the distinction of being the first gaming company to launch a regulated online gaming platform in Pennsylvania. Through its BetRivers.com sites, Rush Street Interactive pioneered regulated online gaming launches in Indiana, Colorado, and most recently, Illinois. Industry recognition for Rush Street Interactive includes being named the 2020 Global Gaming Awards Digital Operator of the Year, as well as securing the 2020 EGR North America Awards for Casino Operator of the Year and Customer Service Operator of the Year. RSI’s early entry into the Latin American market led to its pioneering launch of a legal and regulated online casino and sportsbook, RushBet.co, in Colombia, marking the first U.S.-based gaming operator to achieve this milestone. For further details, please visit www.rushstreetinteractive.com.
About dMY Technology Group
dMY Technology Group, Inc. was purpose-built as a special purpose acquisition company with the objective of facilitating mergers, capital stock exchanges, asset acquisitions, stock purchases, reorganizations, or similar business combinations with one or more businesses.
Forward-Looking Statements
This press release includes forward-looking statements within the purview of the Private Securities Litigation Reform Act of 1995’s safe harbor provisions. Actual outcomes and plans for the Combined Company may diverge significantly from current expectations, estimates, and projections. Therefore, reliance on these forward-looking statements as predictors of future events is cautioned. Terms such as “expect,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are used to denote forward-looking statements. These statements encompass, but are not limited to, the trading of the Combined Company’s shares and warrants on the NYSE and its growth prospects. These forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially. Many of these factors are beyond the control of the Combined Company and Rush Street Interactive, making prediction difficult. Factors potentially causing such discrepancies include: (1) potential legal proceedings following the Business Combination; (2) COVID-19’s impact on RSI’s operations; (3) challenges in securing or maintaining NYSE listing; (4) business disruption risks from the Business Combination; (5) realizing anticipated benefits, which may be affected by competition, growth management, and employee retention; (6) Business Combination-related costs; (7) changes in gaming laws or regulations; (8) adverse economic, business, or competitive factors; and (9) other risks detailed in the definitive proxy statement and SEC filings by RSI and dMY. This list is not exhaustive. Readers are cautioned against undue reliance on forward-looking statements, which are relevant only as of the statement date. The Combined Company disclaims any obligation to publicly update or revise these statements to reflect expectation changes or evolving events, conditions, or circumstances.
Contacts
Media: Jonathan Gasthalter / Carissa Felger / Nathaniel Garnick (312) 319-9233 / (212) 257-4170 [email protected] or Lisa Johnson (609) 788-8548 [email protected]
Investors: [email protected]
For dMY Technology: Niccolo de Masi (310) 600-6667 [email protected]
