Special purpose acquisition company dMY Technology Group’s shareholders will vote on the reverse merger of Rush Street Interactive on 29 December.
Shareholders of the special purpose acquisition company (SPAC) dMY Technology Group will vote on the proposed reverse merger with Rush Street Interactive (RSI) at a shareholder meeting on 29 December.
The SPAC has also filed a merger proxy statement for the securities and exchange commission (SEC) which will be shared at the shareholder meeting.
The proposed reverse merger
If the deal is approved, Rush Street Interactive, the online arm of Rush Street Gaming, will trade on the New York Stock Exchange with an initial enterprise value of approximately $1.78bn under the “RSI” ticker symbol.
The deal requires approval from dMY’s stockholders and is subject to other customary closing conditions and regulatory approvals.
RSI’s initial enterprise value of $1.78bn is 5.6 times larger than the operator’s projected revenue for the 2020/21 financial year, which sits at $320m. According to the investor presentation, RSI expects to generate between $1.5bn and $2.3bn in annual revenue.
RSI currently operates two online gambling brands, the sports betting brand BetRivers and the PlaySugarHouse online casino.
BetRivers was the first sportsbook operator to take online sports wagers in Illinois and Indiana and also operates in New Jersey, Pennsylvania and Colorado.
RSI’s leadership will remain the same once the deal is complete, with Neil Bluhm as chairman, Greg Carlin as CEO and Richard Schwartz as president. dMY chairman Harry You and chief executive Niccolo de Masi will both join Rush Street Interactive’s board.
The proposed reverse merger was first announced in late-July and approved by the boards of both businesses.
Gambling operators going public
Several other online gambling operators have or are in the process of going public through special purpose acquisition companies.
Towards the end of April, Diamond Eagle Acquisition Corp (DEAC) shareholders approved the merger between DraftKings and SBTech and the public listing of the new entity, DraftKings Inc. From 24 April the company began publicly trading on the Nasdaq under the DKNG ticker symbol.
In June, Golden Nugget Online Gaming, the online arm of the Golden Nugget casino chain, announced plans to go public on the Nasdaq exchange with an estimated valuation of $745m.
