Rushing to Wall Street: Rush Street Looks to Follow PA Gaming Public Stock Trend

Posted on July 24, 2020

Rush Street Interactive, the group behind BetRivers and PlaySugarHouse, is looking to spin off and become a company listed on a stock exchange, according to Bloomberg.

Rush Street, created in 2012, would go public through a merger with a so-called blank-check company, dMY Technology Group Inc. Blank-check companies gather funds for a startup, merger, or acquisition.

A spokeswoman for Rush declined to comment Friday.

Meanwhile, $DMYT stock hit a yearly high of $11.30 on Friday morning.

Rush Street already has a strong online presence

Illinois-based RSI offers online casino and online sports betting products in New Jersey and Pennsylvania. It also operates a retail sportsbook at Rivers Schenectady. That could allow entry into the New York online market if legislation is ever passed.

RSI was early into the online gambling, working with Kambi just days after the ban on sports betting lifted two years ago. Rush now offers online sports betting in five states. Kambi has said the alliance could enter international markets.

SPACs are a trend in online gambling stocks

The move to a stock listing would be done through a SPAC – a special purpose acquisition company. SPACs are a tool to take privately-held companies public.

They are also a trend in the online gaming space.

Golden Nugget‘s interactive division is aiming bring $GNOG public through SPAC, Landcadia Holdings II ($LCA).

DraftKings combined with SBTech and went public on the Nasdaq exchange through a reverse merger via SPAC, Diamond Eagle Acquisition Company. DraftKings stock has since taken off.

And William Hill is also pursuing the strategy. Hill will run several online sportsbooks nationwide for the newly joined Caesars and Eldorado gaming entities.

The company dMy is looking to raise more than $150 million, according to Bloomberg, and it had already raised $230 million in a February initial public offering.

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Kevin Shelly

Kevin C. Shelly is an award-winning career journalist who has spent most of his career in South Jersey. He's the former assistant city editor of The Press of Atlantic City, where he covered the casino industry and Atlantic City government as a reporter. He was also an investigative, narrative enterprise, and features reporter for Gannett’s Courier-Post.

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