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 number of gambling stocks have gone public through this route.
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 allowing online gambling in NY is ever passed.
RSI was an early entry into the online gambling market, working with Kambi just days after the ban on sports betting was 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 special purpose acquisition company, or SPAC. SPACs are a tool to take privately held companies public.
They are also a trend in the online gaming space.
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.
dMy is looking to raise more than $150 million, according to Bloomberg, and it already raised $230 million in a February initial public offering.