Chicago online betting company to get cash infusion with merger
Chicago billionaire casino magnate Neil Bluhm’s online gaming and wagering company is merging with a Nevada-based acquisitions company and going public.
Rush Street Interactive is merging with dMY Technology Group, Inc. — known in the business world as a “blank check company,” or one that raises money in order to hunt for businesses to invest in rather than running the business themselves.
The deal is expected to close later this year, and the Las Vegasbased dMY, which was founded in 2019, intends to change its name to Rush Street Interactive, Inc.
The merger will help RSI, already an industry leader, expand and further develop its online betting technology.
With people staying home right now due to the pandemic, “it’s the right time, obviously, for this sort of online form of entertainment,” according to RSI spokesman Dennis Culloton.
The merger was announced Monday and comes as sports fans hold their breath in hope that professional sports will resume uninterrupted by virus outbreaks.
That hope was put to the test Monday when it was announced that at least 14 Miami Marlins players and staff members tested positive for COVID-19 — resulting in the suspension of three upcoming games.
Bluhm will remain as chairman of RSI, Greg Carlin will remain as CEO and Richard Schwartz will continue to serve as president. The three men co-founded RSI in 2012.
Bluhm is also a co-owner of Rivers Casino in Des Plaines, which, together with RSI, launched Illinois’ first online sports book last month, enabling gamblers to place bets from their cellphones.
However, 80% of RSI’s revenue is from online casino gaming, which is legal in several states, but not Illinois, according to Culloton.
The projected value of the combined companies is $1.78 billion, plus an estimated $235 million in net cash to fund growth strategy.
RSI projects approximately $320 million in revenue for the 2021 fiscal year.
About 25 employees work at the company’s headquarters at 900 N. Michigan Ave., and about 135 other employees are scattered around the country working in customer service roles, according to Culloton.
In the months following the merger, RSI expects an increase in hiring.