Rush Street Interactive (RSI) is going public on Tuesday.
The Illinois-based gaming company announced its plans to do so in September 2020. Fast-forward a few months, and that plan is a reality.
Rush Street’s executive leadership and board of directors will ring the opening bell at the New York Stock Exchange on Tuesday morning.
RSI is the parent company of BetRivers and Rivers Casino, familiar brands to Illinoisans.
It is going public via a special purpose acquisition company (SPAC) deal. The dMY Technology Group, a publicly traded shell company, is its partner.
The deal valued RSI at $1.78 billion.
Greg Carlin, the chief executive officer of RSI, gave the following statement about the completion of the deal.
“Today marks a momentous milestone for RSI as we enter the public markets with a tremendous opportunity ahead of us,” Carlin said. “With online casino and online sports betting still in the early stages in the United States, we believe there is significant growth potential for our business in both existing and new markets. Eilers & Krejcik estimates the total US online casino market to be approximately $20 billion at maturity, and projects $15 billion for online sports betting. Our steadfast focus on customer experience and broad demographic reach, combined with our proprietary technology platform, provide us with what we believe are material advantages to further our leadership position as online gaming continues to mature.”
RSI is growing quickly, as its revenue has jumped almost five times from the first nine months of 2019 to the first nine months of 2020.
Rush Street an online casino leader
A few of RSI’s main competitors are DraftKings, GAN and Golden Nugget.
RSI has more revenue than GAN and Golden Nugget and has a positive cash flow, unlike DraftKings. So, it appears to be positioned for success.
Of course, its market success will hinge on legislation. When a state legalizes sports betting or online casino, that’s a huge win for a company such as RSI.
As of now, here’s where RSI is operational for sports betting:
- Illinois
- Indiana
- Pennsylvania
- Iowa
- Colorado
- New Jersey
- Michigan (once online goes live)
It has an online casino presence in New Jersey and Pennsylvania, and will also have one in Michigan once online gaming finally launches.
As for which state is next, keep an eye on Indiana, where online casino access could pass in 2021.
While nothing is imminent in the Land of Lincoln, we may see online casinos in Illinois at some point. Golden Nugget prioritizing Illinois market access is a promising sign.
In September, chairman Neil Bluhm cited predictions on CNBC that online casino revenues could exceed sports betting revenues by 50%.
Rush Street a big success in Illinois
BetRivers has been a major player in the Illinois sports betting scene.
At the end of October 2020, it had made about $28.7 million in revenue, more than double any other operator.
October was the first month that another sportsbook (DraftKings) overtook BetRivers in handle, but it still posted the highest revenue for the month.
While it might not be the market leader going forward, it’s going to be a key player in Illinois for a long time.
Investors will be betting on similar success in other markets as states continue to legalize.
