Rush Street Goes Public After A Merger With dMY Technology Group
Online gambling is growing at a fast speed after government restrictions were lifted for the industry. Government outlook towards the industry as time moves forward. Many countries are moving towards the legalization of the industry as they seek an alternative source of revenue. Online gambling companies are extending their operations as the demand rises continuously.
Many companies merge to compete in the fast-changing online gambling market. Tech companies are essential in the competition as the internet of all things, and mobile gambling continues to evolve. The special purpose acquisition company (SPAC) formed by Rush Street Interactive could help the company expand its operations to a broader.
Rush Street brings SPAC IPO in the US market
Online casinos and online sports betting are legal in some parts of the United States. Online gambling cemented its foothold in the country after the Supreme Court decided to lift the ban on the industry. Since then, more than 18 states regulated the online sportsbooks, and at least four states approved the operations of online casinos.
Rush Street is one of the pioneers of the online casino industry in Pennsylvania, Illinois, Indiana, and Colorado. The company was the first US-based company to legalize an online sportsbook operation in Latin America, and it is the leading online casino operator in terms of revenue.
The success of the industry is inevitable as the demand for internet-related entertainment continuous to rise. DMY Technology wanted to be part of the evolution of the gambling industry by signing the SPAC deal with Rush Street Interactive, which is worth $1.78 billion. The company’s market share after the merger increased by about 5.6 times its 2021 projected value.
Rush Street Interactive aims to capitalize on the rapid growth of the online gambling industry by using the capital accumulated from the fundraising as it expands its online gambling operations.
Coronavirus boosts online gambling
The fast growth of online casinos brings fierce competition for operators. Companies are taking drastic measures to catch up to the rapidly changing industry with massive demand. Rush Street shows higher potential compared to its publicly-traded peers, and its revenue is higher compared to GAN and Golden Nugget. Its positive cash flows grow faster compared to its competitors.
Online gambling showed high growth potential even before the novel coronavirus. However, market data showed a jump in revenue of online gambling platforms during the pandemic. Subscriptions in online casinos and sportsbooks increased when the government imposed the stay-at-home mandate.
The absence of land-based casinos opened the window for online casinos and sportsbooks. People stayed in their homes with gadgets as their only form of entertainment and gamblers from bricks and mortar casinos shifted their attention to online casinos during the lockdowns.
Government travel restrictions boosted the growth of the online gambling industry.
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