US-based online casino and sports betting operator Rush Street Interactive are ready to go public. Recent reports suggest that the operator will be merging with a blank check company for this purpose.

Rush Street to be valued at close to $2 billion

The deal could see the valuation of Rush Street Interactive going up to $1.8 billion. The confirmation related to this plan could be received today. The company will be going public via a merge with a special purpose acquisition company (SPAC). The company is dMY which is being managed by Niccolo de Masi, the former CEO of Glu Mobile Inc. and Harry You, a former EMC Corp. executive.

The company also plans to raise additional equity during the takeover process. It may seek a $150 million capital raise from investors. dMY also went public in February to raise about $230 million during its IPO.

Rush Street’s history

Rush Street Interactive started as the digital gaming arm of Rush Street Gaming, a Chicago-based regional casino operator, in 2012. The company currently operators sports betting and casino apps and websites in different US states as well as Latin America. Sources familiar to the matter suggest that the merger talks are ongoing and a deal will be announced soon. Representatives of both companies have not commented on the deal yet.

The merger deal between dMY and Rush Street Interactive would be the latest in the series of similar deals that the industry has witnessed this year. Merging with a SPAC offers a quick way for gaming companies to go public without additional hassles. As the coronavirus pandemic has created several issues for the market, SPACs are offering gaming companies a lot of liquidity.

Not just gaming companies, but companies like Fisker Inc., Nikola Corp., and Utz Quality Foods have also announced similar deals with SPACs or blank check companies to help offset some losses caused by the pandemic and continue their plans of going public.