Gaming technology operator Rush Street Interactive is in talks to go public through a merger with blank-check company dMY Technology Group Inc., according to people familiar with the matter.
Special purpose acquisition company, dMy, is led by former EMC Corp. executive Harry You and former Glu Mobile Inc. Chief Executive Officer Niccolo de Masi. It’s seeking to raise additional equity as part of the deal and has begun conversations with potential investors to raise more than $150 million, the people said, who asked not to be identified because the talks are private.
Rush Street Interactive, founded in 2012, is the digital gambling unit of Chicago-based casino operator Rush Street. It operates a regulated gaming platform in New Jersey and also runs social casino websites and online sportsbooks in Pennsylvania, Colorado, Indiana and Illinois.
A deal could be reached within a few days, the people said. As with any deal that hasn’t been finalized, it’s possible talks could collapse.
Representatives for Rush Street Interactive and dMY didn’t respond to requests for comment.
In February, dMY raised $230 million in an initial public offering. It had said it would aim to buy mobile companies valued at $500 million to $1.5 billion.
Since the onset of the and ensuing market tumult and volatility, merging with a SPAC has become an increasingly popular way for closely held companies to go public.