Rush Street Interactive, Inc. · NYSE:RSI
Rush Street Interactive — SPAC Merger (October 2020)
39 slides from Rush Street Interactive's SPAC merger presentation, October 2020
Slide 1: Rush Street Interactive Investor Presentation October 2020
RUSH N T E R A CGC T October 2020 SUGAR HOUSE PLAYSUGARHOUSE.COM SPORTSBOOK | CASINO
Slide 2: Disclaimer
Disclaimer This investor presentation (the “presentation”) is for informational purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase any equity, debtor other financial instruments of dMY Technology Group, Inc. (“dMY”) or Rush Stre
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) Industry and Market Data In this presentation, dMY and RSI rely on and refer to information and statistics regarding market participants in the sectors in which RSI competes and other industry data. dMY and RSI obtained this information and statistics from third-party sources, in
Slide 4: Rush Street Interactive Management Team
Rush Street Interactive (“RSI”) Management Team NEIL BLUHM GREG CARLIN RICHARD SCHWARTZ KYLE SAUERS EINAR ROOSILEHT MATTIAS STETZ Chairman & Co-Founder CEO & Co-Founder President & Co-Founder CFO CIO COO Previous Experience • Co-founder of Rush Street • Co-founder of Rush Street • A leader and innov
Slide 5: RSI Company Snapshot
RSI Company Snapshot RSI is a leading online gaming company with number one market share in online casino in the United States1 and a top online sports betting offering History and Operations RSI’s Diverse Brands PA • Founded in 2012 (Sports and Casino) • Launched first online casino in NJ in Sep. 2
Slide 6: RSI Recent Highlights
RSI Recent Highlights Performance • Preliminary Q3 2020 Revenue of between $75 and $77 million1 (compared to $16.7 million in Q3 2019 and $64.7 million in Q2 2020) • Preliminary Q3 2020 Advertising & Promotional expenses of less than $20.0 million1 • Retained its #1 position for online casino revenu
Slide 7: Transaction Structure
Transaction Structure Transaction Overview • dMY Technology Group, Inc. (“DMYT”) is a publicly traded special purpose acquisition company with $230 million in cash held in trust1 • DMYT will combine with RSI in an Up-C structure • DMYT has obtained commitments for a $160 million PIPE at $10.00 per s
Slide 8: RSI Investment Highlights
RSI Investment Highlights 1 #1 in US online casino market (June – August 2020)1 2 Accelerated growth profile and what we believe to be a pandemic-resistant business model 3 Strong market access with proven ability to enter large and rapidly expanding markets 4 Proprietary tech platform enables rapid
Slide 9: 2018A – 2021E Financial Performance
2018A – 2021E Financial Performance Consolidated Revenue & EBITDA, 2018A – 2021E $320m NJ PA Other $225m $64m $18m 2018A 2019A 2020A/E 2021E Adj. EBITDA1 ($10m) ($8m) $9m $4m 9 Note: 2018 and 2019 figures per Company audited financial statements. 2020 and 2021 estimates per RSI management. 1. RSI de
Slide 10: Comparable Company Benchmarking
Comparable Company Benchmarking Golden Nugget DraftKings GAN at $10.00 per share Online Gaming TEV1 / 2021E Revenue 5.4x5 24.1x 10.2x 8.7x 2019A-2024E Revenue CAGR 65%6 34%7 17%8 36%8 Growth-Adjusted 0.08x 0.71x 0.60x 0.24x TEV / 2021E Revenue2 2021E Revenue ($m) $3206 $7427 $507 $1228 Cash Flow3 Po
Slide 11: Business Model
Business Model B2C B2B2C • Provide an omni-channel platform and full set of services on behalf • Provide online casino and sports betting using proprietary of a partner casino platform • RSI typically does not pay upfront operator license fees, which have • RSI has control over customer retention, m
Slide 12: #1 in US Online Casino Market
#1 in US Online Casino Market (June-August 2020)
Slide 13: The #1 Online Casino Company in the US
The #1 Online Casino Company in the US According to Eilers and Krejcik Gaming, RSI achieved #1 online casino market share in the U.S. from June through August 2020 US Market Share, Gross Revenue, June-August 20201 June- August 20201 US Online Casino Market is projected $71.9m2 to be $20bn, assuming
Slide 14: Online Casino Outperforms Online Sports Betting
Online Casino Outperforms Online Sports Betting Pennsylvania August 2020 Marketwide Online Revenue Split1 Online casino generated more revenue than 22.5% online sports betting in PA and NJ in August 2020, even though there was a robust sports Casino calendar Sports Betting Catalysts for the expansio
Slide 15: RSI Outperforms Even More in Online Slot Machine Revenue
RSI Outperforms Even More in Online Slot Machine Revenue Pennsylvania August 2020 Marketwide Online Casino Revenue Split1 Online casinos are performing much like the land-based casinos where slot machines 25.5% typically make up 60%-90% of casino revenue In August 2020, RSI was #1 in online slot mac
Slide 16: Clear US iGaming Leader
Clear US iGaming Leader Golden Nugget DraftKings Online Gaming US Online Casino Market Share1 16.3% 11.5% 6.6% Brand Focus #1 in casino plus strong sports offering1 Sports focused with cross-sell to casino Casino focused Combined Population of Live Online US: 50m people US: 57m people US: 9m people
Slide 17: Large & Rapidly Expanding Addressable Market
Large & Rapidly Expanding Addressable Market
Slide 18: Large US Online Opportunity for RSI
Large US Online Opportunity for RSI • RSI operates in 97% of target US markets, by population, where online sports and/or online casino is legal1 • RSI has market access to the coveted markets of NY, PA and IL Today Future Access2 Future Opportunity NJ CO NY MI IN IL VA PA IA Combined Market Size3 C
Slide 19: A First Mover in Key US & LATAM Gaming Markets
A First Mover in Key US & LATAM Gaming Markets RSI First to Launch Online Gaming RSI First to Launch Retail Sports Betting Well Positioned in LATAM PA NY IL 1st to launch online sportsbook 1st to launch a #1 Retail Sportsbook (59% MS)1 1st to launch an retail sportsbook #1 Online Slots + Tables (34%
Slide 20: Proprietary Tech Platform
RUSH N T E R A CGC T Proprietary Tech Platform BETRIVERS.COM
Slide 21: Proprietary iGaming Platform
Proprietary iGaming Platform • Provides flexibility, rapid feature creation / integration • Offers marketing and promotional tools • Feature rich User Experience 3rd Party Casino and Sportsbook Content Casino Sports iGaming Platform Online Front End Social RSI Business Intelligence Marketing Custome
Slide 22: Leading Sportsbook Product
Leading Sportsbook Product Premier in-game offering and live event streaming Recently upgraded our sports betting UI / UX Proprietary jackpot parlay feature New iOS App being rolled out as of September 2020 22
Slide 23: Strategic Social Casino Offering
Strategic Social Casino Offering Soon-To-Be-Regulated • Same platform as real money gaming (RMG) platform offering an Live States States3 authentic online casino experience • Social casino players are converted to RMG at very low CPAs Social Casino Registrations • Consistent revenue growth with ARPD
Slide 24: Efficient Business Model
RUSH N T E R A CGC T Efficient Business Model
Slide 25: Online Casino - Well-Rounded Demographics and Stronger Economics
Online Casino - Well-Rounded Demographics and Stronger Economics than Sports Betting… Average Time Spent Demographics Better Monetization Online casino customers are split equally between The average online casino customer Online casino customers spend 1.7x more male and female but are typically old
Slide 26: RSI's Marketing Engine
RSI’s Marketing Engine RSI’s marketing engine employs a local, targeted, and multi-channel approach to drive customer LTV and ROI RSI’s Approach to Marketing Select Partnerships in Key Markets • Local, building consumer trust through well-known brands, personalities, and businesses in local markets
Slide 27: Strong Return on Marketing Spend
Strong Return on Marketing Spend RSI New Jersey LTV / CAC1, by period On average, all RSI cohorts since Jan-17 have 6.3x paid back in their 5th month RSI Year 1 LTV/CAC of 2.7x is 23% higher than Golden Nugget Year 1 return on ad spend2 2.7x More recent cohorts have been paying back 1.0x more quickl
Slide 28: Strong Market Share with Rational Approach to the Use of Incentives
Strong Market Share with Rational Approach to the Use of Incentives Promotional Credits as a % of Online Slot Machine Gross Revenue Pennsylvania, August 2020 26.0% RSI had #1 PA slot taxable revenue market share in August 2020 while bonusing at less than half the rate of the competition 12.6% Rest o
Slide 29: Financial Highlights
RUSH N T E R A CGC T Financial Highlights BETRIVERS.COM
Slide 30: Recent Performance
Recent Performance RSI Consolidated Revenue, Q2 2019 – Q3 2020 Quarterly Revenue Growth Rate +50% RSI has generated record levels of revenue during $75-$77m1 the first 3 quarters of 20202 $65m Online casino has excelled during the first 3 quarters of 2020 and is expected to continue to be a strong p
Slide 31: Potential US Online Sports Betting and Online Casino Revenue Opportunity
Potential US Online Sports Betting and Online Casino Revenue Opportunity US Online Casino US Online Sports Betting US Market Size at $20bn full penetration1 $15bn Potential % 40% Penetration2 60% RSI Expected 12% - 18% Market Share3 6% – 10% Potential Online GGR $1,000 - $1,500m Opportunity for RSI
Slide 32: Long-term Financial Objectives
Long-term Financial Objectives • Applying a fully stabilized EBITDA margin to our long-term market opportunity represents an attractive return profile RSI Consolidated Long-term Market Opportunity $2,000m Low End of Range High End of Range $1,500m Steady State EBITDA1 $550m $368m Revenue EBITDA1 32
Slide 33: Going Public Expected to Provide Capital That Can Accelerate RSI's Growth Plan
Going Public Expected to Provide Capital That Can Accelerate RSI’s Growth Plan RSI Key Growth Drivers Supported by Transaction Proceeds Launch New Markets Product Development (Domestic and International) Scaling Operations and Marketing Budget Tuck-In Acquisitions 33
Slide 34: dMY Overview
RUSH N T E R A CGC T dMY Overview BETRIVERS.COM
Slide 35: dMY Management Team
dMY Management Team Experience Expertise Free-to-Play & Digital Gaming Acceleration • Mobile pioneer – Software & Hardware • Chairman & Former CEO of Glu Mobile • Retention • Native app gameplay NICCOLO DE MASI • Former CEO of Monstermob • Conversion • Scaling digital engine • UA • Former CEO of Han
Slide 36: Complementary Expertise Will Provide Accelerated Growth & Greater Opportunity
Complementary Expertise Will Provide Accelerated Growth & Greater Opportunity for RSI Focus Area Timeline Expertise Unified internal tech platform delivering faster iteration cycles at lower cost Now Market access advantages over competitors Now Secure & compliant tech stack – vetted domestically &
Slide 37: Appendix
RUSH N T E R A CGC T Appendix BETRIVERS.COM
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Actual Actual Rush Street Interactive, LP 12 Months Ended 12 Months Ended ($’000s) December 2018 December 2019 EBITDA Reconciliation Comprehensive Loss $ (10,867) $ (30,984) (+) Depreciation & Amortization $ 898 $ 1,139 (+) Interest, Net $ 42 $ 123 (+) Deemed Divi
Slide 39: Glossary of Terms
Glossary of Terms Term Definition GGR Gross Gaming Revenue; Gross dollar value of cash bets less payouts NGR Net gaming revenue; GGR less promotional bets less gaming taxes and duties ARPU Average revenue per user; Monthly GGR / Monthly Active Players ARPDAU Average revenue per daily active user; So