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Rivalry Issues 2023 Business Update

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2 years ago

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Rivalry Corp., an internationally regulated sports betting, media, and technology company, today issued a letter to shareholders summarizing recent progress and outlining strategic priorities for 2023. The full text of the letter follows. All dollar figures are quoted in Canadian dollars.

Rivalry Corp. 2023 Business Update

To our Shareholders,

Rivalry experienced a breakout year in 2022, with exceedingly strong performance across the business.The early indicators of sustainable and profitable growth that we demonstrated in October are a positive sign of what’s to come as the business continues to execute its strategic priorities. Having achieved record results every quarter, we believe the prospects for our business are as strong as ever as we kick off 2023.

In 2022 we delivered triple-digit year-over-year growth in both revenue and betting handle, with average month-over-month revenue growth accelerating to 32% through the first 10 months of the year. At the same time, we reduced bonus/promotional spend relative to revenue by over 50% year-over-year, and achieved our first-ever profitable month in October. These results were underpinned by greater product diversification that reduced the impact of seasonality. We’re proud to have finished the year strong and look forward to reporting our full Q4 results.

We have high expectations for 2023, and are confident that it will be another year of record achievements. This shareholder letter provides an update on our business, our place in the industry, and some of the things we’re excited about for Rivalry in 2023.

We are executing against a generational opportunity, and our vision remains clear:

  1. Become the leader in betting and entertainment globally for the next generation.

  2. Build the most engaged brand and portfolio of IP in esports betting (original games, content, creators, and more).

  3. Leverage our technology to innovate on product at every turn, creating a proprietary, interactive, and entertaining betting experience customers won’t find elsewhere.

With an ever-evolving gaming industry and a product suite still in the early stages of fulfilling our vision, we see a huge amount of market opportunity as we continue to trailblaze in this category. We are eager to continue executing on our strategy with financial discipline and scaling purposefully toward profitability.

2022 highlights

We’re proud of our 2022 accomplishments, including:

  • Delivering significant growth, including year-to-date betting handle increasing 181% YoY to $186 million, and revenue increasing 130% YoY to $21.7 million in Q3 2022.2

  • Continued to build upon the most engaged esports betting brand globally.

  • Demonstrating our market leadership in esports betting with 90% of sportsbook handle driven by esports.

  • Increasing market share ownership of Millennial and Gen Z consumers, represented by 82% of our active user base being under 30-years old, and an average customer age of 25, approximately a decade younger than legacy sportsbooks.

  • Expanding our esports betting product, including the introduction of mobile game titles in March, which has already contributed a meaningful amount of betting handle and strong signs it will carry its momentum throughout 2023.

  • Successful expansion into a new product category with the launch of Casino.exe, our proprietary casino interface, which drove immediate impact, contributing 30% of betting handle and 15% of revenue in Q3 2022 with minimal marketing efforts.

  • Launching in two new regulated markets: the province of Ontario, Canada, and Australia.

  • Best-in-class creative execution, leveraging 100+ brand partners in more than a dozen markets and 20+ owned social media channels to deepen brand awareness and engagement among our target audience, while enhancing customer acquisition and retention.

Notably, these results and signals of sustainable growth are all organic, driven by an overarching strategy that prioritizes great consumer products and brand engagement over flash-in-the-pan trends and promotional spend.

Rivalry’s growing role in betting, esports, and entertainment

Rivalry has created a truly differentiated position within the betting industry that we believe will make a meaningful impact on our financial performance as we scale the business.

The global sports betting industry eclipsed $83 billion in 2022 and is set to grow at a CAGR of 10.2%. Meanwhile, the $197 billion global video game industry is experiencing similar growth with an expected CAGR of 12.9% and expanded generational significance, seeing 87% of Gen Z playing video games weekly among a larger population of 3.1 billion gamers globally. It is at this valuable intersection where Rivalry lives.

Our approach toward attracting the next generation of consumers is different from legacy operators. We scale through word of mouth and organic market entrenchment of brand equity that allows us to operate without a dependency on excess bonusing and player subsidies. This approach helped drive a 50% reduction year-over-year in bonus/promotional spend relative to our revenue, supporting our below-market cost of customer acquisition and further reducing our reliance on linear net new spend for growth. This is continuing to create the operating leverage that has set Rivalry on a path toward profitability.

Gaming and internet culture guides this successful player acquisition strategy, and allows us to engage with a deeply valuable and nuanced demographic of users that legacy operators aren’t equipped to serve. There is tremendous value gained by participating in these communities and cultures, building lasting brand affinity among gaming fans who are quickly emerging as the consumer economy of the future, and similarly by attaching ourselves to the pervasiveness and virality of the internet.

In a world where live-service games are the standard and long-term player engagement is the new benchmark for success, Rivalry is poised to play a prominent role in the future of esports. Betting activity translates into the enhanced viewership, engagement, and economics that are directly aligned with the KPIs of esports and gaming stakeholders, and those represent significant long-term tailwinds for our business.

We believe an intimate understanding of these audiences and cultures will shape the next generation of great consumer products. It is with this understanding that Rivalry is able to tap into a global gaming audience and drive betting activity among the 532 million esports viewers worldwide.

We will continue making strategic and measured investments in key areas of the business that we believe set the stage for further growth in 2023, and beyond, with objectives that should ensure our current momentum toward profitability remains intact. Some of the initiatives we expect to drive continued growth in 2023 include:

  • Expanding our esports offering with new titles and markets to deepen our core product and attract new customers.

  • Continued evolution of our proprietary Casino.exe platform and release of additional in-house developed and third-party games that cater to our core demographic and further establish a gaming experience unique to Rivalry.

  • Launch of a mobile app in our regulated markets to increase accessibility of our product.

  • Geographic expansion to increase our addressable market and customer base.

  • Expanded content and creator partner program to deepen our ability to reach and engage customers, solidifying Rivalry’s leadership position in the esports betting industry.

  • Continuing to grow our investor base through proactive capital markets outreach.

These initiatives are designed to advance us toward consistent profitability, through measurable outcomes including:

  • Increased product depth and diversity creates greater margin stability and reduces seasonality while increasing average customer spend.

  • Increased TAM through new market launches builds greater intrinsic value capture for Rivalry, and thus upside for our investor base.

  • Enhanced brand engagement cultivates a dedicated customer base, which organically improves retention and lowers cost of customer acquisition.

I’m extremely proud of the differentiated approach Rivalry has taken from day one and what it has enabled us to achieve, creating a truly distinct product and brand that is driving operating leverage and  bearing fruit across the business. As we move into 2023, we’re eager to continue demonstrating the same operational excellence which has enabled us to stand out in a deeply competitive industry.

With that, I wish everyone a happy, successful, and healthy year.

Steven Salz

Co-Founder & CEO

Rivalry Corp.

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Rivalry Reports Q1 2025 Results Highlighting Strengthened Unit Economics, Operating Leverage, and Strategic Progress

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July 15, 2025

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Rivalry Corp., an internationally regulated sports betting and media company, announced financial results for the three-month period ended March 31, 2025 (“Q1 2025”). All dollar figures are quoted in Canadian dollars unless otherwise noted.

Q1 2025 was the first full quarter operating under Rivalry’s restructured model, following a company-wide transformation that began in Q4 2024. This included a strategic shift toward high-value users, deep cost rationalization, significant product upgrades, and tighter execution across every layer of the business. The result is a streamlined, modernized operating model with materially improved performance and long-term leverage.

“This quarter marks the full emergence of Rivalry 2.0 – leaner, sharper, and structurally stronger,” said Steven Salz, Co-Founder and CEO of Rivalry. “We’ve rebuilt the foundation of the business around high-efficiency acquisition, high-value users, and a proprietary product – and we’re already seeing the impact. Rivalry today is not just a leaner version of itself – it’s a fundamentally different company built for scalability.”

Key Highlights

  • Net revenue of $1.3 million, consistent with the preliminary results announced on April 16, 2025. While temporary sportsbook margin variance impacted topline outcomes, underlying KPIs continued to improve and validate the strength of Rivalry’s rebuilt model.
  • Operating expenses decreased 58% year-over-year to $4 million in Q1 2025, down from $9.6 million in Q1 2024.
  • Net loss reduced by 43% to $3.0 million in Q1 2025 from $5.2 million in the prior-year quarter.
  • A meaningful portion of Q1 expenses were non-recurring or non-operational in nature, including annual audit costs, regulatory fees, and legacy payables from prior periods. The Company’s adjusted marketing spend during the quarter was approximately $175,000, materially lower than the reported figure due to these factors.
  • Average Customer Acquisition Cost payback across H1 2025 was approximately 1.5 months, reflecting improved funnel conversion, higher player value, and stronger retention – all achieved under constrained spend conditions.
  • Q2 2025 set new all-time records across key user economics1:

    • Net revenue per player increased 49% versus Q1 2025, and was 210% higher than the historical average prior to the Q4 2024 transformation.
    • Wagers per player rose 7% quarter-over-quarter, and nearly 300% above the pre-rebuild average.
    • Average monthly deposits per player in Q1 2025 were over 175% higher than the historical average. In Q2 2025, this increased a further 28%.
    • Monthly deposit frequency per player in Q1 2025 was up 115% over the historical average, and rose another 22% in Q2 2025.
  • Ongoing improvements in VIP identification, segmentation, and servicing, driven by Rivalry’s proprietary Business Intelligence (“BI”) tools and Customer Relationship Management (“CRM”) infrastructure, further contributed to gains in deposit behavior and overall player value.

These improvements reflect the effectiveness of Rivalry’s strategic overhaul – including product modernization, in-house BI tooling, optimized segmentation, and CRM systems that support higher-value customer behavior and lifecycle retention.

Streamlined Operations

Rivalry’s breakeven net revenue is now approximately $600,000 USD per month, down from more than $2 million USD per month a year ago, based on current run rate operating expenses, with further cost optimizations planned in Q3 2025. The rebuilt business is operating on a structurally lower fixed-cost base with proven user economics and performance-ready infrastructure.

“We’ve created an operating model that is not only lean and disciplined, but also high-leverage,” Salz added. “This is a structurally better business than it was a year ago. The team is tighter, the product is stronger, and the KPIs are outperforming – all with limited capital deployment. The engine is rebuilt.”

Strategic Review & Outlook

Rivalry is actively exploring strategic alternatives aimed at maximizing shareholder value. As part of this ongoing process, the Company is also evaluating non-dilutive capital options as part of broader strategic initiatives to accelerate growth. These are intended to complement the broader review and enable Rivalry to fully capitalize on the performance capacity of its rebuilt model.

As the Company progresses into H2 2025, key initiatives include:

  • Deployment of a new promo engine, enabling more dynamic and cost-efficient bonus structures.
  • Casino-led engagement mechanics, including lootboxes, missions, and summer campaigns to drive offseason activation.
  • Geographic reactivations and enhanced CRM, focused on high-value player segmentation and deeper lifecycle engagement.
  • Further operating cost reductions in Q3 2025, aimed at lowering the breakeven point and increasing flexibility.

Rivalry’s transformation over the past three quarters has positioned the business with a distinct set of structural advantages: a deeply aligned and experienced team, proprietary technology and BI systems, strong regulatory licenses in Ontario and the Isle of Man, and a globally recognized brand with demonstrated reach. These strengths now form the basis of a highly scalable and differentiated operator in the global online gambling market.

“Rivalry today is a high-performance engine – structurally rebuilt, road-tested, and positioned to scale,” said Salz. “We’re focused on unlocking the next chapter of growth, and the strategic review process is designed to support that path.”

The post Rivalry Reports Q1 2025 Results Highlighting Strengthened Unit Economics, Operating Leverage, and Strategic Progress appeared first on Gaming and Gambling Industry in the Americas.

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AGCO Updates Responsible Gambling Training Standards for Gaming and Lottery

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July 15, 2025

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As of July 11, 2025, the Alcohol and Gaming Commission of Ontario (AGCO) no longer requires Registrar approval for responsible gambling (RG) training programs for casino and lottery employees. This change applies to both the Gaming and Lottery Standards and supports a more flexible, outcomes-based approach.

What’s changing

• Standard 2.5 has been updated to remove the need for Registrar approval of RG training.

• Training must still be mandatory, regularly updated, and based on best practices.

• Employees must understand responsible gambling, their role in player protection, and how to support those showing signs of gambling harm.

What this change means for operators and lottery retailers

• Casino and lottery operators now have more flexibility to design and update RG training.

• Existing PlaySmart training remains valid.

Why this change matters

This change reduces red tape, encourages innovation, and maintains Ontario’s high standards for player protection. This also aligns with AGCO’s outcomes-based regulatory approach and brings greater consistency across gaming sectors, including iGaming.

The post AGCO Updates Responsible Gambling Training Standards for Gaming and Lottery appeared first on Gaming and Gambling Industry in the Americas.

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Soft2Bet’s Brand ToonieBet Named an Official Sports Betting and Casino Partner of the CFL

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5 days ago

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July 11, 2025

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ToonieBet, Soft2Bet’s premier sportsbook and online casino brand tailored for Canadian players, has been named both an Official Sports Betting Partner and an Official Online Casino Partner of the Canadian Football League (CFL).

The multiyear partnership also establishes ToonieBet as an Official Partner of the CFL’s championship game, the Grey Cup. Fans from coast to coast to coast annually gather for Canada’s largest single-day sporting event to celebrate an incredible season, and to witness one team earn the right to hoist the iconic trophy. The 112th Grey Cup will be played at Princess Auto Stadium in Winnipeg on Sunday, November 16.

Fans in Ontario aged 19-and-over will be able to responsibly wager on CFL games through ToonieBet with access to in-game betting and futures. The collaboration will also explore exciting branded online casino experiences on the ToonieBet platform to entertain existing fans and engage new ones.

ToonieBet’s partnership with the CFL underscores Soft2Bet’s ongoing commitment to Canadian sports fans and a further investment in the Canadian sporting tradition, as the deal marks Soft2Bet’s second sports partnership in the country within the last three months, following ToonieBet’s designation as the Official Online Casino Partner of the NHL’s Ottawa Senators, which was recently expanded with a full sportsbook offering.

“This partnership is for the fans. Together with ToonieBet, we will unlock exciting avenues of entertainment, delivering new products, responsible gaming options and unique activations, to better serve the future of fandom. In the stadium, at home or online, we’re doubling down on engagement and innovation like never before,” said Tyler Keenan, the CFL’s Chief Revenue Officer.

“Partnering with the CFL will elevate our robust offerings in the Canadian market and allow us to continue building our passionate sports and online gaming community in Ontario. Our team at ToonieBet is deeply committed to building a premium fan experience, while delivering exceptional customer hospitality and ensuring both responsible and safe game play,” said Steve Spindler, ToonieBet’s Canadian Country Manager.

“We are proud to partner with the CFL and its local teams. This partnership goes beyond visibility – it’s about building relevance and establishing a real connection with fans. Aligning with one of Canada’s most trusted leagues allows us to strengthen our bond with Ontarians and deliver a best-in-class sports betting and gaming experience through ToonieBet,” said Martin Collins, Chief Business Development Officer at Soft2Bet.

Additionally, ToonieBet has been designated as an Official Authorized Gaming Operator of the CFL, allowing Soft2Bet to deliver best-in-class gaming experiences with official CFL data and statistics to sports fans and sportsbook users across Ontario through the ToonieBet platform.

ToonieBet will also serve as the presenting partner of CFL Fantasy, and the Game Tracker in Ontario on CFL.ca and LCF.ca, in addition to being the CFL’s odds provider on the league’s digital scoreboard.

The post Soft2Bet’s Brand ToonieBet Named an Official Sports Betting and Casino Partner of the CFL appeared first on Gaming and Gambling Industry in the Americas.

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