Toronto-based Rivalry Corp. Tuesday shared a business update with an overview of where they see the company heading this year. The update was in the format of a letter to shareholders.
Rivalry is a licensed sportsbook and igaming operator for Millennials and Gen Z and their plan for 2024 is to continue to push diversification from esports to categories like traditional sports betting, casinos, and fantasy.
“Rivalry’s brand has become a bridge to Gen Z experiences. We’ve proven we can acquire, engage, and retain this demographic in gambling products under our umbrella,” said company co-founded and CEO Steven Salz in the letter. “The value we’re beginning to unlock from this cannot be overstated.”
The brand, he said, is “strategically positioned at the intersection of gaming and internet culture with marketing that spreads globally through creative work. The connective thread … is a highly nuanced understanding of Gen Z’s consumer behaviors, its connectivity to gaming and internet culture, and our ability to transform it into a successful product experience that is well differentiated from the pack.”
Highlights from 2023 include growth momentum, with year-to-date reported betting handle increasing 127 percent to CAD$338.1 million, revenue increasing 70 percent to $29.2 million, and gross profit up 175 percent to $13.2 million through Q3 2023 compared to the first nine months of 2022, while marketing spend decreased by eight percent.
Casino grew to nearly 50 percent of total wagers, followed by esports and sports betting.
In terms of 2024, Salz said the company will be focusing on releasing more original first-party games. Four months after launching their latest first-party game Cash & Dash, it has become the fifth-most-played game on their platform and among the top 10 highest-grossing titles by revenue.
There will be “new proprietary releases and enhancements to the current product suite across sportsbook, casino, and more, including those that drive usage of higher-margin verticals and increase overall player engagement.”
Rivalry will also be investing more in its sports-betting product, which has increased on the platform to 60 percent since 2022, as well as look to enter new regulated markets.