SBC News Voice of the Sports Betting Industry
Canadian multinational sports Rivalry has informed financial authorities that it will be late in filing its full year results for 2024, but it has shed some light on its early 2025 performance.
The online sportsbook and casino is currently undergoing a strategic review, having embarked on cost cutting efforts and a restructuring. This included several layoffs, with some long-term staff departing the company.
This strategic review has been cited as the primary reason for the delay in FY24 filings, with Rivalry stating that it is ‘in the best interests of the company’ to utilise resources for this purpose, and that directing efforts to this review will mean it will miss the 30 April 2025 deadline.
A shaky start to 2025?
Having noted its delay, Rivalry has applied for a management cease trading order at the Ontario Securities Commission. If approved, this will prevent Rivalry management from trading in company shares until its annual report is filed.
The Toronto-based outfit is active in Ontario and Australia, as well as through several international grey markets where it operates under an Isle of Man licence. The company has reported successive quarters of revenue growth throughout 2022, 2023, and 2024, citing market leadership in its esports betting niche and strong appeal to Gen Z and millennial consumers.
Growth slowed last year, however, with its Q3 2024 net revenue down to CA$3m (2023: $8.7m) and net revenue for the nine months ending September 2024 down 8% to $12.1m (2023: $11.1m).
This has coincided with, but cannot be directly attributed to, an experiment with cryptocurrency, as Rivlary launched its own token, NUTZ, last year, and earlier this year began to accept Donald Trump’s $TRUMP coin.
Despite the delay to its full year report, the company has updated the stock market on its progress in Q1 2025. Net revenue stood at $1.3m, down 71% from €4.5m in Q1 2025, derived from a betting handle of €58.2m (€94.7m). The company states that this is due to a strategic reduction towards high-value and VIP customers.
However, the company has expressed confidence in a strategic turnaround. It asserts that operational efficiency is up 400%, while its shift towards targeting VIP players has led to record revenues per user and all-time high monthly betting handle per user despite the overall decline in betting handle described above.
“We’ve built a stronger, leaner, and more focused Rivalry,” said Steven Salz, Rivalry CEO.
“Our improved KPIs and disciplined cost management have created a healthier foundation. With continued operational momentum and a re-energized product, we believe we’re on a promising path forward.”
