Canadian sportsbook and iGaming operator Rivalry has publicly shared its 2023 annual letter to shareholders, following the filing of its financial results for the three and 12-month periods that ended December 31, 2023. The Gen Z-oriented brand lauded last year’s performance while noting the future is “rife with new, innovative product releases,” hinting at plans to launch a crypto-enabled betting product.
Steven Salz, Co-Founder and CEO of Rivalry, said: “This time last year I spoke about Rivalry’s evolution from a market leader in esports to a diversified company setting the standard for Gen Z betting entertainment broadly. Today, we have a business with revenue distribution across casinos, sports, and esports betting, growing market share in new geographies, increased velocity in core regions, and the strongest customer KPIs in Rivalry’s history.”
In 2023, the betting handle amounted to CAD 423.2 million ($311.2 million), an increase of 82% from CAD 232.8 million ($171.2 million) in 2022. According to the report, gross profit was lower in Q4, dropping 40%; however, for the full year, gross profit was up by 66% to CAD 16.2 million ($11.9 million).
Moreover, the introduction of higher margin products released in H2 such as Same Game Combos and Quick Combos are “continuing to improve overall sportsbook hold and guide Rivalry closer to profitability,” according to officials.
The CEO said that the year ahead is “rife with new, innovative product releases” arriving in Q2 and continuing throughout 2024. “We are doubling down on core growth opportunities in sports that resonate with our audience, such as basketball and soccer,” stated Salz.
He added: “Further, we are building on a successful casino segment which already represents 50% of our business, enhancing variety, depth, and accessibility, as well as developing new original games that blur the lines between betting and entertainment. We are in the process of additional geographic expansion, and pursuing new licenses to broaden our total addressable market, positioning Rivalry to own the Gen Z gambling opportunity globally.”
Online gambling in 2024 is radically different than it was just six years ago when Rivalry launched, according to the CEO. “Throughout time we’ve seen gaming and internet culture reshape how consumers engage with technology,” Salz pointed out. “That shift is broadening the definition of gambling, where product design is influenced by video games, or it exists fully embedded within social apps like Telegram, where content creators are the new affiliates and much more.”
Moreover, in its letter, Rivalry notes that the rise of cryptocurrency and blockchain technology has introduced a new level of speed, access, and security to web-based consumer experiences. Industry estimates now put crypto wagers at up to one-quarter of global betting handle, with 30% year-over-year growth in 2024, and showing no signs of slowing down.
For Salz, the development of this ecosystem has commercially unlocked online gambling, “unlike anything since its first transition from land to online many years ago.” It has brought in a new global audience and enriched the customer experience from end to end, which Rivalry seeks to explore.
Alongside the growth of this technology has emerged new methods of gambling, taking wallet share from more traditional forms at an accelerated rate. “The shift in consumer behavior and the signal from our users is clear – interactive, volatile, and crypto-infused product experiences will set the precedent for how the next generation gambles online,” he stated.
“Rivalry, with a brand steeped in internet culture and living at the intersection of this digital economic renaissance, is well-positioned to access this growth opportunity. There is a high overlap between Gen Z, gamers, gamblers, and a fast-growing audience of over 420 million crypto users worldwide organically aligned with our audience and brand. And we believe that more than half of this audience globally is already wagering with crypto,” the letter reads.
“It will be Rivalry’s ability to understand, implement, and adapt to this shift more rapidly than our peers that we expect to create first-mover advantages for us. It is for that reason that our vision is now bolder than ever for what’s possible in the online gambling category. Soon, we will reveal plans for a crypto-enabled product set to enhance alignment between Rivalry and its users, increase network effects, and generally deliver a consumer experience that lives on the internet of 2024,” the CEO shared.
“To that effect, the success of our first-party games and their ability to acquire and engage a captive audience of Gen Z bettors online has validated our original game development strategy amongst industry peers. This has unlocked a new commercial opportunity for Rivalry to license its IP, opening up another line of revenue for the business that has great potential for global scale.”
“The year ahead is poised to be one of our most ground-breaking, with a myriad of innovative product releases across all of Rivalry’s verticals, adding more dimension to our business, operations, and addressable audience, and building on our competitive moat as the market leader in Gen Z betting entertainment,” Sanz anticipated.
Original article: https://www.yogonet.com/international/noticias/2024/05/03/72015-rivalry-hints-at-development-of-first-crypto-betting-product-in-letter-to-shareholders
