Rivalry, the leading sportsbook and iGaming operator for Gen Z, reported impressive performance when it announced its 2023 financial statements Wednesday.
Rivalry hopes to own the Gen Z gambling opportunity globally, and its 2023 metrics show that it's making a good case to do so. It booked significant increases in betting handle, gross gaming revenue, and net revenue last year while also deepening its product suite.
Betting handle came in at $423.2 million for the full year, up 82% year-over-year. Gross gaming revenue spiked 34% to $35.7 million and net revenue gained 66% YoY to finish 2023 with $16.2 million.
“We have a business with revenue distribution across casino, sports, and esports betting, growing market share in new geographies, with increased velocity in core regions, and the strongest customer KPIs in Rivalry’s history,” co-founder and CEO Steven Salz said in a letter to shareholders.
Rivalry achieved these sizable gains all while reducing total operating expenses by $1.1 million year-over-year. The Toronto-based company also cut its net loss by 24% to only lose $23.8 million in 2023, a reduction of $7.3 million from 2022’s $31.1 million net loss.
Key growth drivers
The casino segment flourished in 2023. Gross gaming revenues from casino games saw 92% YoY improvement to close at $6.4 million, representing 52% of the total betting handle for the year. Rivalry also expanded its casino offering by releasing a new original game, Cash & Dash, in September, entering the slots category in October, and launching its iOS mobile app in Ontario.
Enhancements were made to its sportsbook product to improve overall hold as well, such as higher margin products like Same Game Combos and Quick Combos.
The traditional sports betting segment grew 60% in 2023, which helped to strengthen the company’s diverse offering that now includes fantasy, additional sports coverage, and new proprietary casino games.
On the horizon
Salz stated “the year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024.”
The company will look to double down on core growth opportunities in basketball and soccer, two sports that really resonate with its audience. The casino segment will continue to get developments to enhance the variety, depth, and accessibility of the experience, while new original games which blur the lines between betting and entertainment are also in the mix.
Salz also talked about how much online gambling has changed since Rivalry launched six years ago, specifically pointing to the rise of cryptocurrency and blockchain technology and what that could mean for the business.
“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 said.
Salz suggested that the company will soon 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.
Rivalry also recently took advantage of the blending between online betting and in-person events by hosting Launders LAN in Toronto in partnership with their partner, esports influencer Mohan “Launders” Govindasamy. More than 550 people attended the Counter-Strike 2 tournament which featured a $10,000 prize pool. Even more noteworthy was the fact that more than 55,000 unique viewers attended the event’s livestream to watch the 32 five-player teams battle it out for the jackpot.
“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,” Salz said.
