Rivalry revenue increases 51% to $3.2M in Q1, with casino segment fueling betting surge

Canadian sportsbook and iGaming operator Rivalry has announced its financial results for the three months ended March 31, 2024. During the period, the company saw strong growth with a betting handle of CAD94.7 million ($69.2 million), an 11% increase from Q4 2023.

Gross gaming revenue rose by 20% to CAD7.7 million ($5.1 million) and net revenue increased 51% to CAD4.5 million ($3.2 million). Furthermore, the company's net loss stood at CAD5.2 million ($3.8 million), representing Rivalry's narrowest net loss of the last four quarters.

The casino segment continued to be a strong contributor for Rivalry, generating 59% of the betting handle and 19% of GGR in the quarter. "Segment results reflect the ongoing expansion of Rivalry’s casino product line, including the original game Cash & Dash released in the second half of 2023," the company stated.

Steven Salz, Co-Founder and CEO of Rivalry, said: "Our first quarter results saw a return to growth with sequential increases in betting handle, gross gaming revenue, and net revenue. 

"We are also very encouraged by the improvement to net revenue margin experienced in the quarter, hitting a record, proving our strategy is delivering results, and representing a meaningful improvement as compared to the average levels experienced throughout 2023. Additionally, interest in our original casino content continues to build, unlocking B2B revenue opportunities that we are keen to detail more fully in the near future," he added.

Quarter highlights

During the period, the company released a basketball same-game-parlay product coinciding with the 2024 NBA playoffs, thus building on the company’s growing traditional sports vertical. "This has supported both acquisition efforts and net revenue margin enhancement," Rivalry stated.

Furthermore, Rivalry also released pre-made-parlays, which the operator says drove meaningful customer interest and improved sportsbook hold. The company also released shareable bet slips during the quarter, introducing a social feature to increase user acquisition and community engagement.

Earlier this month, Rivalry announced the launch of Rivalry Token, a native crypto token on the blockchain. Rivalry Token seeks to add "increased functionality, economics, and user experiences across the company's product suite," according to the Toronto-based firm. 

The launch of Rivalry Token, anticipated to arrive in H2 2024, represents one of several initiatives to expand Rivalry's footprint in the crypto gambling market and better serve its core audience of 30-and-under bettors, the business explained. Rivalry Token will be integrated within Rivalry's product suite, including sportsbook, casino, and more, with built-in properties "to enhance the customer experience from end-to-end." 

"This represents a meaningful strategic step for Rivalry, complementing our existing approach which focuses on a generation that grew up immersed in gaming and internet culture, and now extending that reach to the crypto community. The Venn diagram of Gen Z, gamblers, gamers, and crypto enthusiasts or crypto curious has an extremely high degree of overlap that we are uniquely positioned to access," the CEO added.

Salz also announced that the business has released an overhaul of its homepage, a more fulsome crypto wallet experience, and adjusted the onboarding experience for new users to materially reduce friction while maintaining compliance.

"Together, this represents a meaningful effort to access a higher value crypto gambling cohort, adding more depth and reach to Rivalry’s global network. This comes at an opportune time, as momentum in crypto gambling has been building amongst our target audience and they've been gravitating towards it. Expanding our product offering into this segment, positions us to compete and win as we innovate products and gain access to this higher-value customer cohort," he concluded.