In a bold move to capture the burgeoning crypto gambling market, Rivalry Corp. (TSXV: RVLY, OTCQX: RVLCF, FSE: 9VK) has undergone a significant transformation in the third quarter of 2024. The Toronto-based sportsbook and iGaming operator has repositioned its product, brand, and team to align with a global, crypto-first strategy, aiming to maximize its share of high-value players.
Rivalry reported a betting handle of $79.9 million for Q3 2024, with adjusted revenue of $6.0 million. While net revenue dipped to $3.0 million, the company’s strategic pivot is already showing promising results. Average net revenue per user has hit all-time highs, increasing by 51% compared to the 2024 year-to-date average and 70% compared to the trailing three-year average.
The company’s crypto-native strategy, spearheaded by the Rivalry Token (NUTZ), has delivered strong early results. Crypto wallet-connected customers are generating 200% more revenue than baseline users, with retention rates 30% above average. The token initiative has already captured $3.0 million in deferred revenue, signaling strong market fit among the target audience.
Rivalry has implemented a comprehensive operational realignment, resulting in a significant 50% reduction in run rate operating expenses compared to Q3 2024 figures. This cost-cutting measure included two workforce rationalizations, reducing headcount by half while reportedly increasing measurable output by over 200%.
Steven Salz, Co-Founder and CEO of Rivalry, emphasized the company’s commitment to this transformation: “We have completely rebuilt every core element of our product, intentionally designed to service crypto-native users and high value players. We’ve also undergone a comprehensive rebrand, and significantly drawn down marketing spend associated with our prior strategy.”
Rivalry comprehensive overhaul of its product offerings and brand identity has marked a significant step in its transition to a crypto-first strategy aimed at attracting high-value players. The revamped sportsbook now features over 40 new sports, enhanced live streaming capabilities, and a simplified user interface designed to improve the overall betting experience. Additionally, the casino platform has been redesigned to enhance functionality, incorporating new content and interactive features such as Casino Races, which allow players to compete for rewards based on their wagering activity.
To facilitate a seamless payment experience, Rivalry has introduced a crypto-first cashier system that streamlines deposits and withdrawals, positioning the company to capture a larger share of the growing crypto gambling market. A newly launched VIP program offers cashback, free spins, and various rewards tailored to incentivize high-value players and boost user engagement. Moreover, Rivalry has optimized its registration process to reduce friction for new users while ensuring compliance with industry standards.
The company’s strategic rebranding efforts are aimed at better connecting with digital-first gamblers and reinforcing its market position. These enhancements reflect Rivalry’s commitment to leveraging cryptocurrency as a core component of its business model while driving player loyalty and increasing wallet share among its most dedicated customers.
While the company has temporarily suspended specific profitability guidance during this transitional period, Salz remains optimistic about Rivalry’s future: “We’re confident this entirely rebuilt product set, debuted alongside a more mature, digital-first rebrand, will accelerate Rivalry’s position as a global, crypto-native operator and enable us to capture a high-value player audience.”
As Rivalry Corp. navigates this strategic pivot, the company’s focus on crypto-native gambling and high-value players positions the company in the evolving online gambling market. The success of this transformation will likely depend on the continued adoption of its crypto offerings and the ability to capitalize on the growing intersection of cryptocurrency and online gambling.
