Rivalry CEO insists firm is “proving the haters wrong” following stellar Q3 results
Steven Salz says the financial performance is proof its concept works, and that its unique personality makes it stand out from the crowd
Rivalry CEO and co-founder Steven Salz says the operator’s success shows that when esports betting is done right, it can be a fruitful endeavour.
The esports betting operator recently posted a 93% surge in revenue compared to this time last year, reaching C$7.1m (£4.37m) for Q3 2022. What about handle?
This figure is the highest-ever revenue in any quarter for Rivalry and is up 35% on the C$5.3m posted in Q2 2022.
Betting handle also hit record levels totalling C$70.3m, increasing 203% YoY and up 83% on the C$38.4m in Q2.
Rivalry’s positive results continued into Q4 2022. Betting handle reached C$37.2m in October with revenue of C$4.5m, which is the first profitable month in the company’s history to date.
Salz said that these results, coupled with the fact its main demographic is those aged under 30, shows there is success to be had in the esports betting field.
He commented: “I think we are proving the haters wrong with how we are doing. When you look at how many operators come and go in esports betting in particular, in the last year we have seen that they’ve all basically abandoned it for traditional casino or something similar.
“So, through our numbers, we are able to demonstrate that the business model works.
“We are showing there is fertile ground for esports betting among younger demographics and our ability to now cross-sell additional products as we release them, which is good. Our whole thesis is coming together and starting to work pretty well.”
By figuring out its core demographic, Rivalry has eschewed offering products aimed at those above 30; however, in Salz’s mind, this is not necessarily a bad thing.
He remarked: “The DNA of the company is there in that age group. We are all under 30 esports fans and we’re all children of internet culture and meme culture, so we wanted to build something that we want to consume as well.
“I think it’s very difficult to be successful, that goes for anything, it doesn’t matter what you do. I think if you don’t want to consume the thing that you do, it’s going to be really tough for you to make it work.
“So, we’re going to continue to build the things that we ourselves would want to use, things that we find funny, enjoyable, and that’s going to skew to the demographic that we currently serve for sure.
Salz went on to discuss how its unique and unusual approach is something that sets it apart from the competition.
He said: “I don’t think you’d see other operators creating things that we have. For example, our little helper character shows we don’t take ourselves too seriously. You have to try and have a sense of humour. You don’t want it to be like a spreadsheet all the time.”
Lastly, Salz touched on what we can expect to see from Rivalry next year. “We will continue to refine and build a sportsbook product as a whole, including esports and casino as well.
“We will also continue to invest in and put out what I believe is incredible creative work that allows us to become less reliant on raw marketing spend, bonuses and promotions, because we’re creating so much equity.
“We will also try and test run table games before launching it properly, as our ethos is to test an idea first and see if it has legs.”