Rivalry plots potential expansion into B2B space on back of in-house casino gains

Rivalry has suggested the operator could branch out into the B2B arena based on the in-house success of the group’s proprietary online casino games.

As detailed in a forward-looking letter to shareholders, the Toronto-listed firm said an expansion of its operations to include a supplier arm was a possibility.

The operator’s online casino division, Casino.exe, hosts proprietary titles, including Cash & Dash, which has already become one of the most popular and highest grossing games on the platform. 

In fact, management confirmed that casino accounts for almost half of all stakes placed with the business overall. 

Rivalry said: “The value being created from our original game IP is also materializing rapidly. Four months after launching our latest first-party game, Cash & Dash, it has become the fifth most-played game on our platform and among the top 10 highest-grossing titles by revenue. 

“In roughly a year’s time, casino has grown to nearly 50% of betting handle, growing 141% year-over-year in Q3 2023 without cannibalising player wallet share. Casino.exe, our custom-built platform, has represented a key part of our success in this segment by differentiating Rivalry’s casino offering from the others out there.”

Elsewhere, the Steven Salz-led firm said it was planning to invest further capital into its sports betting operations, which has seen a 60% increase in wagers placed since 2022.

While sports betting still sits behind casino and esports betting, the company said the growth in the vertical showed the “success of our brand among Gen Z broadly and enabling us to continue broadening our TAM.”

In terms of broadening TAM, Rivalry said it was planning to enter new markets but did not provide further details on which specific geographies it was targeting.

The business is in the process of acquiring new local licenses to add to its existing Isle of Man, Ontario and Australia certifications.

Additionally, the firm wants to enhance and innovate on its existing suite of products across its sportsbook and casino arms, specifically those that will “drive the usage of higher-margin verticals and increase overall player engagement.”

Rivalry also highlighted plans to improve retention via beefed-up gamification and loyalty program strategies.

These aspirations come as Rivalry experienced substantial growth in several areas in 2023, with first nine months of 2023 seeing betting handle soar 127% to C$338.1m (GBP), which led to revenue increasing 70% to C$29.2m and gross profit rising 175% to C$13.2m. 

Rivalry also debuted its iOS app in Ontario in 2023, contributing to more than a 400% increase in betting handle in its home province. 

In the letter, the operator said: “Our aspiration is to set the standard for what is possible in this category and to be market leaders in the inevitable generational shift that is underway. 

“We exited 2023 as a substantially diversified company, both geographically and across our product suite, with the strongest customer KPIs in our history. 

“The potential for how far our brand can go is just beginning to unfold. And it is why 2024 is setting up to be a year of significant growth, powered by our relentless pursuit to deliver a one-of-a-kind experience to a digitally native demographic that we can delight better than anyone else.”