Esports and sports online bookmaker and casino Rivalry Corp. has just delivered a Q1 2025 update that’s provided some positive news following its new strategic evaluation.
While topline revenue dipped, the numbers beneath the surface tell a story of a company trying to reinvent itself and winning where it counts. This was Rivalry’s first full quarter operating under a leaner, sharper strategy, and the results show a business that’s trading scale for sustainability, and short-term volatility for long-term gains.
The headline figures: Rivalry’s Q1 betting handle hit $58.2m (£43.9m), with net revenue of $1.3m for a margin of 2.3% down from 2024’s 4.4%, thanks to temporary sportsbook hold fluctuations and a pivot toward high-value, VIP players.
But here’s where it gets interesting: operational efficiency skyrocketed by 400%, meaning Rivalry is squeezing far more revenue per user out of every dollar spent on operations. That’s a seismic shift in cost discipline and operating leverage.
Players are responding in kind. Average monthly deposits per player surged 175% compared to before Rivalry’s October 2024 overhaul, and deposit frequency jumped 115%.
Even with a smaller active user base, total deposits kept climbing, up 36% in February and another 12% in March. March also saw an all-time high in monthly betting handle per user, capping off five straight months of record-breaking engagement.
Ontario’s regulated market is a standout, with Rivalry’s average revenue per playing account nearly doubling since the strategic shift, sometimes outpacing the market average by 50%.
All this while Rivalry slashed monthly operating expenses by $1.7m (£1.2m), proving that less can be more when you have the right players and the right product.
Rivalry’s Q1, so far, highlights the company’s strategic reinvention, betting on quality over quantity and building a foundation for sustainable, profitable growth.
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