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Rivalry Announces 2023 Annual Letter to Shareholders and Filing of 2023 Annual Financial Statements

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Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Gen Z, is pleased to announce its 2023 annual letter to shareholders and the filing of its financial results for the three (3) and 12-month period ended December 31, 2023. All dollar figures are quoted in Canadian dollars.

2023 Annual Letter to Shareholders

To our Shareholders,

This time last year I spoke about Rivalry’s evolution from a market leader in esports to a diversified Company setting the standard for Gen Z betting entertainment broadly.

Today, we have a business with revenue distribution across casino, sports, and esports betting, growing market share in new geographies, with increased velocity in core regions, and the strongest customer KPIs in Rivalry’s history.

In 2023, Rivalry recorded $423.2 million in betting handle1, up 82% from the previous year. Similarly, gross gaming revenue2 and net revenue both saw 34% and 66% respective increases, while the introduction of higher margin products released in H2 such as Same Game Combos and Quick Combos are continuing to improve overall sportsbook hold and guide Rivalry closer to profitability.

Our deepened product suite now includes fantasy, additional sports coverage, and new proprietary casino games. All of which are uniquely driving growth among a targeted customer segment and widening our opportunity set in 2024 and beyond – from a 60% increase in traditional sports betting to a burgeoning B2B game vertical. The potential for how far our brand can go is just beginning to unfold.

The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024. We are doubling down on core growth opportunities in sports that resonate with our audience, such as basketball and soccer. Further, we are building on a successful casino segment which already represents 50% of our business, enhancing variety, depth, and accessibility, as well as developing new original games which blur the lines between betting and entertainment. We are in the process of additional geographic expansion, and pursuing new licenses to broaden our total addressable market, positioning Rivalry to own the Gen Z gambling opportunity globally.

While Rivalry’s operations have expanded into new high-growth verticals, our north star has remained the same: to define the future of online gambling for a generation born on the internet.

Online gambling in 2024 is radically different than it was just six years ago when Rivalry launched. In that time we’ve seen gaming and internet culture reshape how consumers engage with technology. That shift is broadening the definition of gambling, where product design is influenced by video games, or it exists fully embedded within social apps like Telegram, where content creators are the new affiliates, and much more.

Over the same period, the rise of cryptocurrency and blockchain technology has introduced a new level of speed, access, and security to web-based consumer experiences. Industry estimates now put crypto wagers at up to one quarter of global betting handle3, with 30% year-over-year growth in 20244, and showing no signs of slowing down.

The development of this ecosystem has commercially unlocked online gambling unlike anything since its first transition from land to online many years ago. It has brought in a new global audience, and enriched the customer experience from end-to-end.

Alongside the growth of this technology has emerged new methods of gambling, taking wallet share from more traditional forms at an accelerated rate. The shift in consumer behavior and the signal from our users is clear – interactive, volatile, and crypto-infused product experiences will set the precedent for how the next generation gambles online.

Rivalry, with a brand steeped in internet culture and living at the intersection of this digital economic renaissance, is well-positioned to access this growth opportunity. There is high overlap between Gen Z, gamers, gamblers, and a fast-growing audience of over 420 million crypto users worldwide5 organically aligned with our audience and brand. And we believe that more than half of this audience globally is already wagering with crypto.

It will be Rivalry’s ability to understand, implement, and adapt to this shift more rapidly than our peers that we expect to create first-mover advantages for us. It is for that reason that our vision is now bolder than ever for what’s possible in the online gambling category.

Soon, we will reveal plans for a crypto-enabled product set to enhance alignment between Rivalry and its users, increase network effects, and generally deliver a consumer experience that lives on the internet of 2024.

To that effect, the success of our first-party games and their ability to acquire and engage a captive audience of Gen Z bettors online has validated our original game development strategy amongst industry peers. This has unlocked a new commercial opportunity for Rivalry to license its IP, opening up another line of revenue for the business that has great potential for global scale.

The year ahead is poised to be one of our most ground-breaking, with a myriad of innovative product releases across all of Rivalry’s verticals, adding more dimension to our business, operations, and addressable audience, and building on our competitive moat as the market leader in Gen Z betting entertainment.

We look forward to sharing more details about these upcoming initiatives, the opportunities they will unlock for our Company, and delivering on our promise to create long-term shareholder value and reach profitability. Thank you all for your continued support.

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Duelbits adds Same Game Parlay for soccer player props and World Cup betting

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New SGP lets users combine up to 10 same-match selections plus 10 across multiple events on desktop and mobile.

Duelbits has launched Same Game Parlay (SGP), adding a sportsbook feature that lets players combine multiple player and match markets within a single bet slip. The company said the initial rollout is focused on soccer and World Cup betting and is available on desktop and mobile.

The SGP product supports same-match combinations across player props including goals, shots, shots on target, assists, cards, fouls, tackles and goalkeeper saves, alongside match and team markets such as match winner, goals, corners and shots. Duelbits also said users can build parlays across multiple events where SGP markets are available.

Duelbits positioned the launch as a fix for bet combinations being rejected or marked invalid, saying the feature is powered by a specialist player props and statistics provider to reduce rejected selections and streamline odds updates and settlement. At launch, players can include up to 10 selections within a single event and a further 10 selections across multiple events, with plans to expand those limits in future updates.

Jasper Hoekert, Chief Marketing Officer at Duelbits, said: “Same Game Parlays have become one of the most popular sportsbook products globally, particularly as player prop betting continues to grow across major sports. We saw a clear opportunity to improve the experience available to our players by offering significantly more combinations, reducing invalid bet rejections, and creating a smoother betting journey overall.

“This initial launch is focused on soccer and the World Cup, but it’s only the first step. Our long-term vision is to allow customers to combine virtually any market they want across sports, events and player props, with US sports being the main focus for phase 2. We believe there is a significant gap in the crypto sportsbook market for this type of offering, and we’re excited to continue expanding the product over the coming months.”

The post Duelbits adds Same Game Parlay for soccer player props and World Cup betting appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Austria

Austria Could Force Offshore Operators To Sit Out Market Launch

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Debate is raging within the Austrian government about whether to impose a cooling off period and freeze ex-grey market operators out of its upcoming open online casino market, with local operators looking to inflict maximum punishment and legal experts arguing that the proposal would be self-defeating.

Austria is on course for an historic opening of its long monopolized online casino market. Currently, only Casinos Austria, via its brand Win2Day, has the approval of the Austrian government to offer online casino games to the general public.

But for many years, that legal status was ignored by operators based largely out of Malta, who populated a vibrant grey market by leaning on the controversial argument that Austria’s monopoly model is in violation of EU law.

These offshore operators were eventually forced to retreat by a series of high profile court rulings that found Austrian consumers have the right to reclaim any and all losses to an operator without an Austrian licence.

Facing potentially hundreds of millions of euros in compensation claims, grey market providers have largely retreated to Malta, where Bill 55 continues to protect them.

With liberalisation now on the horizon, some forces within the Austrian government and the local gambling industry are insistent that companies which took part in the grey market should not be allowed to simply apply for a licence and wipe the slate clean.

Who’s in favour?

Those lobbying the hardest for a cooling off period are Austrian incumbents.

“One day you’re offering illegal services and the next day you get a license – that’s absurd,” a spokesperson for Casinos Austria told the Kronen Zeitung newspaper.

They are joined by German-headquartered gambling giant Novomatic, which operates a number of land-based venues in Austria under the brand Admiral.

Having sat on the sidelines of the online market for many years, Admiral is incensed by the idea that it could be competing on day one of a new market with operators who did not take the same approach.

The three parties that form Austria’s coalition government are still debating the issues, according to reports.

The only major practical example of a true “cooling off” period occured in the Netherlands, where an 18-month prohibition was in place that prevented many companies from entering the market when it opened in 2021.

At the time, Kindred reported that being forced to sit out market launch had cost it $16.2m a month, wiping out effectively 50 percent of the group’s EBITDA.

Kindred, which has since transformed into FDJ United following an acquisition by the French lottery giant, subsequently regained its strong Dutch position following the end of the cooling off window.

Likely to cool

At least one Austrian legal expert believes that there is a good chance that some form of cooling off, or an equivalent punishment, will be enacted as part of the new law.

“At the moment, it is likely that some form of cooling-off period will be introduced, perhaps by introducing sanctions that apply prior to licensing, but the details are yet to be determined,” said Nicholas Aquilina, a partner at Brandl Talos law firm.

“Whether a cooling-off period will be introduced and how restrictive measures will be will have a substantial impact on the success of the long-overdue opening of Austria’s online gambling market,” he added.

The time pressures referenced by Aquilina relate to the expiry of Win2Day’s exclusive licence, which is set to run out in October 2027. The government intends to establish its new online gambling regime well ahead of that date, so that new licences can be issued in time.

Any attempt to extend Win2Day’s monopoly could run into challenges with EU tender laws and the other highly unpalatable option is to leave the nation in limbo with no legal providers at all.

Complications

Despite how the debate has been framed by some parties, the reality will not be as simple as either allowing ex-grey market offenders into the new Austrian online casino marketplace free of consequence or forcing them to spend time in the sin bin.

There is broad political agreement that any international operator looking to obtain a licence in Austria must pay back taxes owed on its former activity in order to be granted approval.

Operators will also need to settle any outstanding player refund claims, something which could cost companies huge sums and may ultimately keep some of them out of the market for good.

There are thought to be thousands of pending refunds, which operators have largely been refusing to pay while they take refuge behind Malta’s Bill 55.

Against that backdrop, lawyers Christian Rapani and Felix Hohenthanner argue that the penalties for returning to Austria will likely be harsh enough.

“A further exclusion of two to three years on top of that would, in our view, work against the reform’s own central objective. The operators currently holding the largest share of Austrian play are exactly the ones a cooling-off period would shut out. If they cannot offer a licensed product for two to three years, their customers, it is highly likely, will not migrate to the licensed providers,” they told EEGaming.

Ultimately, the two lawyers said, the push for a cooling off period is more about protecting the vested interests in Austria’s casino market than an attempt to keep gamblers safe.

“Our impression is that the proposal is supported essentially only by the land-based operators and by the single provider that already holds a licence in Austria, in other words by those who benefit from keeping new entrants out. We therefore see it less as a genuine player-protection measure than as a last attempt to preserve existing market positions,” they said.

The post Austria Could Force Offshore Operators To Sit Out Market Launch appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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Africa

African iGaming Alliance names SPRIBE a Platinum Supplier Member

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The African iGaming Alliance (AiA) has signed a strategic partnership with iGaming supplier SPRIBE, with SPRIBE joining the pan-African industry association as a Platinum Supplier Member.

AiA said the partnership will focus on regulatory engagement, industry research, responsible gaming initiatives, policy advocacy and stakeholder engagement aimed at strengthening regulated gaming markets across African jurisdictions.

According to AiA, the collaboration will also support efforts to promote effective regulation, combat illegal gambling, improve market channelisation and encourage evidence-based policymaking.

Peter Emolemo Kesitilwe, Chief Executive Officer of the African iGaming Alliance (AiA), said:

“SPRIBE’s decision to join the African iGaming Alliance as a Platinum Supplier Member represents a significant endorsement of our vision for a sustainable and well-regulated African gaming industry. As one of the industry’s leading technology innovators, SPRIBE brings valuable expertise, insight, and global experience that will strengthen our efforts to support regulators, governments, operators, and other stakeholders across the continent. We look forward to working closely together to promote responsible gaming, regulatory best practice, and long-term industry sustainability.”

The post African iGaming Alliance names SPRIBE a Platinum Supplier Member appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.

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