Rivalry, a prominent online sportsbook and casino operator, has announced its financial results for the third quarter of 2022, showcasing substantial growth and highlighting its unique approach to attracting the next generation of consumers. The company reported a remarkable $21.7 million in revenue, representing a staggering 130% increase compared to the same period in 2021. This impressive growth was supported by a total betting handle of $186 million. Rivalry’s focus on the esports market, its casino product, and its appeal to a younger demographic has proven to be a winning formula, positioning the company for further expansion in regulated markets in 2023.
Strong Financial Performance:
Rivalry’s Q3 2022 revenue of $21.7 million reflects a remarkable growth rate of 130% compared to Q3 2021. The company’s betting handle amounted to an impressive $186 million, underscoring the increasing popularity of its platform among bettors. Notably, Rivalry’s casino product contributed significantly to its overall performance, accounting for 15% of revenue and 30% of the total handle, amounting to approximately $3.3 million.
Dominance in Esports Betting:
Rivalry’s focus on the esports market has been a key driver of its success. The operator revealed that a staggering 90% of its sportsbook handle, equivalent to nearly $120 million, originated from bets placed on esports events. This emphasis on catering to the growing demand for esports betting has helped Rivalry establish itself as a leading platform in this niche market. By recognizing and capitalizing on the unique preferences of its target audience, Rivalry has secured a competitive advantage in the industry.
Catering to a Younger Demographic:
One of Rivalry’s strengths lies in its ability to attract and engage a younger demographic. The operator reported that approximately 82% of its user base is under 30 years old, with an average customer age of 25. This demographic alignment positions Rivalry as a preferred platform for the next generation of sports bettors and gamers. The company’s CEO, Steven Salz, attributes this success to Rivalry’s organic market entrenchment and word-of-mouth growth strategy, which focuses on brand equity rather than excessive bonusing and player subsidies.
Sustainable Growth and Market Expansion:
Rivalry’s financial results for the first 10 months of 2022 demonstrated consistent month-on-month revenue growth, averaging an impressive 32%. Additionally, the company successfully reduced its bonus spend as a share of revenue by half, indicating a more sustainable and cost-effective approach to customer acquisition and retention. Looking ahead to 2023, Rivalry has high expectations for continued success and plans to expand further into regulated markets. The operator was among the first to launch in Ontario and successfully entered the Australian market in 2021, establishing a solid foundation for future expansion initiatives.
Rivalry’s exceptional Q3 2022 financial results highlight its rapid growth and unique positioning within the online sports betting and casino industry. With $21.7 million in revenue and a substantial increase in its betting handle, Rivalry’s emphasis on esports betting, appeal to a younger demographic, and organic market entrenchment strategy have proven to be highly effective. As the company sets its sights on 2023, it aims to continue expanding into regulated markets and capitalizing on its competitive advantages. With its strong financial performance and innovative approach, Rivalry is well-positioned for another year of record achievements and continued success in the dynamic online gambling industry.