Rivalry expands into iGaming segment with unconventional casino title
Esports betting specialist Rivalry has diversified its product portfolio with the addition of a third-party casino game, partly to cushion the effects of seasonality that are inherent in sports betting.
Up until now, Rivalry solely focused on esports betting, traditional sports betting, and its massively multiplayer online gambling games (MMOGG) category.
Based in Toronto, Canada and listed on the Toronto Stock Exchange, Rivalry will offer the new online casino product under its Isle of Man licence, with Ontario certification expected to follow in the coming months.
Rivalry users in these markets can then play and bet on Aviator, an online game in the ‘crash’ category that is not dissimilar to DraftKings’ proprietary Rocket title.
“Our strategy is to continuously expand our product offering and provide our customers with fresh content that is consistent with our brand,” said Rivalry co-founder and CEO Steven Salz.
“With a strong foundation in esports betting and a growing traditional sports business, offering casino in an authentically Rivalry way is the next step for us.
“Aviator is a great selection as our first-ever third-party casino game, as it is simple, fun, easy to learn, and has a live chat element that aligns with our focus on community,” he added.
Rivalry co-founder and CEO Steven Salz: “With a strong foundation in esports betting and a growing traditional sports business, offering casino in an authentically Rivalry way is the next step for us.”
The premise of Aviator is a plane that takes off and flies higher and higher, with the bet multiplier constantly increasing until the moment the plane flies away.
Players who ‘cash out’ on time win their bet at that multiplier, while those who wait too long lose.
Rivalry said the game’s multiplayer format and ability to interact with other players also offers a social aspect, in contrast with traditional online slot and casino games, where the solitary experience is less appealing to the younger demographic.
With more higher margins and no seasonality, the casino offering can also offer greater stability throughout the calendar year of sporting events, Rivalry said.
In Q2, Rivalry generated revenue of $5.3m, a 59.6% increase year-on-year and a 10.4% improvement over the previous quarter.
However, after deducting operating expenses of $8.3m, the business recorded a quarterly net loss of $6.2m.
Going forwards, Rivalry plans to continue to build out its MMOGG segment and has plans to add additional games to its casino offering in the coming quarters.