Rivalry revenue more than doubles to $21.7m in Q3

Rivalry Highlights Significant Revenue Growth in Q3 2022: A Case Study in Esports Betting

Rivalry, a prominent player in the esports betting sector, reported a remarkable revenue increase of over 130% in Q3 2022, achieving an impressive $21.7 million (£17.5 million/€20.1 million). This substantial growth is a testament to the rising popularity of esports and the innovative strategies employed by the operator.

Impressive Betting Handle and Revenue Breakdown

The total betting handle for Rivalry reached $186 million, illustrating the robust engagement of bettors in the esports market. Notably, 30% of the overall handle and 15% of total revenue, equating to approximately $3.3 million, was generated from Rivalry’s casino offerings, showcasing the operator’s multifaceted approach to revenue generation.

Esports dominated Rivalry’s sportsbook, accounting for an astounding 90% of the handle, which translates to around $120 million. This concentration emphasizes the company’s commitment to tapping into the burgeoning interest in competitive gaming. Furthermore, a substantial portion of Rivalry’s customer base—82%—is under the age of 30, with the average age of users clocking in at 25 years. This demographic insight is crucial for tailoring marketing strategies and product offerings.

Innovative Marketing Strategies Driving Growth

Steven Salz, Chief Executive of Rivalry, outlined the company’s unique approach to customer acquisition and retention: “Our strategy toward attracting the next generation of consumers is markedly different from legacy operators.” Instead of relying on traditional bonus schemes and player subsidies, Rivalry emphasizes word-of-mouth and the organic establishment of brand equity. This strategy not only fosters loyalty but also mitigates the financial pressures typically associated with aggressive promotional spending.

Consistent Month-on-Month Revenue Growth

In examining the first ten months of the fiscal year, Rivalry reported an average month-on-month revenue growth rate of 32%. Notably, the operator has successfully halved its bonus expenditure as a percentage of revenue, which enhances its profitability while maintaining consumer interest.

Looking Ahead: Ambitious Plans for 2023

With a positive outlook for the upcoming year, Salz confidently stated, “We have high expectations for 2023, and are confident that it will be another year of record achievements.” Rivalry’s expansion plans include targeting more regulated markets, building on their successful launch in Ontario and the introduction of services in Australia in the previous year. This forward-thinking approach places Rivalry at the forefront of strategic growth within the global gambling landscape.

Conclusion

Rivalry’s impressive revenue growth in Q3 2022 serves as a compelling case study for the esports betting industry, highlighting the importance of innovative marketing strategies, a keen understanding of demographic trends, and the exploration of diversified product offerings. As the esports sector continues to evolve, operators like Rivalry are well-positioned to capitalize on the growing interest among younger consumers, ensuring their place in a rapidly expanding market.