Rivalry has announced what it calls a ‘significant reduction in operating activity’, in a surprise move after appearing to have overcome financial and regulatory difficulties in 2025.

In a statement released this afternoon, the Toronto Stock Exchange (TSX) listed online gambling group revealed that it is considering strategic alternatives regarding its assets.

This may include a potential sale of brands, which includes its esports-centric sportsbook platform and an online casino, casino.exe. From 2024 it began to dabble heavily in crypto assets as a form of customer engagement.

“The company is engaged in discussions with third parties regarding potential transactions,” Rivalry’s statement to the TSX read. “However, in light of recent performance volatility, the Board has determined to materially reduce the scale of operations while assessing whether a strategic transaction or other alternative can be advanced.

“Effective immediately, the Company is implementing substantial cost reductions, including a significant workforce reduction and reduced operating expenditures. The Company has paused player activity on its platform and is facilitating player withdrawals in the ordinary course.”

The company is licensed to operate in Ontario under a Alcohol and Gambling Commission of Ontario (AGCO) licence and in Australia via a Northern Territory Racing Commission (NTRC) licence, the latter granted in 2022.

It is also active in a number of global grey markets, including in Latin America, under an Isle of Man Gambling Supervision Commission (IoM GSC) licence. However, its Q3 2025 financial statement indicated that around 40% of net revenue came from Ontario, up from 20% the year prior.

Rivalry’s statement continued: “The company is assessing a range of potential alternatives, which may include asset-level transactions, corporate transactions, restructuring initiatives or other strategic outcomes.”

The rise of a ‘Red Bull’ bookmaker

Rivalry was established back in 2017 by Chief Executive Officer (CEO) Steven Salz, who had previously worked in asset management including a stint at Canadian Big Five bank Scotiabank.

The firm’s initial focus was on esports betting, and it developed its brand image, web design and marketing around a focus on Gen-Z and millennial bettors with an interest in esports. Its marketing strategy includes a large network of influencers.

In an interview with SBC News back in 2022, Salz explained that the firm had ambitions of becoming the ‘red bull of the internet’, referencing the energy drink’s unique approach to branding and marketing.

“From the outset, we decided that traditional sports was something we didn’t really have an edge in, whilst everyone at Rivalry are huge gamers and esports fans,” he said.

“You have to build something that you yourself would want to consume, and we’ve always found that success is in building something that you yourself have a passion for. It’s really in the DNA of the company, we’re all very plugged into gaming and internet culture.”

The company’s financial statements to the TSX, following its October 2021 listing, often showed a heavy skew towards Gen Z and millennial demographics in its customer-base, as the firm intended. Around 80% of its customers routinely fit into this demographic.

In March 2023 it launched the casino.exe platform, and iGaming quickly became a core product. Revenue from casino.exe accounted for around half of Rivalry’s CA$105.7m beting handle in its Q3 2023 earnings, for example.

Crypto calling and first hurdles

Rivalry began getting involved in crypto gambling in 2024 – an interesting move given that the AGCO does not allow crypto betting of any type, and so the firm could not roll out its new product in its home market.

The company was also unable to roll out the ‘Rivalry Token’, or $RVLRY, it launched in May of that year in Australia either, for similar reasons. The allure of crypto seems to be more its other international markets, such as in Latin America, where it operated using its IoM licence.

Rivalry Token did not function like Bitcoin, Ethereum, or other cryptocurrencies which can be purchased via an exchange. The $RVLRY token instead earned through on-site activity such as placing bets, and could then be used to swap for rewards like boosted odds. It is notable however that the company bills itself a ‘crypto casino’ in Google search.

Interviewed for the 33rd edition of the SBC Leaders magazine in 2024, Salz said: “Going country to country is an ongoing and consistently challenging thing. The beauty of crypto is that it’s always on.

“There’s no maintenance windows, it’s 24/7, it’s global, it’s instantaneous. Crypto in of itself is a great financial product, and therefore a super functional and great payment product.”

While reporting good engagement with the Rivalry Token product in its H1 2024 financials, Rivalry began to encounter difficulties in the midst of its experiment with crypto betting and had still failed to achieve profitability.

A strategic review was initiated in April 2025, with New York-based advisory services from XST Capital Group LLC commissioned to assist. This process saw extensive cost cutting efforts including a headcount reduction.

Later issues emerged regarding its listing on the TSX. The firm was late in publishing its full year 2024 financial statement to the TSX and by April it had applied for a management case trading order with the Ontario Securities Commission (OSC).

When financial statements were eventually published they showed a company which had achieved extensive cost cutting efforts, at the expense of a solid chunk of its employees, to secure net cost efficiencies

Its latest statement, published in December 2024 and covering the three months ending 30 September, showed a 58% fall in operating expenses, a 67% reduction in its net loss, and revenue of $1.93m (Q 2 2025: $1.6m).

However, if today’s announcement is anything to go by, it seems that challenges are mounting behind the scenes of this apparent performance rebound…

SBC Media’s Canadian Gaming Business has reached out to Rivalry for comment.