Rivalry 1Q25 results show signs of life
Sharpr breaks down the companies, tech, and trends shaping the future of internet gambling
Editor’s note: In case you missed it–after two and a half years running comms at Rivalry, I was laid off last week. At the end of the day, it was an amicable split and the right time for me to start something new (+ get back to this newsletter!)
With that being said, I’m taking the plunge as a full-time communications consultant, at least until I figure out what’s best for me long-term. If you’re a sports, betting, or gaming company looking to carve out your position in the market, check out my work here and let’s talk.
In this week’s edition of Sharpr…
Rivalry 1Q25 results show signs of life.
Midnite raises $10M to accelerate UK expansion.
Baltimore sues DraftKings and Flutter over exploitative marketing tactics.
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Rivalry 1Q25 results show signs of life
Crypto betting operator Rivalry has posted preliminary Q1 2025 figures, showing improvements in user value and efficiency, even as short-term revenue took a dip.
Revenue per user hit all-time highs despite a margin variance in sportsbook hold, as the company leaned into higher-value players and a leaner cost structure.
Monthly deposits per user rose 175%, with deposit frequency more than doubling versus “pre-overhaul” levels.
Rivalry generated 4x more net revenue per user per dollar of operating expense than it did before its October 2024 pivot.
Total wagers for the quarter came in at C$58.2M, generating C$1.3M in net revenue, for a margin of 2.3% (compared to 4.4% for FY24). Rivalry attributed the variance to a combination of short-term hold fluctuations and the company’s shift toward VIP and high-LTV segments—users that generate better long-term returns but come with more short-term volatility, the company says.
Normalized for margin variance, Rivalry says Q1 net revenue would have covered about 75% of its current operating costs. The company also slashed monthly opex by another C$140K in early April, adding to C$1.7M in cost reductions over the last six months.
Rivalry’s VIP focus was reflected in its Ontario performance, where average revenue per playing account has outpaced the market average by as much as 50% in certain months when compared to data from iGaming Ontario.
The update reinforces Rivalry’s thesis that focusing on high-value customers and building a more capital-efficient business is the right long-term play—even if topline numbers wobble in the short term.
“We believe we’re on a promising path forward,” Salz said.
Last Monday, Rivalry initiated a strategic review, tapping XST Capital to explore potential options for long-term growth and value creation, while securing $650K USD loan to support the process.
🔎 Between the lines: I’m no longer pitching Rivalry news anymore—now I’m back to covering it. Which, to be honest, is where a lot of this started anyway.
Rivalry’s Q1 update is the first real checkpoint on the company’s operational overhaul, which has continued to take shape over the better part of a year.
Those changes have included a rebuilt sportsbook product, a crypto expansion, a full rebrand, and significant cost reductions—including three rounds of layoffs and executive pay cuts.
But, after a tough stretch that’s seen the stock fall around 95% from a year ago, Rivalry is beginning to show very early signs of a rebound.
Variance aside, the underlying metrics are trending up and to the right—not just in user value, but in cost efficiency too—even if on a much smaller scale than Rivalry’s more growth-forward periods in FY22 and FY23.
We’ll get a clearer read in the coming quarters on whether the strategy is sticking. Expect more cost-saving measures—like recent headcount reductions—to start showing up in the Q2 financials.
Midnite raises $10M to accelerate UK expansion
The London-based sportsbook and casino operator Midnite has secured fresh capital to fuel growth as it looks to scale up its presence and product footprint in the UK market.
Midnite has raised $10M in a Series B round, bringing its total capital raised to over $35M since launch.
The round was led by Discerning Capital, whose partner David Williams will join Midnite’s board of directors.
Funding will support UK growth, with a focus on marketing efficiency and product velocity across sportsbook, racing, and casino.
Midnite’s Series B is another vote of confidence in the company’s positioning as a “challenger brand” in the UK betting market. The round brings on a new strategic investor in Discerning Capital, alongside follow-on support from The Raine Group, Play Ventures, and others.
Founded in 2018, Midnite has grown its team from 60 to 110 over the past year and expanded its offering beyond sports into racing and casino. While UK market conditions remain fiercely competitive, the company is betting on a product-led approach to carve out share.
“We have product foundations and velocity that no operator has in the UK market,” said co-founder Nick Wright. “With this backing, we can move faster, be bolder, and continue to bring fresh, exciting experiences to the market.”
Discerning’s David Williams echoed that sentiment, noting Midnite’s “marketing efficiency” and strong positioning with younger bettors as key differentiators.
The challenger brand narrative isn’t new—but the funding, growth pace, and team size show Midnite is trying to do more than just build a niche product. With over $35M raised to date and fresh capital in hand, they’ll now need to prove they can scale the model while staying true to what got them here.
🗞 In the news
DraftKings outpaced FanDuel in New York revenue during March for the first time in 15 months.
Baltimore has sued DraftKings and Flutter Entertainment over exploitative marketing tactics.
Oddin inks data deal with Exort to build on Counter-Strike 2 match coverage.