Rivalry Cuts 38% of Workforce Amid Shift and Financial Headwinds

10.10.2024

Rivalry, a big esports betting operator, has done a second round of layoffs in 2024 and has cut 38% of its workforce. That follows a restructure in July where 30 people were let go.

Refocusing Priorities

CEO and co-founder Steven Salz announced the latest redundancies on 8 October and said several customer care and marketing roles, including the global marketing director, were impacted. As of 9 October 12 people are listed, with more to come.

Rivalry’s latest workforce reductions are in line with the company’s shift towards areas of higher customer success and ROI. Salz said the company needs staff with different skillsets to support this strategy.

This follows Rivalry’s diversification efforts, moving beyond its esports betting roots into broader gaming platforms, including iGaming and B2B services.

Strategic Diversification

Founded in 2017 as an esports betting company, Rivalry has been expanding its product range in recent years. In 2022 the company entered the iGaming space and launched a blockchain-based utility token, the Rivalry Token, in 2024, its entry into cryptocurrency gambling. Despite this Rivalry has been under financial pressure.

Rivalry has been under financial pressure for the past year with its stock price down 83%. In Q2 2024 the company reported C$7.4 million in gross gaming revenue (GGR), down 12.9% year-on-year. The betting handle was C$87.8 million, down 21.7%. The company says this is due to its decision to focus on margin over volume.

To stabilise the business Rivalry has shifted its focus to VIP players, a departure from its earlier strategy of catering to a broad base of millennial and Gen-Z customers. While volumes are down, the company says the pre-launch of the Rivalry Token has generated additional revenue since the end of Q2.