Layoffs Hit Rivalry as Gaming Company Explores Sale
In an apparent attempt to find a buyer for its operations and assets or find another way out, Toronto-Rivalry has halted all player activity on its platform and instituted "substantial" cost reductions, including "significantly" reducing staff.
The player's money is being reimbursed. Rivalry’s Board of Directors approved the reductions, the company said in a statement, adding that it is exploring “asset-level transactions, corporate transactions, restructuring initiatives or other strategic outcomes”.
The news runs counter to what we’ve been reading and reporting about Rivalry over the past year.
Operation Closure
When Ontario's regulated online gaming sector launched in April 2022, competition erupted. They appeared to be on the path to expansion and success with an emphasis primarily on esports and new, youthful approaches to igaming marketing (the company purposefully avoided bonuses), all while targeting the Gen Z demographic.
The company declared in 2024 that it was expanding beyond esports to include traditional sports betting, casinos, and fantasy while maintaining its brand as a "bridge to Gen Z experiences."
Significant Staff Reductions
In a letter to shareholders that year, company CEO Steven Salz stated: "[The brand] is strategically positioned at the intersection of gaming and internet culture with marketing that spreads globally through unignorable creative work." A highly nuanced grasp of Gen Z's consumer behaviors, their connection to gaming and online culture, and our capacity to successfully translate them into a product experience that stands out from the competition constitute the connective thread.
Then came a launch into crypto – with the Rivalry Token, an effort to reach the tech-savvy with a blockchain-based product to help further build market share among digitally native bettors. In order to act on "culturally viral moments" and strengthen the Rivalry brand, there was even a move in 2025 to add the Solana cryptocurrency $TRUMP as an accepted payment method.
Player Activity Paused
In 2024, there were two rounds of layoffs. Last summer, Rivalry revealed its Q1 2025 results, highlighting what the firm claimed were the advantages of a new operating structure. This was one of the final occasions Casino.org commented about Rivalry. Going into 2025, Rivalry has finished revamping its product, brand, and marketing strategy, which included a concentration on high-value players and a crypto-first approach.
There was a revamped registration flow, login, sportsbook, new crypto-first cashier, redesigned casino offering, and a comprehensive VIP rewards program. Salz informed investors that the business was leaner and prepared to concentrate on its next phase of expansion.
Yesterday, the company announced it is “engaged in discussions with third parties regarding potential transactions”.
No Guarantees Moving Forward
“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.”
In the statement the company said “there can be no assurance that any strategic alternative will be completed or that operations will continue in their current form”. Rivalry added it will provide further updates “if and when material developments occur”.