Canadian sports betting, online casino and esports operator Rivalry has suspended all player activity and laid off a significant portion of its workforce as it evaluates strategic alternatives such as a sale.
The Toronto-headquartered company said in a press release on Friday that its board of directors approved “a significant reduction in operating activity.”
“The company is engaged in discussions with third parties regarding potential transactions,” added the statement. “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.”
‘No assurance’ that operations will resume in current form
While Rivalry has historically focused on esports, it is licensed and operational as an online sports betting and online casino site in Ontario. It is also authorized in Australia through a Northern Territory Racing Commission (NTRC) license and is active in several grey markets elsewhere in the world, including Latin America, under an Isle of Man Gambling Supervision Commission license.
However, effective immediately, all player activity is paused and funds are being returned to players. Rivalry is also implementing “substantial” cost cuts, including a significant workforce reduction.
It is assessing a range of potential alternatives, which it said may include asset-level transactions, corporate transactions, restructuring initiatives or other strategic outcomes.
“Given the company’s reduced operating scale and the ongoing evaluation process, there can be no assurance that any strategic alternative will be completed or that operations will continue in their current form,” warned the announcement. Rivalry said it will provide further updates if and when material developments occur.
Rivalry previously said refocusing was paying off
Rivalry began shifting its business in 2024, an all-encompassing process that included measures such as a firmer lean into cryptocurrency, a strategic rebrand to better target high-value digital-first players, a major sportsbook revamp, a redesigned casino offering and a comprehensive VIP rewards program.
CEO and Co-Founder Steven Salz said in late 2024 that the company had “completely rebuilt every core element” of its product. As part of that shift, Rivalry slashed its workforce by 50% and C-suite executives took pay cuts.
In April 2025, Salz said the company had begun reviewing strategic alternatives to support its long-term growth and determine the best path forward after three rounds of layoffs. Three months later, he acknowledged the company had made “hard decisions” during its overhaul but suggested the changes were beginning to show signs of positive impact.
Rivalry’s most recent public update in December suggested things were looking up. As well as a record quarter in Ontario, with a 240% year-on-year increase in deposits and 100% increase in wagers, Rivalry reported three consecutive quarters of revenue growth and a 58% year-over-year reduction in its operating expenses.
“Rivalry enters its next chapter on a stronger, more sustainable foundation,” Salz said at the time. “Rivalry is emerging from its transformation as a leaner, sharper, and more resilient business. The strategic shift we began last year continues to deliver.”
However, although Rivalry’s net loss improved 67% in 2025, as of December, the company was still almost $2 million in the red at the end of the year.
