Search
Choose a style
Dark
Light

Rivalry secures $10m investment to pursue ‘accelerated growth’ after record-breaking results

Rivalry has announced a non-brokered private placement financing for gross proceeds of up to $10m as the company elevates its growth strategy.

The investment arrives through the issuance of up to 6,666,666 Subordinate Shares at a price of $1.50 per SS as Rivalry seeks to ‘establish its market-leading position among digitally native consumers’.

This latest development arrives on the back of record-breaking results for the sports betting and esports betting firm in 2022 and the early stages of this year.

Explaining the investment, Steven Salz, Co-Founder and CEO of Rivalry, said: “The terms and strategic value of the stakeholders participating in this round represent a vote of confidence in our one-of-a-kind team, market strategy, and unique ability to execute within this emerging vertical.

“Our playbook is built around a generational opportunity to capture and engage a next generation audience through world class creative, proprietary and engaging products, and market leading brand equity in esports.

“We are growing rapidly with a successful strategy in place and talented team behind us, and with this funding we anticipate both continuing our pace of growth and our trend toward profitability.”

Esports expansion & Millenial/Gen Z focus

Rivalry is targeting a couple of key areas of its business with this investment. Firstly, capital raised will be used to expand its esports offering, which generated nearly 90% of sportsbook handles in 2022. Secondly, the firm is mindful of continuing to create and evolve products for its core audience of Millenial and Gen Z users, which accounted for 97% of active users last year.

The strategic financing round will be led by sports betting, technology, and payments stakeholders including global bookmaker Pinnacle, which has a commercial relationship with Rivalry spanning ‘several years’, providing its esports and risk management solution to the Toronto-based firm’s users.

The non-brokered private placement financing is expected to close in one or more tranches commencing ‘on or about’ May 5, and is subject to the approval of the TSX Venture Exchange, where Rivalry recently listed its shares after leaving the Canadian Securities Exchange.

“As a leader and innovator in online betting, Pinnacle is constantly looking for like-minded partners to help further grow the industry and our global footprint,” said Paris Smith, Pinnacle CEO. “That is what led us to Rivalry, and it is impressive how in a short period of time, they have carved out a powerfully unique position in the field of online betting.

“The company’s long-time focus on product innovation, brand equity, and next generation consumers is disrupting traditional ways of thinking in the industry and blazing a trail for industry economics that were previously not thought possible. As a long-standing commercial partner of Rivalry, we’ve had a front row seat to their incredible growth and are confident in the company’s trajectory.”

Q4, FY22 & Q1 prelim results

Rivalry’s recently published results, meanwhile, support its new growth strategy, subsequent investment search and recent launch of eight new casino games in Ontario via Casino.exe.

The final quarter of 2022 saw the firm record its highest-ever revenue ($9.4m) up to that point, up 7.2% sequentially on Q3 ($7.1m), driven by sportsbook revenue of $7.1m (Q3: $6.1m).

Gaming revenue of $2.3m was up 119% over Q3 ($1.1m) as Rivalry began offering a wider set of casino games on its Casino.exe platform, and its expanded offering resulted in higher betting handle of $83.9m in Q4, up 19% sequentially from the previous record quarterly handle of $70.3m in Q3, and a YoY increase of 237% compared to $24.9m/ in Q4 2021.

Meanwhile, Rivalry saw triple-digit growth across all key metrics in FY2022, with full-year betting handle up 198%, revenue up 140%, and gross profit up 349%, positioning the firm to make more records in its preliminary Q1 2023 results, in which it recorded betting handle of $120.2m (up 199% YoY), revenue of $12m (up 151% YoY), and gross profit of $5.4m (up 698% YoY).

Salz commented: “Our market strategy and operational excellence continues to build upon consecutive record-setting quarters, driving a strong finish to the year and a robust Q1, while simultaneously demonstrating sequential narrowing losses on our path to profitability.

“Underpinning our growth is significant brand loyalty among the Millennial and Gen Z audience and true product innovation in online betting, enabling every marketing dollar to go further, enhancing retention, and creating a distinctly unique platform.

“Rivalry continues to be economically rewarded for taking an inventive approach to the betting experience and tailoring it for a demographic with unique consumption habits.”

OLG eyes legislative change to mandate ID check for self-serve lottery terminals

The Ontario Lottery and Gaming Corporation (OLG) is seeking an amendment to the Gaming Control Act, 1992 (GCA) so that ID checks for its self-serve lottery terminals can be mandated.

1,400 of these terminals are set to be piloted in select retail locations across the province between the fall of 2023 and spring of 2024 after the OLG struck a deal with IGT Global Solutions Corporation – a subsidiary of IGT that will provide these machines – last September.

The idea is that deploying these self-serve terminals (SSTs) will reduce traffic in high-volume areas, such as gas stations where there are often lengthy queues as residents check their lottery tickets, and drive sales to ‘maximise revenue for provincial priorities for the benefit of the people of Ontario’.

Of course, the SSTs are designed only for those who are legally allowed to play the lottery, and therefore the OLG and the relevant authorities must be satisfied that minors cannot access the machines.

Consequently, the OLG has devised an identity verification method that uses swiping or scanning technology, meaning retailers wouldn’t have to manually check each user’s passport, driving license, etc.

Tony Bitonti, a spokesperson for OLG, told CTV News Toronto last week that “no personal information or personal data will be retained by our systems”.

The regulatory change to the GCA was posted publicly on Apr. 14, with the Ministry of the Attorney General proposing an amendment to O. Reg 78/12 under the GCA to allow SSTs to verify identification.

Members of the public may provide comments until Apr. 29, at which point the amendment will return to the government for further consideration.

If successful, the OLG will be responsible for implementing the SSTs and training retailers, with part of that training including “controls for mitigating access by minors.”

Canadian Gaming Summit 2023 announces “Sports Betting” conference track

The 26th edition of the Canadian Gaming Summit – the country’s premier gaming and betting event- is swiftly approaching and alongside coveted speakers, panels and a lively exhibition floor, attendees will be given the opportunity to discuss the state of sports betting in the stimulating “Sports Betting” conference track.

The “Sports Betting” conference track will be taking place on Wednesday June 14 at the Metro Toronto Convention Centre, Toronto. Across the day attendees will have access to a variety of thought-provoking and informative panels on topics such as how operators’ relationship with regulatory bodies can ensure integrity in sports betting, the place of operator-led media organisations in the Canadian market and how operators can leverage content, creative, and influencers to build brand equity.

Opening the conference track is the panel “Sports betting across Canada: navigating the patchwork of a provincial rollout”, which will analyse the impact of legalized single-event sports betting in Canada.

The panellists include Doug Hood (Project Director Gaming Modernization, AGCO), Bruce Caughill (Managing Director Canada, Rush Street Interactive) and Mike Maodus (Associate, Blake, Cassels & Graydon LLP). The panel will be moderated by Salim Adatia (Vice President, Gaming Labs International) and will comment on the variety of models provinces can adopt, such as attracting third-party operators and optimising current offerings.

The eagerly awaited panel “Partner and play – collaboration between Canadian teams, leagues and sportsbooks”, will study how open major sports leagues and teams are to collaborating with operators.

The panel will include expert analysis from Owen Welsh (Associate Vice President, Sports Betting, Gaming and Innovation, Canadian Football League), Andrew Stokes (Senior Director – Global Partnership Group, Maple Leaf Sports Entertainment), Aubrey Levy (SVP Content & Marketing, TheScore), and Kuljeet Sindhar (Associate Vice President, International Gaming & Data Ventures, NBA). The panel will examine the successful partnerships already established between teams and sportsbooks, the potential regulatory roadblocks that they can present and sports leagues yet to be explored.

The final panel of the conference track is the “eSports betting in Canada: investing, reducing friction and opening up a new audience”, which will explore the potentially huge untapped source of fans and revenue that is the burgeoning world of eSports.

The panel will consist of industry experts Melanie Penner (Founder, Manitoba Esports Association), Alex Igelman (CEO, Esports Entertainment), Daniel Sanders (Director of Marketing, Luckbox), Alex Kozachenko (Chief Product Officer, Data Be) and will be moderated by Ng Hai (Integrity Ambassador, ESIC). The panel will discuss the number of successful Canadian eSports teams and analyse the challenges of entering the currently unrecognised market, how companies can invest in eSports teams and how operators can reduce friction between the converging worlds.

Alongside the ‘Sports Betting’ track, attendees of the summit will have the opportunity to attend specialist-led panels from a further 9 tracks including: Leaders, Landscape, iGaming and many more across the 3-day event.

__________________________________________________________________________________________
You can purchase your ticket for the Canadian Gaming Summit by visiting the website. For groups of three or more people, a special discount will be applied, saving you $200 on the regular ticket price (Per ticket).

NorthStar Gaming pivots for ‘rapid growth’ outside Ontario after Slapshot acquisition agreement

NorthStar Gaming has entered into an agreement to acquire Slapshot Media, one day after publicly announcing its deal with a financial advisory service firm.

The initial six-month agreement struck with Blue Sky Trading & Consulting – made effective last month – felt like the prelude to an acquisition, and so it has proved with NorthStar set to pay $1.8m for 100% of Slapshot’s issues and outstanding shares, payable in 3,272,727 common shares of NorthStar at $0.55 per share.

Slapshot is a Canadian igaming marketing company which provides managed services to Spreads.ca, an igaming site owned and operated by the Abenaki Council of Wolinak.

Michael Moskowitz, Chief Executive Officer and Founding Partner of NorthStar, explained: “The acquisition of Slapshot expands our ability to enter new markets faster as we look to introduce NorthStar Bets to consumers across the country.

“We are hyper focused on growing the reach of NorthStar and this strategic acquisition and partnership further positions NorthStar for rapid growth into new markets within Canada.”

NorthStar recently started trading on the TSX Venture Exchange after delisting its shares from the Canadian Securities Exchange (CSE) and became an AGCO-approved operator in Ontario’s regulated igaming market last year.

However, NorthStar insists Spread.ca will not be made available in Ontario, nor will it offer any other online casino and sportsbook in the province aside from its NorthStar Bets brand.

Instead, NorthStar plans to leverage this acquisition to expand the brand across the rest of Canada as the Toronto-based firm pledged to do when it secured investment from Playtech in February.

The transaction is still subject to approval from the TSX-V but is expected to close on or before May 5, with the Slapshot owners entitled to a separate earn-out of up to $500,000 based on its revenue performance for the 12-month period following the closing.

Gateway casinos in Ontario set for phased reopening following cyber attack

Gateway Casinos & Entertainment expects some of its casinos in Ontario to reopen this week following the recent cyber attack on its systems.

The Canadian gaming and entertainment operator was forced to close all 14 of its Ontario sites on Apr. 16 after a ‘system-wide malfunction’ struck.

But with tests currently being conducted on its equipment, Gateway is looking to implement a phased approach to reopening its sites in the province this week, and if successful, more facilities will reopen until all affected casinos have resumed normal service.

A potentially serious outcome of these events, though, could be the impact on Gateway customers.

The operator has maintained throughout that there has been no evidence to suggest customers’ personal data has been compromised.

However, tech expert Carmi Levy has expressed concern that a breach may well have occurred.

Levy told CTV News: “The biggest fear in any ransomware attack is that personal data has been compromised, and unfortunately that is a very likely outcome in all cases, as well as this case in particular.

“They simply don’t know at this point.”

The rest of Gateway’s casino sites – situated across British Columbia and Alberta – have remained unaffected by the issues in Ontario.

NorthStar Gaming enlists help of M&A advisor Blue Sky

NorthStar Gaming has confirmed it has entered into an agreement with Blue Sky Trading & Consulting, which will provide financial advisory services to the Toronto-based firm.

Under the terms of the deal, Blue Sky will advise NorthStar on capital markets, including capital raising and mergers and acquisitions (M&A).

In return, Blue Sky will receive $55,000 per month, payable in the common shares of NorthStar, who will provide a maximum of one million common shares over the course of the initial six-month term, and a maximum of 166,666 in any one month.

Pricing of shares will be at least the discounted market price on the date the invoice for services is provided in arrears.

The agreement was made effective on Mar. 24, four days after NorthStar – which owns and operates NorthStar Bets, a made-in-Ontario casino and sportsbook gaming platform – officially opened the market to celebrate the beginning of its journey on the TSX Venture Exchange (TSX-V).

Earlier in the month, NorthStar officially finalized its reverse acquisition of Baden Resources and delisted its common shares on the Canadian Stock Exchange.

February also saw the completion of a $12.3m ‘strategic investment’ from Playtech to support growth of its footprint across Ontario and future Canadian markets.

Pertinently, this latest agreement with Blue Sky suggests that NorthStar is positioning itself for further investment and growth, perhaps imminently.

The six-month term may be terminated by either party upon ten days’ written notice, while it can also be extended by either party if there is a mutual agreement to continue.

The agreement is subject to the company’s filing requirements with the TSX.V and TSX.V approval.

AGLC emerges victorious from PlayAlberta court case

A challenge by Tssut’ina Gaming and others over the validity of PlayAlberta – the online gambling site of Alberta Gaming, Liquor and Cannabis (AGLC) – has been dismissed in court.

As reported by the Calgary Herald, the issue centred over whether the commission had the statutory authority under the gaming act to operate an online casino accessible by desktop and mobile devices throughout the province.

The Tsuut’ina Nation and Stoney Nakoda First Nation – which have both operated casinos in the province – first took action in April 2021, arguing the site constituted an “unauthorized entry” into Alberta’s casino and gaming market by the regulator and provincial government.

“By entering online gaming the government is taking away charity dollars,” Tsuut’ina Chief Roy Whitney said in April 2021. “These charity dollars are used to support our health, education, housing and social programs.”

Alberta’s Criminal Code does state that all lotteries and games of chance are illegal, but there are exceptions to the rule which include provincial governments conducting and managing authorized lottery schemes.

A three-member Alberta Court of Appeal panel has now ruled in favour of the AGLC and its site that launched in 2020.

The appeal judges stated in their verdict that the Gaming, Liquor and Cannabis Act enables the commission to conduct and manage provincial lotteries on behalf of the Government of Alberta.

“In summary, a province is entitled to conduct and manage a provincially authorized lottery scheme. Such a scheme is authorized in Alberta as a ‘provincial lottery’.

“This is different [from] a lottery scheme for which a non-governmental entity is authorized by a gaming licence to operate a ‘gaming activity’ on licenced premises, or licenced for on-site VLTs in authorized establishments.

“The purpose of the provincial government’s ‘provincial lottery’ is to raise funds for general revenue.”

AGCO issues $70k fine between three Ontario igaming operators for breaching standards

Three igaming operators have been issued with fines by the Alcohol and Gaming Commission of Ontario (AGCO) over non-compliance within its regulations.

LeoVegas Gaming, Bunchberry, and Mobile Incorporated have all been sanctioned for falling foul of AGCO Standards 4.08 and 4.09 for providing games on their Ontario sites that had not been approved by the AGCO Registrar, nor certified by an Independent Testing Laboratory (ITL) registered by the Registrar.

Mobile Incorporated has also contravened Standard 1.22 according to the AGCO, which alleges the operator’s uncertified games were provided from a supplier not registered with the Ontario Crown agency.

Tom Mungham, AGCO CEO and Registrar, explained: “The AGCO holds all registered operators to high standards of responsible gambling, player protection and game integrity, and monitors their activities in the interest of Ontarians.

“A critical feature of our regulatory framework requires operators to only offer games that are from registered gaming suppliers and have been certified by an AGCO-registered independent testing laboratory to meet the highest standards of game integrity.

“Ontarians who choose to play on registered sites need the assurance that the games being provided meet these requirements.”

Mobile Incorporated has been served with a $30,000 fine for its alleged infractions, LeoVegas Gaming $25,000, and Bunchberry $15,000.

A registered operator served by the AGCO with Notice of Monetary Penalty has the right to appeal the Registrar’s action to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

This isn’t the first time the AGCO has intervened to take action on an operator since the regulated igaming market opened Apr. 4 last year.

Last May, the agency issued penalties to the Canadian operations of BetMGM and PointsBet for alleged advertising and inducement infractions.

BetMGM Canada was issued a fine totalling $48,000 for its alleged failure to comply with Standards 2.04 and 2.05, while PointsBet Canada was fined $30,000 for an alleged failure to comply with Standard 2.05.

DraftKings and UniBet are amongst others to have incurred the wrath of the AGCO since last year.

However, these alleged breaches all occurred before the Registrar’s Standards for Internet Gaming were updated in October, with Standards 1.22 and 4.09 two that came into effect on Nov. 1.

Standard 4.08, meanwhile, came into effect on Apr. 4.

iGO: Ontario igaming market reaches highest gaming revenue & wagers in Q4

iGaming Ontario (iGO) has posted its fourth quarter of operations market performance report for the Ontario igaming market, revealing a record-breaking period for gaming revenue and wagers.

In total, $13.9bn was wagered between Jan.1 and Mar. 31, up 20.8% on Q3 ($11.5bn), while there was a 13.6% increase in gaming revenue (Q3: $463m, Q4: $526m).

Since its launch on Apr. 4, 2022, the new legal igaming market in Ontario has, on average, grown by more than 50% in total wagers and gaming revenue each quarter.

A total of 44 operators with 75 gaming websites contributed to wagers and revenues in Q4, a period that saw over one million active accounts, with an average monthly spend per active player account of $174.

The previous quarter was the last for one operator, though, following the withdrawal of Coolbet from the market this month.

iGO also shared its full-year numbers which were similar to the unaudited figures it provided earlier this month to coincide with the one-year anniversary of the market.

Total wagers for the year came to $35.5bn, while the Q4 gaming revenue brought the annual number up to $1.4bn.

The total number of operators and gaming websites that contributed to wagers and revenues for the year to was 45 and 76, respectively.

The iGO also reported that there were 1.65 million player accounts active over the course of the year, with an average monthly spend of $70 per player for accounts that were active anytime over the year.

Meanwhile, basketball came out on top as the most popular sport to bet on, making up 29% of wagers, followed by soccer (15%), football (13%), hockey (9%), and baseball (8%).

Within the online casino category, nearly half (48%) of all casino wagers were on slots, nearly a third (32%) on table games with a live dealer, and the remainder (19%) on computer-based table games.

Sports leagues & media players team up to tackle sports betting ads

In a bid to address the elephant in the room – sports and gambling – a host of major sports leagues and broadcasters have joined forces to set up a task force.

Named the ‘Coalition for Responsible Sports Betting Advertising’, the voluntary organization is made up of the following groups:

  • NFL
  • MLB
  • MLS
  • NASCAR
  • NBA
  • WBNA
  • NHL
  • NBCUniversal
  • FOX 

The coalition maintains it is abiding by six key principles to help ensure a responsible approach to sports betting advertising:

  1. Sports betting should be marketed only to adults of legal betting age
  2. Sports betting advertising should not promote irresponsible or excessive gambling or degrade the consumer experience
  3. Sports betting advertisements should not be misleading
  4. Sports betting advertisements should be in good taste
  5. Publishers should have appropriate internal reviews of sports betting advertising
  6. Publishers should review consumer complaints pertaining to sports betting advertising

A joint statement from the Coalition for Responsible Sports Betting Advertising read: “As the legalization of sports betting spreads nationwide, we feel it is critical to establish guardrails around how sports betting should be advertised to consumers across the United States.

“Each member of the coalition feels a responsibility to ensure sports betting advertising is not only targeted to an appropriate audience, but also that the message is thoughtfully crafted and carefully delivered.”

Most of the leagues are dominated in sheer numbers by US teams, but there is a Canadian presence in some with the likes of the Toronto Raptors (NBA) and the Toronto Blue Jays (MLB), and especially in MLS with Vancouver Whitecaps, Montreal Impact, and Toronto FC.

The news follows a recent proposal by the Alcohol and Gaming Commission of Ontario (AGCO) which outlined plans to ban the use of athletes in gaming marketing and advertising.

The AGCO is currently engaging with stakeholders over the matter and accepting comments until May. 8.

Regarding this coalition, however, Catherine MacLeod, President and CEO of thinkTV – the clearing house for approval of TV ads in Canada – told Gaming News Canada that the organization hasn’t heard from any of the coalition’s members.

Rogers Sports & Media, meanwhile, said: “There have been no formal discussions, but Rogers Sports & Media works closely with the AGCO, iGaming Ontario, and our team and league partners to ensure a consistent and responsible approach to sports betting advertising. thinkTV is instrumental in leading this collaboration with the governing bodies and clears all sports betting ads that air on our TV channels by applying rigorous compliance standards in accordance with iGaming Ontario.”

The coalition’s announcement included further statements from individual leagues/bodies.

Chris Schlosser, Senior Vice President, Emerging Ventures at MLS, commented: “As betting on soccer continues to have a strong presence around the world, it becomes increasingly imperative to educate the fans about responsible gambling. A big part of this is how sports betting is marketed and promoted. That’s why we are committed to joining this important coalition of leaders in the sports industry. This is an opportunity to work together to implement guardrails and ensure that sports betting advertising is done appropriately and thoughtfully.”

David Highhill, NFL General Manager for Sports Betting, noted: “We’re proud to join these prominent sports industry stakeholders in this important effort. Legalized sports betting offers fans another way to engage with their favorite sports, but just as we must support problem gambling prevention and resourcing, we must also remain mindful of how sports betting is presented and advertised to consumers, and this coalition should greatly aid in that cause.”