Rivalry Corp sparks shutdown talk with live betting pause
Canada-based online gambling operator Rivalry Corp has paused betting operations, and the shutdown has sparked discussion around the operator soon either selling or shutting down outright.
Rivalry Corp entered the market with esports betting at the fore before expanding into iGaming and more traditional sports betting. The operator focused its efforts entirely on digital betting and relied on tech-savvy players as online betting continued to proliferate, with no in-person presence.
Despite what was once a rosy outlook, Rivalry Corp has now announced that it is scaling back operations while evaluating options for the future. Here’s what we know.
Rivalry Corp operations on hold, future unclear
A formal announcement by the company made it clear that Rivalry Corp is attempting to cut overheads in multiple ways, including by laying off staff and halting its live betting operations. Esports betting, sports wagering, and other iGaming activities will all remain restricted for the time being.
The company’s board is exploring all possible alternatives, including a sale. There is no timeframe when or if operations will resume, but Rivalry Corp’s future in the betting space remains in doubt following this shutdown. Industry observers were quick to speculate that Rivalry may shut down entirely if the company is unable to inject fresh capital into the business, whether through a sale, merger, or another financial solution.
Image credit: Canva
Rivalry Corp has stated that its players can freely withdraw their funds even during this pause, and that the shutdown restriction is only being placed on new wagers. While this pause will give Rivalry Corp some breathing space, stopping operations is usually the last resort for betting operators.
Such extreme measures has many analysts feeling doubtful about the operation’s future while waiting to see whether any investors may express direct interest in Rivalry Corp. The company has been unable to achieve profitability even after attempting to pivot and market itself as one of the best crypto casinos available online, leading to this latest stoppage of operations, and it’s unclear whether any deal can really be struck to raise sufficient capital to resume the company’s track.
It’s important to note that reports of Rivalry shutting down outright remain premature, as the operator hasn’t issued any such statements or made any filings that would point to such a final decision having been made. The pause has limited immediate expenses, and according to Rivalry Corp, the company is presently in talks with third parties about potential solutions. Whether those talks are successful or not remains to be seen, but the decision to cease operations comes after the operator’s year-on-year losses have continued to mount.
Esports has long been central to the company’s brand, with Rivalry even partnering with top esports organization Fnatic. Despite that, Rivalry Corp has been operating at a net loss for a significant time, losing millions per quarter as it continued to work towards profitability.
The operator has stated that any future updates will be shared publicly.
Feature image credit: Rivalry Corp
Khizar Mundia has been playing video games for as long as he can recall. Things have come a long way since the many days he spent playing the original NES, though. He now covers a variety of competitive games and esports, as well as the world of streaming, ranging from Twitch to Kick. If it’s of interest to gamers, it’s of interest to Khizar.
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