Rivalry’s bet on crypto and blockchain is paying off according to the Canadian sports betting firm’s Q2 financial report, which has outlined a strong revenue contribution from its Token offering.
Although the product has not fully launched yet, expected later on in H2 this year, Rivalry’s customers have been engaging with Rivalry Token, announced in May. As it stands, Rivalry reports CA$1.7m (£3.9m) in revenue from the Rivalry Token, vindicating the firm’s expansion into cryptocurrency.
Rivalry expects crypto to remain a consistent revenue stream moving forward, sitting alongside its betting and casino offering. The firm’s customers have so far been engaging with the product by connecting the Token to digital wallets, earning rewards through on-site activity, and more recently via what the firm calls an off-site ‘faucet’.
“Last quarter marked a broader expansion into crypto with the pre-release of Rivalry Token and we have seen very motivating early results,” Rivalry CEO, Steven Salz, remarked.
“Rivalry Token is uniquely positioned to serve a number of our near and long -term goals to expand our geographic footprint and acquire and retain high-value players, which we are beginning to see signals of.
“In just a few months, Rivalry Token has attracted new customers who are twice as valuable as our average user and marked the most successful reactivation campaign in the Company’s history.”
Engagement between the crypto and betting sectors is nothing new, although it is still something of a grey market in most areas. In well-established markets like the UK, US and Ontario (Canada), betting with cryptocurrency is not a regulated practice.
However, betting with cryptocurrency remains widespread. For example, SOFTSWISS, an igaming software company, recently compiled a report analysing 250 crypto betting brands, finding that crypto betting volume remains substantial, rising by 2.3% year-on-year as of H1 2024.
Not all betting firms are seeking to use cryptocurrency as a means for customers to bet with, however, with some looking to use blockchain tech more as an engagement tool. Rivalry asserts that its Token customers are ‘more engaged users and play consistently during all days of the week’.
Crypto falls in line with Rivalry’s general strategy to target Gen Z and millennial customers. It is often observed, both by Rivalry and other gaming stakeholders – such as at the Canadian Gaming Summit (CGS) earlier this year – that crypto has a much warmer reception from younger demographics.
“Behaviorally, we see that Rivalry Token users are more active and engaged, and we are confident in the opportunities being unlocked through this technology,” Salz continued.
“We have an extensive roadmap ahead for Rivalry Token, including new social-based products and games to drive more connected wallets and create engagement loops for players that will extend our momentum in the crypto gambling segment.”
