Despite a notable slide in revenue, crypto-focused betting and gaming operator Rivalry said that improvements in user value suggest that its change in approach is working.

Rivalry has made sweeping changes to the way it does business, including rebuilding its sportsbook, redesigning its casino offering, rebranding its VIP rewards and and affiliate partner programs and expanding its crypto capabilities. As it has conducted those changes, it has implemented three separate rounds of layoffs and executives have taken pay cuts.

Although net revenue was down 71% year over year to $1.3 million for the three months ended March 31, 2025, the first full quarter under Rivalry’s revamped operating model, the firm stated that a significant increase in cost efficiency and operating leverage validates the impact of recent changes.

Rivalry put the slide in net revenue down to a “deliberate shift to a leaner, more efficient model” and added that the shortfall also reflected temporary variance in sportsbook hold as it focuses on high-value and VIP players. Net revenue margin was 2.3%, around half of the full-year 2024 margin of 4.4%.

The big plus for the Toronto-based company has come in player value. Net revenue per user per dollar of operating expense quintupled compared to its average before the strategic overhaul, which it completed in October 2024. Monthly active players grew by 9% in March 2025, following a similar increase in February 2025. Since the operational shift, Rivalry’s average revenue per playing account in the Ontario market has nearly doubled compared to pre-overhaul levels.

“We’ve built a stronger, leaner, and more focused Rivalry,” said co-founder and CEO Steven Salz. “Our Q1 KPIs are delivering tangible results that validate our strategic shift.”

Rivalry focusing on high-value players

The company also stated that a key factor in its net revenue and margin slump was the increased focus on VIP and high-value players, noting that those segments offer greater long-term value but more short-term variability as they scale.

Rivalry added that its shift to focusing on high-value players drove a 175% increase in average player monthly deposits prior to the strategic refocusing. Total deposits rose 36% month over month in February and another 12% in March, despite a smaller active user base than past peaks. In addition, average monthly deposit frequency per player increased by 115% compared to pre-October 2024.

“The structural changes we implemented over the past six months — from streamlining operations and refocusing the product to modernizing our platform and concentrating on high-value players — are now clearly reflected in our KPIs,” added Salz. “We’re operating more efficiently than ever, generating significantly more revenue per user, and moving closer to achieving sustainable profitability.

“The KPIs are telling the real story — user value is up, efficiency is up, and player engagement is the strongest we’ve seen in the company’s history … As sportsbook hold normalizes and our cost base becomes leaner, we believe we’re moving in the right direction.

Strategic review in process, will delay FY reporting

The changes are likely to keep coming.

Last week, Rivalry announced it is reviewing “strategic alternatives” to support its long-term growth and determine the best path forward and has engaged XST Capital Group, an investment bank focusing on the digital gaming sector, as advisors throughout the process.

Rivalry said the intention is to assess various options to position it for continued growth and innovation. Salz called the review a “natural step in assessing how we can best create long-term value for our stakeholders while continuing to enhance our world-class gaming platform.”

The company disclosed that as a result of resources being used on the strategic review, it will file its audited financial statements for full-year 2024 late, missing the April 30 deadline.