Esports betting and sportsbook operator Rivalry Corp. (TSXV: RVLY) announced Friday that it will materially scale back its business while it evaluates strategic options for the company.
In a press release, Rivalry stated that its “Board of Directors has approved a significant reduction in operating activity” as it assesses “strategic alternatives in respect of its assets and operations.”
The company also disclosed that it “is engaged in discussions with third parties regarding potential transactions,” but said that “in light of recent performance volatility, the Board has determined to materially reduce the scale of operations while it evaluates whether a strategic deal or other outcome can be advanced.”
“Effective immediately,” Rivalry said it is implementing “substantial cost reductions, including a significant workforce reduction and reduced operating expenditures.” The company added that it “has paused player activity on its platform and is facilitating player withdrawals in the ordinary course.”
Rivalry said it is “assessing a range of potential alternatives,” which may include “asset-level transactions, corporate transactions, restructuring initiatives or other strategic outcomes.” It cautioned that “there can be no assurance that any strategic alternative will be completed or that operations will continue in their current form.”
Rivalry Corp. wholly owns and operates Rivalry Limited, which offers regulated online wagering on esports, traditional sports, and casino games. The company holds an Isle of Man license and an internet gaming registration in Ontario.