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Rivalry Announces Record Revenue of $12 Million in First Quarter 2023, All-Time High Betting Handle, Gross Profit

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Rivary at the Canadian Gaming Summit 2023

Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY)(OTCQX: RVLCF) (FSE: 9VK), an internationally regulated sports betting and media company, today announced its financial results for the three-month period ended March 31, 2023, and closing of the second tranche of its previously announced strategic financing. All dollar figures are quoted in Canadian dollars.

“Our position at the intersection of esports and entertainment continues to create operating leverage in the business and drive organic growth as seen in our most impressive quarterly results to date,” said Steven Salz, Co-Founder and CEO of Rivalry. “Rivalry’s content and brand strategy is setting the industry precedent for betting entertainment, allowing us to acquire customers profitably and engage them through authentic touchpoints without having to consistently deploy additional marketing and promotional spend for growth. And it is this approach that is generating breakthrough industry economics, user engagement, and charting a path to profitability for the Company that we are very bullish on.”

First Quarter 2023 Highlights

  • Betting handle for the three-month period ended March 31, 2023 was $120.2 million, representing an all-time high in any quarter for the Company. Betting handle increased year-over year by $80.0 million or 199% from $40.2 million in Q1 2022, and sequentially by $36.2 million or 43% from the previous quarterly record of $83.9 million in Q4 2022.
  • Revenue for Q1 2023 was $12.0 million, the Company’s highest-ever revenue in any quarter. Revenue increased by $7.2 million or 151% from $4.8 million in Q1 2022, and by $2.5 million or 27% over Q4 2022 revenue of $9.4 million.
  • Gross profit was $5.4 million in Q1 2023, a record high for the Company representing an increase of $4.8 million from $0.7 million of gross profit in Q1 2022, and up $0.4 million or 9% from Q4 2022 gross profit of $5.0 million.
  • Net loss was $3.3 million for Q1 2023, a 50% reduction from the net loss of $6.6 million in Q1 2022, and the fifth consecutive sequential decrease in net loss, highlighting a continued focus on operational efficiency.
  • Material Key Performance Indicators growth was achieved despite a 5% year-over-year reduction in marketing expenses, demonstrating the effectiveness of the Company’s brand strategy and its ability to convert users profitably and drive growth independent of marketing spend.
  • User registrations reached 1.5 million at the end of Q1, up 114% year-over-year, with Millennial and Gen Z consumers representing 97% of active users.
  • Product and tech innovation efforts across casino and sportsbook continue to distinguish Rivalry in competitive market and drive user activity through original, engaging, and interactive online betting experience.
  • Rivalry’s creator partners and owned media properties reached a total of 85 million followers, deepening organic acquisition strategy among core target audience and ability to activate customers during tentpole esports events through authentic touchpoints.
  • The Company had $13.1 million of cash and no debt as at March 31, 2023.2 Subsequent to the end of the quarter, the Company raised a total of approximately $7.3 million through a non-brokered private placement announced on April 26, 2023 (the “Private Placement”).

“Building innovative products, which add to an overall unique and interactive betting experience on Rivalry, will remain a strategic focus in 2023,” Salz added. “The competitive advantage of engaging and fun products is increased user activity and satisfaction, and when combined with a profitable acquisition strategy, creates a flywheel effect in the business generating consistent organic momentum and enhancing our operational efficiency.”

Previously Announced Strategic Financing

Subsequent to the end of the first quarter, Rivalry announced a strategic financing that will enable the Company to accelerate its operational objectives and pursue strategic growth opportunities. Led by sports betting, technology, and payments stakeholders, the financing represents a validation of the Company’s unique market strategy and success among the Gen Z and Millennial demographic.

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On May 5, 2023, the Company closed a first tranche of the private placement for gross proceeds of $6,916,519.50 through the issuance of 4,611,013 subordinate voting shares in the capital of the Company (“Subordinate Voting Shares”) at a price of $1.50 per Subordinate Voting Share. On May 23, 2023, the Company closed a second tranche of the Private Placement for aggregate gross proceeds of $382,498.50 through the issuance of 254,999 Subordinate Voting Shares. The Company paid finder’s fees in the amount of $19,775 in connection with the closing of the second tranche of the Private Placement. In connection with the Private Placement, the Company has issued an aggregate of 4,866,012 Subordinate Voting Shares for gross proceeds of $7,299,018. The Company expects to close an additional tranche of the Private Placement no later than June 23, 2023. All of the Subordinate Voting Shares issued in connection with the Private Placement are subject to a four-month and one day statutory hold period from the date of issuance. The Company expects to use the proceeds from the Private Placement to accelerate operational objectives and pursue strategic growth opportunities.

The Subordinate Voting Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referenced in this press release, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

A director of the Company subscribed for 33,333 Subordinate Voting Shares in the Private Placement and such subscription constitutes a related party transaction within the meaning of applicable Canadian securities laws. This subscription was exempt from the formal valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction was less than 25% of the Company’s market capitalization. A material change report in respect of the related party transaction could not be filed earlier than 21 days prior to the closing of the Private Placement due to the limited time between the commitment by the director to purchase the subject Subordinate Voting Shares and the closing of the Private Placement.

Investor Conference Call

Management will host a conference call at 10:00 a.m. EDT on Wednesday, May 24, 2023 to discuss the Company’s first quarter 2023 financial results.

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Dial-in: 888-886-7786 (toll free) or (+1) 416-764-8658 (local or international calls)
Webcast: A live webcast can be accessed from the Events section of the Company’s website at www. rivalrycorp .com.

A replay of the webcast will be archived on the Company’s website for one year.

Rivalry’s financial statements and management discussion and analysis for the three months ended March 31, 2023 are available on SEDAR at www. sedar. com, and on the Company’s website at www. rivalrycorp .com.

Compliance Updates

Wyoming’s First Mile-Long Racetrack Set to Launch in the Mountain West

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The Wyoming Gaming Commission has approved Wyoming’s first mile-long horse racing track for 16 live race dates in 2025, as well as simulcasting and related activities. While the first racing season at Thunder Plains Park will feature temporary structures, the essential components, including barns, racing officials’ tower, video patrol towers, and spectator areas, will be in place.

The track, located 10 miles east of Cheyenne at Thunder Plains Park, will host its inaugural race day on Friday, August 1, 2025, with additional race days to follow on August 2, 3, 8-10, 15-17, 22-24, 29-31 and September 1. Dates are subject to change per the Wyoming Gaming Commission.

With its convenient location along I-80, the track is set to draw racing fans from neighboring states in the mountain west region, as well as local fans from Cheyenne and surrounding areas.

“As a fifth-generation Wyomingite, being able to bring this track to our state carries a lot of meaning,” said Ryan Clement, managing partner at Thunder Plains. “Thunder Plains sees an incredible opportunity to create a positive impact not only on the Wyoming horse racing industry but also the area’s economy, in terms of new job opportunities and tourism revenue.”

Through partnerships with elite industry veterans and horsemen, Thunder Plains looks forward to bringing high-quality, high-caliber racing to Laramie County.

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“We’ve established a strong partnership with 1/ST, North America’s preeminent Thoroughbred racing, entertainment and pari-mutuel wagering company,” said Clement. “They’ve set the standard for horse safety across the nation, and we’re looking forward to bringing that strong emphasis on safety and track protocols to Wyoming.”

Of the partnership with Thunder Plains, 1/ST TECHNOLOGY’s Senior Vice President Jeff True said he sees exciting opportunities ahead.

“1/ST has a long history of operating premier racetracks and premier racing events across the country. We are thrilled to be entering the Wyoming horse racing market together with our local Wyoming partners, and we look forward to lending our expertise to help grow Wyoming horse racing.”

For all simulcasting operations, 1/ST will leverage the expertise of its affiliates at Monarch Content Management, AmTote International, and PariMAX.

“Our racetrack will be operated with numerous horse safety and welfare protocols in place,” Clement said. “The track itself, being a mile long and eighty feet wide, dramatically improves horse and rider safety. Throughout track design and construction, we collaborated with Dennis Moore, a renowned track surface specialist, to ensure the safest, most high-quality racing surface.”

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Moore’s professional history includes designing and building world-class racetracks across the county, as well as consulting on track safety projects at racetracks across the country and around the world. Moore’s projects have included the racing surfaces at Santa Anita Park, Del Mar, Lone Star Park, Remington Park and in Dubai, among others.

Future plans at Thunder Plains Park include building a regional equestrian center and establishing a high-altitude horse training and breeding program.

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BetMGM Debuts 2024 Emirates NBA Cup Original Bets Sweepstakes

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BetMGM, a leading iGaming and sports betting operator and Authorized Gaming Operator of the NBA, has launched its first Original Bets Sweepstakes for the 2024 Emirates NBA Cup. From November 21-29, BetMGM customers who wager $10 or more on BetMGM’s proprietary NBA Cup Original Bets will have the chance to win the ultimate Las Vegas sports vacation. BetMGM will send one winner to Las Vegas for a five-night stay at MGM Grand, provide tickets to the semifinal and championship games and offer an on-court photo opportunity. The winner also will receive $2500 in BetMGM Rewards Points that can be redeemed for a variety of experiences at any MGM Resorts property (players must be considered active in order to keep their BetMGM Rewards Points from expiring based on Tier Status).

“With the Emirates NBA Cup championship returning to our backyard in Las Vegas, it is important for us to create an experience only possible through BetMGM. This promotion allows guests to explore NBA Original Bets and benefit from our unique connection to MGM Resorts destinations that are a short walk from T-Mobile Arena,” Matt Prevost, Chief Revenue Officer at BetMGM, said.

Participants can opt in to the Original Bets Sweepstakes from the home screen or promotions section of the BetMGM mobile app. Any Emirates NBA Cup Original Bet of $10 or more during the promotional period will count as a single entry into the sweepstakes for up to 25 entries (promotional offer not available in Nevada, New York, Ontario, or Puerto Rico).

BetMGM’s Original Bets are made possible through the integration of Angstrom, Entain’s sports modeling and analytics company. Angstrom’s differentiated play-by-play simulation-based pricing models allow BetMGM to provide an extensive list of basketball markets like both teams to score in the first minute and three 3-pointers scored in the first three minutes.

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The Original Bets Sweepstakes is one of many ways BetMGM customers can engage with the League throughout the 2024-25 NBA season. For the second year, BetMGM is offering its free-to-play Fast Break game. Once a day, users can log in and try to score a basket to win a reward. Rewards include parlay boost tokens, odds boost tokens, SGP boost tokens, bonus spins (in eligible casino states), and bonus bets (promotional offer not available in Nevada or Puerto Rico; bonus bets are non-withdrawable and expire in 24 hours).

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Jackpot.com Announces Exclusive Collaboration with 7-Eleven Inc.

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Jackpot.com – the online lottery courier service that allows consumers to purchase official state lottery tickets on their phone, tablet, or computer – announced an exclusive collaboration with 7-Eleven Inc., the largest convenience store chain in the world, to serve as their official lottery courier service.

As part of the collaboration, 7-Eleven customers in Ohio and Massachusetts will be able to sign up and play lottery games and scratchers on the Jackpot.com app or website. The program will initially be launched in over 600 7-Eleven and Speedway stores in Ohio and Massachusetts, with a special launch promotion that gives 7-Eleven customers a free lottery ticket on their first deposit by using promo code, “7Eleven”.

“We’re thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country. Leveraging our technology and innovation, we can provide additional convenience for their customers, while adding an additional source of revenue. A true win-win relationship for all,” said Akshay Khanna, CEO and co-founder of Jackpot.com.

By launching in Ohio and Massachusetts in 2023 and 2024, respectively, Jackpot.com aims at adding another avenue for player convenience with one of the most widely recognized brands in the convenience-retailing space. With a presence in Ohio, the nation’s seventh-largest lottery market, and Massachusetts, whose state lottery produced $1.2 billion in net profit for the Commonwealth during the 2024 fiscal year, Jackpot.com’s collaboration with 7-Eleven represents an added layer of accessibility for players.

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Jackpot.com remains committed to responsible play and has significantly invested in protocols by allowing customers of legal age to set spend limits and limits on daily deposits, all while providing access to local and national responsible gambling resources, self-exclusion, self-suspension, and automated notifications that offer help should problematic behavior be detected. Jackpot.com is also the only lottery courier service to launch with an iCap certification from the National Council on Problem Gambling.

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