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Rivalry Issues 2022 Business Update

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Triple-Digit Growth in 2021 and a Fortified Balance Sheet Sets the Stage for Rivalry to Continue Redefining Next Gen Betting and Entertainment in 2022

Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (FSE: 9VK), an internationally regulated sports betting and media company, today issued a letter to shareholders summarizing recent progress and outlining strategic priorities for 2022. The full text of the letter follows. All dollar figures are quoted in Canadian dollars.

Rivalry Corp. 2022 Business Update

To our Shareholders,

At Rivalry Corp. (“Rivalry” or the “Company”) we aspire for every year to exceed the last, and in 2021, our third full year of operating, we did just that. We delivered our strongest growth to date.

Since launch, we have demonstrated discipline and execution. Some highlights:

  • Created the most engaged esports betting brand globally1;
  • Increased revenue more than 600% year-over-year (YoY) to $8.9M as of our most recent reported quarter (Q3 2021) on a year-to-date (YTD) basis;
  • Grew betting handle2 over 180% YoY to $66.1M through October 2021 on a YTD basis, with an implied annual run rate as of the last reported quarter (Q3 2021) of nearly $100M;
  • Customer registrations increased to approximately 600,000 through October 2021 on a YTD basis, up from 350,000 as at 2020 year-end;
  • Customer acquisition costs remain significantly below market and deliver profitable unit economics3;
  • Developed all of our technology in house;
  • Pioneered a new gaming category of Massive Multiplayer Online Gambling Games (MMOGG) with our proprietary title Rushlane;
  • Conditionally granted a sports bookmaker licence in Australia from the Northern Territory Racing Commission (Australia) (the “NTRC”);
  • Submitted an application to the Alcohol and Gaming Commission of Ontario (the “AGCO”) to become a fully registered operator of internet gaming and sports betting in Ontario;
  • Commenced trading via direct listing on the TSX Venture Exchange on October 5, 2021.

Our ambition does not end there. We are confident 2022 will be another record year of accomplishments. The investment we will be making in all key areas of the business will likely exceed the past three years combined. This sets 2022 up for a multitude of material catalysts:

  • Anticipated launch in two new regulated markets, Australia and Ontario;
  • Innovative product releases, demonstrating the power and scalability of our proprietary technology;
  • New originally developed games to complement Rushlane and our MMOGG category;
  • New content and media to continue positioning Rivalry as a market-leading brand at the forefront of internet culture;
  • Launch in new geographies under our existing Isle of Man licence to provide continuous user growth and brand reach across the globe; and
  • Expand our capital markets presence to increase investor awareness.

Backing this effort is a fortified balance sheet with approximately $41.3 million of cash and no debt as at our most recently reported quarter (Q3 2021), a figure several times the amount we spent to build the entire business.

We are executing against a generational opportunity, and our vision is clear:

  1. Become the leader in next-gen sports betting and entertainment globally.
  2. Have the most engaged brand and portfolio of IP (games, content, creators, and more) that is revered and trusted.

We expect that success on these key priorities will make Rivalry transportable into new categories beyond betting. Why? Because we have a loyal user base and a foundation of trust with under 30’s in a regulated framework, fully KYC’d, with funded wallets, who are deeply engaged in our universe.

Rivalry was born through the mutual passion we share with our target audience: gaming and internet culture. At approximately 40% of the global population4, Gen Z and young Millennials, my generation and much of the team represent the largest generational cohort in history. We grew up interfaced with the internet, and view gaming as the sport of the internet. Through that lens, we have shaped Rivalry as a brand that is deeply woven into the fabric of this emerging internet culture that is reshaping multiple consumer industries, in addition to sports betting.

I’m confident Rivalry as a company, and a collection of talented individuals understands better than any of our peers how to navigate and participate in this culture. It is an inevitable generational tidal wave that we are focusing all our efforts on acquiring, retaining, and entertaining.

The growth and market leadership advantages we have created are a product of our disciplined execution on hundreds of large and small details that we deliver as a simple and cohesive user experience. This is how we are building brand equity with long-term sustainable value.

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We measure our success on these efforts in revenue growth and margin expansion, healthy customer acquisition metrics, profitable unit economics, and deepening brand engagement.

In 2022 we are committed to expanding our brand leadership not just in next-gen sports betting globally, but in entertainment in this rapidly evolving internet culture that we are part of. It’s my belief that this intersection we live in, and the demographic we are serving, represents one of the biggest opportunities of the coming decade.

I have complete conviction in our team and strategy, which is now underpinned by the strongest balance sheet we have had since the founding. We will continue to deliver, and 2022 will demonstrate to the market what kind of pace we are capable of.

I wish everyone a successful and healthy year.

Steven Salz
Co-Founder & CEO
Rivalry Corp.

________________________
1 Source: Twitonomy, Social Blade, Rival IQ
2 The Company defines “Betting Handle” or “Handle” as the total dollar value accepted in wagers, adjusted for cancellations and corrections.
3 Source: Multiple EU public sportsbook filings
4 Source: United Nations

Compliance Updates

Oddin.gg Officially Registered with LOTBA as a Supplier in the City of Buenos Aires

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Oddin.gg has been officially registered as a supplier by the Lottery of the City of Buenos Aires (LOTBA). This authorization clears the way for Oddin.gg to provide its end-to-end esports betting ecosystem—including its Odds Feed, Risk Management, BetBuilder, Widgets, and more—to licensed operators in the City of Buenos Aires. The milestone reinforces Oddin.gg’s strategic focus on supporting partners across Latin America.

LOTBA, the regulatory authority for online gaming within the Autonomous City of Buenos Aires, is well known for its rigorous compliance and technical standards. While the body manages licensing and enforcement, suppliers must undergo a formal registration process before providing services to local operators. Oddin.gg’s successful registration confirms that it has met all relevant technical, financial, and compliance requirements.

Juana Bischoff, Senior Business Development Manager LATAM at Oddin.gg, said: “Being officially registered with LOTBA marks an important step in Oddin.gg’s long-term commitment to the Latin American market. Esports is gaining real traction across the region, and we want operators in Buenos Aires—and beyond—to have the tools and insight to deliver a top-tier esports betting experience. We’re not just bringing leading technology—we’re bringing the local expertise and regulatory awareness needed to help our partners like Betsson and Jugadon grow.”

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Mirage Digital Announces Partnership with Team Liquid

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Mirage Digital, the next-generation content studio shaping the future of digital entertainment, announced a groundbreaking partnership with global eSports organization Team Liquid. With over 35 million social media followers across platforms, 100+ championship titles with its over 120+ players and content creators worldwide, Team Liquid is the highest earning eSports team in the world to launch a 24/7 live-streaming programming experience surrounding the fan-favorite World of Warcraft: Race to World First event.

Mirage has created a new content monetization model for creators and enterprising entities, unlocking previously untapped non-traditional revenue streams. The company helps its clients with repurposing, redistributing, licensing, and selling content across numerous platforms and territories. Resulting in over a million dollars for its eclectic roster of over 300 creators, the company leverages its extensive creator network and expertise in original content development, to redefine digital content syndication. Mirage Digital is bridging the gap between creators and enterprise opportunities by sourcing high-quality content from creators and repurposing it for expanded deal flow and pipeline of distribution across OTT and FAST platforms.

Team Liquid, coming off a championship win in March, is set to make history with its most ambitious Race to World First campaign yet, with live coverage kicking off in July. For the first time, the tournament and its surrounding content will be broadcast beyond Twitch to OTT and FAST audiences, expanding access for new and longtime fans alike.

“This launch marks a huge moment not just for Team Liquid, but for the future of all eSports and creator content. We’re unlocking a format that merges always-on content with world-class competitive play, giving fans a reason to tune in every hour of every day. This is a monumental moment for both television networks and eSports to recognize the boundaries they are breaking in both parallels,” said Griffin Haddrill, Founder of Mirage Digital.

The multi-day broadcast includes full tournament coverage alongside exclusive behind-the-scenes content, player profiles, real-time strategy breakdowns, and each day’s highlights – providing an unprecedented level of access to Team Liquid’s journey and personalities within the event.

Team Liquid will bring its world-renowned Race to World First event to new audiences with a livestream on The Roku Channel in late August. Widely regarded as one of the most thrilling competitions in MMORPG gaming, Race to World First draws millions of global viewers eager to watch elite teams battle for supremacy in World of Warcraft. Known for pushing the boundaries of eSports entertainment, Team Liquid is once again innovating – this marks the first time the iconic event will be available via a dedicated OTT streaming platform, giving fans an even more immersive viewing experience.

“This collaboration is the result of our mission to re-imagine where and how gaming and creator content lives. All parties saw an opportunity to take one of the most anticipated eSports events of the year and expand its reach to new audiences through OTT and FAST distribution. This is about creating long-term value for teams, fans, and platforms alike—and Race to World First is just the beginning,” said Robin Bigge, Co-CEO of Mirage Digital.

“This is a historic evolution in how we bring eSports to the world. We’ve built a legacy on competitive excellence, and this partnership lets us showcase the heart, hustle, and humanity of our players in a way we’ve never done before—24/7, across every screen,” said Claire Hungate, President & COO of Team Liquid.

This moment also marks the first time Team Liquid has programmed content specifically for a FAST Channel, a move that speaks to the maturation and crossover appeal of eSports for general audiences.

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Esportes da Sorte celebrates Brazilian culture with Parintins and São João Sponsorships

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Esportes da Sorte celebrates Brazilian culture with Parintins and São João Sponsorships

 

Esportes Gaming Brasil, the owner of Onabet and Esportes da Sorte, is making its debut at the 58th Parintins Folklore Festival with an interactive project that blends cultural promotion, economic development, and social responsibility.

The brand becomes the first regulated betting operator to offer institutional support to the event, which welcomes around 120,000 visitors and generates BRL 184 million in local economic activity, according to the Amazonas State Government.

This cultural commitment comes on the back of Esportes Gaming Brasil sponsoring 31 São João festivals during June in 27 cities across the Northeast and Southeast regions. This initiative strengthens the brand’s strategy of connecting with the public through the appreciation of Brazilian cultural expressions.

Esportes da Sorte’s focus was creating memorable experiences as each event featured scenography by Pernambucan artist Perron Ramos. Another notable element was the Vila Junina (June Village), a themed area blending traditional elements with interactive experiences. Classic games such as Pescaria da Sorte (Fishing of Fortune), Barraca do Beijo (Kissing Booth), and Argola da Sorte (Ring Toss) bring nostalgia to the festivities.

For the three-day Parintins Folklore Festival starting today, the brand will be energising Parintins with a series of experiences celebrating local culture. These include a panoramic lounge with a special view of the Bumbódromo, the Truck da Sorte — a space combining karaoke and free hydration — as well as a Social Arena installed in the Garantido and Caprichoso neighborhoods, featuring artistic performances, rest areas, free water distribution, and Instagram-worthy spots. Festivalgoers will also be able to get their hands on custom giveaways throughout the festival. All elements of the visual project are inspired by Amazonian art. The graphics feature illustrations by Curumiz, a Parintins-based duo formed by Alziney Pereira and Kemerson Freitas.

Sofia Aldin, CMO of Esportes Gaming Brasil, the group behind the brand commented: “Esportes Gaming Brasil cares passionately about regional values and strengthening Brazilian popular culture. It’s more than simply showcasing our brand, we want to create value for the people who live for events like the Parintins Folklore Festival and the São João festivals. Being part of these events backs our strategy of supporting traditions that drive local economies and celebrate regional identities.”

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