Rivalry Corp Suspends Operations and Lays Off 50% of Staff Amid Sale Hunt
Key Highlights
- Operational Suspension: Player activity and deposits are paused immediately; refunds are being processed.
- Massive Workforce Cuts: Toronto-based firm lays off nearly 50% of its staff.
- Strategic Review: The Board evaluates a sale or asset-level transaction to address performance volatility.
The era of hyper-growth for esports betting’s most prominent Gen Z-focused brand has come to an abrupt halt. Rivalry Corp. announced on February 13, 2026, that it had suspended all player activity and initiated massive layoffs while exploring a partial or full sale of the company.
The announcement represents a dramatic reversal for a company that, as recently as December 2025, was celebrating record-breaking performance in the Ontario-regulated market.
Perhaps even more troubling, the news broke when a former employee noted that “…the company decided to terminate the contracts of all employees.”
Immediate Shutdown: “Material Scale-Back”
Effective immediately, Rivalry has entered a hibernation phase. The Board of Directors confirmed the following operational changes:
- Activity Paused: Betting, casino play, and deposits suspended across all jurisdictions, including Ontario and the Isle of Man.
- Fund Returns: Player withdrawals and account balances are being processed in the ordinary course.
- Cost Liquidation: A significant reduction in operating expenses aimed at preserving capital during strategic evaluation.
While official headcount figures have not been disclosed, industry sources indicate that nearly 50% of staff and potentially more have been laid off. According to LinkedIn, Rivalry employs between 51-200 people.
From “Record Performance” to Strategic Review
The timing of the pullback has surprised many analysts. In Q3 and Q4 2025, Rivalry reported:
- Revenue Growth: Three consecutive quarters of increases.
- Ontario Momentum: A 240% year-over-year surge in deposits and a 100% rise in wagers.
- Lean Operations: A reduction in operating expenses following prior layoffs in early 2025 allowed Rivalry to narrow its net loss by 59% YoY.
Despite this growth, the company faced performance volatility. Its pivot to a crypto-first model and traditional sports betting failed to offset the high burn rate of its marketing-heavy approach.
By the end of 2025, Rivalry remained nearly $2M in the red, with shares plunging over 90% in early 2026.
Financial Snapshot: 2025–2026
| Metric | Q3 2025 (Reported) | Feb 2026 (Current) |
| Net Revenue | $1.93M CAD | Operations Paused |
| Net Loss | $1.96M CAD | Performance Volatility Cited |
| Stock Price (RVLY) | ~$0.15 | $0.01 (Near De-listing) |
| Workforce | ~100+ | ~50% Reduction |
Strategic Options on the Table
The Board is evaluating potential transactions to stabilize the company:
- Asset-Level Sale: Divesting proprietary technology, such as the casino platform or Rivalry Token infrastructure.
- Corporate Sale: Full acquisition by a larger gambling operator seeking access to the Gen Z demographic.
- Restructuring: Complete overhaul of corporate debt and equity.
Industry Note: There is no guarantee a transaction will be completed. Without a buyer, the current operational pause could become permanent.
What Went Wrong?
Rivalry’s brand was built to bridge to Gen Z, prioritizing memes, social-first content, and esports culture over traditional promotions. While this won loyalty, it proved challenging to monetize at scale.
The 2025 pivot to Solana-based crypto payments and the launch of its proprietary token were last-ditch efforts to lower transaction costs and increase player lifetime value.
Ultimately, regulatory pressures as a public TSXV company, combined with a tightening venture capital environment for growth-stage gambling firms, created a liquidity trap the company could not escape.
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