The US legal sports betting industry continues to be a target for some of the biggest providers in the world. Arguably the most up-and-coming market on the planet has been on an expansion blitz and news of the sale of The Action Network, a U.S. based company that focuses on sports betting to Danish company Better Collective is just another example.
On Tuesday, it was announced that Better Collective had acquired 100% of The Action Network for $240 million USD in cash and stock, with Better Collective giving Action Network management and executives $12 million in new stock. The deal gives the Danish company immediate access to the exploding US market and acts to essentially wipe out a potential main rival in the US sports content space.
What is the Better Collective?
Better Collective has 17 years of experience in the legal sports betting space, mostly in Europe and has existing relationships with a number of global sportsbooks including bet365, Coral, Matchbook, Unibet, and many others.
Better Collective is a “sports betting media group that develops educational platforms within the iGaming industry.” Their mission has been to make sports betting and gambling entertaining, transparent and fair for the global network of online bettors.
Expansion of their services is obviously a next step in their evolution and the US market is seen as the biggest fish in the global industry.
What About The Action Network?
The Action Network is a self-described market leader and a trusted source for sports fans seeking to enhance their betting and entertainment experience through original news, premium insights, betting tools, data and odds.
Founded in 2017 by The Chernin Group after they acquired three companies in the legal sports betting and DFS space, Chernin combined the companies into one all-encompassing one and offered customers free services and subscription-based tools to support the ever-growing US legal sports betting industry.
Their evolution into a sports betting product and media company has seen The Action Network become a leader in providing sports fans and bettors alike premium content, proprietary tools and in-depth analytics to make sports fans with something at stake more informed about betting.
CEO Patrick Keane, on The Action Network’s rise to prominence said: “In just a few years, our team has managed to build a leading sports betting product and media business in the US market, making us attractive to a leading international player.”
A Coup for Better Collective
The Action Network brings Better Collective instant credibility within the US legal sports betting space. The Action Network has set itself apart as a preeminent sports content and product destination in the US betting industry. According to the Wall Street Journal, The Action Network boasts about 3.6 million monthly average users.
The Action Network also brings a trusted name that has made good on offering bettors and sportsbooks a one-stop-shop for original sports news content, premium insights, an impressive and varied menu of odds and top-tier proprietary betting tools and data.
BC chief executive Jesper Søgaard said of The Action Network news: “We add three new, very well positioned US sports media brands to our portfolio and welcome around 100 new colleagues, together representing an invaluable pool of knowledge and expertise on the US sports betting media market. By all accounts, this is a great day for Better Collective.”
There were rumors of a bidding war for The Action Network’s services – the two DFS behemoths in the US legal sports betting family were also after what the media brand brings to the table.
The Better Collective/Action Network deal will certainly have a trickle-down affect on the US market. The new member of the US legal sports betting family will get to skip a few steps along its road to relevancy thanks to its purchase of such an established entity, while keeping The Action Network away from competing forces within the space.
Action’s revenues are on track to hit about $40 million this year and when added to what the Better Collective brings to the table, the new company could surpass $100 million in US revenues by the end of 2022.
It serves as just another sign that the US legal sports betting gold rush continues and that companies, far and wide will pay just about anything to gain a bigger piece of the US pie.