Better Collective Buys Action Network for $240 Million
As individual states continue to legalize sports gambling across the country, revenue for the sports gaming industry is expected to reach $4 Billion in 2022 and $40 Billion by the end of 2033. Better Collective, a sports gambling media company who aim to provide betting enthusiasts with the tools and information required to be successful, are now primed to be a major part of the US sports gambling landscape moving forward.
Better Collective announced they have purchased the Action Network for $240 Million in a deal that is expected to close by the end of Q2 in 2021.
Partnership Details
Once the deal becomes official, Better Collective will own 100% of the Action Network, but it is expected that the Action Network will continue to be operated as a separate, stand alone business. Action Network CEO Patrick Keane will continue in his role moving forward and regular users of the Action Network platform should continue to expect the same great products and analysis currently being provided by the sports gambling resource and media company.
Who is Better Collective
Better Collective is a Danish company founded in 2004, with a global sports gambling footprint. Over the last 15+ years, Better Collective have had a major impact in the sports betting industry by developing or acquiring many different brands, all with a focus on providing tools, analysis and information designed to help sports betting enthusiasts make better wagering decisions.
Some of the brands that Better Collective already own and operate are; VegasInsider.com, bettingexpert.com, RotoGrinders, SmartBets and several others. Better Collective expects that by the end of 2022, their revenue in the US alone will surpass $100 Million.
Who is Action Network
The Action Network is a popular US sports media company designed to provide insight, analysis and the tools required to help gamblers make more informed decisions when wagering on sports. Founded in 2017 by The Chernin Group, the Action Network was originally three companies (Fantasy Labs, Sports Insights and the SportsAction mobile app) rolled up to form one very impactful brand.
With the steady legalization of sports gambling across US states, the Action Network is expected to report earnings of over $40 Million at the end of 2021. The $40M in revenue would be an increase of over 100% from last year. The Action Network already has partnerships in place with some of the largest US sportsbooks, including DraftKings, FanDuel, BetMGM and others.
Blurred Lines
As the race to capture market share in the sports gambling space continues, we continue to see huge partnerships and acquisitions being made in the US. This week it was Better Collective purchasing the Action Network for $240 Million. Last week DraftKings announced a $50 Million deal to purchase the licensing and distribution rights to the Dan Le Batard show with Stugotz for three years. The popular podcast averages over 10 million downloads per month.
An interesting trend that is developing is the blurred lines between media companies and sportsbooks. Popular sportsbooks like DraftKings (Dan Le Batard) and FanDuel (The Pat McAfee Show) are recognizing the power and potential impact of providing insightful and valuable content which can help drive customers to use their products and services.
Although the acquisition of the Action Network by Better Collective might have surprised many, don’t be surprised when there are more very large deals being formed in this space moving forward. With $4 Billion in projected revenue up for grabs next year and a projected $40 Billion in revenue expected long term, the race to capture market share by the sportsbooks and sports media companies is only just beginning.
