The gambling and sports betting industry is growing at a tremendous pace leading. Therefore, this has led to a myriad of mergers, acquisitions and partnership amongst gambling companies. According to the latest gambling news, the latest shuffling of gambling companies comes with Better Collective Acquiring Action Network Inc.
As more countries and locations are legalizing sports betting, companies are scrambling to increase their gambling market share. According to the Pay Per Head Sportsbook industry, Better Collective (BETCO) made the announcement to buy Action Network on Monday.
Companies like Better Collective and Action Network get most of their revenue from advertising sportsbooks via affiliate commissions. Therefore, when a subscriber opens a betting account with one of their advertisers, these companies get paid. In the past, some of these sports data companies were struggling to make high profits. However, thanks to the rise of sports betting, these companies are now worth a lot of money.
Better Collective Acquiring Action Network Inc. for $240 Million
Better Collective is a company from Denmark that offers tools and media contents to its subscribers. The content they provide contains data that can help sports bettors make more informative wagers. In addition, Action Network is a direct competitor to their business model.
The decision for Better Collective to buy Action Network Inc. is because it allows them to enter the U.S. Market. Furthermore, it will greatly increase their customer base. Thus, buying Action Network for $240 million was a no brainer for them. For Action Network shareholders, the sale means a big profit for them.
The sports betting market in the U.S. is growing at a much faster pace than in Europe. Therefore, this is a great opportunity for Better Collective. However, buying Action Network was not an easy task as several companies had their eyes on the company. Several sports betting software companies and sportsbooks were bidding for Action Network.
Action Network made about $20 million in revenue in 2020 thru subscriptions and affiliate revenue. Better Collective hopes that with this acquisition, they will generate $200 million in revenue in 2020.