The U.S. sports betting market is growing at a rapid pace as more states open up to legalized sports betting. This growth is fuelled by a number of factors which include competitive sports returning to action after the COVID-19 shutdown in 2020, new betting operators entering the market and some key mergers and acquisitions.
Denmark’s Better Collective recently announced that they had acquired their rival Action Network in a deal estimated to be around $240 million. Action Network is a U.S. based operator that focuses on sports betting. In essence, both companies are super affiliates that are paid affiliate commissions by some of the top sportsbooks in the world for bringing in new bettors.
Better Collective was keen to make a big splash in the U.S betting market and one way of doing that was to not only take over the competition but leverage Action Network’s strengths in the market and expand its market presence. Together, the merged organization will look to increase the number of bettors they send to sportsbooks going forward.
The merged network will continue to provide better with sports betting podcasts, subscriber data, breaking news and analytical tools that will help bettors make informed decisions before placing their wagers. Better Collective has plans to slowly integrate Action Network into their offerings but has provided no deadline as to when the integration will be fully completed.
Better Collective already has a presence in the U.S as it offers betting tips via its VegasInsider platform and daily fantasy sports (DFS) via its RotoGrinders website.
Better Collective Wins Auction Process
Action Network decided to launch an auction process to get the highest bid possible. Action enlisted the services of Moelis & Co. which is an investment bank that helped with the sale. There was a lot of interest from a number of top betting operators including DraftKings and FanDuel. However, it was rival Better Collective that succeeded in closing the deal.
The deal between Better Collective and Action Network is just one of the main deals that have gone down in recent months in the sports betting market. Some of the other deals that have made headlines include Bally’s Corp acquisition of Gamesys Group PLC. in April 2021 for $2.7 billion and DraftKings picking up popular sports podcast by former ESPN host Dan Le Batard for $50M.