With more and more states weighing up the opportunities that betting regulation can bring, Marc Pedersen – CEO US at Better Collective – believes that the US is the obvious place for the sports betting media Group to continue its execution strategy.
In this month’s Better Collective spotlight, Pedersen spoke to SBC about the ways in which Action Network will strengthen the Better Collective group moving forward before highlighting why he believes the US market will boom in the coming years.
SBC: Firstly, why did you select Action Network as your next acquisition?
MP: With the ongoing regulation of the US market, this is a high-priority market for Better Collective and a place where it makes sense for us to continue executing our acquisition strategy. Sports betting revenue in the US is forecasted to reach approximately $4 billion in 2022 and by 2033, this figure is anticipated to grow to nearly $40 billion.
Action is uniquely positioned in the market as the premier sports data and content destination for US sports bettors and with the acquisition we will welcome approximately 100 new employees that will add valuable know-how and expertise on the US sports betting media market. Strategically, Action’s mission to make sports fans with something at stake smarter about betting fits very well into our company vision.
SBC: How will the addition of Action Network benefit the wider Better Collective group?
MP: The addition of Action will set us in the leading position in the affiliate and customer delivery verticals within online sports betting in the US.
The team at Action has managed to build a top-class tech product and I look forward to sharing best practises and knowledge which can benefit and strengthen the entire BC Group moving forward.
SBC: What holes does it help to fill in your previous US market portfolio?
MP: Our US business has developed successfully in recent years with high growth and a great traction for our brands such as VegasInsider, RotoGrinders and SportsHandle. With the acquisition of Action, we will add some very unique brands and tech products to our organisation that will give us a second-to-none product experience in the US.
We are very excited about how the various teams can learn from each other and make each other even stronger.
SBC: Why is it important for you to keep Action Network as a separate business unit and retain the same leadership structure?
MP: Action has demonstrated an ability to build leading products with a high degree of customer loyalty while also growing its business rapidly in recent years. We want Action to continue to do what they are best at on the operational level and then on a strategic level we will seek the synergies across our teams.
SBC: Do you think the current trends of M&A activity that we are seeing in the betting, gaming and affiliate space will continue into the future?
MP: Generally, we see much activity in the US M&A landscape. Lots of actors want to take part in the US market that has a great growth potential as more and more states regulate online sports betting and gambling. As a result, we expect the consolidation in the market to continue in the years to come.
SBC: What is Better Collective’s vision for its expansion into the US market? What do you hope to achieve by the end of 2021?
MP: The US is a high-priority market for Better Collective, and we expect many more states will regulate online sports betting in the coming years leading to an estimated average annual market growth of 50%.
We want to be the leaders in the market in the sports betting media and customer delivery vertical and we believe we have a strong position to further grow our business and build even stronger product experiences for our users.
Alongside the regulatory announcement in regard to the acquisition of Action, we announced that we expect Action to achieve revenues approaching $40 million in 2021, an increase of over 100% year-on-year, while also generating positive operational earnings in 2021. From a BC Group perspective, we expect to increase our revenues in the US business to more than $100 million by 2022.