Better Collective, a Danish sports betting media company, is acquiring Action Network, the New York-based developer of betting websites, for $240m in cash (6 x revenue). Better Collective is aiming for revenues of $100m in 2022.
Action Network was established in 2017, employs 100 staff, and is forecasting revenue of $40m in the current year, through its subscription brands including Action Pro and Fantasy Labs, and affiliate marketing which referring users to gambling firms. The company is increasing its footprint in the US after a federal ban on sports betting was overturned in 2018. The market is estimated to grow from $2bn to $5bn by 2023 as an increasing number of states legalise gambling.
