People lose money in the stock market when they follow their emotions and ignore the data. Similarly, the public tends to lose money when they place bets rooting for their home team rather than what the actual numbers suggest. The growth of sports betting means that the entire environment of watching sports and entertainment has changed. You can find any game, present and past, at the click of a button and search any statistic you want within seconds. Pairing the high access of consumers to all sporting events with the Supreme Court’s deregulation of sports betting, there is now a new vulnerable market: legal online sports betting. This market is attractive to attack and The Action Network is ready to gamble on its success.
The Action Network, an analytics company dedicated to providing real-time data to make online sports wagers more efficient, has just closed its Series B round of funding from Fertitta Capital. Peter Chernin, CEO of the Chernin Group, started the Action Network in October 2017 and will use the latest round of $17.5 million raised to thrive in the newly legalized industry. Wall Street isn’t the only one investing. The funding is also primarily led by the industry they are betting on with the Chicago Cubs, Philadelphia 76ers, BitKraft Esports Ventures among others taking stake in the company’s future. By partnering with industry superstars, they have found a way to better reach their televised audience from heavy bettors to college students looking to throw down $20 on a local game.
According to the American Gaming Association, over $150 billion in bets are placed on sports alone in the United States each year. With the legalization of sports betting, the number, both size and quantity, of bets is sure to grow without fear of being in legal trouble. The growth of online access also means less hoops for viewers to jump through essentially creating a larger customer profit gradient that the Action Network can take advantage of.
The Action Network can serve as the focal point for sports news, odds-tracking, and analysis of bets and trends. The simplicity of their online platform provides a how-to guide full of insights on wagering from basics to expert opinions to live bookie lines. Their revenue stream comes from providing nearly limitless information that is constantly updating to be the most accurate and centralized on the web. The site allows you to see where the money is being bet on each game, to track your betting history and bankroll, and replace emotions with pure data to become a more efficient better compared to the public.
With 8 states currently allowing sports betting and with nearly 31 others considering passing legislation as well, there is a huge opportunity for growth in U.S. betting creating an even larger demand for The Action Network’s vault of content. One downside to the company is the potential for competition. DraftKings and FanDuel are two of the largest platforms for sports betting. While they are not in direct competition with The Action Network which relies on sharing news and data analytics rather than serving as an outlet for gambling, DraftKings and FanDuel are more established in the industry via their market share in fantasy sports. A potential merger or partnership between the media outlet and the sportsbook would allow The Action Network to be involved in the online sports betting process from cradle to grave and further cement their position in this newly growing realm of entertainment.