Better Collective (Stockholm: BETCO — 7.36 billion Swedish kronor / Copenhagen: BETCO — 5 billion Danish kroner) describes itself as “a global leader in digital sports media” with over 450 million monthly visits to its websites including Vegas Insider, Yardbarker, Action Network, Futbin, and Bolavip, among others. The Copenhagen-based company has grown through dozens of acquisitions and makes money primarily from affiliate links for online sportsbooks like DraftKings, FanDuel, BetMGM, and bet365.

The Bear Cave believes that four long-term headwinds will severely impair the company’s value in the near future.

First, the use of AI web summaries and AI chatbots will reduce traffic to the company’s websites, which in turn will diminish its advertising and affiliate revenue.

Second, media across all sectors is being disintermediated, with consumers increasingly following individual voices rather than publications. Combined with allegations of “clickbait” content, Better Collective will suffer as barriers to entry for content production are lowered and consumer options for high-quality content are expanded.

Third, prediction markets are increasingly an alternative to online sportsbooks and do not pay the lucrative affiliate fees of the incumbents.

Fourth, an increasingly onerous regulatory environment is making the tough affiliate model even tougher.

In sum, The Bear Cave believes these four headwinds are a perfect storm that will leave Better Collective investors worse off.

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