Better Collective Faces Quartet of Long-Term Headwinds, Says Bear Cave
Posted on: October 20, 2025, 02:33h.
Last updated on: October 20, 2025, 02:38h.
- Betting, sports media entity could be pinched by AI
- Some readers of Better Collective sites decry declining quality of content
- Company generates revenue through affiliate relationships, advertising
Shares of Better Collective, which trades in Stockholm under the ticker “BETCO,” could be pinched by several factors, including the expansion of artificial intelligence (AI).
In a report out last week, The Bear Cave newsletter points out that the owner of The Action Network and Yarbarker, among other betting and sports media properties, could experience share price erosion due to four factors, including AI and shifting consumer habits in terms of media consumption.
Media across all sectors is being disintermediated, with consumers increasingly following individual voices rather than publications,” notes Bear Cave editor and founder Edwin Dorsey. “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.”
Dorsey adds that Better Collective could be plagued by the proliferation of AI-generated content summaries and chatbots because those tools could reduce traffic to the company’s sites, potentially weighing on its advertising and affiliate revenue in the process. He also noted that Better Collective management has “waffled” on the effects of AI.
It’s clear that shouldn’t be the case because some studies indicate that when internet users find AI summaries, the likelihood of them clicking on standard links declines by 50%.
Other Issues Could Confound Better Collective
Better Collective has grown alongside the intersection of sports media and betting. The Swedish company doled out $240 million in 2022 to acquire The Action Network. That was followed by the $188 million purchase of Toronto-based Playmaker Capital in 2023, among other deals over the course of the company’s history.
Deal-making aside, Better Collective could be hit by other headwinds beyond AI and changing media habits. Dorsey highlights the rise of prediction markets as one example. That’s relevant in discussing the longer-ranging outlook for Better Collective shares because companies such as Kalshi and Polymarket don’t pay affiliate commissions as do traditional sportsbooks.
The Bear Cave also mentions increasingly “onerous” regulations as a thorn in Better Collective’s side with Brazil standing as a prime example of that theme.
“Brazil, which represents about 20% of Better Collective’s revenue, began regulating its sportsbooks starting January 1,” observes Dorsey. “Now, the gaming companies pay a 12% tax on gross gaming revenues, have limited advertising options, and cannot accept deposits with credit cards. Many legislators want even more onerous restrictions or an outright ban on gambling in the country, with outcry following a2024 study that found ‘20% of the money the government handed outfor its flagship social program in August was spent at online gambling sites.’”
Conflict, Quality Concerns
Dorsey also notes that around the internet, there’s rising criticism of the quality of content on Better Collective-owned properties such as Bolavip and Yardbarker. Some consumers believe those sites are delivering overly sensational headlines just to get folks to click on links while there are complaints some of the sites have moved too far away from sports and too much into pop culture.
There’s also concern that Better Collective sites like The Action Network have conflict of interest issues that need to be acknowledged.
“At its core, Better Collective’s consumer value proposition is conflicted. If Better Collective provided information that helped bettors outsmart sportsbooks, the sportsbooks would not want to do business with them,” concludes Dorsey. “Prediction markets and the organic media around them are the opposite; sharp bettors can make money without limitation, and surfacing good information has real value.”
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