Better Collective Boosts North American Margins via Prediction Markets

The landscape of sports betting and forecasting is changing rapidly, and Better Collective is at the forefront of this shift. The company reported Q2 revenue of €89 million, representing a nine percent year-on-year increase. North America emerged as the primary growth engine, where investments in prediction markets fully paid off. These markets allow users to wager on the outcomes of events in politics, culture, and entertainment, expanding the reach far beyond traditional sports betting.

The success is most evident in the group's profitability. The EBITDA margin before special items in North America improved dramatically from just five percent in the same period last year to 26 percent now. CEO Jesper Søgaard explained that the focus remains on profitable growth and building a scalable structure. The integration of expert analysis and probability-driven insights on brands like VegasInsider has created new momentum. Additionally, the FIFA World Cup provided the expected tailwinds, leading to a 24 percent increase in new depositing customers.

Numbers and facts

The figures in the quarterly report are substantial. EBITDA before special items grew by 20 percent to €27 million. A key factor was reaching record high deposit values from customers. In March, Better Collective began launching dedicated editorial hubs for prediction markets. The goal was to significantly scale the production of articles and expert analysis. The fact that this plan is bearing fruit so quickly has caught the attention of market observers, especially since US margins were historically considered challenging.

"We are particularly encouraged by the progress in North America, where growth was driven by revenue share income, talent-led media and prediction markets, while the EBITDA margin before special items improved significantly from five per cent to 26 per cent." - Jesper Søgaard, CEO of Better Collective

Background

Better Collective has undergone a consistent transformation over the last two years. It has moved from being a pure lead generator to becoming a global digital sports media network. The acquisition of Action Network and the strengthening of VegasInsider were strategic milestones. Prediction markets are gaining importance as they blur the lines between information, entertainment, and betting. In North America, interest in political wagering and cultural forecasts has exploded. The company responded by scaling its expert content to increase user retention while lowering customer acquisition costs.

Why it matters for German players

For players in Germany, the situation remains much more strictly regulated compared to the US. While Better Collective is booming in the US with prediction markets for politics and entertainment, this is virtually impossible under the German Interstate Treaty on Gambling 2021 (GlüStV 2021). In Germany, betting on political events or social awards is strictly prohibited. Domestic licensed operators are only allowed to offer bets on sporting events, and even then, restrictions apply to live betting and specific market types. The Joint Gambling Authority of the Federal States (GGL) ensures that youth protection is maintained and that betting does not encourage excessive behavior.

German users must still adhere to the monthly deposit limit of 1,000 euros, which is centrally monitored via the LUGAS system. The stake limit of one euro per round for virtual slot games also remains in place. Anyone looking for betting information should ensure that the advertised providers are on the GGL whitelist. While sites like Better Collective offer high-quality information, the political prediction markets discussed there are not legal betting options for the German market. They serve more as statistical information for those interested in US elections or Hollywood events.

What it means for GGL-licensed casinos

German casinos with a GGL license can learn from the expert content strategy but are heavily restricted in its implementation. Content marketing is becoming increasingly important to stand out from the competition, but strict advertising rules in Germany often prevent aggressive campaigns. The focus on data and analytics, as championed by Better Collective, could help improve channelization. Operators must balance attractive infotainment with compliance with strict German player protection rules. As a product category, prediction markets are unlikely to become part of the legal German market in the foreseeable future.