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The rumour mill is suggesting that Bet365 is for sale… with a price tag of £9 billion placed upon the operator.
Despite retaining its position as one of the leading online betting sites in the UK, and with an emerging footprint in the United States, it has been reported that Denise Coates is willing to listen to offers for a brand she helped to found in Stoke-on-Trent two decades ago.
And Wall Street bankers and financiers are said to be interested in what could be one of the most fiercely contested takeover battles the gambling industry has seen.
Stock is Rising
According to reports, Bet365 are currently at the ‘beauty parade’ stage of a possible sale – that is, where the company and its assets are shown off to potential buyers and, particularly, investment banks, who would help the Coates family to maximise their sale price.
As well as a complete sale, it has also been suggested that the firm could be wholly, or partially, listed on the U.S. Stock Exchange, which would open up a range of other equity options.
In the latter case, the Coates’ could retain a minority stake in the firm, while allowing for a private investor to mop up a controlling share of 51% or more.
That was a move taken by Flutter last year, when they moved their primary listing from London to New York in a bid to take advantage of American investment.
All of which would represent an end of an era for the company and for the British betting industry, with Bet365 one of the last true giants of the sector to retain a base on UK soil.
Denise Coates has become the highest paid woman in Britain off the back of the firm’s success, which she helped to instigate 20 years ago by pioneering online sports betting – the brand was, formerly, a high street bookmaker.
She is thought to hold a 58% ownership stake, so a sale price of £9 billion would net her personally a cool £5 billion.
There will surely be no shortage of suitors. Bet365 recorded eye-popping revenues of £3.7 billion in 2024, which equated to pre-tax profits of some £627 million.
American Adventure
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As well as successes in the UK, Europe and other jurisdictions around the world, Bet365 has begun to make inroads into the American market.
At the time of writing, the brand can be accessed in 13 different states, with expansion into Illinois confirmed back in March. A 2018 law change in the country allowing each individual state to decide if they want to legalise gambling or not, with California amongst those expected to liberalise their legislation in the near future.
Two domestic firms, DraftKings and FanDuel, remain as the dominant forces in the American market, but Bet365 have been making ground on the duo – and have actively began to seek licences in more states as a result. They have also taken the keys to a new headquarters in Denver, Colorado, with a plan to employ as many as 1,000 people to power their expansion.
Their exit from China is also telling.
The United States and China are currently embroiled in a heated trade war, so in leaving the Macau and Hong Kong sectors, Bet365 is positioning itself as a more attractive proposition to American investors.
In August 2024, the ownership of Stoke City FC was passed to John Coates – freeing Bet365 of any association beyond shirt and stadium sponsorship. That was also a move that, in hindsight, was designed to make the betting brand more enticing for investors.
With the gambling market in the United States predicted to soar in value to £15 billion a year by 2030, there will be no shortage of institutional and individual investors keen to get their slice of the pie – Bet365, with their brand recognition and proprietary platform, would be the ideal vehicle to hitch a ride on.
But according to Alun Bowden, an analyst at EKG, America is ‘not an easy or cheap market to crack’, and Bet365 would require additional investment in order to best post position themselves.
However, this is one of the most successful online sports betting businesses on the planet, with an extensive track record of success – with the right backing, Bet365 could dominate in the U.S. as it has in the UK.
As one banking insider so eloquently put it: “If this remarkable business is looking for new investors, I would expect the queues to stretch halfway round Stoke.”
