Discussion Regarding Bet365's Sale underway
The Coates clan is mulling over a significant sale of the online gambling powerhouse, bet365, according to recent whispers. Word on the street suggests they've been chatting with U.S. experts and Wall Street financiers about either offloading a piece of the pie or trading the company entirely.
As per reports from The Guardian, one plan under consideration is selling a chunk to a private equity firm, while another tantalizing option is launching an Initial Public Offering (IPO) on the American stock exchange.
These negotiations come hot on the heels of a stellar financial showing in 2024, when bet365 raked in a whopping £3.72 billion in revenue – a 9% increase compared to the previous year. In March, the company bid adieu to several Asian markets, particularly China, before refocusing its efforts towards the Americas.
Since then, bet365 has pushed into the U.S. market, setting up shop in Tennessee and Illinois in March after earlier establishing a foothold in Peru during the first quarter of 2024. While Hong Kong and Macau operate under distinct regulatory systems, mainland China remains unregulated, earning industry nicknames like the "dark grey" market. Currently, bet365 is active in 13 U.S. states, maintains a strong footing in the UK, and thrives in other international markets.
For the uninitiated, bet365 is the brainchild of Denise Coates and, if recent rumors hold true, could soon be valued at a staggering $12 billion (£9 billion), thanks to its impressive financial comeback in 2024. Moreover, strategic options like a partial sale to a private equity firm or a U.S. IPO could be on the table. If the Coates family decides to go down the private equity route, they'd be able to keep control while pocketing some serious cash. Alternatively, an IPO could capitalize on America’s burgeoning sports betting market, predicted to reach a whopping $23 billion by 2029. Furthermore, with a market share of just 2.5% in the U.S., bet365 might choose to accelerate growth through public listing or strategic partnerships.
These discussions follow hot on the heels of bet365's departure from China in March and its restructuring of ownership in Stoke City Football Club, moves many within the industry have interpreted as preludes to potential transactions.
The Coates family may consider partnering with a private equity firm or launch an Initial Public Offering (IPO) for bet365 in 2024, potentially valuing the online gambling company at $12 billion (£9 billion). These plans come after bet365 recorded a significant financial growth in 2024, expanding into the US market following its exit from several Asian markets, including China. The company currently operates in 13 US states, and a public listing or strategic partnerships could accelerate growth in the burgeoning American sports betting market, expected to reach $23 billion by 2029.
