Bet365: The Massive Bet on a Billion-Dollar Shift
The Coates family contemplating a colossal sale of sports betting corporation, Bet365, worth billions.
Runner-up, no more! The Coates family, the billionaires behind sports betting titan Bet365, are on the brink of shaking up the game big time. Reports suggest a full or partial sell-off, an IPO in the US, or a spin-off could be on the table, valuing the company at around 9 billion GBP (approximately 10.6 billion EUR).
Sources tell us the family has already consulted US investment banks and advisors about these tantalizing prospects. The moves follow Denise Coates' strategic maneuvers, like withdrawing from the contentious Chinese market and handing over control of family-owned Stoke City FC to her brother John.
The Billionaire Family's Online Gambling Empire
Born in a container office in the English town of Stoke-on-Trent, Bet365 exploded onto the scene in two short decades to become one of the world's largest online betting providers. Led by Denise Coates, now one of the UK's wealthiest entrepreneurs, the company could be on the cusp of its next billion-dollar move.
Here are the key facts and figures:
- Establishment: 2000, founded by Denise Coates in Stoke-on-Trent, UK
- Ownership: Coates holds 58% of the shares, with the rest primarily in the hands of the Coates family
- Employees: Over 7,000 worldwide
- Global Footprint: Active in over 20 jurisdictions, including Germany, Spain, Argentina, and 13 US states
- Sponsorship: Longtime sponsor of Stoke City FC and, since 2024, official global partner of the UEFA Champions League
- Technological Mastery: Pioneer in live betting (In-Play), now a hallmark of its offerings
- Regulatory Woes: In April 2024, the UK Gambling Commission imposed a fine of 582,120 GBP (approximately 683,000 EUR) on Bet365 for breaches of anti-money laundering provisions
These strategic moves could be signs of Coates preparing for a deal with US investors. Withdrawing from China hints at Bet365's desire to sidestep potential risks that might arise from problematic overseas ventures during a US IPO. Additionally, the company has recently ventured into regulated markets such as the USA, Brazil, and Peru.
A Healthy Financial Picture, Worldwide Impact
Financially, the company is robust. For the fiscal year ending March 2024, Bet365 reported a 9% rise in revenue to £3.72 billion (approximately 4.36 billion EUR) and a pre-tax profit of £626.6 million (nearly 735 million EUR)—after a loss in the previous year.
An IPO would make Bet365 the largest listing of a gambling company worldwide, signaling that online gambling has finally entered the mainstream. Experts say such a move could establish a new benchmark for valuations of competitors like Flutter or Entain. Consequently, this could influence the market value of similar companies.
However, an IPO would significantly increase disclosure requirements, a radical departure from the company's previously conservative culture.
AFFIRMATION: The Next Big Bet
Despite the uncertainty, a sale could still be on the horizon. As the sole owner, the Coates family is under no pressure to act and has the luxury of time to find the ideal moment. The maturing market and mounting competition, particularly from US giants like DraftKings, suggest that Bet365 may embark on its next growth phase under new leadership.
As analyst Alun Bowden from EKG puts it, "For years, people have been whispering that the only company they would love to invest in is Bet365. Although there's a general consensus in the industry that the company is past its prime, it remains one of the best, if not the best, online sports betting companies in the world."
There's speculation that personal motives could also play a role. Coates will soon celebrate her 60th birthday, and some believe this milestone could be an opportune moment to pass on the company after two decades of rapid growth. Industry analyst Paul Leyland posits that Coates may have decided it's time to ensure the company's continued success rather than letting it stagnate.
What could the Coates family's next venture be in the finance sector, given their interest in sports and their control over Bet365, a leading online betting provider?
Could Denise Coates' decision to withdraw from the Chinese market and explore US deals be indicative of a potential sports-focused investment fund or a sports financing venture, especially with her upcoming milestone birthday?
