Bet365 Owner Denise Coates Considering £9 Billion Sale
Bet365, a titan in the gambling industry, is contemplating a substantial £9 billion sale amid burgeoning interest from the United States market.
In recent weeks, the company has engaged in discussions with prominent Wall Street banks and U.S. advisers about various strategic options for a potential full or partial sale, which could yield a remarkable ten-figure sum.
According to reports from The Guardian, bet365 is considering a number of avenues, including:
- A medium-term strategy to publicly list the business on a U.S. stock exchange
- A partial divestiture to a private equity investor
- A pre-IPO stake sale to private equity groups
Recently, bet365 announced its exit from Asian markets, such as China—where betting remains illegal—and plans to sharpen its focus on enhancing its online casino operations within the U.S. market. The firm had previously applied for a license to operate in New York four years ago, assuring regulators that there were no intentions to pursue a sale, merge, or go public.
However, it appears that the company’s strategy has shifted. Bet365 is now active in 13 states across America, solidifying its status as a leading name in global sports betting.
Who Owns Bet365?
Founded by Denise Coates, who currently serves as both the majority shareholder and joint CEO alongside her brother, John, bet365 has become a family-run affair. Coates possesses an estimated net worth of £9.5 billion, making her the wealthiest woman in Britain, as reported by the Sunday Times.
When Was Bet365 Founded?
Establishing its online presence in 2000, bet365 began when Denise Coates acquired the domain name bet365.com for $25,000 from eBay. The company kicked off with a modest team of 12 employees, which has since expanded to approximately 9,000. Officially launching as an online betting platform in 2001, the venture was rooted in a family business; Coates’s father, Peter, managed Provincial Racing—a local chain of betting shops that operated from the 1970s until the mid-2000s.
Denise was appointed managing director of Provincial Racing in 1995 and secured a £15 million loan from RBS against the business to launch bet365. The family-run shops were ultimately sold to Coral for £40 million in 2005, paving the way for the online venture.
How Much Profit Did Bet365 Make Last Year?
For the financial year ending March 2024, bet365 reported an impressive £396.6 million profit derived from its sports and gaming operations. The company also experienced a 9% increase in group revenue, reaching £3.72 billion. Denise Coates received a remuneration package totaling £94.7 million for this period, down from £221 million in the previous year.
Why Is Bet365 Being Sold?
Analysts speculate that one driving factor behind the potential sale is bet365’s diminishing market share. In an industry characterized by double-digit growth, experts warn that the firm is currently only achieving modest single-digit growth.
Regulus, an industry consultancy, identifies four primary challenges contributing to this stagnation:
- Rising competition in in-play betting
- Slower adoption of mass-market options, such as bet builder bets
- Inability to capitalize on the post-pandemic surge in gaming
- Declining contributions from VIP and grey market sectors
In a strategic shift, bet365 transferred ownership of Stoke City Football Club to Denise’s brother, John, last August. This move, coupled with tightening market dynamics, points toward a potential exit strategy for the betting conglomerate. At 57, Denise may seek to reduce her daily responsibilities; with no clear familial successor in sight, a sale could represent the optimal resolution. Owning over 50% of the business, a full sale could yield her approximately £5 billion—an attractive endpoint to a remarkable career.
