The rise and rise of Bet365

How Has Bet365 Maintained a Consistent Top Position in Online Gambling? Tom Waterhouse Reviews Its Tactics for Success.

Establishing dominance early in an industry can yield substantial competitive advantages, brand recognition, and unwavering customer loyalty. Iconic examples in other sectors include Amazon’s ascendancy in e-commerce and Coca-Cola’s supremacy in soft drinks. These brands have maintained their lead through established distribution channels, economies of scale, and a deeply engaged customer base. The online gambling landscape displays similar dynamics.

In markets worldwide, particularly outside of jurisdictions dominated by state-run monopolies, such as some parts of Australia and the UK, consumers enjoy extensive choices. In Australia alone, over 100 wagering operators vie for market share, while the UK boasts around 175 online gambling entities. Historically, physical high street betting shops served as crucial revenue sources, creating natural barriers to entry for new market entrants.

The UK saw established players like Ladbrokes and William Hill rise as initial frontrunners. By 1999, as the internet was beginning to transform consumer habits, the UK had approximately 8,500 betting shops. Parallel to Amazon’s impact on retail, the rise of internet-based platforms heralded a decline in brick-and-mortar establishments, leading to the swift emergence of technology-driven operators like Flutter and Bet365.

Bet365’s Humble Beginnings

When Denise Coates acquired the domain name Bet365.com on eBay for an estimated $25,000, she recognized an opportunity to transition her family’s modest chain of betting shops in Stoke-on-Trent into a cutting-edge online business. Coates’ subsequent strategy and execution have been nothing short of groundbreaking.

Launched in 2000 with a mere 12 employees, Coates foresaw the internet as the future of betting and promptly divested from the family betting shop business by 2005. Contrarily, rivals chose to blur lines by straddling both traditional and digital platforms.

Since its inception, Bet365 has expanded rapidly by innovating betting methods and offering an extensive range of sports, events, and casino games. The platform boasts an intuitive user experience, allowing customers to seamlessly listen, watch, and place in-play bets.

Key features such as early payouts for winning selections, best odds guaranteed, cash outs, and multi/parlay boosts highlight Bet365’s commitment to enhancing the customer experience through constant innovation.

Denise Coates has been nationally recognized for her philanthropic contributions, earning an OBE for her decades of charitable work.

In-Play with Ray

Bet365’s marketing strategies have succeeded in attracting and retaining a vast global customer base, now numbering 90 million users. The iconic “In-Play with Ray” advertisements, featuring actor Ray Winstone, have become synonymous with Bet365’s cutting-edge in-play betting offerings.

More recently, Bet365 has demonstrated its commitment to showcasing a diverse sports lineup through engaging campaigns like the “never ordinary” curling advertisement. The capacity to watch and wager on niche sports—including table tennis—is a competitive advantage that distinguishes Bet365 from many operators in the market.

Growing Global with a Localized Product

Bet365 currently holds licenses in South America, Europe, Australasia, Canada, and an expanding number of states within the United States. The company prioritizes local adaptation, tailoring content to reflect regional language and sport preferences.

Bet365 exercises strategic caution regarding market entry, choosing only to operate where commercially viable. The recent withdrawal from India due to a steep 28% goods and services tax exemplifies this prudent approach.

The competitive landscape in the US saw operators invest heavily to capture market share, with reports indicating that some have spent up to $1,000 per customer acquisition. In this fierce contest, several operators, including Churchill Downs LLC, have exited the market.

As noted by Churchill Downs’ CEO William Carstanjen, “The online betting and casino space is highly competitive with an ever-increasing number of participants… Many are pursuing maximum market share in every state with limited regard for short-term or potentially even long-term profitability.”

According to JMP Securities, 74 companies have entered the regulated US online wagering market since the onset of legalization in 2018. However, as of now, only 43 (58%) remain operational, while 18 (24%) have ceased all operations, and 10 (14%) have significantly scaled back their presence.

Notably, throughout this turbulent time, Bet365 opted to bide its time, launching its expansion beyond New Jersey in September 2022—more than four years after the initial US market opened. Recent data indicates the sportsbook’s increasing popularity, capturing more than 7% of the total US app download market share.

Upping the Stakes

Emerging wagering platforms often thrive by targeting specific niches devoid of dominant market leaders. A prime example is Stake.com, another innovative wagering platform disrupting industry norms.

Founded in 2017, Stake has successfully amplified its gross gaming revenue from $105 million in 2020 to approximately $2.6 billion in 2023. Stake’s impressive growth has significantly enriched its founders, with Ed Craven witnessing a personal wealth increase to AU$4.51 billion, highlighted by his acquisition of Melbourne’s priciest home for $80 million in 2022.

Stake’s success stems largely from its appeal to a younger, tech-savvy clientele. In regions where regulation permits, the operator facilitates cryptocurrency betting—an innovation that has fundamentally altered online wagering.

Utilizing cryptocurrency leads to reduced operational costs associated with traditional payment methods, allowing Stake to enhance technological investments, offer attractive promotions, and provide competitive odds. In markets where crypto betting is not authorized, Stake has captured audience engagement through compelling streaming content and strategic partnerships.

Global Presence

Stake has boosted its international profile and fostered brand trust through high-profile partnerships, including title sponsorship of the Alfa Romeo Formula 1 team. By targeting a younger demographic, they have aligned with organizations like the UFC, where millennials account for 40% of the fan base.

Unlike other operators withdrawing from the Indian market, Stake has pioneered the option for customers to transact in Indian rupees. Additionally, the brand has expanded into South America by acquiring Betfair Colombia in November 2023.

Headquartered in Australia, Stake’s founders have also invested in domestic operator PointsBet, acquiring a 5% stake. This strategy appears to mirror Bet365’s approach, embracing international operations while handling high domestic tax obligations. Last year alone, the Coates family contributed £375.9 million in UK taxes, positioning them as one of the largest taxpayers in the region.

Kicking Competition

Stake has crafted vibrant social betting communities through celebrity partnerships, leveraging live streaming technology to allow users to watch, engage, and comment in real-time. The launch of Kick, a streaming platform by Stake’s founders, has gained rapid traction since its inception in early 2023, distinguishing itself from competitors like Twitch through its supportive stance on betting streams.

Since April 2023, Kick’s active channel count has soared from around 67,000 to 183,922, reflecting its growing popularity among both content creators and viewers.

Stake’s promotional strategies, highlighted by the involvement of influencers like Drake, have further enhanced its visibility and reach within the betting community.

As we have seen in the past two decades, the internet has significantly reshaped commerce and entertainment—transforming traditional betting into a dynamic online experience. As Stake continues to innovate across products, payment methods, and customer engagement strategies, it positions itself to challenge established operators while redefining industry standards.

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