<p>The gaming giant, Bet365, is contemplating the sale of its business that could potentially rake in a hefty sum of around £9 billion for the Coates family.</p>
<p><a href=”https://www.theguardian.com/business/2025/may/01/family-owners-of-bet365-weigh-up-potential-9bn-sale-of-gambling-empire” target=”_blank” rel=”noreferrer noopener”>As per a report by the Guardian</a>, internal informal discussions have been happening regarding the possibilities of selling, listing in an Initial Public Offering (IPO), or a partial sale of the company. The company’s valuation is speculated to be around £9 billion.</p>
<p>The report indicates that Bet365, under the leadership of Denise Coates, has held discussions with US consultants and Wall Street banks in recent weeks.</p>
<p>A partial sale of Bet365 to a private equity firm is one of the options under consideration. This deal would let the Coates family maintain their share in the family business.</p>
<p>Another possibility being considered is an IPO on the US stock market. iGB has reached out to Bet365 for comments regarding the report.</p>
<h2 class=”wp-block-heading” id=”h-bet365-exits-china”>Bet365 withdraws from China </h2>
<p>Recent moves by Bet365 hint towards a potential sale or IPO, including the company’s withdrawal from the Chinese <a href=”https://igamingbusiness.com/sports-betting/online-sports-betting/bet-365-exits-chinese-sports-betting-market/” target=”_blank” rel=”noreferrer noopener”>sports gambling market</a> in March and a shift towards regulated markets such as the US and Brazil.</p>
<p>In the People’s Republic, gambling is strictly banned, except for two special administrative regions (SARs): Macau and Hong Kong.</p>
<p>Bet365’s operation in the market came under scrutiny, but it has consistently denied any violation of Chinese laws.</p>
<p>In 2020, a representative from Bet365 <a href=”https://www.telegraph.co.uk/business/2020/01/18/not-breaking-chinas-laws-says-bet365/?msockid=0249c1230da46bb51e3fd2ce0cbd6a18″ target=”_blank” rel=”noreferrer noopener”>informed the Telegraph</a>: “There is no specific law that forbids the provision of remote gambling by offshore operators into China. According to Bet365 and its legal counsel, Chinese law does not extend to the provision of services into China by offshore gambling operators.â€</p>
<p>Ed Birkin, the Managing Director of H2 Gambling Capital, informed iGB that there are signs indicating the group is heading towards a significant change. He said Bet365’s sale rumors might have been shocking a year ago, but the group’s recent actions have brought M&A considerations into focus.</p>
<p>“When they announced their exit from China, it seemed as if they were cleaning house in preparation for something significant,” Birkin added.</p>
<p>“So, it’s not surprising. If it was just the China exit, we might have thought it was more about regulatory pressure, but with the football club included, it appears to hint at this.â€</p>
<h2 class=”wp-block-heading” id=”h-would-an-ipo-be-feasible”><strong>Is an IPO a viable option?</strong></h2>
<p>An industry M&A adviser to iGB mentioned that this is a proposition that tends to pop up occasionally. Nevertheless, they don’t see a clear motive for the Coates family to take the business to an IPO.</p>
<p>Moreover, Bet365 would have to undergo a very public disclosure process. Considering it has functioned as a highly private entity throughout its history, this could lead to a challenging transition.</p>
<p>The M&A adviser hinted that DraftKings could potentially be a buyer. However, the conditions would need to be perfect for both businesses for a successful deal.</p>
<p>They believe that the rumored £9 billion valuation of Bet365 may be undervalued compared to its contemporaries. For instance, DraftKings’ current <a href=”https://seekingalpha.com/symbol/DKNG” target=”_blank” rel=”noreferrer noopener”>market capitalisation</a> stands at $16.64 billion.</p>
<h2 class=”wp-block-heading” id=”h-is-bet365-a-fading-force-in-the-industry”>Is Bet365’s influence in the industry diminishing?</h2>
<p>A Companies House <a href=”https://igamingbusiness.com/finance/full-year-results/bet365-2024-financial-year-return-to-profit/%5d” target=”_blank” rel=”noreferrer noopener”>filing in January</a> detailing Bet365’s latest earnings for the 12 months ending on 31 March 2024, reported a group revenue of £3.72 billion ($4.65 billion). This represents a 9% increase from the operator’s 2022-23 revenue of £3.41 billion.</p>
<p>The operator returned to profit during this period, after reporting a loss of £12.4 million in 2023. The profit before tax for the betting and gaming segment was £626.6 million.</p>
<p>A note from Regulus Partners on the numbers stated that several factors could be affecting Bet365’s growth plans.</p>
<p>These include competitors’ in-play product offerings catching up with Bet365’s and a decrease in VIP and grey market earnings in mature EU markets.</p>
<p>“Bet365 has reached the peak of in-play growth and has yet to find a similar growth engine in a world where in-play betting is a relatively mature commodity. As a result, Bet365 is rapidly losing market share,” Regulus Partners stated at the time.</p>
