Coates family exploring prospective sale of sports betting corporation, Bet365, for billions.
Title: Bet365's Billion-Dollar Decision: Sell or IPO on US Stock Exchange
By Yannick Schroth, Edited by Angela Burke, Published on: 05.05.2025. Updated on: 05.06.2025.
- Bet365's $10.6B Evaluation Up for Grabs: Sale or IPO in the USA?
- China Exit Could sweeten the deal for US Investors
Bet365's Multi-billion Dollar Valuation Under Scrutiny
Buzz around town has it that the iconic Coates family - longtime owners of online gambling titan Bet365 - are considering a full or partial sale of their prized asset, with a mind-blowing evaluation of around $10.6 billion (€10.6 billion) on the table.
Wags in the industry have been chatting about potential strategic options, such as an IPO on a US stock exchange or a partial sale to private equity investors. According to the British daily The Guardian, these discussions have already taken place.
Though a final decision remains elusive, it appears the process is cocked and ready. Besides the usual IPO or partial sale, a possible spin-off of certain business units is up for debate, with these areas potentially operating independently.
Strategic Shifts and International Expansion
Industry insiders are divvying up motives behind CEO Denise Coates' potential sale, with both strategic and personal factors in the mix.
Coates, a 57-year-old billionaire and owner of 58% of the shares, has been making strategic moves: based on recent developments, she's kicked Bet365 out of the thorny Chinese market in March 2025 and handed off family-owned football club Stoke City FC to her brother John.
The Rise of Bet365: From a Container to a Betting Giant
The climb of Bet365 from a container-office in the dreary English town of Stoke-on-Trent to one of the world's top betting providers took just twenty years. Led by Denise Coates, now one of the UK's richest entrepreneurs, the company, with over 7,000 employees worldwide and active in over 20 jurisdictions, may soon take its next big leap: a billion-dollar sale or IPO.
Key Facts and Figures:
- Founding: 2000 by Denise Coates in Stoke-on-Trent, UK
- Ownership: Coates holds 58% of the shares, with remaining stake primarily in the Coates family's hands
- Sponsoring: Long-time sponsor of Stoke City FC, and since 2024 official global partner of the UEFA Champions League
- Regulatory woes: Fined £582,120 (€683,000) for breaches of anti-money laundering regulations in April 2024 by the UK Gambling Commission
With these moves possibly setting the stage for deals with US investors. In particular, the ditching of China is seen as Bet365 trying to stay clear of potential risks that might cloud an IPO in the US.
Moreover, Bet365 has been steadily entering regulated markets like the USA, Brazil, and Peru, going live in 13 US states and forming new partnerships such as with the St. Louis Cardinals baseball team in Missouri.
Financial Fortitude and a Lucrative Exit
Financially, Bet365's in tip-top shape. For the fiscal year ending March 2024, the company reported a 9% increase in revenue to £3.72 billion (€4.36 billion) and a pre-tax profit of £626.6 million (€735 million) - a stark contrast to the previous year's loss.
An US debut could establish Bet365 as the largest online gambling listing globally, hinting that betting is finally mainstream. Experts note that a successful IPO might set a new valuation benchmark for competitors like Flutter or Entain. On the flip side, such a move would also bring increased disclosure requirements, a stark deviation from the company's traditionally low-key approach.
The Big Question: To Sell or Not to Sell?
Despite the attention-grabbing prospects, it's unknown if a sale will actually transpire. The Coates family, with full ownership, holds all the cards and can set the clock accordingly. However, industry watchers point to the industry's increasing maturity and competitive pressure, particularly from US juggernauts like DraftKings, suggesting that Bet365 may be on the cusp of a new era under different management.
"For years, folks have been saying they'd love to invest in Bet365. Although, there's a widespread consensus in the industry that the company is on the decline, it still ranks as one of the best, if not the best, online sports betting companies globally," opines analyst Alun Bowden from EKG.
There's also chatter about Personal considerations within the Coates family playing a part, with Denise Coates nearing her 60th birthday and possibly choosing to pass the company to new hands after two decades of breakneck growth. According to industry analyst Paul Leyland, Coates may have decided it's better to keep the company moving rather than let it stagnate.
- Investors in the United States might find interest in Bet365's operations, with potential ventures such as online casinos in Germany, finance, investing, and sports being areas of mutual interest.
- The withdrawal from the Chinese market could indicate Bet365's focus on maintaining a clean financial profile for potential investments or Initial Public Offerings (IPOs) in the US, where the sports betting market is increasingly competitive, with entities like DraftKings being major players.
