The Coates clan contemplates a monumental deal: the $multi-billion sale of sports wagering empire, Bet365.
Breaking down the latest buzz surrounding the Coates family's sports betting empire.
Selling Out Big: Bet365 Up For Grabs?
Gossip mills are abuzz with news that the British powerhouse, Bet365, owned by the Coates family, could be on the market. Recent confidential conversations with top-tier US investment banks and advisors whisper of strategic moves like an IPO in the US or a partial sale to private equity investors, all for chunks amounting to an impressive £9 billion (€10.6 billion).
The talks are in the advanced stages, but a final decision hasn't been made yet. Apart from traditional IPOs and partial sale options, industry insiders suggest spin-offs of individual business units may also be on the table, carving out specific business areas for independent operation.
Strategic Shake-ups and Global Expansion
Analysts attribute these strategic maneuvers to both business and personal motives of CEO Denise Coates, who could potentially pocket a whopping £5 billion (€5.9 billion) if the sale goes through. Denise's recent steps include pulling out of the risky Chinese market in March 2025 and handing over the reins of the family-owned football club, Stoke City FC, to her brother John.
Bet365: Rising from an Office Container to a Sports Betting Giant
In just two decades, Bet365 has risen from a tiny office container in the English town of Stoke-on-Trent to a global powerhouse in online betting. With Denise Coates at the helm, the company is now contending for a megadeal or public listing.
- Year of founding: 2000 in Stoke-on-Trent, UK
- Primary shareholders: Denise Coates owns 58%, with the rest mostly in the hands of other Coates family members
- Employee count: Over 7,000 worldwide
- International presence: Active in 20+ jurisdictions, including Germany, Spain, Argentina, and 13 US states
- Sponsorship: Long-term partner of Stoke City FC, official global partner of UEFA Champions League since 2024
- Technological edge: Pioneered live betting, now a core offering
- Regulatory issues: Fined £582,120 (€683,000) in April 2024 for money laundering rule violations by the UK Gambling Commission
These moves hint at prepare-groundwork for a potential deal with US investors. Specifically, Bet365's retreat from the tricky Chinese market might be an effort to dodge potential hazards that might jeopardize a US IPO.
Additionally, Bet365 has been aggressively expanding into regulated markets like the USA, Brazil, and Peru. The company is currently active in 13 US states and has recently formed ties with sports teams like the St. Louis Cardinals baseball team in Missouri.
Financial Fortitude and Valuation: A Tempting Exit
Financially, Bet365 is on solid ground. 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). Despite a loss in the previous year, these figures hint at a lucrative exit for the Coates family.
A US IPO would position Bet365 as the frontrunner for the largest gambling stock market listing ever, perhaps signifying that online gambling has truly stepped into the mainstream. Such a successful IPO could also establish a new benchmark for valuing competitors like Flutter or Entain, potentially elevating their market values. However, an IPO would also significantly bump up the company's disclosure requirements, a far cry from its previously understated culture.
Prospects: Time to Pass the Torch or Grow Further?
Despite all the buzz, it's uncertain whether the sale will actually materialize. The Coates family, as the sole proprietors, have no pressure to rush and can take their time to pick the optimal moment. However, the escalating market maturity and stiff competition, particularly from US colossi like DraftKings, hint at Bet365 on the cusp of its next growth spurt under new management.
Industry analysts have long mused that Bet365 is one of the few companies worth investing in. Despiteskeptics dubbing it a has-been, Bet365 remains one of the top-performing online sports betting giants worldwide. Some even speculate that personal considerations might play a part, with Denise Coates planning to pass the torch after two decades of relentless growth.
- What if Bet365's withdrawal from the Chinese market and increase in US expansion is a move to prepare for potential investing from US finance sources, as part of an IPO or sale to private equity investors?
- Could the possible sale of Bet365, the global sports betting giant, potentially influence the valuation of competitors like Flutter or Entain, setting a new benchmark for the online gambling industry's market values?
