Denise Coates, who holds a 58 per cent stake in bet365, could realise over £5bn from a complete sale. The company, based in Stoke-on-Trent, has expanded significantly since its inception in 2000, now operating in 13 US states and seeking further growth opportunities.
Recent strategic moves, such as exiting the Chinese market and transferring ownership of Stoke City FC to Denise’s brother, John Coates, are seen as efforts to streamline operations and enhance appeal to U.S. investors.
bet365 reported revenues of £3.7bn and a pre-tax profit of £596.3m for the year ending March 2024. Analysts suggest that the company’s strong financial performance and presence in the growing U.S. sports betting market make it an attractive candidate for investment or acquisition.
While bet365 has not officially commented on the potential sale, the company’s actions indicate a strategic shift toward markets with sustainable growth prospects, aligning with the broader industry trend of focusing on regulated markets.
Under Coates’s stewardship, bet365 pioneered online gambling technology, coming from a standing start to eclipse far more established brands such as Ladbrokes and William Hill.
In recent years it has expanded into the US, capitalising on a sports betting boom that began in 2018 when the supreme court overturned a decades-old federal ban on the practice.
H2 Gambling Capital Managing Director Ed Birkin has told iGB that there are indicators that the group is moving towards something. He noted that if the speculation of bet365 sale had occurred 12 months ago, then it might have been a shock, but recent actions by the group have brought M&A considerations to the forefront.
“When they announced they’re getting out of China, that seemed as though they were just tidying up shop completely for something to happen,” Birkin said.
“So, because of that, it’s not a shock. I think if it’s just the China exit on its own, then we could have thought that maybe it was more of a regulatory pressure, but with the football club combined, I think it’s kind of hinted to this.”
Source: G3 Newswire / iGB
