Bet365 Eyes Multi-Billion Pound Sale or IPO as Industry Shifts Intensify

Gambling giant Bet365 may be on the verge of triggering one of the largest mergers and acquisitions in the history of the betting industry, with internal discussions reportedly taking place over a possible full or partial sale, or even a public listing.

The move could net the Coates family up to £9 billion, according to The Guardian, which cited unnamed sources close to the matter.

The report suggests that Bet365, headed by Denise Coates, has recently held informal internal talks and engaged U.S.-based advisers and major Wall Street banks to assess its strategic options.

Among the scenarios being evaluated is a partial sale to a private equity firm, which would enable the Coates family to maintain a stake in the company while still unlocking a large portion of its value. Another possibility on the table is a listing on the U.S. stock exchange.

iGaming Business (iGB) reached out to Bet365 for comment on the developments, but the company has yet to issue a public response.

The timing of these discussions coincides with significant changes in Bet365’s international strategy. In March, the operator exited the Chinese sports betting market, a move widely interpreted as a pivot towards more strictly regulated territories such as the U.S. and Brazil.

China prohibits most forms of gambling, with exceptions granted only in its special administrative regions—Macau and Hong Kong.

Bet365’s operations in China have faced intense scrutiny over the years. However, the company has consistently defended its presence in the region, asserting that it has remained compliant with international laws.

Back in 2020, a Bet365 representative told The Telegraph, “There is no legislation which expressly prohibits the supply of remote gambling by offshore operators into China. In the view of Bet365 and its lawyers, Chinese law does not extend to the provision of services into China by offshore gambling operators.”

According to Ed Birkin, Managing Director at H2 Gambling Capital, recent developments indicate that a significant strategic shift is underway. Speaking to iGB, Birkin remarked, “When they announced they’re getting out of China, that seemed as though they were just tidying up shop completely for something to happen.” He added, “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.”

Whether Bet365 proceeds with an IPO remains uncertain. A long-time M&A advisor told iGB that while speculation about a Bet365 floatation tends to arise periodically, there’s no strong motivation for the Coates family to pursue it. The advisor emphasized that going public would involve “a very public disclosure process,” something the notoriously private company has avoided throughout its history. “This has the potential to be a painful transition,” the advisor noted.

The same source suggested that a potential acquirer could be DraftKings, which currently has a market capitalization of $16.64 billion, according to Seeking Alpha. By comparison, Bet365’s reported valuation of £9 billion might even be conservative. Still, the advisor cautioned, “the stars would have to align for both businesses for this to be a favourable deal.”

Financial performance data adds further context to the potential timing of a sale or IPO.

According to a Companies House filing from January, Bet365 posted revenue of £3.72 billion ($4.65 billion) for the year ending March 31, 2024—a 9% increase from the previous year’s £3.41 billion. The operator also returned to profitability, reporting £626.6 million in pre-tax earnings for its betting and gaming division. This marks a strong rebound from a £12.4 million loss recorded in the prior year.

Despite the improved bottom line, analysts from Regulus Partners have cautioned that the company’s growth trajectory may be under strain. In a note analyzing the results, Regulus said several factors were affecting Bet365’s outlook, including rising competition in the in-play betting space and declining revenues from VIP and grey market operations in mature European territories.

“Bet365 has run out of in-play growth and has not yet found a similar growth engine for a world in which in-play betting is a relatively mature commodity. Consequently, Bet365 is losing market share dangerously rapidly,” the Regulus report stated.

With mounting regulatory shifts and evolving consumer trends, Bet365’s next move could reshape the global betting landscape—and redefine the legacy of one of the industry’s most influential family-run enterprises. 

By fLEXI tEAM