In a development that could reshape the global online gambling industry, the Coates family—owners of Bet365—are reportedly exploring a potential sale or public listing of the company, with valuations reaching up to £9 billion ($12 billion).
A Family-Built Empire
Founded in 2000 by Denise Coates, Bet365 has grown from a modest operation into one of the world’s leading online gambling platforms. Coates, who developed the company’s proprietary betting platform, remains the majority shareholder and co-CEO alongside her brother, John Coates. Their father, Peter Coates, also played a significant role in the company’s early development.
Under Denise Coates› leadership, Bet365 has expanded its offerings to include sports betting, online casino games, poker, and bingo, serving over 100 million customers in more than 150 countries. The company’s innovative approach to online gambling has set industry standards and contributed to its substantial growth.
Strategic Moves and Market Positioning
Recent reports indicate that the Coates family has engaged in discussions with U.S. investment banks and advisers to evaluate strategic options for Bet365. These options include a full or partial sale, a private equity stake sale followed by an initial public offering (IPO) in the United States, or a combination of these approaches.
In preparation for a potential sale or public listing, Bet365 has made several strategic moves:
- Exit from China: The company has withdrawn from the Chinese market, aligning its operations with more regulated and sustainable markets such as Brazil, Germany, and Spain.
- Stoke City FC Ownership Transfer: Ownership of Stoke City Football Club, previously held by Bet365, has been transferred to John Coates. This move separates the football club from the gambling business, potentially making Bet365 more attractive to investors.
Despite its global presence, Bet365’s market share in the United States remains relatively small, operating in 13 states with a 2.5% market share. The company aims to increase this to 10%, highlighting the importance of U.S. expansion in its growth strategy.
Potential Buyers and Industry Impact
The rumored sale has attracted attention from major players in the gambling and investment sectors. Potential suitors include private equity firms such as Apollo Global Management and Blackstone, as well as industry competitors like DraftKings and FanDuel. However, regulatory hurdles may pose challenges for some U.S. casino operators interested in acquiring Bet365.
Industry analysts suggest that Bet365’s valuation and strategic repositioning indicate a readiness for significant investment or acquisition. The company’s strong brand, technological infrastructure, and global customer base make it a highly attractive asset in the online gambling market.
Conclusion
The Coates family’s consideration of a Bet365 sale marks a pivotal moment in the online gambling industry. As the company explores strategic options, the outcome could have far-reaching implications for market dynamics, competition, and the future of online betting. Stakeholders and industry observers will be closely monitoring developments as Bet365 charts its next course.
