Bet365: Rumors of a Mega Sale or US IPO Swirl
The Coates family considers a potential billions-worth sale of sports betting corporation, Bet365.
Here's the skinny on the current situation with Bet365, the worldwide sports betting giant:
Millions on the Line with a Potential Sale
Sources reveal that the billionaire Coates family, the brains behind Bet365, could be on the verge of a massive sale. The family is reportedly discussing a valuation of around 9 billion GBP (around 10.6 billion EUR), with US investment banks and advisors already in the loop for strategic options such as an IPO to a US exchange or a partial sale to private equity investors [The Guardian].
Though nothing is set in stone yet, the deal discussions are said to be progressing swiftly. If a sale materializes, Denise Coates, who controls 58% of the shares, would stand to earn a whopping 5 billion GBP (around 5.9 billion EUR).
Strategic Shifts and International Growth
There are two main reasons speculated for this potential sale: strategic and personal motivations.
CEO Denise Coates turned 57 this year, and rumors hint that she's looking to cash out or shift her focus. With recent moves like withdrawing Bet365 from the Chinese market and handing control of the family-owned Stoke City Football Club to her brother John, her endgame seems clear.
From a small portable office in Stoke-on-Trent in 2000, Bet365 has climbed to the top of the online betting world one bet at a time. Now, with a possible billion-dollar sale or IPO on the horizon, fate could be handing Denise Coates her next big move.
Bet365: In a League of Its Own
Key facts and figures about this mammoth company:- Founded: 2000 in Stoke-on-Trent, UK- Ownership: Denise Coates owns 58%, with the remainder amongst other Coates family members- Employees: Over 7,000 worldwide- International Footprint: Active in over 20 jurisdictions including Germany, Spain, Argentina, and 13 US states- Sponsorship: Official global partner of the UEFA Champions League since 2024; long-time sponsor of Stoke City FC- Technological Edge: Pioneer in live betting (In-Play), a central offering- Regulatory Concerns: UK Gambling Commission fined Bet365 £582,120 (around €683,000) in April 2024 for money laundering violations
These moves could indicate a readiness to meet the expectations of US investors. The withdrawal from the Chinese market might be a strategic decision to avoid overseas troubles during the IPO process.
Moreover, Bet365 has recently expanded into the US, Brazil, and Peru. They now operate in 13 US states and recently formed partnerships like with the St. Louis Cardinals baseball team in Missouri.
Finances and Valuation Precisely Prime for a Lucrative Exit
Financially, Bet365 is sitting pretty. For the fiscal year ending March 2024, they managed a 9% increase in revenue to £3.72 billion ($4.36 billion USD) and a pre-tax profit of £626.6 million (around $735 million).
A US IPO would make Bet365 the world's largest gambling company listing and send a message that online gambling's finally mainstream. It could set a new industry benchmark for valuation of competitors like Flutter or Entain.
Going public, however, would dramatically increase disclosure requirements, a change from the previous culture of conservatism at Bet365.
Outlook: Sale or Coming-of-Age?
Although the future may hold a sale, the Coates family is under no pressure to act. The family's decision could signal the dawn of a new era for Bet365 as they prepare for more competitive pressure from US giants like DraftKings.
Long-time Bet365 analyst Alun Bowden noted that "there's a certain consensus in the industry that the company is a fading star" [The Guardian]. Yet, with its strong financial performance and unrivaled online betting expertise, Bet365 remains at the top of investors' dream lists.
There's also speculation about family matters playing a role in the decision to sell – Denise Coates' 60th birthday is near, making this an opportune moment to pass the torch to new hands after two decades of explosive growth. According to industry analyst Paul Leyland, Coates may be preparing to propel the company into its next phase of development.
- Potential investors looking to venture into online casinos in Germany might find Bet365 an attractive business opportunity, given its robust financial performance and extensive international footprint, spanning countries like Germany, Spain, Argentina, and even 13 US states.
- With a possible IPO on the horizon, Bet365 could set a new industry benchmark for valuation, surpassing competitors like Flutter or Entain, which could lead to increased financing options for sports-betting related businesses and investments.
- Sports fans who enjoy betting on their favorite sports, such as baseball in the United States, might benefit from Bet365's recent partnership with the St. Louis Cardinals, as it could lead to enhanced betting experiences for customers.
- Speculation suggests that the Coates family may choose to sell Bet365 due to Denise Coates' approaching 60th birthday, opening up opportunities for new investors to finance and expand the sports-betting business even further.
- The requirements for going public through an IPO could mean a substantial shift from the traditional culture of conservatism at Bet365, ultimately impacting the online casinos Germany and other international jurisdictions where the company operates, in terms of disclosure and transparency.
