Bet365 Valued at £9 Billion in Potential Sale or IPO

From its earliest days in Stoke-on-Trent Portakabin, Bet365 has grown into a global powerhouse in online betting, and the company may be gearing up for something much bigger. Denise Coates’s UK-based gambling behemoth is allegedly looking toward a sale or partial departure that may put the company’s worth at £9 billion ($11.3 billion). While still in its early stages, discussions are already continuing with financial consultants and Wall Street institutions in the United States. The possibilities on the table indicate that a significant change in strategy is imminent.

Denise Coates oversaw the development of Bet365’s state-of-the-art proprietary betting technology and the company’s foray into online sportsbooks. Coates turned the company into a digital-first giant, eventually surpassing long-standing competitors like William Hill and Ladbrokes, after borrowing against the family’s network of brick-and-mortar betting shops and buying the Bet365.com domain for under $25,000. The firm has expanded to more than a dozen states in the US and plans to continue expanding to take advantage of the growing sports betting industry.

The company’s financials reflect its success. Last year, Bet365 reported pre-tax profits of £627 million on revenues of £3.7 billion. Analysts anticipate that Bet365 will surpass the double digits in the US market, despite its current relatively small share of around 2.5 percent. A growing number of states are decriminalizing sports betting, and the business in the United States is showing no signs of slowing down, encouraging this bold move.

Putting Strategy at the Core

Bet365 recently surrendered ownership of Stoke City Football Club to John Coates and withdrew from the contentious Chinese market where internet betting is illegal, as part of a larger strategic shift. The change is all part of a bigger plan to simplify operations and lessen the impact of regulations, which is especially important given the rising scrutiny from American investors.

One potential outcome is the sale to a private equity firm, either in whole or in part. The Coates family may then hold on to a portion of the company until its eventual initial public offering (IPO). Separating a portion of the company for a targeted public offering is another option worth considering. Reports indicate that the business is now in a “beauty parade” stage, during which it is determining which banks would be most helpful in increasing its value and advancing its strategic goals.

It seems like Bet365 is about to make its most revolutionary step yet, what with the increased desire for tech-led, scalable gambling companies in the US, and the founder may be considering retirement.