The Coates family, the owners of the UK-based online gambling powerhouse Bet365, are thinking of selling the brand.
The news that the company owners are considering a sale was first reported by The Guardian. According to the announcement, the sale could be worth approximately £9 billion, which translates to 12bn USD.
A Powerhouse Sale Is a Powerhouse Move 4c472k
Sources indicate that Denise Coates, the CEO of the brand, has already held discussions with Wall Street banks and U.S. advisers regarding the sale of the company. They claim Coates is already exploring options available, from a full or partial sale of the brand to potentially listing the company as public in the USA.
On the other hand, other sources claim Coates is talking with private equity groups about a pre-float stake. But regardless the decision that they take, one thing is for sure: the deal is important and very lucrative.
Bet365 has been steadily growing for years, and is one of the UK’s strongest gambling brands.
Coates and Her Gains 5631h
Should the deal go through, Denise Coates is looking at a payout of over £5 billion, thanks to her 58% stake in Bet365.
Coates started the company years ago, and under her leadership, it has evolved from a modest operation in Stoke-on-Trent to a global leader in online sports betting. However, recent changes – such is the decision to withdraw from the Chinese market – clearly affected Coates’ decision to lead bet365. Some experts claim the decision to leave China means the brand is about to focus on the US market. Namely, the company has made significant inroads into the U.S. market so far. They’ve successfully secured licenses in 13 states, including Ohio and Tennessee.
In Ohio, the company has achieved a 7.5% market share, ranking third among online sportsbooks. But that is still trailing behind other brands that worked more on the US market expansion than bet365. What does that mean?
Focus Realigned: The US Expansion 4x126f
Various industry experts and analysts suggest that Bet365 aims to expand its U.S. market share into double digits. That is where the Chinese exit comes from.
Moreover, according to experts, the company will try capitalizing on the country's rapidly growing sports betting industry, which is projected to reach $27.5 billion by 2030.
But that is not all as the Chinese exit is not the only thing that points to this. The Coates family has been pulling various strategic moves, including transferring the ownership of the Stoke City Football Club to Denise's brother, John Coates.
Will this help the brand appeal to potential buyers and investors? Certainly yes, even though the brand is already very appealing.
Potential buyers include private equity firms like Apollo, CVC Capital, and Blackstone, as well as industry players such as DraftKings and Flutter Entertainment, owner of FanDuel.
So far, the CEO has chosen not to publicly comment on the potential sale.
How This Can Affect the Industry 4y1g1y
While Bet365 is evaluating its options, the rest of the industry is waiting to see what changes this could introduce to iGaming. It’s certain that there will be major changes, especially in the USA where the market is rapidly evolving nonstop.
So far, the most serious contenders and potential buyers are indeed DraftKings and Flutter, but it is ultimately up to bet365 to reach a decision that aligns perfectly with their future plans – ones that are known only to them at the moment.
