The owners of British sports betting and online casino brand bet365 are said to be considering a sale that could value the company at $12 billion, according to a report from The Guardian.
Denise Coates, CEO and majority shareholder of bet365, is said to be weighing a full or partial of the gambling brand and has held discussions with U.S. investment banks and advisors about the potential transaction. An offloading of bet365 may include listing the gambling giant on a U.S. stock exchange allowing the Coates family to retain a stake in the business. The operator may also explore a spin-off of its assets rather than a full stock exchange listing.
Coates is poised to profit from a potential sale behind her 58% stake that could fetch an asking price of more than $6 billion. The billionaire has built the business from a small British brand to an operator that has solidified a presence in markets around the world.
Two months ago, bet365 launched operations in Tennessee bringing its total U.S. reach to 13 states. It is also planning to launch online wagering in Missouri when the state goes live with wagering. Bet365 landed a market access deal with the St. Louis Cardinals in Missouri. The deal makes bet365 the Cardinals’ first official sports betting partner.
The operator also recently opened a new U.S. headquarters in Denver, Colorado.
According to Eilers & Krejcik Gaming, bet365 holds a 2.5% market share in the U.S. It also launched online sports betting operations in Brazil as it expands its global reach.
The operator had a presence in China before recently announcing its exit from the country amid issues regarding the legality of gambling. Bet365’s exit from China may also attract potential U.S. investors due to a streamlined focus on long-term revenue growth.
The operator has also made an ownership change as it potentially weighs a sale. Last year, a stake in bet365 held by Stoke City FC was transferred to a member of the Coates family.
Bet365’s majority owner takes a big pay cut
Earlier this year, bet365 released financial results revealing a significant pay cut for Coates. For the 53-week period ended March 31, 2024, Coates paid herself a $118 million salary and received approximately $80 million from dividends. By comparison, the businesswoman pocketed roughly $337 million during the same period the year prior.
For the 53-week period ended March 31, 2024, bet365 posted $4.6 billion in revenue from its sports and gaming segment, a 9% increase compared to the same period the year prior.
It closed the same period with an operating profit of $145.8 million. By comparison, the bet365’s operating loss for the same period the year prior reached $151.4 million.
