After a couple of years of significant expansion in the U.S. and elsewhere in the Americas, British sportsbook bet365 took a big hit to its profitability despite increased revenues.
The operator’s financial statement for the 2024-25 fiscal year, which ran from April 1, 2024, to March 30, 2025, show that its revenue grew 9% to £4.04 billion ($5.45 billion), fueled mostly by a 25% upswing in gaming revenue.
However, the company’s profit before tax fell 44% to £348.7 million ($470.5 million) and sports and gaming operating profit dropped 43% to £227.6 million ($307.1 million). The firm said those declines were largely the result of increased costs linked to new market entries, which increased overall direct costs from £686.8 million ($927.8 million) to £896.5 million ($1.21 billion).
Focus on regulated markets ramps up costs
The report, signed by CEO Denise Coates, said that bet365 has undertaken a major pivot in strategy by focusing its presence on regulated markets on both sides of the Atlantic and beyond. It exited China, one of its biggest grey markets, and entered numerous new jurisdictions as a regulated, licensed and taxable operator.
bet365 was already present in a handful of U.S. states prior to the reporting period beginning on April 1, 2024. In the 2024-25 FY, it entered states including Pennsylvania (July 2024), Tennessee and Illinois (both March 2025), and also went live in Brazil, Peru and Serbia. During that period, it was also preparing for U.S. launches in Kansas and Maryland (both August 2025) and Missouri (December 2025).
“A key focus of this period was the strategic allocation of resources to facilitate launches in new markets and navigate regulatory amendments in existing territories,” noted the report. “Aligning with this strategic focus, the operating boards recognized that point of consumption regulated markets offer the most robust foundation for long-term sustainable revenue. Therefore, they resolved to prioritize obtaining and maintaining gambling licenses wherever feasible, focusing resource allocation on markets with long-term sustainable revenue streams in the coming years.
“It became clear that despite the cogent arguments that could be used to support continued operations in certain markets, a number of markets no longer fell within the long-term sustainable revenue category. As such, the decision was made via the Group’s operating boards to cease operations in those markets.”
It also spent $135 million to acquire the 120,000-square-foot site of its new U.S. headquarters in Denver, which the firm called “a watershed moment in bet365’s North American journey.” The base cost of that purchase, which was completed post-period end, does not factor in additional expenditures related to the opening of that office, such as the hiring of its target number of more than 1,000 members of staff.
Boosting online casino alongside sports
While expansions in some markets and shutdowns in others hit bet365’s bottom line, gaming revenue for the period rose by 25% and sports revenue ticked up by 5%. bet365 put that down to a successful Euro 2024 soccer tournament and expansion into new regulated markets.
bet365 also made significant product improvements, said the company, including integrating all of its gaming products into a unified casino vertical available across all platforms. bet365 onboarded content from numerous new casino suppliers in the U.S. in 2024 and 2025 as it looked to bolster the iGaming side of its offering.
Looking ahead, the U.S. challenger brand vowed to continue pursuing licenses in regulated markets and prioritizing those that it believes will deliver long-term sustainable revenues.
