The Coates family is exploring a potential billion-dollar deal to sell sports betting firm, Bet365.
The Coates Family Mulls Over a Potential Multi-Billion-Pound Bet365 Sale
Rumors abound, the Coates family is contemplating a full or partial sale of their sports gambling juggernaut, Bet365. These billionaires hold the reins of the online betting colossus.
Reports suggest that discussions with US investment banks and financial advisors regarding strategic options, such as a US exchange IPO or a partial sale to private equity investors, have already commenced. The Guardian[Link to the English article] has reported a valuation of around £9 billion (approximately €10.6 billion) in the works.
No decisions have been made yet, but the process is said to be in an advanced stage. In addition to a classic IPO or partial sale, a potential spin-off of selected business units is also under consideration, with independent operation of certain business areas a possibility.
Strategic Shifts and International Growth
Industry watchers speculate that both strategic and personal motivations may be driving CEO Denise Coates in the potential sale.
The 57-year-old CEO, who commands 58% of the shares and could potentially pocket around £5 billion (approximately €5.9 billion) in a sale, has recently made significant strategic moves. In March 2025, she pulled Bet365 out of the contentious Chinese market, relinquishing control of the family-owned Stoke City FC to her brother, John.
Bet365: The Rise of the Sports Betting Behemoth
Starting from a shipping container office in Stoke-on-Trent, England in 2000, Bet365 has, in just two decades, blossomed into one of the foremost online sports betting providers globally. Under Denise Coates' stewardship, the company could soon take its next monumental step – a billion-dollar sale or IPO.
Key figures and facts at a glance:
- Founding: 2000 by Denise Coates in Stoke-on-Trent, UK
- Ownership: Denise Coates holds 58% of the shares, with the majority of the remaining shares under the control of other Coates family members
- Employees: More than 7,000 worldwide
- International Presence: Operating in over 20 jurisdictions, including Germany, Spain, Argentina, and 13 US states
- Sponsorship: Stoke City FC sponsor and UEFA Champions League's official global partner since 2024
- Technological Advancements: Pioneer in live betting (In-Play), now a cornerstone of the offering
- Regulatory Issues: A £582,120 (around €683,000) fine imposed by the UK Gambling Commission in April 2024 for breaches of anti-money laundering regulations
These moves may be laying the groundwork for a deal with U.S. investors. In particular, pulling out of the Chinese market seems to be an attempt to minimize potential risks that might jeopardize a US IPO.
Bet365 has further expanded its presence in regulated markets, such as the USA, Brazil, and Peru. Currently active in 13 US states, the company has recently formed new strategic partnerships, including one with the St. Louis Cardinals baseball team in Missouri.
Bet365's Financial Health and Prospective Exit
Financially, the company is on solid ground. The fiscal year ending March 2024 saw a 9% increase in revenue to £3.72 billion (around €4.36 billion) and a pre-tax profit of £626.6 million (around €735 million) – a turnaround from the previous year's loss. An IPO in the US would make Bet365 the largest gambling company IPO worldwide, indicating that online gambling has finally achieved mainstream status.
An IPO would markedly increase the company's reporting requirements, marking a clear departure from their low-key culture.
Prospects: Retreat or New Beginnings?
Despite the promising prospects, it remains uncertain if a sale will materialize. The Coates family, as the sole owner, is under no pressure to act and can take its time in finding the optimal moment. Industry pundits, however, point to the growing market maturity and intensified competitive pressures, especially from US companies like DraftKings, indicating that Bet365 could be on the cusp of its next expansion phase under new leadership.
Many have been expressing interest in investing in Bet365 for years. In fact, analyst Alun Bowden from EKG reveals that the company is often cited as the preferred investment choice in the industry, yet, despite some contending that Bet365 has seen its best days, it continues to rank among the top online sports betting companies globally[3].
There is speculation that family dynamics may also factor into the equation: Denise Coates will soon turn 60, and this may present an opportunity to pass the company onto new hands following two decades of exponential growth, according to industry expert Paul Leyland.
What if the Coates family decides to sell a portion of Bet365's finance to sports-oriented private equity investors?The strategic partnerships with US teams and the prospective IPO could signal a shift in focus from sports gambling to sports finance, potentially attracting sports-focused investors to Bet365.
