The Coates family is exploring the possibility of a billion-dollar transaction involving sports betting firm, Bet365.
Coates Family Mulls Over Potential Sale of Bet365 As US Expansion Looms
The influential Coates family, proprietors of the global sports betting enterprise Bet365, is reportedly pondering a full or partial sale of the company, with an estimated valuation of £9 billion (approximately €10.6 billion).
The billionaire family has held discussions with US investment banks and advisors regarding potential strategic options, such as an Initial Public Offering (IPO) on a US exchange or a partial sale to private equity investors, according to The Guardian [1]. A valuation of around £9 billion is under consideration.
Although no final decision has been made, insiders claim that talks are in an advanced stage. In addition to a traditional IPO or partial sale, a possible spin-off of individual business units is also being deliberated, where specific business sectors could be carved out for continued operation independently.
Strategic Decisions and Personal Motives
Industry analysts suggest that the potential sale could be driven by both strategic and personal motives of Bet365 Chief Executive Officer Denise Coates. Coates, who owns 58% of the shares and could potentially earn approximately £5 billion (around €5.9 billion) in the event of a sale, has implemented several strategic moves recently.
In March 2025, Coates withdrew Bet365 from the legally complex Chinese market, relinquishing control of the family-owned football club Stoke City FC to her brother John. This move, experts propose, may be a step towards attracting US investors.
Bet365's Global Ascendancy in Online Gambling
Starting from a single office container in Stoke-on-Trent, UK, in 2000, Bet365 has grown to become one of the leading online betting providers worldwide. Led by Denise Coates, the company may soon embark on its next significant milestone: a billion-dollar sale or IPO.
Key facts and figures about Bet365:
- Founding: 2000 by Denise Coates in Stoke-on-Trent, UK
- Ownership: Denise Coates holds 58% of the shares, with the remaining shares primarily owned by other members of the Coates family
- Employees: Over 7,000 worldwide
- International Presence: Active in more than 20 jurisdictions, including Germany, Spain, Argentina, and thirteen US states
- Sponsorship: Long-time sponsor of Stoke City FC, and since 2024 official global partner of the UEFA Champions League
- Technological Strength: Pioneer in live betting (In-Play), now a central aspect of the offer
- Regulatory Issues: In April 2024, the UK Gambling Commission levied a fine of £582,120 (around €683,000) on Bet365 for breaches of anti-money laundering regulations [2]
Positioning for a US Market Debut
Experts interpret these developments as preparation for a potential deal with US investors. Bet365's withdrawal from the Chinese market, for instance, may be an attempt to avoid potential risks that problematic foreign operations could pose in a US IPO.
Furthermore, the company has expanded into regulated markets like the USA, Brazil, and Peru. In current times, Bet365 is active in thirteen US states and has recently forged new partnerships, such as one with the St. Louis Cardinals baseball team in Missouri.
Financial Stability and Growth Prospects
Financially, Bet365 remains robust, with revenues increasing nine percent to £3.72 billion (around €4.36 billion) and a pre-tax profit of £626.6 million (around €735 million) for the fiscal year ending March 2024 [3]. A US IPO could see Bet365 become the largest listing of a gambling company internationally, suggesting the mainstream acceptance of online gambling.
However, such an IPO would significantly increase Bet365's disclosure requirements, marking a stark departure from the company's previously low-profile culture.
Considerations Before a Potential Sale
While the Coates family, as the sole owners, is not under any pressure to sell, the growing market maturity and intensifying competitive pressures, particularly from US giants like DraftKings, suggest that Bet365 could be poised for its next growth phase under new management.
There is speculation that personal considerations within the Coates family may also play a role in this matter, with Denise Coates's upcoming 60th birthday potentially signaling the passing of the company to new owners after two decades of rapid growth. According to industry analyst Paul Leyland, Coates may have decided to ensure the company's future growth rather than allow its stagnation.
[1] https://www.theguardian.com[2] https://www.ukgc.org.uk[3] https://www.bet365.com[4] https://www.bloomberg.com[5] https://www.reuters.com
What about the potential implications of the sale for the financial landscape of sports betting, if Bet365 were to go public in the US?
In light of Denise Coates' recent decisions, such as pulling Bet365 out of the Chinese market and expanding into the US, it seems a possible move towards integrating finance and sports, potentially reshaping the industry.
