Bet365 has taken a significant step in bolstering its presence in the U.S. market with the recent acquisition of its headquarters building in Denver for $135 million. This transaction reflects the British operator’s growing ambitions in the United States and marks a transition from cautious market entry to aggressive expansion.
The company opened its U.S. headquarters last fall, initially leasing the building with plans to employ up to 1,000 people. This facility will support a multitude of functions, including trading, technology, customer support, legal, finance, and marketing.
In the context of the burgeoning U.S. sports betting landscape, this purchase could signal part of a broader strategic overhaul. Recent speculation hints at potential changes in ownership, as reports have emerged regarding the Coates family—Bet365’s owners—engaging with Wall Street banks and U.S. financial advisers to explore future options.
These options may include a full or partial sale, an initial public offering (IPO), or a private equity partnership. Industry estimates value a potential deal around £9 billion, approximately $12 billion, making it an attractive prospect for several contenders, including sports betting giants like DraftKings and FanDuel, as well as large private equity firms such as Blackstone and Apollo. Notably, Apollo has shown recent interest in gaming assets, particularly following its merger involving Everi and IGT’s gaming divisions.
To position itself favorably for a potential sale, Bet365 has streamlined its global operations. Earlier in the spring, the company made the strategic decision to exit the unregulated Chinese market, a move seen as reducing regulatory risks that could deter investors, especially those from the U.S. Additionally, Bet365 transferred ownership of Stoke City Football Club to John Coates, effectively separating its core betting business from other assets.
The U.S. market is central to Bet365’s growth strategy. Since entering the U.S. in 2019 through New Jersey, the company has embraced a slow and steady approach to expansion. Unlike many of its European counterparts that pursued rapid growth unsuccessfully, Bet365 opted to carefully assess the market. It took the company three years before extending operations into another state, but by 2023, it increased its U.S. footprint, now operating in 13 states, including online casinos in New Jersey and Pennsylvania.
While Bet365’s market share remains modest compared to leaders like FanDuel and DraftKings, the company has made notable strides in various states. In Ohio, one of the largest sports betting markets, Bet365 holds nearly a 10% market share, positioning it comfortably in third place.
Although Bet365 faces limitations in expanding its presence in the lucrative online casino segment, numerous sports betting opportunities remain on the horizon. For instance, Missouri has recently opened licensing for 14 mobile skins, anticipating a launch in December. Moreover, there’s speculation that Bet365 could replace Resorts World Bet in New York following the latter’s cessation of operations on June 30, despite the state’s high tax rates.
The company’s growth strategy has also been underscored by high-profile partnerships with notable sports teams including the St. Louis Cardinals in Major League Baseball (MLB), the Washington Commanders in the National Football League (NFL), and both the Denver Nuggets and Charlotte Hornets in the National Basketball Association (NBA), as well as the Colorado Avalanche in the National Hockey League (NHL).
Owning the Denver headquarters signifies that Bet365’s expansion plans are far from complete, as it positions the company for rapid technological and operational scaling. The acquisition will not only alleviate long-term leasing expenses but also reinforces the firm’s long-term commitment to the U.S. market.
Traditionally known for its private ownership model under Denise Coates and her family, these developments suggest that Bet365 may be transitioning towards a more open approach to outside investment—a possibility that seemed unlikely until now.
With a valuation of $12 billion, the company stands to emerge as one of the most valuable gambling brands in the world if it opts to reconsider its current ownership structure. An IPO in the U.S. could unlock significant new capital to catalyze further expansion, technology improvements, and potential acquisitions. While catching up to leaders DraftKings and FanDuel remains a challenge, Bet365 has the potential to narrow the gap.
Alternatively, a partial or full sale of the company could allow the Coates family to maintain some control while still drawing in external resources. Insiders suggest that Denise Coates is likely to remain involved regardless of the direction chosen for Bet365.
As Bet365 prepares for this new era of potential transitions—whether through an IPO, a sale, or private equity expansion—the outcomes promise to reshape both the company itself and the broader global betting landscape.
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