Investors could be queueing 'halfway round Stoke' as report claims bet365 may be up for sale for £9 billion

The queue of potential investors in bet365 could stretch "halfway round Stoke" according to one analyst following a report that the Coates family are considering a sale of the gambling industry giant. 

The Guardian reported on Thursday that bet365, who are headed by Denise Coates and her brother John, have held talks with Wall Street banks and US advisers about a full or partial sale. Their online gambling empire, based in Stoke-on-Trent, could be valued at £9 billion.

It is suggested that one option is a medium-term plan to float the business on a US stock exchange. Another is a partial sale to a private equity investor, with the Coates family retaining a stake before an eventual listing. 

Bet365 did not wish to comment when contacted by the Racing Post.

Ivor Jones, an analyst with investment bank Peel Hunt covering the gambling industry, described bet365 as "an extraordinary success story driven by the Coates family".

He added: "Entrepreneurs often want to realise some of the value they have created and pass on the responsibilities of day-to-day management to a new generation. If this remarkable business is looking for new investors I would expect the queues to stretch halfway round Stoke."

Denise Coates: could be poised to sell bet365Credit: Hugh Routledge

Bet365 have been increasingly focusing on the burgeoning US market. Last year they opened a new headquarters in Denver, Colorado, with plans to hire up to 1,000 employees, while in March they officially launched their sportsbook in Illinois, which became the 13th state in which bet365 operate.

Speculation rose about the future of the company in March when it was revealed bet365 were pulling out of China, saying they would be concentrating "on gaining market share in regions that provide long-term sustainable revenue".

Bet365 began in humble surroundings in 2000 in a portable cabin in a Stoke car park, where Denise Coates started the company with just 12 employees, launching the bookmaker's first website the following year.

Coates built the company into one of the biggest names of the global gambling industry, with revenue of £3.7 billion in their 2023-24 financial year, while also becoming Britain's highest-paid woman.

• Denise Coates takes a pay cut but profits soar at bet365 

Any move to sell bet365 would cause anxious moments for racecourse executives as they are a massive supporter of the sport through their big programme of race sponsorship.

In April alone the bet365 Gold Cup, which brings the curtain down on the jumps season, was the highlight of the firm's backing of a two-day meeting at Sandown, while Field Of Gold is favourite for this weekend's 2,000 Guineas after his win in the bet365 Craven Stakes at Newmarket.

Similarly, Desert Flower is favourite for the 1,000 Guineas on the back of her success in the bet365 Fillies' Mile.

Among many other races backed by bet365 are the Cambridgeshire, the Morebattle Hurdle, the Charlie Hall Chase and the Lancashire Oaks.

Bet365 have also recently become a major sponsor of greyhound racing.

Main bet365 racing sponsorships

February – Cheltenham Trials meeting, Musselburgh

March – Morebattle Hurdle, Kelso

April – Craven meeting, Newmarket; bet365 Gold Cup meeting Sandown

May – Two Year Old Trophy, Beverley

June – Perth Gold Cup meeting; Summer Cup, Uttoxeter

July – Old Newton Cup/Lancashire Oaks, Haydock; Bunbury Cup, Newmarket

September – Cambridgeshire, Newmarket

October – Fillies' Mile, Newmarket

November – Charlie Hall Chase meeting, Wetherby 

Bet365 sponsor countless big races in BritainCredit: Alan Crowhurst

Comment: US now the focus for giants of the gambling industry

When bet365 applied for a licence to operate in the state of New York four years ago they told the authorities they had "no plans to sell the company, merge the company, or to take the company public”. That may no longer be the case.

The first suggestions that the Coates family who own the company might be considering their future came when joint-chief executive John Coates became outright owner of Stoke City football club when it was demerged from bet365.

The chatter became louder when it was announced that bet365 would be ceasing operations in the 'grey' market of China, a withdrawal which would leave them with more than 90 per cent of their activity across the world being domestically regulated.

Both moves would remove hurdles for potential investors in the United States.

Now comes a report that bet365 have been talking to Wall Street banks and US advisers about a partial or full sale of the business.

It is to the United States where the giants of the global gambling industry have turned their attention since the US Supreme Court struck down a ban on sports betting in all but a handful of states.

Flutter Entertainment, owner of Sky Bet and Paddy Power, now has its headquarters in the US and is listed on the New York Stock Exchange, while Ladbrokes and Coral owner Entain is pinning a lot of its hopes on US joint-venture BetMGM.

Bet365 have also been building their presence in this crucial market and are operating in 13 states.

While the UK and Ireland will always be important for the giants of the industry, the pivot to the US means they will no longer be as critical.

That should also be a worry for British racing, as it becomes an ever smaller part of those companies' business and the legacy they had in the sport begins to fade.
Bill Barber, industry editor

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