The Coates family is investigating a possible billions-dollar transaction involving sports betting corporation Bet365.
A Billion-Dollar Bet: The Coates Family Mulls Over Selling Bet365
Thinkin' 'Bout Leavin' My Bet365 Empire?The Coates family mulls over partial or complete sale of online gambling titanBet365 valued at a whopping £9 billion, US IPO consideredWithdrawal from China to lure in US investors, and a potential spin-off
Mullin' 'Round a £9 Billion Bill
Word on the street is that the Coates family is evaluating the prospect of selling their stake in the sports betting behemoth, Bet365. The family owns the online gambling empire.
Conversations with US investment banks and advisors about prospective moves such as a US exchange IPO or a partial sale to private equity investors have already taken place, as per reports from The Guardian. A ballpark valuation of €10.6 billion is under discussion.
Although a definitive decision is yet to be made, the process is reportedly well underway. Besides a classic IPO or partial sell-off, a possible spin-off of various business units is also in the works, where certain sectors could be carved out and operated independently.
Strategy and Personal Motivations
According to market observers, CEO Denise Coates' strategic and personal reasons may drive the potential sale.
The 57-year-old, who holds a striking 58% of the shares and stands to garner around €5.9 billion in the event of a sale, has recently taken several strategic steps. In March 2025, she steered Bet365 out of the sensitive Chinese market and handed the family-owned soccer club, Stoke City FC, to her brother John.
Bet365: Rising from a Shipping Container to an Online Betting Juggernaut
In two decades, Bet365 has surged from a shipping container office in the English town of Stoke-on-Trent to one of the biggest online betting providers worldwide. The driving force behind this meteoric rise is Denise Coates, who is now among the wealthiest entrepreneurs in the UK. With rumors of a potential billion-dollar sale or IPO swirling, Bet365 may be poised for its next big leap towards billionaire status.
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These moves could hint at preparations for a deal with US investors. In particular, Bet365's exit from the Chinese market reflects the company's intention to sidestep potential issues that might arise regarding dubious foreign businesses during a US IPO.
Furthermore, Bet365 has expanded into regulated markets, such as the US, Brazil, and Peru, in recent times. Today, the company operates in 13 US states and has forged relationships with various partners, like the St. Louis Cardinals baseball team in Missouri.
The Financial Picture: A Lucrative Exit Awaits?
Financially, the company is in good shape. For the year ending March 2024, Bet365 reported a staggering 9% increase in revenues to €4.36 billion and a pre-tax profit of €735 million.
A US IPO would make Bet365 the largest listing of a gambling company in history, implying that online gambling has finally entered the big leagues. If successful, an IPO might also serve as a benchmark for the valuation of competitors like Flutter and Entain, potentially influencing market valuations.
Conversely, an IPO would impose significant transparency requirements, marking a clear departure from the company's typically low-profile culture.
What's Next: Withdrawal or Coming of Age?
It remains unclear whether a sale will actually occur. The Coates family, being the sole owner, is under no pressure to make a move, and can take their time to find the best possible moment. However, the increasing market maturity and escalating competition, particularly from US powerhouses like DraftKings, hint at a potential new chapter for Bet365 under new leadership.
"For years, people have been telling me that they'd love to invest in Bet365. Despite some doubting its future, Bet365 remains one of the best online sports betting companies in the world," says analyst Alun Bowden of EKG.
There's also speculation that personal factors within the Coates family may play a role. With Denise Coates turning 60 soon, this could be the perfect time to pass the mantle to the next generation, following two decades of rapid growth. According to industry analyst Paul Leyland, Coates may have decided to keep her company fresh and vibrant, ready for the next phase of development.
What might the Coates family's discussion involve, regarding their stake in Bet365? They could be mulling over the possibility of selling their interest in sports betting behemoth, Bet365.
If Bet365 goes for an IPO, what would that mean for the company's future? It could imply significant transparency requirements, marking a clear departure from Bet365's typically low-profile culture, given that an IPO would make it the largest listing of a gambling company in history.
