EGR Power 50 2021: 3. Bet365
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3. Bet365 (2)
FINANCIALS: Confidential figures shared with BDO show the firm’s net revenue, EBITDA and MAUs increased markedly YoY in the 12 months to the end of June
STRATEGY & IMPACT: Is ahead of the competition with its in-house sportsbook product, comprehensive markets and proprietary pricing. Gaming takes a back seat to sports
GEOGRAPHIC REACH: Besides being a global betting brand, which includes exposure to grey markets, bet365 is a leader in most licensed markets, the exception being the US
INFLUENCE & LEADERSHIP: Last March was 20 years since bet365.com launched from a portable building on a car park, spawning what would become the world’s largest bookmaker. Denise and John Coates’ obsession over the details is still abundantly clear today
Despite failing to regain the top spot surrendered last year after more than a decade dominating the Power 50 rankings, bet365 continues to be the poster child of online sports betting and the one operator most of its rivals probably secretly – and openly – envy. That unwavering obsession to offer customers the best possible experience means you’d be hard pushed to find a betting product that matches bet365 for its breadth of markets, in-play betting and streaming options.
Besides its colossal brand, much of the success and dominance this Stoke-on-Trent-based online goliath enjoys is underpinned by its best-in-class proprietary product and tech. While product launches and upgrades were thin on the ground in the past year, its esports offering was recently overhauled and shared-wallet functionality for its gambling verticals was (finally) introduced in Q4.
Bet365 also very much remains a betting-led operation, as opposed to looking to cross-sell sportsbook customers into higher-margin products like casino. Indeed, that bookmaker-first mindset is illustrated by the fact gaming very much plays a subtle supporting role on the homepage. Sure, casino undoubtedly provides a chunky revenue stream, yet it isn’t a key driver of growth; the all-important sportsbook does the heavy lifting.
This family-owned business also continues to steadfastly eschew M&A in an industry dominated by a consolidation frenzy, as operators clamour to achieve scale and cope with the costs of dot.country regulation. You have to admire how bet365 has instead ploughed a lonely furrow while its peers have been preoccupied down the years with pulling off complex deals and the protracted integrations these often create.
In the US, where the online gambling gold rush has triggered a flurry of M&A activity, the operator’s footprint is still limited to New Jersey and Colorado (yet to launch). It is somewhat puzzling why bet365, with all its financial firepower, still hasn’t made more of a splash across the pond, although the firm did take a run, albeit unsuccessfully, at securing a coveted online bookmaking licence in New York.
It seems America is one market bet365 hasn’t managed to crack – at least not yet. The firm did gain access to the Netherlands, though, being among the first tranche of licensees as many industry protagonists are forced to endure a ‘cooling-off’ period. Bet365 stealing a march on you could easily turn into an unassailable lead.