Is bet365 Positioned to Make a Sale or IPO in the U.S.?

While bet365 has played a huge role as an online gambling operator in other parts of the world, its footprint in America has been minimal. They have been offering iGaming access in 2 states (New Jersey and Pennsylvania) and sports betting in 13 states, including major markets like Arizona, Indiana, Illinois, Ohio, New Jersey, and Pennsylvania. Big changes could be in the works at bet365.

What's Going on With bet365

As a major online gambling operator, bet365 has amassed a valuation of as much as $12 billion (£9 billion). Owned by the Coates family, there are indications that the family might be interested in selling at least a portion of the company's assets. This is huge news that could shake up the international online gambling community.

According to a Guardian report published released this past week, a sale of assets is quite possible in the near future. With Denise Coates at the helm, discussions have been held with US banks and financiers about options for a potential sale. One of the mentioned options was a listing for the company on the U.S. stock exchange. To facilitate such a transaction, bet365 has been actively pulling out of China's unregulated market, putting more emphasis on a bigger footprint in America.

By distancing the company from China, the appeal of purchasing bet365 assets by American investors increases dramatically. In another key move, the company has transferred its football club ownership of Stoke City football to the private holdings of John Coates, Denise's brother.

Commenting on these recent changes, Regulus Partners’ Paul Leyland told The Guardian:

"There’s more money chasing gambling than there are gambling companies that are investable." He later added: "It would be very difficult to have China exposure given the level of scrutiny that might be applied in the US, and why would you have a football club attached, that’s a family legacy."

The Future in America is the Goal

With several states currently looking to legalize iGaming activities in the near future, it's clear that the U.S. online gambling market still holds a plethora of potential. It's something on which online gambling companies are keeping a watchful eye.

If bet365 were to have U.S,-based operations, it would make it infinitely easier for them to enter new markets as they evolve. The potential also exists for an established gambling company based in the U.S., a company like DraftKings, to purchase bet365 assets with an eye on gaining a larger market share. Both of these options would likely look attractive to U.S. investors.

If the company were to side with maintaining its brand, it could pursue iGaming access through partnerships with Tribal concerns in states where iGaming access is already legal. That same process would seemingly work well as other states enter the iGaming fray.

All of this is based on preliminary rumblings going on throughout the iGaming community. What's true is something is going on, and the international online gambling community is watching closely to see what happens.