Bet365 Reportedly in Talks on Sale at $12 Billion Valuation or IPO

Posted on: May 1, 2025, 01:09h. 

Last updated on: May 1, 2025, 02:51h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Company is said to be holding talks with US bankers
  • Options include an IPO or asset sales

Bet365 is rumored to be holding talks with US investment bankers regarding a possible sale of the gaming company at a $12 billion valuation.

Denise Coates, Bet365, salary, 2024
Bet365 CEO Denise Coates. The company is rumored to be considering a sale or a US IPO. (Image: Bet365)

The Guardian reported Thursday that the Coates family, which controls Bet365, has held discussions with Wall Street banks regarding a full or partial sale of the company. Other options being considered include a US initial public offering (IPO) or a partial sale to a private equity company that would ready Bet365 for a US IPO, allowing the Coates family to cash out in the process.

Rumors regarding the fate of Bet365 in its current form surfaced five weeks ago with a California-based research firm saying the company could head to the auction block and potentially fetch a price tag of $10 billion to $12 billion. In March, Bet365 announced its withdrawal from China, stoking speculation that the company may be mulling a US share listing or a sale to an American firm.

An unidentified source told The Guardian that Bet365, led by Denise Coates, could mull a spin-off of part of its business, but details on how such a transaction would shake out are scant at this point. Another unnamed person with knowledge of the matter told the newspaper that the gaming company is already having conversations with private equity firms.

How Bet365 US IPO or Sale Could Play Out

Bet365 recently launched online sports wagering services in Illinois and Tennessee, and plans to participate in the opening of the Missouri market later this year. In addition to Illinois and Tennessee, Bet365 is available in Arizona, Colorado, Indiana, Iowa, Louisiana, New Jersey, North Carolina, Ohio, and Virginia. Overall, the operator has about 2.5% market share in this country.

That low US market share can be looked at in two ways. It could be off-putting to potential US-based suitors, implying that a $10 billion to $12 billion asking price is too high. Or it could be seen as an opportunity for growth, particularly if Bet365 falls into the hands of a company that focuses exclusively on the US.

If Bet365 proceeds with a US IPO at a $12 billion valuation, that would make the operator the third-largest pure-play iGaming/sports wagering stock in this country, trailing only FanDuel parent Flutter Entertainment (NYSE: FLUT) and DraftKings (NASDAQ: DKNG) on the basis of market capitalization.

Even if Bet365 commenced a US IPO at a $10 billion market value, that would make it the fourth-largest New York-listed gaming stock by that metric, trailing only Flutter, DraftKings, and Las Vegas Sands (NYSE: LVS) while putting it ahead of well-known casino operators such as Caesars Entertainment (NYSE: CZR), MGM Resorts International (NYSE: MGM), and Wynn Resorts (NASDAQ: WYNN).

Potential Suitors for Bet365

UK coverage of the Bet365 rumor doesn’t elaborate on potential suitors for Bet365 in the event the Coates family opts for a sale, but on the private equity side, some of the usual suspects could come calling. Though it hasn’t publicly declared an interest in Bet365, Apollo Global Management (NYSE: APO) previously bid for UK-based sportsbook operators and has a long history of gaming industry investments.

In terms of iGaming and sportsbook operators, Flutter, despite its acquisitive history, probably isn’t a logical suitor for Bet365 due to significant overlap between the firms’ European operations.

From there, the field of gaming-specific potential buyers of Bet365 thins considerably because many of those prospects would need to see value in the target’s ex-US businesses, raise debt to execute a transaction, or both.