The Coates family of billionaires behind BET365 is evaluating the sale of an online gambling empire that could potentially value its business for £9 billion, The Guardian learned.
The Dennis Coates-led company has discussed full or partial sales with Wall Street banks and US advisors in recent weeks, a source familiar with the matter said.
The informal discussion explored potential sales options, such as a medium-term plan to lift business on the US stock exchange.
One option on the table includes partial sales to private equity investors, with the Coates family holding the stock before the final list. You can also see some spinoffs of the business rather than a complete list of Stoke-on-Trent based companies.
The second source said he also knew about discussions with the private equity group about taking pre-float stocks.
One person with knowledge of the consultation said BET365 has reached the “Beauty Parade” stage. There, they believe it will help businesses ring the banks and extract the greatest value from any transaction.
BET365 did not reply to requests for comment.
If you sell BET365, Dennis Coates over £57 could sell over £57, based on a 58% stake. It overturns an extraordinary growth story rooted in the humble origins of Portacabin in Stoke Parking.
Under Coates’ stewardship, BET365 has pioneered online gambling technology.
In recent years it has expanded to the United States, taking advantage of the sports betting boom that began in 2018 when the Supreme Court overturned a decades-old ban on federal practices.
Since then, BET365 has earned the right to operate in 13 states, with more states introducing regulated bets pursuing new licensing.
The Coates family has recently taken several steps to make BET365 more attractive to US investors. Earlier this year, the company announced it would withdraw from China, a market where its existence was controversial because of the illegal bets.
Last August, BET365 transferred ownership of the Stoke City Football Club to Dennis’ brother John Coates.
“It’s very difficult to expose to China given the level of scrutiny that could be applied in the US. Why are you attaching a soccer club? It’s a family legacy.”
He said the sale in the US was “convincing for everyone,” and that Dennis Coates and cash-rich US investors have brought proven success in the growing industry.
“There’s more money to chase gambling than gambling companies that can invest in,” he said.
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Gaming consultancy Eilers & Krejcik Gaming (EKG) estimates that US sports betting revenue will rise from around $14 billion last year to more than $23.3 billion by 2029.
BET365’s market share is around 2.5%, and EKG believes it is aiming for double-digit take.
“It’s not an easy or cheap market and it could require more money to actively attack opportunities,” said EKG analyst Alun Bowden. “Now I feel like I’m having a very good time to explore the opportunities for exits. I feel that the timing of Dennis turning 60 in two years is right.”
EKG previously valued BET365 at up to $12 billion (£9 billion) based on a typical industry valuation and pre-tax profit of £627 million last year.
Denise Coates is already well known for her record-breaking salary and dividend package, which pulled £2 billion from the company she built. Since 2019, the UK’s highest wage woman has increased her holdings from 50.2% thanks to her parents Peter and Diadore, and transferred her shares.
Borden said: “For decades, one business people have been hoping to be able to invest in me is BET365 and there’s a bit of industry consensus that they’re a declining star, but they have huge headroom to grow in casinos, the US and many markets, if not the best in the world.
Peter, the father of Coates, the 80-year-old son of a miner, was a successful local businessman in the catering industry and owned a series of betting shops. But that was Dennis, an economatrix alumnus. At the turn of the millennium, I noticed an online jackpot opportunity.
She bought the BET365.com domain name from eBay for $25,000 and rented it against brick and mortar stores to develop sports betting technology that left a slow-moving rival in the dust.
She’s shy about famous publicity, but in a rare interview with the Guardian in 2012, she said that the family story made them the “ultimate gamblers.”