Wave 2: Bet365 Puts The Pedal To The Metal

The final installment of my three-part series on the second wave of US sports betting operators takes a look under the Bet365 hood. Part 1: Fanatics. Part 2: ESPN Bet.

In Part 1 of this series, I looked at Fanatics’ entrance into the US sports betting arena. In Part 2, it was ESPN Bet’s turn to go under the microscope. And now, it’s time to close out the series with a look at Bet365.

Bet365 isn’t exactly new to the US sports betting market, but its approach has gone from indifference to extreme interest since the launch of Ohio mobile sports betting on January 1, 2023. Hence, it is included in the second wave of US sportsbooks.

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As I did with Fanatics and ESPN Bet, I’ll examine Bet365 on:

• Its approach (thus far).

• How successful has that strategy been to date?

• Its chances to get on the podium in the future.

• And I will ask (and possibly answer) one big question.

Before I get started, admittedly, Bet365 is the most difficult of the three to dissect. Bet365 is a privately owned company that rarely issues statements or talks to the press.

Bet365’s Road to the US

Founded in 2000, Bet365 has become one of the largest betting firms in the UK and across Europe.

The company has been the proverbial sleeping giant on the US front but has taken a measured approach to the market. Bet365 is live in seven states: Colorado, New Jersey, Iowa, Kentucky, Ohio, Virginia, and Louisiana.

Importantly, the UK juggernaut was merely dipping its toe for most of its US existence and really only began throwing its weight around in two states, Ohio and Kentucky, in 2023. It’s also live in Ontario, where its longstanding presence has made it one of the most popular apps - something it hopes to replicate in the newly legalized Brazilian market, where Bet365 is a market leader.

As Ed Birkin, senior analyst at H2 Gambling Capital, put it:

“Their transition to the onshore market in Ontario appears to have gone smoothly, where they’re the clear market leader in terms of sports betting revenues, and we would expect to see the same in Brazil, where they are also the clear market leader.”

Bet365 Is Gaining Momentum

Bet365 has taken its time in the US market. The company was a blip on the radar until the Ohio launch on January 1, 2023. It even looked like it might be winding down operations when it failed to secure a New York license and withdrew its license application in Massachusetts.

According to Birkin, Bet365 is unlikely to compete with FanDuel and DraftKings, but it could ascend to the top of the second tier.

“Whereas a number of other operators rushed into the US sports betting market and are already exiting – Kindred, Pointsbet, and Wynn among others – Bet365 have always taken a more long-term, patient view, Birkin said. “They have avoided the huge cash outflows that others have suffered over the past few years during the initial fight for market share.”

When it missed out on a New York mobile betting license, the wind was taken out of Bet365’s US sails. Per backchannel chatter, Bet365 had targeted New York as its North American launchpad.

Massachusetts was another negative result for Bet365, as the company ended its partnership with Suffolk Downs and withdrew its license application, citing regulatory burdens imposed by the state.

Fast forward 12 months from the Ohio launch, and suddenly, Bet365 is spending, especially in the newly launched markets of Ohio and Kentucky.

But is that spending making a difference?