bet365 Gains Momentum in the US Market: From a Slow Start to a Stronghold

Already a formidable force in the global arena, controlling over a quarter of sports betting web traffic, Bet365 has now unfurled its ambitious sails toward the United States. With a staggering customer base of 90 million worldwide and an eye-watering revenue of $3.7 billion, Bet365 is finally not just stepping in but leaping into the U.S. scene.

Is There a Strategy Behind bet365’s Slow Start?

At the beginning let’s take a look back at the landscape from earlier this year. The Spring report by Eilers & Krejcik Gaming and MVP highlighted bet365’s apparent long-term strategy of a fairly conservative approach to the American market.

As of March this year, bet365 was only present in four states (Colorado, New Jersey, Ohio, and Virginia), which meant its share in the U.S. market was quite minimal. We’re talking about just 0.42% of the total Gross Gaming Revenue (GGR) share.

However, it would be unfair to criticise bet365 for being a latecomer in the US market. In fact, the company made a move into the US market just one year after the PASPA Act was repealed in 2019. Initially, bet365 focused on the highly profitable New Jersey market. However, the UK-based operator faced a significant challenge due to the strong dominance of Fantasy Sports giants, DraftKings and FanDuel.

Although bet365 entered the American market in 2019, it remained in limbo for the first two years. The US market witnessed a lot of activity during this period. Some companies were unable to capture even a small percentage of the market share and are now trying to determine what went wrong. In light of this, Points Bet has made some drastic decisions and has sold its brand to Fanatics – a company with ambitious plans for its bookmaker brand.

Bet365 carefully studied the market dynamics, analyzing mistakes made by companies trying to establish their presence in the US market from their UK headquarters. It appears that bet365 is now prepared to fully enter the US market and compete with FanDuel and DraftKings.

Although they had a slow start, there are many indications that their aspirations in the US are high. Having already dominated the European market with their unique product, they now need to find a way to compete with the flagship products of their US competitors.

Global Powerhouse Goes Big in the US

On the global stage, Bet365’s journey continues to be one of remarkable profitability and growth. Denise Coates, the company’s founder, stands tall as one of the UK’s highest-compensated executives. Financially, the company is soaring, with a 9.7% increase in total net gaming revenue to £2.98 billion and a 23% hike in sports wagering turnover to £64.5 billion. These numbers are bolstered by a 12% rise in operating profit from betting and gaming to £767 million.

As Bet365’s footprint widens in the U.S., starting with an impactful entrance into Ohio on New Year’s Day 2023, it now stands shoulder-to-shoulder with other key players in the American market. However, this growth raises questions about the long-term viability of its promotion-heavy customer acquisition strategy. As the U.S. market matures, it remains to be seen whether Bet365 can sustain or grow its market share without relying heavily on promotions.

February witnessed Bet365 dive headfirst into Virginia’s sports wagering waters, marking its first full month of operations. The Virginia Lottery’s revenue report was a testament to this bold entry, showing Bet365’s commanding 96% share of the state’s $7.8 million in promotional deductions.

This is no small feat for an operator, highlighting Bet365’s aggressive, promotional-driven strategy aimed squarely at customer acquisition. However, this strategy came with a price – despite a high gross revenue of $5.3 million, Bet365 reported a negative adjusted gross revenue of nearly $2.7 million in Virginia.

Louisiana is the latest state to join Bet365’s expanding U.S. portfolio, following Kentucky, Virginia, Ohio, New Jersey, Iowa, and Colorado. This recent expansion grants Louisiana, Virginia and Kentucky residents access to Bet365’s innovative features like Bet Boosts and fast Live In-Game capabilities. In the grand chessboard of sports betting, Bet365’s moves in the U.S. are bold and calculated, but only time will tell if this strategy will secure its place as a dominant force in the American market.

Breaking the Duopoly: The Upcoming Shift in America’s iGaming Market

The launch of the sports betting brand by the apparel company Fanatics marked one of the first signs of a significant shift in the American iGaming market. This move was a bold step towards chipping away at the monopoly held by FanDuel and DraftKings. Another crucial milestone in this journey was the acquisition of PointsBet by Fanatics, which opened the doors to several new states, signalling their intent to disrupt the existing duopoly.

This acquisition strategy by Fanatics seemed even more strategic given the efforts by DraftKings to hinder the process. It’s now clear why DraftKings was so keen on putting up roadblocks – Fanatics has made bold declarations, aiming for as much as 20% market share. This ambition is heard loud and clear in their announcements, indicating their commitment to becoming a major player in the market.

Another significant development in the U.S. iGaming scene was the recent launch of ESPN Bet in 17 states. From the get-go, the ESPN betting app garnered immense interest, suggesting that the ESPN brand is poised to be more than just a minor player in the American market. The ambitions of Penn Entertainment, which is behind this venture, appear to be lofty, indicating a well-thought-out strategy to capture a significant market share.

In this rapidly evolving landscape, bet365 has also made significant moves. After a period of selective expansion and careful planning, bet365 has been making substantial investments in various states and rapidly increasing its presence. This swift expansion, following a long period of strategic planning, suggests that bet365’s approach is calculated and likely to yield the desired results.

As the market stands, bet365, previously only the eighth strongest contender, has shown remarkable growth, closing the gap with market leaders who once seemed unassailable. The American iGaming market, set to exceed $17 billion by 2027, is witnessing a fascinating era of competition and innovation.

As we look towards 2024, it’s becoming increasingly evident that the market is on the cusp of a significant transformation. With the entry and expansion of dynamic players like Fanatics, ESPN Bet, and bet365, the once-stagnant duopoly of FanDuel and DraftKings is being challenged like never before. The next year promises to be a pivotal one for the U.S. iGaming industry, bringing exciting developments and reshaping the market landscape.