bet365 Acquires Denver HQ for $135M, Signaling Deepening US Roots and Future Deals

bet365 has made a substantial investment in the US market with the acquisition of its US headquarters building for $135 million, underscoring the British operator’s ambitions in the States.

The company opened its US headquarters in Denver, Colorado, last fall with a promise to employ up to 1,000 people. Initially leased, the building supports a wide range of functions, including trading, technology, customer support, legal, finance, and marketing.

The purchase signals a shift from cautious market entry to full-scale expansion.

A Move Beyond Real Estate

The $135 million investment in an office building is a significant purchase in its own right, but it could be part of a broader strategic overhaul for bet365.

In recent months, speculation has increased that the company might be up for sale.

The Guardian and The Times reported a few months ago that the Coates family, the company’s owners, are in early-stage talks with Wall Street banks and US financial advisers exploring potential options for the company’s future. Options include a full or partial sale, an initial public offering, or a private equity partnership.

The news outlets estimate the valuation of a potential deal to be around £9 billion (approximately $12 billion). That would put a handful of potential suitors, with names like DraftKings or FanDuel, in a position to afford that.

Additionally, there could be interest from large private equity companies, such as Blackstone or Apollo. Notably, Apollo recently completed the merger between Everi and IGT’s gaming divisions and has shown interest in gaming assets.

To prepare for a potential sale, Bet365 has begun streamlining its global operations. In the spring, it exited the unregulated but highly profitable Chinese market. At the time, observers viewed the move as a way to reduce regulatory risk. It could’ve also served to attract investors, especially from the US, who would perceive China as a risk.

Moreover, the company transferred the ownership of Stoke City Football Club, which has long been closely tied to Bet365, to John Coates, separating the core betting business from other holdings.

US Expansion at the Center

The US market will play a pivotal role in bet365’s growth strategy. The company entered the US in 2019 through New Jersey but took a slow approach. While many European competitors, such as Unibet, Betway, and BetFred, unsuccessfully tried to expand, bet365 waited.

It took the company three years to expand to another state. Then, in 2023, it started ramping up its US operators, and it now operates in 13 states. That includes online casinos in New Jersey and Pennsylvania.

Although its market share is relatively modest compared to the leaders FanDuel and DraftKings, Bet365 has done well in some states. For example, in Ohio, one of the largest sports betting markets in the US, it has a nearly 10% market share. That ranks it comfortably in third place.

Expansion in the high-margin online casino segment is limited for bet365. Still, there are several potential sports betting markets that the sports betting giant can explore. For example, Missouri recently opened the licensing process for 14 mobile skins with an expected launch date in December.

Meanwhile, in New York, some have mentioned the company as a potential replacement for Resorts World Bet. The latter ceased operations on June 30. While the state has one of the highest tax rates, its size makes it a worthy investment.

Additionally, Bet365 has formed several high-profile partnerships. They include the St. Louis Cardinals in the MLB, the Washington Commanders in the NFL, the Denver Nuggets and Charlotte Hornets in the NBA, and the Colorado Avalanche in the NHL.

Positioning for a New Era

The addition of the Denver headquarters last year signaled that the expansion plans are not over, as it provides technological and operational support for rapid scaling. Owning the building means not only reducing long-term lease costs but also signals a commitment to the US market.

While the company has come to be associated with its fiercely private ownership under Denise Coates and family, the move suggests that bet365 could be pivoting towards openness to outside capital, something previously unthinkable.

With a valuation of $12 billion, the entity could become one of the most valuable gambling brands globally if it chooses to part ways with its current ownership model.

An IPO, especially in the US, could unlock fresh capital to fuel US expansion. It would also help improve technologies and even acquire some competitors. While it would be challenging to catch up to DraftKings and FanDuel, the company could close the gap.

Alternatively, a sale (partial or full) would preserve some degree of family control for the Coates. Industry insiders suggest that Denise Coates will likely remain involved even with a sale.

Whether it’s an IPO, a sale, or a private expansion, Bet365 is preparing for a new era that could reshape the company and the global betting industry.