Bet365’s Revenue Report Indicates Strong Growth and US Market Investment
In the most recent Bet365 revenue report for FY 2022-23, a major focus was the company’s investment in the US market. Despite a notable £61.2m (€71.0m/$77.6m) loss, Bet365 also saw significant revenue growth. According to Ed Birkin, a senior analyst at H2 Gambling Capital, the company’s expanding interest in the US market and its successful Ontario launch hints at potential future growth, particularly in regions like North America and the soon-to-be regulated Brazil.
Birkin emphasized that Bet365 has shown a clear commitment to seeking licenses in commercially viable markets and expanding internationally. He pointed to Bet365’s success as a market leader in Ontario and anticipated a similar outcome in Brazil. Notably, Birkin lauded Bet365’s long-term approach to the US market, distinguishing it from the strategy of other operators that have experienced exits and financial struggles in the US sports betting market.
While Bet365 faces tough competition in the US from industry giants like FanDuel and DraftKings, Birkin believes the company could establish itself as a leading Tier 2 operator in the next three to five years. He credited Bet365’s focus on product quality as a potential advantage in a maturing US market that will prioritize product excellence over promotional tactics.
Despite the reported losses, Birkin viewed Bet365’s heavy investment as a positive sign of the company’s commitment to new market entries and regulated markets like Ontario. He also highlighted the company’s robust customer growth and impressive top-line revenue growth, particularly in sports betting and gaming.
In response to concerns about the UK sports betting market stagnating, particularly with Bet365 deriving around 20% of its revenues from the UK, Birkin pointed to the company’s expanding global focus as a potential offset to any UK market challenges. He also noted that Bet365’s push for innovation and a lack of pressure to meet short-term profitability targets could position the company favorably in the US market.
Looking ahead, Birkin expressed optimism about Bet365’s US market opportunity and emphasized the company’s history of organic growth in new markets. He identified Bet365’s innovative approach and ability to capitalize on any pull-back in investment by current US market leaders as key factors in the company’s future success. While he doubted Bet365’s immediate challenge for US market leadership, he maintained a positive outlook for the company’s long-term growth prospects.