Sometimes in gambling, bettors win and lose at the same time. That virtually encapsulates the 2022-2023 financial year for bet365.
The UK-based sportsbook operator recently reported that it suffered $77.6 million in losses during its last financial year, even though the company saw an uptick in its gaming revenue and sports betting.
Let’s look at why the book grew while simultaneously taking a loss.
North American Expansion
First, let’s dive briefly into bet365’s growth.
According to its website, bet365 was founded in 2000 in North Staffordshire, United Kingdom. The operator’s global reach now includes some 90 million customers. That reach includes growing markets in both the United States and Canada.
In the US, bet365 recently expanded to Colorado, Iowa, Kentucky, Louisiana, Ohio, and Virginia. On the Canadian front, bet365 also recently made its debut in Ontario. With an increasing presence came more customers and more revenue.
In the 2022-2023 report, the sportsbook revealed a 15% rise in sports betting, a more than 30% increase in gaming revenue, and a 29% hike in new customers.
The Downside
Suffering losses for most businesses is an inevitable part of operating. This, too, has been the case for bet365.
From 2021-2022, the company had an operating profit of $19.63 million. The subsequent year, it had a $47.54 million operating loss. An almost $80 million loss was reported on investments (although this was adjusted by $34.6 million to account for interest income).
Looking Ahead
As more states look toward legalizing sports betting in 2024, one might assume that bet365 could properly rebound from its recent financial year losses. After all, the company’s global reach also includes the Netherlands, Germany, Italy, Australia and Sweden.
However, based on its current system, some experts hypothesize that bet365’s costs will rise more quickly than its revenue for the foreseeable future. As reported by FinancialTimes.com, bet365’s future could certainly be in limbo.
In that report, Alun Bowden, an analyst at Eilers & Krejcik, noted, “The company is at an inflection point. It is investing a lot of money to expand in the US as it reshapes the business for the future.”
About the Author
