Bet365 Reports Return to Profit in FY2023–24

Bet365 has bounced back to profitability in its latest financial year, citing strategic product enhancements and strong momentum in the US market as key growth drivers.

According to the operator’s Companies House filing for the 12 months ending 31 March 2024, group revenue rose 9% year-on-year to £3.72 billion (€4.48bn / $4.65bn), up from £3.41 billion in 2022–23.

Key Financials: Betting Drives Profit Surge

• Betting and gaming revenue: £3.7 billion (up 9% YoY)

• Group gross profit: £3.03 billion (up 4.7%)

• Operating profit: £396.6 million (vs. £37.3 million loss in 2022–23)

• Pre-tax profit (betting/gaming): £626.6 million

• Charitable donations: £127 million (20.5% increase), with £120 million going to the Denise Coates Foundation

However, Stoke City FC, which was still part of Bet365 during the reporting period, posted a £30.3 million loss, worsening from a £12.4 million loss the previous year. The football club and facilities segment contributed just £23.8 million in revenue.

Post-period, on 8 July, the Stoke City operations were delisted and demerged from the group. The estimated cost of the demerger was £118 million, and the club is now owned by director John Coates.

US Expansion and Product Improvements Drive Betting Growth

Betting revenue climbed 11%, fueled by major product upgrades, a longer trading year, and expansion into new US states.

“The group has continued to invest significantly in its American platform,” said CEO Denise Coates, citing successful launches in Arizona, Iowa, Indiana, Kentucky, Louisiana, North Carolina, and Pennsylvania.

Enhancements to Bet365’s popular Bet Builder added new sports such as UFC, F1, cricket, and boxing. The fantasy sports offering and virtual sports suite were also upgraded, and new language support for French and Latin American Spanish was introduced.

Investments in search optimisation and customer engagement tools further refined the user experience.

Gaming Stable, Live Casino Faces Challenges

The gaming division held steady year-on-year, in line with expectations following a strong prior-year performance. Coates credited this to “strategic initiatives” across various verticals.

A major focus was placed on personalisation, including the expansion of Bet365’s games recommendation engine into more markets and categories. Despite facing headwinds, live casino remained a strategic priority, with:

• An expanded suite of dedicated table games

• Launch of a second exclusive live game show based on in-house slot Super Mega Ultra

• Introduction of a free-to-play game with daily prizes

“Our games product remained the focal point for housing the variety of game types available, as we continue our quality-over-quantity strategy,” said Coates.

Safer Gambling and Regulatory Developments

Bet365 reaffirmed its commitment to responsible gambling, noting readiness for reforms set out in the UK government’s white paper.

The operator is among a select group participating in the UK Gambling Commission’s financial risk check pilot, which requires player affordability checks at:

• £500 net monthly deposit (current threshold)

• £150 (effective from February 2025)

Ongoing AML Probe in Australia, Historic Legal Claims

The filing also disclosed that AUSTRAC, Australia’s financial intelligence agency, launched an AML investigation into Bet365’s local operations in March 2024. The review focuses on compliance with the AML/CTF Act 2006, though the company noted that enforcement action is not guaranteed and that it is cooperating fully.

Additionally, Bet365 is facing customer claims totaling up to £19.9 million, primarily linked to historical activity in Germany and Austria.

CEO Denise Coates was paid £94.6 million in salary during the reporting period.