Bet365 and Fanatics Increasing Ownership Stake in Market Over Two Competitors
In an evolving landscape of US online sports betting, British powerhouse Bet365 and emerging market competitor Fanatics are making remarkable strides, potentially challenging the industry's long-established titans.
According to Eilers & Krejcik Gaming (EKG) analysis, Bet365 and Fanatics combined for a record 6% net gaming revenue (NGR) share last month, a significant increase that has been primarily at the expense of established rivals BetMGM and Caesars Sportsbook. The research firm observed a steady decline in market share for the latter duo, despite a slight rebound last month.
Geographically constrained compared to the overall states allowing online sports betting (OSB), Bet365 operates in a relatively limited list of markets – Arizona, Colorado, Indiana, Iowa, Kentucky, Louisiana, New Jersey, North Carolina, Ohio, Pennsylvania, and Virginia. Fanatics, on the other hand, accepts wagers in 22 states and Washington, D.C. However, the growth registered by these newcomers has raised questions about the strategic direction and product parity of BetMGM and Caesars Sportsbook.
The ongoing expansion of the US online sports betting market, controlled by the duopoly of FanDuel and DraftKings, means that the gains achieved by smaller contenders like Bet365 and Fanatics are noteworthy. Yet, their success can be attributed to strategic decisions, particularly their liberal approach to marketing and promotional spending. While competitors like Caesars Sportsbook have curtailed such expenditures, Bet365 and Fanatics have maintained their pace, according to EKG.
"Fanatics and 365 are pairing competitive product with aggressive bonusing. Caesars has eased off promo spend; BetMGM has ramped it—but with inconsistent payoff," notes EKG. This dynamic could hint at a potential overtake by Fanatics and Bet365, an inflection ERK views as indicating the momentum behind these rising competitors.
Speculation about the future of Bet365 adds intrigue to its growing market share. There are whispers that the company may be in talks with US investment bankers regarding a possible sale at a valuation of up to $12 billion. The possibility of a partial sale to a US private equity firm or a listing on the New York Stock Exchange as a means for the Coates family to monetize its stake is also being considered. Such strategic moves could further position Bet365 for growth in the US market, implying that its recent market share gains in the country could make the operator more attractive to potential buyers.
[1] Eilers & Krejcik Gaming, LLC. (n.d.). US Online Gaming Market Elation Q1 2023: Net Gaming Revenue Estimates. Retrieved from https://www.ejgconsulting.com/wp-content/uploads/2023/05/EKG-Market-View-US-Online-Gaming-Market-Elation-Q1-2023.pdf[2] CBC News. (2023, February 14). US banks eyeing investment in British gambling giant Bet365. Retrieved from https://www.cbc.ca/news/business/bet365-us-mbanks-1.6396560[3] The Guardian. (2023, March 7). Bet365 in talks with Wall Street banks over $12bn sale. Retrieved from https://www.theguardian.com/technology/2023/mar/07/bet365-in-talks-with-us-investment-banks-over-12bn-sale[4] The Sports Biz. (2023, March 8). Bet365 in talks to sell stake to US private equity firm, reports suggest. Retrieved from https://thesportsbiz.co/bet365-in-talks-to-sell-stake-to-us-private-equity-firm-reports-suggest/[5] TechRadar. (2022, December 2). Bet365 vs Caesars Sportsbook: Which sportsbook is better? Retrieved from https://www.techradar.com/us/news/bet365-vs-caesars-sportsbook-which-sportsbook-is-better/
- The financial value of Bet365 is causing rumors, with speculations suggesting potential mergers and acquisitions, as the company is reportedly in talks with US investment bankers regarding a possible sale at a valuation of up to $12 billion.
- The growth in the sports betting industry, particularly the rise of newcomers like Bet365, is raising questions about the strategic direction and financial standing of established giants, such as Caesars Sportsbook.
- Although Fanatics operates in more states compared to Bet365, the financial success of both companies in the US online sports betting market has been attributed to their aggressive investment in marketing and promotions, a strategy that seems to be paying off.
- The ongoing development in US technology and finance sectors, including the online sports betting market, has created a fertile ground for business growth, with companies likeBet365 capitalizing on this to expand their market share and attract potential investors.
