Business By The Books: bet365 Spending To Expand Sports Betting

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UK-based bet365 is one of the biggest sports betting operators in the world, but it is still spending significantly to expand.

The company filed its annual report for fiscal 2022 ending March 27 last week, though there is little actual data.

The biggest news was the fact that administrative costs jumped $382.2 million compared to fiscal 2021. That was driven by “significant costs associated with raising brand awareness in new markets alongside continued investment in IT infrastructure and technology.”

Since this report only covers figures through March 2022, those costs likely do not include much for bet365‘s US expansion. The company launched in Colorado and Ohio last year to join its New Jersey operations, and struck a deal with Churchill Downs for Pennsylvania market access.

Sports betting revenue fell despite handle growth

A lower hold rate compared to fiscal 2021 led sports betting revenue to fall 2% despite handle growth, according to the report. That drop was offset by a 25% gain in gaming revenue, though.

Overall, revenue grew 2% to $3.4 billion in fiscal 2022. Cash on hand and equivalents was $4 billion at the end of the fiscal year.

Active customers jumped 48% compared to a 13% increase the prior year. Many of those customers are likely in Brazil, Eliers & Krejcik Gaming senior consultant Alun Bowden tweeted.

Where is bet365 focusing on in US?

There are five newly established entities incorporated after fiscal year that show focus on the US:

The fantasy incorporation is particularly interesting as it may be a way for bet365 to help build its brand in the US. The operator launched a fantasy product in August with Scout Gaming and registered the business in multiple states.

Ohio sports betting ops and ad rules

Sportsbook operators are learning some hard lessons with Ohio’s strict rules around advertising language.

BetMGM, Caesars and DraftKings were notified of ad violations that could carry a fine of $150,000 for each operator. The ads on several platforms, including Facebook and Twitter, did not include a clear and conspicuous problem gambling message or a helpline number.

Some operators are adjusting on the fly to comply with Ohio. Betr, the micro-betting focused book that launched its first market in Ohio, began adding a connected tweet with RG messaging to all of its betting Tweets over the weekend.

betJACK added similar messages to older Tweets last week but has not added a connected message to current Tweets.

Bally Bet made how much in NY?

Bally Bet was the last operator to launch in New York when it went live in July after Chairman Soo Kim said launch would be delayed from the January start because of the “insane” promotional environment.

Not many expected the brand to take this much of a backseat, though.

Bally Bet took just $5.8 million in New York bets for the year, or 0.04% of the $16.2 billion in handle the entire mobile market did. Revenue was just $337,826, or 0.02% of the total.

Some napkin math suggests Bally Bet would repay its $25 million license fee in 75 years should the operator continue at this pace.