A shock of sorts for the Stoke-on-Trent-based gambling giant. Bet365 reported a loss of £43.3 million for the 2024-2025 financial year, a sharp turnaround after years of profits. The cause is not declining sales, but a conscious decision: the company is leaving grey markets and focusing entirely on regulated countries such as the Netherlands, Brazil and the United States.
Turnover from sports betting and casinos did grow – by 9 per cent – but compliance costs and international expansion weighed heavily on profits. Top woman Denise Coates called it a ‘conscious investment in the future, not a step backwards’.
Growth in regulated markets such as the Netherlands
Bet365 saw stable growth in both sports betting and casino players in the Netherlands, where it has been licensed since 2022. The strategy is in line with the company’s global direction: operate within strictly regulated frameworks, even if that means more tax and control.
According to Coates, markets like the Netherlands, the UK and the US are key to sustainable revenues.
‘Markets with oversight and transparency offer more long-term security,’ she said at the presentation of the annual figures.
Revenue rose to £4.036 billion, most of which came from online gaming. The casino segment grew particularly fast, thanks in part to a new centralised platform offering players an enhanced experience worldwide. This led to higher engagement, especially in countries with stable supervision.
Sports betting remains cornerstone of the business
Despite the focus on casinos, sports betting remains at the heart of Bet365. The UEFA Euro 2024 generated additional activity in almost all markets, with spikes in wagering during the knockout phase. Yet profit growth fell short of expectations due to high marketing and licensing costs.
The company stresses that sports betting primarily serves as a means of acquiring and retaining customers. In regulated markets, this is crucial, as providers there are under strict supervision and customer protection must be central.
Meanwhile, Australian regulator AUSTRAC is investigating possible breaches of anti-money laundering rules. Bet365 says it is fully cooperating and has already implemented all the recommendations of an independent investigation.
Higher costs squeeze profits
The figures show that growth does not come for free. Operating profit from sports and gaming fell 43 per cent to £227.6 million. This was mainly due to higher staff costs, technology investments and legal liabilities.
A one-off £59.2m reorganisation further depressed results. With this, Bet365 aims to align its structure with its new strategy: operate only in countries with clear regulations and licensing requirements.
Tax payments in the UK rose to £481.5 million, up 32 per cent. This is the direct result of higher revenues from regulated markets and new tax agreements with local governments.
Bet365 chooses certainty over speed
Coates stresses that the losses fit into a transition period.
‘We are building a company that not only makes a profit today, but also exists in 10 years,’ she said.
That vision translates into a clear trend: away from uncertain markets like China, and investing more in licensing and supervision in countries like the Netherlands and Brazil.
The gambling sector is shifting globally towards regulated models, in which licence holders pay taxes and comply with duty-of-care rules. Bet365 wants to take the lead in this – even if it means temporarily lower profits.
The company expects the shift to eventually pay off in stability and trust among players and governments alike.