bet365 withdraws from chinese market amid regulatory concerns

Bet365, the prominent gambling company founded in Stoke-on-Trent, has announced its decision to cease operations in the lucrative Chinese market. This unexpected move comes as the company aims to refocus its resources on core markets that promise sustainable long-term revenue.

The announcement indicates a strategic shift for bet365, which has long operated in a legal grey area regarding online betting services accessible from China. Despite the longstanding prohibition of gambling in the country, bet365 had maintained operations under the premise that it was not breaching any Chinese laws. However, increased scrutiny from regulators and heightened risks associated with operating in such an environment have prompted the company to reconsider its position.

Denise Coates, chief executive of bet365 and one of Britain’s wealthiest women, has often been discreet about her business dealings. However, speculation surrounding the firm’s withdrawal from China has been rife, with some industry insiders wondering whether this signals a sale of the company or an intent to strengthen its presence in the rapidly expanding US sports betting market.

The US market has been experiencing a shift in legislation, allowing sports wagering at the state level. As bet365 grapples with limited licensing in comparison to its competitors, the decision to withdraw from China could provide an opportunity to consolidate efforts in more promising jurisdictions.

Analysts suggest that the revenue generated from China has diminished significantly over the years, dropping from approximately 20 per cent in 2014 to below 5 per cent today. The changing regulatory landscape, coupled with an increasingly hostile environment for online operators in China, has made this exit an easier decision to execute.

As bet365 directs its focus towards capturing a larger share of regulated markets, including the US, it remains to be seen how the company will navigate the challenges ahead while striving to maintain its footing in an intensely competitive landscape.