In the 12 months to 30 March 2025, Bet365 reported a 9% year-on-year increase in its sports and gaming revenue to £4.036 billion, driven largely by a 25% uptick in gaming revenue.
Gaming gains were powered by significant updates to Bet365’s product suite. Bet365 CEO Denise Coates said UI functionality was improved after all gaming products were transitioned into a central casino vertical, accessible from across all platforms.
In a Companies House filing Monday, Coates also noted enhancements to Bet365’s in-house games recommendation engine, which was expanded across additional markets during the period.
Sports grew 5%, supported by new market entries and “a successful UEFA Euro 2024 tournament”.
Sports and gaming operating profit dropped 43% year-on-year to £227.6 million. Profit before tax was down 44% to £348.7 million, largely due to increased costs associated with new market entries, as well as a one-off restructuring and reorganisation cost of £59.2 million. Total administrative costs hit £324.7 million for the year.
The operator incurred a loss of £43.3 million during the reported period, in part due to its fixed assets decreasing by £98.5 million. This was the result of it offloading its Stoke City Holdings Limited investment.
In its 2023-24 results, Bet365’s sports and gaming segment had returned to profit (£626.6 million) after a year of heavy improvements and operational streamlining.
Combined group profit in 2024-25 was £338.5 million, down from £596.3 million the previous year.
Bet365 market exits cost £10.2 million
The company put its profit decrease down to a considerable pivot in its strategic positioning to regulated revenues.
During the period the operator exited China, one of its biggest historically grey markets. In her statement prefacing the group’s results, CEO Denise Coates confirmed this strategic shift to majority regulated revenues.
She noted the company exited a number of its historical markets as they “no longer fell within the long-term sustainable revenue category”.
This process did not have a material impact on turnover, although costs associated with new market entry increased overall costs to £896.5 million, compared to £686.8 million the previous year. An additional loss of £10.2 million was incurred in relation to its exit from various markets.
She said key decisions during the year “centred on preparation for new regulatory launches and changes”.
“Aligning with that focus, the operating boards recognised that point of consumption regulated markets offer the most robust foundation for long-term sustainable revenue,” she added.
“Therefore they resolved to prioritise obtaining and maintaining gambling licences wherever feasible, focusing resource allocation on markets with long-term sustainable revenues streams in the coming years.”
During the period, it was granted licences in Brazil, Peru, Serbia and various additional US states. Coates said Bet365 would continue its “long-standing policy of pursuing licences in locally regulated markets”.
She believes the group is “well-placed to benefit long term in those countries where commercially viable regulation is adopted”.
During the 12-month period, Bet365 contributed £481.5 million in tax revenue in the UK, up 32% from its previous financial year.
Waiting on outcome of AUSTRAC investigation
Australian regulatory body AUSTRAC initiated an investigation into Bet365 over potential breaches of anti-money laundering and counter-terrorism financing laws in March 2024.
As a result, Bet365 had an external audit carried out by Kords Mentha, which was submitted to AUSTRAC in February this year.
In an update on the case in its 2024-25 earnings report, Bet365 said all recommendations from the auditor had been actioned and AUSTRAC was reviewing its remediation plan.
“It’s too early to predict the likely timing and potential outcome of this investigation,” the company said.
The Stoke-headquartered operator recorded revenue gains across multiple verticals, but its strategic shift to regulated and “sustainable revenue” impacted group profits in 2024-25.