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The operator from Stoke-on-Trent recorded another fantastic annual report for the financial year that ended on March 31st 2018. Despite the criticism that the company has received from analysts and other gaming companies that a big chunk of its revenues comes from unregulated markets where it operates under the nose of the authorities. But this hasn’t stopped the gaming giant to record another year of impressive growth, ranking it clearly at the top of online gaming operators lists.

Numbers that impress

Bet365 managed in the last 12 month to grow its revenue by an amount that is equal to the entire value of the online unit of  other operators. The growth in its GGR reached the almost unreal 26% which is coming primarily from its online business. The betting shops in UK are not as important after the latest amendments in the UK gaming regulation and bet365 has switched its attention towards other revenue streams, more specifically its online betting and casino unit. Revenues of the group increased to 722M GBP while at the same time the company currently employs over 4000 people with an annual labour cost that has increased to reach 745M GBP. Extremely impressive is the fact that bet365 currently maintains a positive cashflow of almost 2m GBP while at the same time the company is debt free. Which means that it can proceed to industry M&A in cash. Who wouldn’t want to be in a position to do this?

The operators keeps developing its entire sportsbook offering in house, which means that it saves a lot of money on royalties, with a total technology cost currently reaching 34m GBP. There are of course royalties for its casino games but they only incurred after the company added more software providers in its casino offering that currently includes NetEnt and other reputable companies.

Joint ventures and the US market

At the same time the updated results were announced, bet365 revealed that it has recently entered into a joint venture with Empire gaming in the US, preparing for more states opening their borders to remote gambling. The JV with Empire Gaming is primarily a project aiming on the New York gaming market which is discussed for a possible state legislation next year or early 2020. With estimated annual gaming size of over 1 billion dollars, New York will become immediately the biggest regulated state in the country. bet365 has lost no time in the past by entering smaller states – markets in US since with the exception of New Jersey – where the size could justify some investment – Delaware and Nevada didn’t prove large enough for a possible investment.

The biggest question and challenge for bet365 however remains its dependency on markets that are not regulated and where enforcement by the authorities is always possible. The company would avoid discussing these scenarios and articles on the press that criticize this practice by the group. For the time being the management are only looking for more expansion into new territories and of course the strengthening of its casino product offer which is now catching up with competition.



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