Bet365, a major player in the global online sports betting market, has announced its exit from China. The UK-based company will cease operations in the Chinese market on March 27, shifting focus to regulated markets including the US and Brazil.
Bet365, one of the world's largest online sportsbooks, is set to withdraw from the Chinese market. In an email to Chinese customers on March 19, the company revealed plans to redirect its efforts towards 'core markets and regions that provide long-term sustainable revenue.'
This decision marks a significant shift for Bet365, which has long operated in a legal grey area within China. While gambling is strictly prohibited in mainland China, with exceptions for Macau and Hong Kong, Bet365 had maintained a presence in the country through various means.
A 2024 Financial Times report described China as a 'cash machine' for the Coates family-owned business. The company reportedly sought out unregulated markets as UK sports betting reached saturation. By 2014, industry analysts at Regulus Partners estimated that China was likely Bet365's second-largest market after the UK, though contributing less than 20% of revenue.
Bet365's operations in China involved using 'mirror sites' hosted by subsidiaries to evade detection by authorities. This cat-and-mouse game with Chinese regulators was described by Ben Lee, managing partner at IGamiX Management and Consulting in Macau, as 'a game of whack-a-mole.'
Despite these tactics, Bet365 has consistently denied breaking Chinese law or putting Chinese consumers at risk. In 2020, a company representative told the Telegraph, 'There is no legislation which expressly prohibits the supply of remote gambling by offshore operators into China.'
As Bet365 exits China, it's setting its sights on greener pastures. The company is looking to expand in regulated markets, including Brazil, which opened its legal online sports betting market on January 1. There, Bet365 joins a competitive field including Entain, MGM, Flutter, and Stake.
However, industry analyst Alun Bowden told Covers that Bet365 is primarily 'gunning for US market share.' The sportsbook is already live in 13 US states and recently launched in Illinois for March Madness. It's set to debut in Missouri this fall and has just signed a deal with the St. Louis Cardinals to become the team's first mobile sports betting partner.
Analysts at Regulus view China as Bet365's 'last material "dark grey" market.' With its departure, the group now has 'a domestically regulated mix of over 90%,' especially considering Brazil's recent licensing. The ongoing crackdown on illegal gambling in China has made the market increasingly difficult and controversial to operate in, making it 'relatively easy for bet365 to exit,' according to Regulus.
