bet365 Suffers 2024 Loss but Founder Earns Quarter Billion
LISTEN TO THIS ARTICLE:Denise Coates, the head of bet365, earnt an impressive £270 million last year. This occurred even as the company reported a loss, primarily due to substantial investments in new markets, especially in North America.
bet365’s revenue rose to £3.39 billion in the year ending March 2023. A significant portion of this revenue, £2.65 billion, came from sports betting. Additionally, online casino games are becoming increasingly important, contributing around £715 million.
The company has refrained from providing a geographic breakdown of its revenue, stating that such disclosure could harm the group's interests. This lack of transparency has prompted inquiries from MPs, particularly regarding the proportion of profits originating from China, where online gambling is illegal.
Significant Expansion and Rising Costs
bet365's expenses significantly rose, in the main due to the costs associated with entering new markets. The company made significant strides in 2022 by expanding into several American states and Ontario, Canada. This move came after initially observing from the sidelines since the legalization of betting in the US in 2018. There are significant costs when expanding into the North American markets as competitors are spending vast sums on advertising.
However, bet365 said that despite the expense, they are confident that the markets will prove their worth in the future. The group, which also counts Stoke City Football Club in its assets, reported a £69.4 million loss in contrast to the £33.1 million profit the previous year. In recent years, the group typically enjoys profits of more than £100 million.
Denise Coates amongst UK’s Highest Paid
In spite of the company's loss, Denise Coates, the founder of bet365, remains one of the UK's highest-paid executives. Her total compensation slightly increased to £220.7 million. Additionally, she is entitled to at least half of the firm's £100 million dividend, pushing her total earnings above £270 million.
The UK gambling industry is readying itself for significant reforms, including more extensive customer background checks. However, bet365 has said it “welcomes all proposals set out by the government” and that it has “taken steps to ensure a workable solution around financial risk checks”.
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