Bet365 Results Take A Significant Hit Amid Rising Cost Pressures

Bet365 grew its revenue and gross profit for the year to March 30 2025, but saw a significant hit to its operating profit and profit before taxation, ahead of increased taxes soon to be introduced in the UK.

Bet365’s revenue went up 9% to £4.03 billion, while gross profit for the year was £3.14 billion, up from £3.009 billion in the year prior. The operator put its revenue growth in part down to a successful UEFA Euro 2024 men’s football tournament and expansion into locally-regulated markets

However, operating profit dropped to £227.6 million from £396.6 million, and profit before tax fell 44% to £348.7 million. Bet365’s overall profit for the financial period was £249.7 million; down by more than 50%.

Cost increases blamed

The declines were partially put down to a significant increase in costs from entering newly-regulated markets. During the period, Bet365 launched in US states including Illinois, Pennsylvania, Tennessee, Kansas and Maryland. Resource has also been allocated to product development and launches in Brazil, Peru and Serbia.

In March, Bet365 confirmed it was planning to exit the Chinese market, as part of an effort to focus its efforts on regulated markets. This move, which came after an increase in enforcement against China-facing operators, came too late in the financial year to have an impact on the overall results.

UK tax issues

Bet365 will face further issues in the UK in the coming years due to planned tax increases. In April 2026, remote gaming duty, paid on gross profit on online casino betting, will rise from 21% to 40%. This will be compounded further in April 2027, when general betting duty, paid on online sports betting, will go up to 25% of gross profit from 15%.

While this is likely to lead to several cost-cutting measures in the UK, it is also possible that Bet365 could grow its market share as a result of the cost pressures it will place on smaller operators; all operators are likely to feel the pinch though.

Is M & A now more likely?

One of the over-riding questions about Bet365 is whether it is likely to explore M&A to offset the costs it is set to incur when combining the move to regulated markets and the increased taxation in the UK.

Bet365 has always steered away from M&A, which accelerated across the UK online gambling industry in the second half of the previous decade as a result of regulatory changes.

These included the point-of-consumption tax being introduced in 2014, which prevented operators from being taxed purely in offshore jurisdictions, and the slashing of maximum stakes on fixed-odds betting terminals in betting shops from £100 to £2 in 2019.

Something to go on

In May, reports surfaced suggesting Bet365 was exploring options for either a full or partial sale. The 2024/25 financial results are a sign that this may have to become a reality.

Bet365’s global activity has often been seen as a reason why it has been able to sustain itself without merging with, acquiring or being sold to other operators, as has been seen with the formations of its conglomerate competitors Flutter Entertainment and Entain.

Should Bet365 continue its focus on moving to regulated markets, then M&A activity to offset those costs may eventually become inevitable.

Stoke City demerged

The results also mentioned discontinued operations from Stoke City Football Club; Stoke play in the second-tier Championship in English football and the club’s results had previously been included as part of Bet365 Group’s returns. On July 8 2024, this practice was discontinued, with the club and its subsidiaries being demerged from the group and John Coates taking ownership of the group.