China out, America in: bet365 exits China amid ongoing push into the US market

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Stoke-on-Trent-based betting giant bet365 have announced it will exit the Chinese betting market this week; despite China being believed to have been one of the company’s biggest markets. 

However, the country’s government has been cracking down on firms that offer services to the Chinese market. And analysts believe bet365 are attempting to clean up its image as it pushes further into the US market. 

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China represents a grey market, not governed by any particular commission, and exposure to these markets raises questions with legitimate regulators.

Chinese customers were sent an email by bet365’s representatives on 19 March. The email detailed that the company would stop offering its services to customers in China from 27 March to concentrate on “core markets and regions that provide long-term sustainable revenue.”

The British-based operator has had a reputation for operating in so-called grey markets. Gambling is illegal in China, except in provinces like Hong Kong and Macau. 

But, by 2014, China represented bet365’s second largest market, after the domestic UK market, bringing in around 20% of the company’s revenue. 

After the recent changes to Brazil’s gambling regulations, China was the last major remaining grey market in bet365’s portfolio. 

The Chinese Government has been cracking down on what it considers ‘illegal operators’, making it a risky market. And, as the group continues its concerted push into the US markets, its exposure to these grey markets has presented problems. 

This is because regulators in legitimate markets look at a company’s portfolio and its exposure to high-risk markets. It has previously been reported that an unknown entity in the US had created a report on bet365’s grey market activities, but separate legal action meant that the dossier was shelved.

Based on the company’s email, and recent movements in the US market, the company is clearly hoping to replace its Chinese business with legitimate regulated business.

The US is one such market. Currently, 38 of the country’s 50 states have regulated sports betting markets, and further expansion is likely. 

The betting giant currently has a presence in 13 of those 38, adding Missouri, as the latest State, to its portfolio.

Just this week, the bookie announced a partnership with the St. Louis Cardinals Major League Baseball team. The multi-year marketing deal grants bet365 the rights to advertise on the Cardinals’ radio and TV channels. 

They will also have signage in the ballpark, which will be visible during TV broadcasts, and the company has naming rights to a reserved spectator area in the right-centrefield. 

Meanwhile, Missouri legalised sports betting following a public ballot. However, bookmakers are not expected to go live until later this year; bet365’s presence in the market may improve its odds of being one of the chosen ones. 

Brazil’s recent regulatory changes have helped reduce bet365’s exposure to grey markets. The company is one of 71 licensed sports betting companies in the new market, which is widely tipped to become one of the world’s biggest and most lucrative sports betting markets. 

Reports at the tail end of 2024 ranked Brazil as the world’s third-largest market behind the UK and US.