Bet365 made a hefty bet on itself back in 2005 when the United Kingdom passed the Gambling Act, a Parliament law that sent most online gaming companies scrambling to remote locations free of the newly dictated taxes on their operations.
England-based Bet365, an Internet gaming hub that specializes in sports betting and poker, opted to stay put, a decision that is now paying fat dividends.
In December of 2014, Britain implemented the Point of Consumption tax, meaning those networks that fled to offshore locations are now responsible for considerably higher tariffs on their profits.
Already accustomed to laws now affecting its rivals, Bet365 posted a 92 percent pre-tax revenue increase for the financial year that ended March 31st, the company citing a 43 percent rise in sports gamblers as the primary reason for the jump.
During the 2014-2015 economic calendar, Bet365 declared operating profits of £410.2 million ($622 million), a source telling the Financial Times that its sportsbook continues to perform exceedingly well despite its foes merging with one another.
Ladbrokes and Coral joined forces this year, as did Paddy Power and Betfair.
“Do I think that Betfair and Paddy Power are two huge and strong competitors?” the anonymous source pondered. “I am sure they will be, but we just kind of get on with our own thing.”
Its “own thing” is yielding generous profits across the board.
In addition to growing its sports betting customer base, online poker incomes have also increased. By focusing on the more recreational player, Bet365 said iPoker gains are up three percent.
Social gambling has provided enormous revenues for US-based operators like Caesars Interactive, and it appears centering on the recreational gambler is also paying off in the UK.
Adding on to the pile of good news is that 47 percent of new poker player signups are coming through mobile devices, a telling sign that the company is attracting the next generation of iGamblers.
Being a private company with CEO Denise Coates owning 50 percent and her brother John Coates accounting for an additional 25, Bet365 doesn’t have to answer to hedge fund managers or investment capitalist firms.
There will be no takeover or drastic corporate realignment unless the Coates’ decide that is in the company’s best interest.
The two chief owners reportedly collected a $114 million dividend from last year’s performance, but they also increased their workforce by nine percent and created a charitable foundation in 2014 with an initial deposit of some $160 million.
At just 48, Denise Coates shows no signs of retiring or divesting her interests in the online gambling powerhouse. In fact, Bet365 is expanding its global operations.
While its England headquarters remains in Stroke-on-Trent, Bet365 has placed roots in Gibraltar for its worldwide operations to simply its licensing procedures. The gambling-friendly British Overseas Territory is home to several international iGaming platforms including bwin.party, William Hill, and Ladbrokes.
The Financial Times source says Bet365 expects to be licensed in 12 countries in the coming months.