Bet365 to exit China's grey online betting market to focus on core regions

Online betting giant Bet365 is set to exit the Chinese market, amid plans to refocus on gaining "market share in regions that provide long-term sustainable revenue”. The development came as a surprise to many industry insiders, given that China was formerly one of the bookmaker's main revenue generators.

As the company turns its attention to its core markets, it said it will “unfortunately no longer be providing our services to customers in China” as of March 27. The UK firm is now expected to pursue a growth strategy in legal markets, including the US and Brazil.

“The group has decided to align its focus to its core competencies in its core markets by consolidating its resources to centre on gaining market share in regions that provide long-term sustainable revenue. As a result, Bet365 will shortly cease operations in various jurisdictions," the bookmaker stated.

While the company boasts gambling licenses in over a dozen regulated countries, it also held a presence in China, where online gambling remains a grey area. The Asian nation remained one of its largest markets, which has led industry analysts to label the move as a major decision for the betting brand.

The Chinese market exit was first confirmed in a 19 March statement emailed to customers in the region. Gambling in the People’s Republic is strictly prohibited, except for the special administrative regions (SARs) of Macau and Hong Kong. As the company looks to focus on regulated markets, departure seems like a necessary move.

Still, the exit surprised many, given the prior role China occupied in the company's revenue mix. In 2014, a Regulus Partners report hinted that China was "probably Bet365’s second largest market behind the UK”. A 2022 article by Business Insider also described Bet365 as a major player in the Asian nation's online gambling market.

Following the Chinese market exit, Bet365 is likely to seek a larger share in countries like Brazil, which launched its legal online betting market on January 1. But the US, where the bookmaker is already live in 13 states, is also a major target of the company, with stateside expansion a top priority, according to analysts.

The company's latest financial accounts reveal a pre-tax profit of £596.3 million ($771 million) for the year to the end of March, reversing a loss of £72.6 million ($93.9 million) a year earlier. Revenues rose 9% to £3.7 billion ($4.8 billion), bolstered by expansion in newly regulated US states.