“bet365 continually reviews and assesses the markets to which it offers its services,” a company’s spokesperson told SBC News. “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 including China.”
The news marks a significant shift for the company, which has traditionally been known as one of the world’s largest grey market gambling operators.
In fact, China has the characteristics of this type of business as the only established markets in the country are Hong Kong and Macau, the former offering bets on horse racing and football and the latter being one of Asia’s biggest casino destinations.
According to Regulus Partners, a strategic advisory business, China may represent bet365’s last “dark grey market”, with the exit leaving the company with a domestically regulated mix of over 90% following the launch of Brazil’s legal market.
“A combination of a deliberate declining operational focus on China, increasingly effective state disruption, and growth elsewhere, puts the geography materially below 5% of current group revenue according to our analysis,” Regulus Partners commented.
The sportsbook’s move may be indicative of some notable trends in international betting. Many companies are shifting towards competing in regulated markets only, and as such are scaling down activity in grey markets.
The wider rollout of regulated betting globally has made it much more financially feasible for companies to shun the grey and embrace only the white markets. The recent regulation of Brazil, for example, and the company is one of the 71 licence holders in the country.
Source: GMB / SBC News
