Bet365 Reports Pre-Tax Loss After North American Expansion

Bet365 suffered a pre-tax loss of £72.6 million (US$93 million) as a result of its expensive North American expansion, as revealed in the company’s latest filings. The company’s CEO, Denise Coates, has become Britain’s richest woman, despite the pre-tax loss. However, Coates paid herself a staggering £270.7 million (US$345 million) in the year to March 2023, up from £213 million (US$272 million) in the previous year.

The sizable pay packet that Coates received last year was among the largest paid to any executive worldwide, although it’s a comparatively restrained figure for her. In 2020, she was paid £421 million (US$537 million) in salary, in addition to receiving £48 million (US$61 million) in dividends as the company’s controlling shareholder. This exceeded the combined salaries of all FTSE 100 Index CEOs.

Based on an average working week of 38 hours in the UK, Coates earned around £237,348 (US$303k) per hour in 2020, amounting to £3,955 per minute.

Bet365 reported a 19% increase in revenue, reaching £3.39 billion (US$4.32 billion), mainly driven by betting on the 2023 World Cup in Qatar. Sports betting accounted for the majority of the revenue at £2.65 billion (US$3.38 billion), while online casino gaming also experienced a 31% growth, reaching £715 million (US$912 million).

The company launched operations in several regulated U.S. markets during the 2022-2023 financial year, including Colorado, Ohio, Virginia, Iowa, Kentucky, and Louisiana. Despite the high initial investment required to enter new markets, Bet365’s directors remain confident that these markets will make a significant contribution to the company in the future.

Critics have questioned the fairness and proportionality of Coates’ remuneration package. Campaign groups like High Pay Centre have described it as unreasonable, emphasizing that Britain’s prosperity depends on how the wealth generated by the economy is distributed. The executive director of the High Pay Centre, Luke Hildyard, believes that pouring hundreds of millions of pounds into billionaire fortunes each year doesn’t maximize living standards and over-values the contribution of the super-rich.

For the company’s part, Bet365 declined to disclose its revenue breakdown by region, citing significant revenues from China’s black market. Overall, Bet365’s performance in the wake of its North American expansion demonstrates the company’s robust financial standing and strong prospects for future growth.

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