With sportsbook operators eyeing a potential Kentucky launch this year, one company could make a big splash: Bet365.
Nobody from the company has indicated a Bet365 Kentucky platform will vie for a Kentucky sports betting license. But based on a couple factors, PlayKentucky believes it’s a strong candidate to do so.
Kentucky Gov. Andy Beshear wants to kick off sports gambling for customers by the start of the 2023 NFL season. It’s an aggressive approach, giving the Kentucky Horse Racing Commission six months after he signed the bill.
But it’s still early in the process. So far, Caesars KY sportsbook is the lone operator to secure a Kentucky license, partnering with Keeneland and Red Mile Racing.
Bet365, should it want to, has a prime opportunity to connect with Kentucky bettors.
Despite size, Bet365 is a relative unknown in the US
Most Kentuckians probably haven’t even heard of Bet365, even though it has been in business for more than 20 years.
Founded in 2000, it’s the largest sports betting site globally. Specifically, though, the sportsbook boasts a stronghold in the European market.
In fact, it’s a household name overseas. In January, Bet365 commanded a 28% share of United Kingdom sports betting traffic, according to Similarweb. Bet365 accounted for 33.3% of all the sportsbook web traffic that month, too.
Worldwide, Bet365 has more than 90 million customers, according to its website.
Bet365 making an aggressive push to US expansion
A Kentucky sports betting license makes complete sense, given how aggressive Bet365 appears to be in the US markets.
In April, Bet365 announced plans for a $40 million headquarters in the US. Potential locations include Denver, Nashville and Tuscon, according to the Denver Post.
The operator also signed a three-year deal with the Colorado Rockies to be an official sponsor in April. Colorado VP of Corporate Sponsorship Walker Monfort seemed bullish on the partnership’s future.
“All of us at the Rockies are excited to partner up with an outstanding player within the sports betting industry,” he said in a statement. “As bet365 continues to evolve within our great state, we are thrilled to be a part of their growth story.”
Bet365 already operates in four states
As of now, Bet365 operates in Colorado, New Jersey, Ohio and Virginia.
Let’s take a look at Ohio, one of the latest states to legalize sports betting.
Ohio’s industry launched on Jan. 1. Professional sports teams, college athletics and rabid fans made this state a hotbed for operators prior to launch date. And Bet365 was one of those operators ready at the gate.
In Ohio’s first month of operation, Bet365 accounted for 3.5% of the total handle. The following month, its handle share jumped to 5%. The sportsbook also accounted for 5% of Ohio’s promotional spend in January. Much like its handle share, the promotional spend share grew to 16.3% in February.
Bet365 passed on a Massachusetts license this year
That wasn’t the plan, though.
Bet365 originally stuck a deal with Massachusetts simulcast facility Raynham Park in November to become a retail and online sports betting app within the state. The deal fell through, and Rayhnham Park went with Caesars as its retail sportsbook partner.
How does this factor into a Kentucky launch?
This could signal the operator wanting to take more time for a calculated launch approach this year. Bet365 may have just decided to focus its efforts on one more state (Kentucky) for the remainder of the year, instead of two.
Strong Q1 numbers provide optimism
The first-quarter results for Genius Sports, which provides Bet365 its data rights, were ahead of guidance.
Q1 group revenue totaled $97 million. Previous guidance reached $92 million, representing a 19% year-over-year currency growth.
Projections for first-quarter EBITDA stood at $3 million, but Genius Sports totaled $8 million through the first three months.
That growth came from “an increased handle, in-play betting, higher win margins, successful cross-sell/price increases with existing customers, and new customer wins, at little incremental cost,” according to a company statement.
In turn, FY2023 numbers grew. Now, projections for group revenue are up $9 million to $400 million. Adjusted EBITDA rose from $41 million to $49 million, too.
It’s likely that Genius Sports is factoring a Kentucky launch, perhaps in time for the NFL, from Bet365 into those projections.
Why Kentucky would be solid landing spot
To put it simply: The playing field is even.
Bet365 wants to expand across the Atlantic and into the US, but it’s tough for any sportsbook to make a dent in states where the big names already operate. However, Kentucky provides a blank slate.
Should Bet365 launch in Kentucky, it can make a name for itself in a state with major sports fans. Kentucky is the only remaining state set to launch a sports betting industry this year, so this would be a prime 2023 opportunity for the UK-based operator.
Kentucky also finds itself nestled among six states with operating sports betting markets. Two of those are Virginia and Ohio, where Bet365 already operates. The others (Indiana, Illinois, West Virginia and Tennessee) may take note if Kentucky bettors enjoy bet365.
DraftKings Kentucky and FanDuel Kentucky will be the top operators in Kentucky. And Bet365 won’t be surpassing them any time soon. However, there’s a chance for the sportsbook to carve out a legitimate share in the state. Other potential candidates that may look to enter the market include Caesars and BetMGM KY Sportsbook, among others.
Let’s take a look at Ohio once more. If you take out DraftKings and FanDuel from the February numbers, Bet365 holds a 17.8% handle share. That’s only behind BetMGM, another household name in the gambling industry.
It’s not out of this world to believe a Kentucky launch would lead to a similar outcome. Should Bet365 decide to go all-in on a Kentucky launch this year, it would be a step in the right direction for a sportsbook looking to cement itself in North America.
