Online Gambling Operations - Goodbye UK, Hello U.S.

In early May 2025, UK-based bet365 stunned the online gambling community by announcing the possibility of a company sale, in part or whole. Such a sale could bring as much as $12 billion to the Coates family, which owns the company.

Why would they initiate such a sale? Times are getting rough for online gambling operators in the UK and other parts of the world. In the UK, the UK Gambling Commission has been clamping down on predatory marketing practices and the increase in problem gambling issues. In China where bet365 had been operating online, operations had to be shut down to avoid criminal charges for operating illegally. This has caused more than a few UK-based online gambling providers to seek refuge in the West.

Why the West? The U.S. sports betting and iGaming markets have blossomed in the last five (5) years. Currently, forty states are allowing retail and/or online sports betting operators to operate in their states with more to come in the future. Also, seven (7) states have legalized online casino gambling access. It's the iGaming market that's ripe for an explosion within the next few years.

Flutter Shows the Way

While bet365 has already had moderate success in the U.S., it's Flutter, one of the world's largest online gambling conglomerates, that has pointed the way to the West. Flutter, the Dublin-based parent of FanDuel, announced last year that it would be winding down certain parts of its UK gambling operations and moving them to New York. Fanduel's success speaks for itself as it currently accounts for approximately 50% of the U.S. online gambling market, accounting for almost 40% of Flutter's worldwide online gambling revenue.

Clearly, companies like FanDuel and DraftKings have benefitted from operating in an online gambling market that is still in its infancy. Since operators are regulated on a state-by-state basis, there has been little consensus among regulators related to online gambling standards and addressing problem gambling issues. That is expected to occur latter on once the market has matured.

Along with bet365 and Flutter, Entain is another foreign-based gambling conglomerate that has sought refuge in the U.S. They did that by purchasing a large interest in BetMGM, MGM Resorts International's online gambling arm. Since they made the investment in early 2024, profits have exploded. Tis has led to speculation that either BetMGM or Entain might make a play to acquire all of BetMGM's operations.

The Challenges Ahead

While the U.S. online gambling market still holds plenty of intrigue, Foreign-based operators still face challenges.

One of the big challenges faced by companies like bet365 and FanDuel is the speed at which the iGaming market has been growing. It's been seven (7) years since states were given the green light by the United States Supreme Court to allow online betting activities. Within that time, only seven (7) states have legalized online casino gambling. That's due in large part to the nation's Indian Tribes that aren't fond of losing business generated by their retain casinos.

The hope is more states will legalize iGaming activities, which would bring massive profits to participating operators.