Introduction
The globally renowned online gambling giant Bet365 has announced its gradual withdrawal from the Chinese market, subsequently shifting its strategic focus to the United States. This decision is not accidental but is based on a comprehensive assessment of changes in the global gambling industry landscape, policy risk considerations, and market potential. This article will delve into the core reasons behind Bet365's exit from China and its full-scale development of its business in the US, exploring the underlying business logic and future strategic direction.
1. Exiting China: Policy Pressure and Soaring Compliance Costs
1.1 Continuous Tightening of Regulatory Policies in China
The Chinese government has consistently adopted a high-pressure policy against online gambling. Since 2018, the Ministry of Public Security has carried out several special rectification operations against cross-border gambling, blocking overseas gambling platforms and cracking down on payment channels. In 2020, the "Criminal Law Amendment (XI)" explicitly criminalized organizing cross-border gambling, further squeezing the living space for international platforms like Bet365.
1.2 Increased Difficulties in Payments and User Acquisition
Chinese financial regulatory authorities strictly limit capital flows to overseas gambling platforms, and third-party payment institutions (such as Alipay, WeChat Pay) have completely cut off related transaction channels. At the same time, the internet platform's ban on gambling advertisements has made it difficult for Bet365 to acquire customers through conventional channels, significantly increasing operational costs.
1.3 Brand Risk and Long-term Uncertainty
Even by retaining some users through "gray" methods, Bet365 still faces legal lawsuits, brand reputation damage, and other risks. Without a legal license, exiting is a rational choice to reduce long-term risks.
2. Turning to the US: Market Liberalization and Growth Dividends
2.1 US Gambling Legalization Wave
In 2018, the US Supreme Court overturned the "Professional and Amateur Sports Protection Act" (PASPA), allowing states to independently decide on the legalization of sports gambling. By 2024, 38 states and the District of Columbia have opened legal sports gambling, with the online gambling market size exceeding $40 billion and an annual growth rate of over 20%.
2.2 High Profit Margins and User Potential
The US sports gambling user base is vast, and the average betting amount per user is much higher than other markets. For example, in 2023, the online gambling revenue in New Jersey reached $1.7 billion, with an average annual consumption per user exceeding $1000. Additionally, US users have a high acceptance of innovative products (such as real-time betting, esports gambling), providing Bet365 with opportunities for differentiated competition.
2.3 Licensing Compliance Brings First-Mover Advantage
Bet365 has successfully obtained operating licenses in states like Colorado and New Jersey, and by partnering with local casinos (such as Hard Rock Hotel & Casino), it meets compliance requirements. This "light asset" model reduces policy risks and quickly captures the market with the help of local partners' resources.
3. Strategic Adjustment: Resource Allocation and Technological Upgrades
3.1 Capital and Talent Concentrated on US Operations
Bet365 has redirected the marketing budget and technical resources of its original Asian team to the US, such as spending $100 million to sponsor US professional leagues (like NFL, NBA), and reaching content cooperation with media such as ESPN, enhancing brand exposure.
3.2 Localization of Product Optimization
Targeting US user preferences, Bet365 has launched specialized betting interfaces for American football, baseball, and integrated cryptocurrency payment options (such as Bitcoin). Its exclusive "In-Play" real-time betting technology has also become a core selling point, occupying 25% of the live betting market share in the US.
3.3 Building Moats to Counter Intense Competition
Facing competition from local giants like FanDuel and DraftKings, Bet365 has rapidly acquired customers by lowering the rake rate (only 5%-7%, below the industry average of 10%) and launching promotions such as "bet money back". Additionally, its global operational experience provides advantages in risk management and data algorithms.
4. Challenges and Concerns
Despite the broad prospects of the US market, Bet365 still faces the following challenges:
State-level Regulatory Fragmentation: The tax rates (ranging from 5% to 51%) and compliance requirements vary greatly among states, increasing operational complexity.
Rising Customer Acquisition Costs: In 2023, the average customer acquisition cost in the US online gambling industry has risen to $350 per person, intensifying the marketing battle.
Ethical Controversies and Policy Rollback Risks: Some states (such as California) are still resisting the legalization of gambling, and future restrictions on advertising or increased tax rates may be strengthened.
5. Conclusion: Strategic Retreat and Precise Positioning
Bet365's withdrawal from China and bet on the US is a typical "policy risk avoidance + market dividend" dual-driven decision. The keys to its success include:
Early layout of license resources, avoiding high competition thresholds for latecomers;
Technology advantage transformation, adapting Europe's mature real-time gambling system to meet US needs;
Maximizing capital efficiency, focusing firepower on high-value markets.
In the future, as the penetration rate of online gambling in the US is expected to reach 50% by 2027, Bet365, if it continues to optimize compliance operations and user experience, may aspire to be among the top three in the industry, becoming a regional market winner in the global retreat.
