Bet365 vows to be “in it for the long haul” with New York sports betting
Online giant encourages regulator to favour its application over “highly leveraged” listed competitors, adding that there are no plans to sell, merge or take bet365 public
Bet365 has insisted in its application for a mobile sports betting licence in New York that the digital betting heavyweight, if licensed, would be “in it for the long haul” in the Empire State.
In tender documentation filed with the New York State Gaming Commission (NYSGC), the Stoke-on-Trent-headquartered, privately owned operator also took aim at its “heavily leveraged” rivals, suggesting it would be a better fit for the state.
“We have no plans to sell the company, merge the company or to take the company public,” bet365 wrote.
“All of these factors contrast with many of our competitors who are highly leveraged and dependent on outside investment to maintain their business and fund operations.
“Being completely debt-free allows us the financial stability and flexibility to sustain operations however we need to, without relying on outside investments.
Expanding on its long-term plans for New York, bet365 suggested it would be ever-present in the market for the next 20 years.
“If licensed, bet365 would be an operator that is ‘in it for the long haul’ in New York, with very little likelihood of a merger or acquisition resulting in the loss of our licence, and an even lower risk of financial instability that could threaten our operational ability,” the firm explained.
“In a market that is constantly evolving and still in its infancy in the US, we’re not going anywhere,” bet365 added.
In 2018, bet365 entered into a 20-year “strategic alliance” with Empire Resorts, owner of Resorts World Catskills in New York, which saw bet365 invest up to $50m, become the casino company’s second-largest shareholder and run retail betting operations.
In its application for one of New York’s two primary sports betting platform licences, bet365 highlighted its global database of more than 63 million customers and its in-house proprietary betting platform and tech stack, adding that “over a thousand” employees work exclusively on the firm’s technology alone.
Bet365 also referenced its commitment to an “authentic and adaptable” sportsbook for New Yorkers, revealing that its NY sportsbook would be run from the firm’s office in neighbouring New Jersey and serviced by a staff of 100 traders.
The operator claimed its high customer payouts and customer protection initiatives would aid the state in its efforts to ensure a high channelisation rate.
Bet365 suggested it would continue to utilise its “close to the game” strategy of advertising in-stadia and around coverage of matches in the New York market.
Its New York strategy, the firm revealed, would run through four main channels: brand, paid media, partners and social media.
“We strongly believe in marketing towards an audience that specifically fits the mobile sports wagering category and no broader; we understand that this is not a ubiquitous approach within the category today,” bet365 wrote.
The operator revealed it is currently rolling out a survey to existing customers in New Jersey with the aim of “smoothing out” points of friction in its sports betting app, which is currently available in New Jersey.
“It is our hope that this will assist us in making the necessary adjustments before deploying in the New York mobile sports wagering market,” bet365 added.
Bet365 faces competition in the Empire state from five other primary applicants including FanDuel, Fox Bet, theScore and Kambi.
New York regulations require platform providers to serve as the primary applicants, which are then obliged to declare all operators they wish to host on their respective platforms.
A consortium of sports betting operators including BallyBet, BetMGM, DraftKings and FanDuel have teamed up on a combined application, with the successful bidders utilising FanDuel’s sports betting platform.
A second involves rival operators Caesars, Empire Resorts, PointsBet, Rush Street Interactive and WynnBet, which have all elected to use the Kambi sportsbook platform.
Fanatics Sportsbook and Penn Sports were submitted as sportsbook partners in the other of Kambi’s two applications, with US rapper Jay-Z listed as a high-profile backer of the Fanatics bid.
Fox Bet, theScore and bet365 have said they would operate on a standalone basis via in-house technology.