One of the world’s largest betting operators, Bet365, has officially ceased its operations in the Chinese market. This move has surprised many, as the operator’s presence in China had long remained under the radar. Now, the company has announced its withdrawal, redirecting its efforts toward more promising markets such as the United States.

Bet365’s History

Bet365’s Secret Presence in China

For many years, Bet365 operated in China’s “gray zone”. Due to strict Chinese government policies against gambling, foreign operators could not legally conduct business. Nevertheless, Bet365 found ways to offer its services while maintaining a relatively low profile. The company often did this by working with intermediaries and establishing a complex network of operations that could bypass regulatory barriers. The fact that Bet365 managed to continue operating in such a high-risk environment is a testament to its resilience and adaptability in the face of regulatory challenges.

How Bet365 Managed to Enter the Chinese Market

Bet365’s entry into the Chinese market was not straightforward. Given the Chinese government’s strict stance on gambling, foreign companies were not able to obtain official licenses to operate. However, Bet365 managed to tap into the massive demand for online gambling by offering its services through international platforms, reaching Chinese users who bypassed local restrictions via VPNs and other tools. The company used a combination of local partnerships and strategic online marketing to promote its services discreetly.

In many ways, Bet365’s success in China mirrored the behavior of many other international operators. By operating in the “gray market“, Bet365 was able to offer services to Chinese gamblers while avoiding direct legal confrontations with Chinese authorities. In return, Bet365 was able to tap into one of the largest and most lucrative gambling markets in the world.

However, this model had inherent risks. Bet365’s presence in China was always tenuous, given the ongoing crackdown by the government on illegal gambling platforms. While the company’s operations were not officially sanctioned by the Chinese government, it was clear that the company was taking significant risks to maintain a foothold in the market.

The Chinese Gambling Market: A Struggle for Foreign Operators

The Chinese gambling market is one of the largest and most lucrative in the world. However, due to the strict nature of gambling regulations in the country, foreign operators have faced significant hurdles in trying to offer their services to Chinese customers. For years, Chinese players turned to offshore gambling platforms like Bet365 to place their bets, despite the risks involved.

The Chinese government has taken an aggressive stance against illegal gambling operations, both online and offline. Authorities have imposed heavy penalties on individuals and operators involved in illegal gambling activities, including arrests, large fines, and imprisonment. These measures have made it increasingly difficult for foreign operators like Bet365 to maintain their presence in the country.

The Increasing Regulatory Pressures

As China ramped up its anti-gambling measures, Bet365, like many other international gambling operators, found it more difficult to maintain its business in the country. The Chinese government had already imposed strict regulations on domestic gambling activities, and in 2019 and 2020, the crackdown on international online gambling platforms intensified.

For example, the Chinese government began blocking access to gambling websites, preventing Chinese citizens from visiting offshore platforms like Bet365. They also launched aggressive campaigns to identify and shut down illegal gambling networks. These efforts included collaborating with international law enforcement agencies to identify operators providing gambling services to Chinese citizens.

In this increasingly hostile environment, Bet365 had to make tough decisions about its long-term strategy. The company had a choice between continuing to operate in the Chinese market, which would likely involve taking on greater legal and reputational risks, or withdrawing from the market and focusing on more stable, regulated environments. Ultimately, the company chose the latter.

Bet365’s Exit from China: A Strategic Decision

Bet365’s withdrawal from the Chinese market is not just a reflection of the increasingly restrictive regulatory environment but also a strategic move to avoid potential legal issues in the future. By exiting China, Bet365 can avoid the risk of being caught up in the government’s crackdown on illegal gambling, which could have serious repercussions for the company’s global operations.

The company’s exit from China is also a sign that the broader gambling industry is reevaluating its approach to the country. As the Chinese government continues to strengthen its regulatory framework, foreign companies may find it more difficult to operate in the market legally and profitably.

Bet365’s management has likely weighed the potential risks of continuing operations in China against the benefits of focusing on regulated markets like the US and Europe. Given the shifting regulatory landscape in China, continuing operations in the country could have exposed the company to significant risks, both legally and financially.

The US: Bet365’s New Focus

The exit from China is part of Bet365’s broader strategy to expand in regulated markets with more stable legal frameworks. The United States, in particular, has become a key focus for Bet365 in recent years. As more states in the US legalize sports betting, Bet365 has worked hard to secure licenses and establish a foothold in one of the world’s largest and most lucrative sports betting markets.

Bet365 has been actively obtaining licenses to operate in various US states, allowing it to provide its services legally in this rapidly growing jurisdiction. The company’s strategy in the US has been to enter multiple markets and establish a presence in key states, where the sports betting market is expected to continue expanding in the coming years.

Recently, Bet365 received its 13th license in the United States, adding Illinois to its list of operating states. As of today, Bet365 is legally operating in the following states:

• Arizona
• Colorado
• Indiana
• Iowa
• Kentucky
• Louisiana
• New Jersey
• North Carolina
• Pennsylvania
• Ohio
• Virginia
• Tennessee
• Illinois

The US sports betting market is growing rapidly, and Bet365 sees it as a prime opportunity for long-term growth. Several other states are expected to legalize online sports betting in the near future, creating additional opportunities for Bet365. Missouri, Minnesota, and Texas are among the states currently discussing the legalization of online sports betting, and Bet365 is well-positioned to expand its operations into these regions.

The US Sports Betting Market: A Lucrative Opportunity

The US sports betting market has seen explosive growth in recent years. Following the Supreme Court’s decision to strike down the Professional and Amateur Sports Protection Act (PASPA) in 2018, many states have moved to legalize sports betting. As a result, the market size has ballooned, reaching $93 billion in 2023. By 2027, the market is expected to grow to $150 billion, driven by continued state-level legalization, the expansion of online platforms, and the increasing popularity of sports betting among US consumers.

Bet365 is capitalizing on this growth by expanding its footprint across the US. However, despite its rapid expansion, the company’s market share remains relatively small compared to industry leaders like FanDuel and DraftKings. As of January 2025, Bet365 held only 1.4% of the total sports betting market in the US. While this is a modest figure, the company is focused on expanding its presence and building brand recognition through targeted marketing campaigns and competitive offerings.

Bet365’s Strategy in the US

Bet365 is using several strategies to increase its market share in the US. One key strategy is to offer competitive odds and a wide range of betting options to attract new customers. The company has also focused on providing a user-friendly platform and mobile apps to make it easier for customers to place bets and engage with the service.

In addition to competitive odds, Bet365 is also leveraging bonus offers and promotions to incentivize new users to sign up. The company’s relatively low margins make its betting options more attractive to players, and its growing partnership network helps increase visibility among sports fans.

Another significant part of Bet365’s strategy in the US is forming partnerships with major sports leagues and organizations. These partnerships help the company enhance its brand visibility and credibility, especially in a market as competitive as the US. By aligning itself with established sports entities, Bet365 aims to build trust and attract a loyal customer base.

The Future of Bet365: Looking Ahead

Looking forward, Bet365 is well-positioned to continue its expansion into regulated markets around the world. While the company is making significant strides in the US, it is also exploring opportunities in other regions. Latin America, for example, presents a significant growth opportunity for the company. As countries like Brazil, Argentina, and Mexico work toward regulating online betting, Bet365 is preparing to enter these markets and offer its services to a new generation of sports fans.

In Asia, countries such as Japan, the Philippines, and India are gradually relaxing their gambling laws, which could provide additional opportunities for Bet365. The company’s experience in navigating complex regulatory environments will be valuable as it seeks to expand its footprint in these emerging markets.

Additionally, Bet365 is exploring new verticals, including esports betting, which is becoming increasingly popular. In 2024, the esports betting market grew by 20%, and Bet365 is actively working to develop this segment by forming partnerships with leading esports organizations and integrating esports betting into its platform.

Conclusion

The decision to withdraw from China is indicative of the broader trend in the international gambling industry. As governments around the world continue to tighten regulations on online gambling, companies like Bet365 are reevaluating their business models to ensure they remain compliant with local laws while maintaining a competitive edge. By stepping away from high-risk markets and focusing on countries with established legal frameworks for gambling, Bet365 is positioning itself to build stronger, more sustainable partnerships with governments and local regulators.

One of the key factors contributing to Bet365’s success in new markets will be its ability to adapt its products and services to the unique preferences and needs of local customers. The company’s investment in data analytics, artificial intelligence, and personalized user experiences gives it a competitive edge in markets where consumers increasingly demand tailored and immersive betting experiences. By continuing to refine its platform, Bet365 will be able to meet the demands of the ever-evolving gambling landscape and attract a broader range of users.

Moreover, Bet365’s commitment to responsible gambling, data security, and customer protection will be critical as it navigates expanding regulations across various regions. As more jurisdictions impose stricter compliance requirements, Bet365’s proactive approach to protecting its users will help enhance its reputation as a trustworthy operator. The company’s efforts in promoting responsible gambling, ensuring transparency, and maintaining strict data privacy measures will help it foster long-term relationships with customers and regulators alike.

Bet365’s journey from a small UK-based company to a global gambling giant has been marked by its ability to adapt to changing market conditions, embrace innovation, and continuously expand its presence in new regions. As the company exits markets with increasingly uncertain regulatory environments, it is positioning itself for future growth in established and emerging markets that prioritize legal clarity and customer protection. By focusing on regulated markets like the United States, Latin America, and Asia, Bet365 is not only ensuring its sustainability in the long run but also continuing to shape the future of the global gambling industry.

In conclusion, Bet365’s decision to withdraw from the Chinese market should be seen as part of a broader strategic shift aimed at securing its long-term success. The company is making smart moves by focusing its efforts on regions with clear regulatory frameworks and significant growth potential. The United States, with its expanding sports betting market, offers a wealth of opportunities, and Bet365’s continued expansion into other regions such as Latin America and Asia ensures that the company remains well-positioned to become a dominant force in the global gambling landscape for years to come.