bet365 just posted £4 billion in revenue for the 2024-25 fiscal year—a 9% jump from the prior year. But the bottom line tells a different story: operating profit swung from £116.7 million to a £43.5 million loss.

So yes, one of the world's largest gambling operators is making more money than ever and somehow losing money at the same time. Welcome to the modern sports betting industry.

The Quick Hit

• What happened: bet365 revenue up 9% to £4.036 billion, but profits tanked
• The damage: Operating loss of £43.5 million, down from £116.7 million profit last year
• Why you should care: Regulatory pressure and US expansion are squeezing everyone
• The move: UK gambling tax jumps to 40% in April 2026—more pain ahead

The Numbers Don't Lie

Sports revenue grew 5%. Gaming revenue jumped 25%. Total revenue hit £4.036 billion, up from £3.696 billion the year prior. By any normal standard, bet365 had a monster year.

But the expenses are eating everything. The company's pivot toward regulated markets—and away from grey markets like China—came at a steep price. Fixed assets dropped by £98.5 million as bet365 exited markets that used to print money but now carry too much regulatory risk.

US expansion continues to bleed cash. Getting licensed in new states, marketing against DraftKings and FanDuel, and building out infrastructure isn't cheap. During the period, bet365 secured licenses in Brazil, Peru, Serbia, and several US states.

The Tax Squeeze Is Coming

Here's the part that should concern every betting company: from April 2026, UK remote gambling duty jumps to 40% of gross gaming revenue.

bet365 contributed £481.5 million in UK tax during the fiscal year—up 32% from the prior year. When that tax rate balloons, smaller operators might simply exit the market. bet365 probably survives and potentially benefits from consolidation, but the margin compression is real.

What This Means for Bettors

Honestly? Probably not much in the short term. bet365 isn't going anywhere. They remain one of the largest private gambling companies on the planet, and the Coates family has weathered storms before.

But the industry dynamics are shifting. DraftKings and FanDuel are fighting their own battles with prediction markets and leaving the American Gaming Association. State-level tax increases are squeezing operators everywhere. The golden era of lavish promotions and odds boosts funded by VC money is slowly ending.

For bettors, this means shopping lines becomes even more important. As operators tighten margins, the difference between getting -110 and -115 on the same bet matters more.

The Bigger Picture

bet365's story mirrors the entire industry: revenue is up, but so are costs. Regulatory compliance, responsible gambling requirements, US market entry, and rising tax rates are all compressing what used to be fat margins.

The UK government sees gambling companies as cash cows to milk. The US is figuring out the same thing, state by state. Illinois just raised taxes again. New York's online casino debate centers on what tax rate to charge, not whether to charge one.

The Bottom Line

£4 billion in revenue. £43 million in operating losses. bet365 is the perfect example of how complicated the gambling industry has become.

They're still standing. They're still one of the biggest. But the days of easy profits from unregulated markets are over, and everyone—operators and bettors alike—is adjusting to the new reality.