Founded in 2000 and headquartered in the UK, Bet365 is one of the world’s leading online betting and gaming companies, offering sports betting, online casino, poker, and games to users around the globe. However, China has long represented a legal grey area in the company’s global expansion strategy.
A Market on the Edge
Online gambling is strictly prohibited in China. Despite this, Bet365 had operated in the country for years through technical workarounds, such as VPN access and localized payment channels. These methods allowed limited market penetration, but operations remained on the legal fringes.
In recent years, the Chinese government has intensified its crackdown on illegal gambling, targeting foreign betting platforms through website blocks, payment restrictions, and tighter cybersecurity controls. These moves significantly increased operating costs and legal risks for companies like Bet365.
Reasons Behind the Exit
1. Intensified Regulatory Pressure
In 2024, China’s Ministry of Public Security launched the “Clean Net 2024” campaign to combat cross-border gambling and illegal financial activity. As a foreign operator, Bet365 became a focus of these regulatory actions, making continued operation increasingly unsustainable.
2. Legal Risks
Operating in China posed serious legal challenges. All forms of online gambling are illegal, exposing Bet365 to potential fines and liability that could damage its global reputation. Exiting the market was a strategic move to mitigate these risks.
3. Rising Competition and User Loss
While Bet365 had a user base in China, it was steadily losing ground to local platforms and social casino games. Chinese users increasingly demanded safer platforms and more convenient payment options, reducing Bet365’s competitive edge.
4. Strategic Refocus
The company’s withdrawal also aligns with its broader global strategy. Bet365 is now focusing more on Europe, North America, and emerging markets like Latin America and Africa, where regulations are clearer and growth potential is higher. Exiting China enables better resource allocation toward these regions.
Industry Impact
Impact on China’s Gambling Market
Bet365’s exit underscores the tightening control over online gambling in China. Players now have fewer foreign options and may turn to state-run lotteries or social gaming alternatives.
Impact on the Global Gambling Industry
This move sends a warning signal to other operators eyeing restricted markets. As global gambling regulations grow stricter, companies must strike a balance between compliance and expansion.
Impact on Bet365
While there may be short-term revenue loss—China was a notable source of income—leaving the market helps Bet365 lower risk exposure and refocus on regions with long-term growth prospects.
Looking Ahead
Bet365’s departure from China does not signal a global retreat but rather a strategic pivot. The company is expected to deepen investments in regulated markets and explore opportunities in new regions.
In China, this may mark the beginning of a broader trend. As regulations tighten, more foreign platforms may withdraw or rethink their business models. Meanwhile, domestic alternatives like sports lotteries and social gaming may gain further traction.
Conclusion
Bet365’s exit from China highlights the ongoing struggle between globalization and regulatory compliance in the gambling industry. For Bet365, this move is a calculated step in a larger strategic overhaul. For the industry at large, it’s a reminder that sustainable growth hinges on innovation, responsibility, and above all, regulatory alignment. As the gambling landscape continues to evolve, finding the right balance between compliance and competitiveness will be key to future success.
