A Strategic Retreat From China
Bet365, once thriving in China’s grey-market environment, will officially cease operations there this week. Long operating in legal limbo, the company leveraged mirror sites to reach Chinese punters, sidestepping censorship and regulations. But with increased enforcement and diplomatic pressure, Bet365 has opted to exit and concentrate on regulated markets.
This retreat aligns with its broader strategy to expand in legal jurisdictions such as Brazil and the U.S., where the company is gaining traction. Already live in 13 U.S. states and partnered with the St. Louis Cardinals, Bet365 is shifting its focus to long-term sustainability rather than short-term risk.
Realigning with Regulatory Trends
Exiting China also appeases regulators in markets where Bet365 seeks licensing. Grey market ties, even if legally ambiguous, raise red flags. By reducing unregulated exposure to under 10% of revenue, Bet365 now positions itself as a compliant, forward-looking enterprise.
The Right Move at the Right Time
Walking away from China, once a cash cow, might seem counterintuitive. But it shows discipline and foresight. In today’s highly scrutinized gaming environment, reputation and legality outweigh fast profits. Bet365 is playing the long game, and wisely so.
Impact on Industry Norms
Bet365’s exit sends a signal to other operators that the era of skirting regulations in grey or black markets is coming to a close. As global regulators increase their scrutiny, particularly around anti-money laundering and consumer protection, more operators may follow suit. This move could shift industry norms, pushing more companies toward regulatory alignment and transparency as competitive differentiators.
