There is now a difference in marketing approach in the competitive US iGaming market. While industry leaders like FanDuel and DraftKings are shifting their focus to cost-cutting and profitability, UK behemoth Bet365 is doubling down on a riskier strategy: rapid, costly expansion.

Bet365 signaled its long-term commitment to the US by purchasing a new headquarters in Denver, Colorado, for $135 million. This investment is the beginning of a larger plan that uses private ownership and money to seize market share when competitors are fleeing.

Bet365 Maintains Marketing Spending

In 2024 and 2025, the US betting industry has prioritized profitability over expansion. Publicly traded giants, under pressure from Wall Street to show green figures, have begun to scale back their customer acquisition costs (CAC).

In stark contrast, Bet365, with supposedly deep pockets, is ramping up.

According to a survey by Eilers & Krejcik Gaming, Bet365’s promotional expenditures for the quarter ending in October were tracking toward a staggering 85% of gross gaming revenue (GGR).

Why This Matters for iGaming Businesses

This measure is essential for iGaming operators. Spending 85% of revenue on promotions (bonus bets, odds boosts, marketing credits) is most often unsustainable for public companies that need to report quarterly earnings growth.

Bet365’s approach, however, emphasizes an important countercyclical marketing lesson:

1. The void strategy

When competitors reduce ad spend, the cost of media drops, and the noise in the market quiets down. Bet365 outperforms its rivals in terms of brand visibility by keeping or growing spending during this pullback.

2. Customer acquisition opportunity

Bet365’s offers become the best in the market, enabling them to attract price-sensitive bettors as competitors offer fewer sign-up bonuses to save money.

Finances Remain Seemingly Unstrained

Bet365’s corporate structure is the driving force behind this costly approach. As a privately held company owned by the Coates family, it is not beholden to the quarterly scrutiny of shareholders.

Public CEOs make decisions to satisfy immediate earnings calls. Bet365 can absorb losses for years if it means securing a dominant long-term position.

Rumors have circulated that the company is negotiating a potential public listing, with a valuation estimated around $12 billion (£9 billion). However, until that happens, they are free to deploy their “war chest” without explaining short-term margin compression to investors.

The main issue with excessive promotions is that it works on converting customers, but maintaining it crimps profitability. This crimp is not a crisis for Bet365, but rather a well-thought-out investment.

Strategic Real Estate: The $135 Million Denver Anchor

In July 2025, Bet365 finalized the purchase of a 249,000-square-foot office building in Denver, Colorado. This $135 million investment is a strategic signal rather than just a real estate purchase.

1. The talent hub 

Owning a massive HQ allows Bet365 to recruit top US-based engineering and trading talent, reducing their reliance on UK-based teams who may be less familiar with American sports betting nuances.

2. Permanence

By purchasing instead of leasing, Bet365 is sending a message to partners and regulators that they are not a fly-by-night operator trying things out; rather, they are setting the stage for the next ten years.

Why Choose the Expensive Global Presence?

There’s evidently a UK tax push factor, and Bet365’s look abroad is also defensive. The company is facing immense pressure in its home UK market. New government measures set to take effect in April 2026 propose raising the Remote Gaming Duty to 40%.

• As UK margins are expected to be cut by almost half, the US market shifts from being a growth opportunity to a survival necessity.
• The prospect of a 40% tax rate makes the idea of taking Bet365 public more appealing. An IPO would raise capital to fund the expensive US war (and pay for that Denver office).

Insights for Affiliates and Marketing Partners

Compared to working with DraftKings or FanDuel, Bet365’s approach presents unique opportunities for affiliates, PR firms, and media partners.

1. RevShare vs. CPA

While many US operators pushed heavily for CPA (Cost Per Acquisition) models (paying a one-time fee for a new player), Bet365 has historically favored Revenue Share (RevShare) models, paying partners ~30% of a player’s lifetime losses.

As US operators cut CPA rates to save money, Bet365’s RevShare model becomes more attractive for high-quality affiliates. It aligns the affiliate’s interest with the operator’s: finding high-value, long-term players.

2. Always-on marketing

Partners often suffer when operators pause budgets at the end of a quarter to meet financial targets. Bet365’s private status means their marketing budgets are less likely to be paused erratically, offering more stability for media partners.

How to Market Your iGaming Company Now

While competitors fold their marketing hands, Bet365 is shoving all-in with expensive marketing and massive infrastructure investments. It stands out as a distinct, albeit high-risk, iGaming growth strategy. Maintaining large promotional expenditures will put short-term pressure on profitability, but it’s still a strong tool for preserving market share and outperforming rivals who are currently under cost pressure.

For Bet365, expanding globally into the US allows the company to diversify its revenue streams, acquiring a broader client base to offset and lower the stinging effect of looming 40% tax hikes in the UK.

Joining the Bet365 affiliate program now is a highly beneficial move. But Bet365 is not the only operator to partner with: there are emerging iGaming firms preparing to launch campaigns and seeking reliable media and affiliate partnerships. Contact us today to learn how we can help you market your business.