Bet365 Buys Newly Renovated Denver Headquarters for $135M
Bet365 has decided to buy its recently renovated new headquarters building in downtown Denver. Recently lured to the booming Colorado metro area with a raft of tax incentives, the company, which originally moved into two of the five floors at One Platte, has decided to purchase the building for $135 million.
Bet365 buys new headquarters building in Denver © Acton Crawford, Unsplash
Key Facts:
- Bet365 spent $135 million to purchase its recently renovated Denver headquarters.
- The company had been occupying about half of the buildings, 250,000 square feet.
- Bet365 is rumored to be seeking a US IPO in the coming months.
- This real estate deal cements their commitment to the US market long term.
Bet365 has always been measured in its approach to the American market. Moving slowly and deploying resources expeditiously, they have, after six years, found themselves in an enviable position, with sports betting operations in over a dozen states and online casinos in two of them.
And they are perfectly poised for the next chapter of online gaming in the US.
While Bet365 is primarily based in Europe and employs more than 7,000 people globally, it plans to hire over 1,000 additional employees for its new Denver headquarters.
They’ve already onboarded more than 300 this year as they moved into 120,000 square feet of their downtown headquarters.
They had already spent more than $40 million renovating two floors at 1701 Platte, the Denver address of their new digs.
And while the Colorado Economic Development Commission has agreed to more than $14 million in performance-based Job Growth Incentive tax credits, that money is spread out over eight years and comes with some very expensive strings.
For instance, they will need to create more than 800 jobs, which will need to pay more than $95,000, the average salary in the Mile High Metro area. So, bet365 didn’t plan on opening their new headquarters cheaply, as spending $40 million on lease space and agreeing to hire nearly 1,000 people at almost $100k a year was already a sign of serious commitment.
When San Fransisco based REIT Shorenstein decided to list the building in April, bet365 had a tough call to make, but with $40 million already invested, and their dedication to growing their North American market Bet365 didn’t take long to decide to double down with a $135 million purchase of the entire building.
bet365’s Future
Denise Coates and her family have always held Bet365 close to their vest. Denise personally owns 58% of the company, and her brother, John, owns another 25% on top of that.
However, recent changes within the company, such as the spin-off of the Stokes City FC soccer club to a separate, family-run trust and withdrawal from the Chinese market, have led many to speculate that the Coates family may be planning a change.
In fact, rumors have swelled in the past eight months that Bet365 was either eying a US stock market IPO to take the company public or a full or partial sale of the online gaming behemoth for north of $12 billion. Many point to those rumors as another reason for the leap into the realm of real estate landlord.
Suppose bet365 intends to keep its promise and both build out its Denver headquarters to nearly 1,000 staff as well as continue to grow in the North American market in new sports betting States like Missouri, where it is expected to receive one of 14 highly coveted licenses. In that case, it will need room to expand.
The nascent online casino industry has been slow to emerge across the US and is still only legal in seven states. Ohio has been tipped as one of the most likely states to legalize online gaming next, and in fact, has a bill currently before its legislature.
Bet365 has a firm foothold in sports betting there, consistently coming in third with nearly 10% of the market share.
The passage of online gambling in the Buckeye State could quickly propel the company’s future growth prospects, leaving them wishing they had indeed had enough room to expand to a third floor at One Platte.
For Bet365, the purchase of its Denver headquarters isn’t just a real estate play; it’s a long-term signal of future plans. With a potential US IPO still circulating in the rumor mill and expansion efforts underway in both sports betting and online casino markets, establishing a permanent base of operations makes strategic sense.
The move gives them both credibility and flexibility: a stake in the ground as a major player in North America, and the room to grow if states like Missouri and Ohio swing their way.
And Bet365’s measured pace may yet prove its most significant asset as American legislatures slowly lumber toward iGaming; they find themselves owning a crown jewel of a headquarters in the American heartland, well-positioned for whatever might come next.
