Paddy Power entering French betting market

Paddy Power entering French betting market

Ireland's largest bookmaker, Paddy Power, has announced its entry into the French online sportsbetting market through an outsourcing contract with horseracing monopoly Pari Mutual Urbain (PMU).

PMU is expanding into the French online sportsbetting market, which is expected to open up in the first half of next year, and the five-year deal will see Paddy Power manage risk and pricing for its new venture beginning in 2010.

The French firm is already the largest betting organisation in Europe and generated €9.3 billion in turnover last year through 10,000 retail outlets and remote sales channels.

Paddy Power revealed that the deal would create around 50 high-end jobs at its headquarters in Tallaght, Dublin, by June with an additional 200 over the subsequent three years.

“Today's announcement shows that the smart economy is not a pipedream, it is happening all around us,” said Brian Cowen, Ireland’s Prime Minister.

“Paddy Power is a prime example of a company with a talent for innovation that keeps on searching for new opportunities. The decision of a world-class organisation like PMU to team up with Paddy Power is testament to Paddy Power's own world-class expertise in e-commerce, product development and risk management.

“I want to pay tribute to the ambition, energy and professionalism of the Paddy Power management team and staff. I am delighted to officially launch the PMU partnership and hope to see Paddy Power continue to create many more smart economy jobs for Tallaght and for this country.”

Paddy Power revealed that it generates in excess of half of its profitability from outside of Ireland. The firm is now the largest online corporate bookmaker in Australia following its acquisition of a controlling shareholding in Sportsbet in May and it remains one of the largest bookmakers in the UK.

“This deal with PMU, which is a long-term relationship with a high quality partner, is the ideal start for our new business-to-business operation,” said Patrick Kennedy, Chief Executive Officer for Paddy Power.

“We continue to look for other quality opportunities in international markets, capitalising on our investment in people, expertise and particularly in our proprietary pricing and risk management technology. Our partnership with PMU further confirms our ability to build a leading international business out of Dublin, sustaining and creating Irish jobs.”

Source: iGaming Business November, 2009