Paddy Power Paves Way in French Sports Betting Market

A deal with the French gambling monopoly Pari Mutuel Urbain and online gambling group Paddy Power from Ireland is expected to create a landing spot for the company as the French gambling market is opened up in 2010. The results of Paddy Power’s announcement that it would meet target market expectations for this year and the deal with PMU yielded a 5.6 percent increase in it’s stock value.

According to a Reuters news agency report the agreement with PMU will see Paddy Power committed to a five-year outsourcing deal to provide betting technology and pricing to the French horse racing operator, the largest betting organisation in Europe with 9.3 billion Euros in turnover for the year of 2008.

Reuters also reported that Paddy Power's financial director Jack Massey expects the deal with PMU will come into effect around May or June 2010, adding some 3 to 5 million Euros in revenue by 2012. This is just the beginning for Paddy Power as this deal when it comes online will trigger other partnerships and more business to business opportunities for the company.

Massey said in an interview with Reuters, "The strength of the deal is the quality of the partner which gives us an excellent calling card of other such opportunities that may emerge,"

Patrick Kennedy, Chief Executive Officer at Paddy Power said the agreement with PMU was an impressive start for the company's new B2B division, and that the firm would be capitalising on its expertise and technology to close agreements with other major betting companies.

Philippe Germond Chief Executive Officer of the Pari Mutuel Urbain had this to say about the deal, "This partnership is going to enable PMU to offer sporting bets online under its own brand and retain direct management of its client database. Paddy Power will provide us with its expertise in sports betting. Through this partnership PMU is given the means to be ready for the opening of the online betting market in France next year."