Paddy Power in Canadian deal

PADDY POWER has made its first foray into the north American market through the signing of a three-year supply deal with the British Columbia Lottery Corporation in Canada.

Thu, 15 Dec, 2011 - 00:00

Geoff Percival

The agreement — also the Irish betting firm’s first partnership with a lottery agent — will see Paddy Power supply product, pricing and risk management services to the corporation’s online sports betting business. The partnership is scheduled formally to begin next summer.

“This is our first transaction in north America; a geography which will be of increasing strategic importance to us in the future,” Paddy Power chief executive Patrick Kennedy noted. He said the announcement provides “further endorsement of our product and partnership capabilities”.

“As the global online market continues to regulate, these qualities continue to position us strongly for future international expansion,” Mr Kennedy said.

The Corporation is the only operator permitted to offer sports betting services in British Columbia, under Canadian law. Paddy Power’s involvement was approved by the Gaming Policy and Enforcement Branch of British Columbia.

The Canadian deal further illustrates Paddy Power’s interest in the North American market, something which it has hinted at before. It also follows recent reports that the company has applied for a Nevada Gaming Commission Licence in the US, an issue which is ongoing.

Meanwhile, Betfair — the international online betting exchange operator — has reported a 43% year-on-year increase in first-half after-tax profits, for the six months to the end of October, to £20.6 million (€24.5m). Basic earnings per share rose by the same percentage to 19.5p, while group revenue was up by 1% at £191.3m.

Betfair has also announced that its current chief financial officer, Stephen Morana will replace outgoing chief executive David Yu on an interim basis next month. The company’s new permanent chief executive — former Paddy Power chief operating officer Breon Corcoran — isn’t set to take the reins until next August.