Online Gambling site PaddyPower Prepares Inroads For French Market
Irish bookmakers PaddyPower.com have announced that they are in the process of reaching a deal with French gambling monopoly Pari Mutuel Urbain in preparation for the country’s planned gambling reform in 2010.
According to press agency Reuters, the agreement between the two European parties will see PaddyPower contracted to a five-year outsourcing deal in which they will provide improved betting technology and pricing to the French horse racing operator.
The deal, which is planned to come into effect in May or June next year, is expected to add some 3-5 million euros in revenue to PaddyPower by 2012 as well as placing them in a great position for further business negotiations when the industry opens up.
In an interview with Reuters, PaddyPower’s financial director Jack Massey explained: “The strength of the deal is the quality of the partner, which gives us an excellent calling card for any other such opportunities which may emerge.”
Following the announcement that PaddyPower were on course to meet target market expectations for the year and were closed to reaching an agreement with PMU – who are the largest betting organisation in Europe with 9.3 billion euros in turnover for 2008 – the company’s stock value rose by a dramatic 5.6 percent.
With the proposed new deal looking to be one of the first attempts by a foreign operator to make inroads into the French gambling market, it is likely that many of Europe’s major casino operators will follow suit by securing business arrangements of their own in the months leading up to the French gambling reform.