Irish online gaming provider Paddy Power has entered the Australian market in a big way after agreeing to purchase a 51 percent stake in one of the nation’s largest corporate bookmakers, Sportsbet Party Limited.
The majority stake for the Aussie online and telephone gambling operator is reportedly costing the Irish giant $34.52 million in cash from its reserves of $130 million along with 100,000 Paddy Power shares. Paddy Power could also pay $7.53 million early next year if Sportsbet meets certain financial targets but it also has the right to claim equity from shareholders over the next three years if the business does not meet agreed goals.
'Paddy Power's ethos is to be different from the pack by taking an unconventional but fair approach,' said Matt Tripp, Chief Executive Officer for Sportsbet.
'Paddy Power has become a household name synonymous with fun. Now our members will access a broader range of products including more bet types on more sports.'
Tripp revealed that Paddy Power would offer services such as live video streaming alongside special events such as European racing and expanded international sporting options.
Sportsbetting is relatively new in Australia with punters enjoying little variety so far. However, Paddy Power, which was founded in 1998 when three Irish bookmakers joined forces, has grown into one of Europe's biggest betting companies by offering previously unheard of options in addition to unique marketing approaches. As an example, Paddy Power has listed Dublin as favourite over Melbourne to have the hottest temperature between June 1 and August 31 while drought-ravaged Melbourne is favoured to have the most days of rain over this period.
Dublin-based Paddy Power revealed that it expects the Sportsbet purchase to enhance earnings by three percent for the remainder of this year and by up to seven percent in a full year.
'Over the medium to long-term, we can see Australia becoming a significant and material part of the group,' Jack Massey, Finance Director for Paddy Power, told the Reuters news agency.
