Paddy Power Aims For Nevada Online Gambling Market

Published on: July 14, 2012 

Paddy Power is a leading Irish online gaming operator with casino, poker and sports betting products. It has just been granted a preliminary finding of suitability to operate in Nevada by state gaming regulators. This was revealed after the hour long hearing Paddy Power Chief Executive Officer Patrick Kennedy had with the Gaming Control Board. Kennedy told the board that it was interested in the entering the American online gambling markets that were working towards legalization and regulation. He said that though Paddy Power offered land based sports betting services as well, 80% of its revenue came from online gambling and that was where its expertise lay. The only concern control board members expressed with Paddy Power was that the company meets with Nevada gaming compliance committee standards. Board member A.G. Burnett said, “We welcome you to Nevada and we hope you find a way to come here soon.”

The process that Paddy Power went through is the first one of its kind. The suitability finding allows gaming companies to go through the investigative process prior to actually buying a casino and ancillary licensed business. Because Paddy Power wanted only a confirmation of suitability and not an official gaming license, the Nevada Gaming Control Board did not place any stipulation on the company. There were certain factors that went in favor of Paddy Power. Paddy Power is debt free, which is an important consideration for the board in assessing financial viability. Also the online gambling operator had stopped taking bets from American customers even before the Unlawful Internet Gambling Enforcement Act became effective in 2006.

Paddy Power’s main area of operation is in Ireland and Britain. It also provides online gambling technology to wagering sites in France and the British Columbia Lottery Corporation in Canada. Paddy Power has launched a gaming site in Italy recently. Giovanna D’Esposito, the Managing Director of the Italian operations said in an interview with the Reuters news agency that the unit has made good progress since its launch. He said, “Over a two-year horizon we hope to have a top five position in the online market... but I think we can do better than that.” In the first full month of its operations, Paddy Power Italy received €3.6 million in bets, which was about 4.2% of the online betting market. D’Esposito projected that this share will grow to 6% by the end of the year and to at least 10% by 2014. Paddy Power Italy should become profitable in 2 or 3 years. The biggest Italian gambling companies are focused on the retail market and are not using their retail brand equity to leverage online gambling market share. This will leave the field open for Paddy Power.

Other Recent News:
News Archives
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Casino Offers