Paddy Power

Last updated

Paddy Power
Type Subsidiary
Industry Gambling
Founded1988
Founders
  • David Power
  • John Corcoran
  • Stewart Kenny
Headquarters Dublin, Ireland
Key people
Owner Flutter Entertainment
Website www.paddypower.com/bet OOjs UI icon edit-ltr-progressive.svg

Paddy Power is an Irish gambling company founded in 1988. Its product offering includes sports betting, online casino, online poker, and online bingo. Business operations are led from its headquarters in Dublin, alongside a satellite office in Malta. In February 2016, Paddy Power merged with Betfair to create Flutter Entertainment.

Contents

History

Paddy Power, North End Road, Fulham, London (2015) Paddy Power, North End Road, Fulham, London 01.jpg
Paddy Power, North End Road, Fulham, London (2015)
Paddy Power shop in Moore Street, Dublin (2007) Moore Street market, Dublin.jpg
Paddy Power shop in Moore Street, Dublin (2007)
An outlet in Hammersmith, London Paddy Power, King Street, Hammersmith 02.jpg
An outlet in Hammersmith, London

Paddy Power was founded in 1988 by a merger of the forty shops of three Irish bookmakers: Stewart Kenny, David Power, and John Corcoran. [1] Stewart Kenny and Vincent O'Reilly had sold Kenny O'Reilly Bookmakers to Coral in 1986, and then opened ten shops of their own by 1988; Kenny was group CEO from 1988 to 2002, and chairman from 2002 to 2003. [2] John Corcoran's shops had traded as Patrick Corcoran. [3] David Power was a son of Richard Power and one of several inheritors trading under the Richard Power name. [2] The Power name was considered the strongest brand among the merged shops, while the "Paddy" name and green colouring emphasised the chain's Irishness at a time when the fragmented Irish industry was facing competition from British betting chains entering the market in response to changes in the Irish tax code. [3] [4] David Power's son, whose name happens to be Paddy Power (b. 1974/5), is a marketing spokesman for the company. [5]

Expansion

Paddy Power had an aggressive expansion strategy involving opening prominent shops in most Irish towns, rather than side streets previously favoured. [4] The firm's novelty bets broadened its media coverage beyond the horseracing news. [4] Its share of the Irish off-course betting market grew from 8% in 1988 to 33% in 2001. [6]

Power Leisure - the parent company of Paddy Power PLC - listed on the London Stock Exchange in December 2000, to fund an expansion in the UK. [1] [7] [8]

At the end of 2005, Paddy Power operated 195 outlets (150 in Ireland and 45 in the UK). The total number of employees was 1,374. On 27 May 2008, it acquired the Northern Irish independent bookmaker McGranaghan Racing, bringing its shop count to 191 in Ireland. In February 2010, the chain had 356 shops with 209 in Ireland, 8 in Northern Ireland and 139 in Great Britain. [9]

The bookmaker is known for offering odds on controversial markets in order to garner publicity, e.g., in November 2008, 16–1 was laid that United States President Barack Obama 'would not finish' his first term (this was widely interpreted as his odds of assassination). [10]

After English Premier League new entrants Stoke City lost their opening game of the 2008–09 season 3–1 to Bolton Wanderers, Paddy Power controversially paid out on bets on them being relegated. When the club finished in mid-table at the end of the season the company took out a full page advert in The Sentinel apologising to the club and its supporters. [11]

In May 2010, Paddy Power acquired a majority stake in Australian bookmaker Sportsbet.com.au. [12]

In July 2010, the company took the unusual step of refunding bets placed on Felipe Massa to win the 2010 Germany Grand Prix following the notorious "team orders" incident, which led to Fernando Alonso being allowed to win the race, despite Massa's clear lead. [13]

In October 2011, the company paid out early on New Zealand winning the 2011 Rugby World Cup, four days before the final against France on 23 October 2011. The All Blacks were Paddy Power's 4/6 tournament favourites and were 1/9 odds on to win the final, with France at 13/2. The company boss said: 'New Zealand have left all of their opposition so far feeling black and blue and it's inevitable us bookies will be taking a hammering from them on Sunday too, so punters might as well collect now.' New Zealand did indeed go on to win the match. [14]

As of November 2011, Paddy Power was the largest bookmaker in Europe by total share value. [15] Its group income was €444m in 2010. [16]

Paddy Power was placed 6th in the 2011 Management Today list of "Britain's Most Admired Companies". [17]

Paddy Power and British rival Betfair agreed terms for a merger in September 2015. The transaction was structured as an acquisition of Betfair by Paddy Power [18] and the enlarged entity, named Paddy Power Betfair, is based in Dublin. [19] The merger was completed in February 2016. [20]

Paddy Power CEO Andy McCue became COO of Paddy Power Betfair, with Breon Corcoran, CEO of Betfair, becoming CEO of the combined group and Paddy Power's Gary McGann becoming chairman. [21] Andy McCue left the company in April 2016 to pursue other opportunities. [22]

In February 2020, Paddy Power won the GGA London "Betting Shop Operator of the Year" award. [23] In July 2021, it won for a second consecutive year. [24]

June 2022 saw the launch of the Paddy Power Games [25] vertical which replaced the online casino and live casino properties in a bid to soften the image of playing online casinos in-line with UKGC regulations. [26]

Criticism

Paddy Power has drawn criticism in the past for offering controversial markets, such as odds on the first species to be driven to extinction by the BP oil spill in the Gulf of Mexico, [27] on a prospective assassination of United States President Barack Obama, [28] [29] and on the potential extinction of the polar bear in December 2009. [30]

Paddy Power's advertising campaigns have also been criticized. One showed sight-impaired footballers kicking a cat, for which the Advertising Standards Authority (ASA) received 400 complaints. [31] Another involved the model Imogen Thomas alongside a tagline using a double entendre. [32] Paddy Power also received hundreds of complaints and was accused of transphobia by members of the LGBT community in February 2012 when the company released an advertising campaign to distinguish "the stallions from the mares" by placing transgender women in the crowds at the Cheltenham Festival. The ASA ruled that the advert could not be broadcast in the United Kingdom. [33] [34]

Additionally, the company has been criticised for not paying out on bets with large odds. In May 2009, when Shane Lowry won the Irish Open, it stated that it would not pay out on the 3000/1 odds which it had mistakenly offered and instead reached 'an arrangement' with the customers involved. [35]

During a UEFA Euro 2012 match between Denmark and Portugal on 13 June 2012, Danish forward Nicklas Bendtner celebrated his second goal by lowering his shorts and lifting his shirt to reveal a pair of Paddy Power underpants, to the disgust of the national team's sponsor Ladbrokes and tournament organisers UEFA. Bendtner was fined €100,000 by UEFA and banned for one game. He later described his actions as being regrettable and not premeditated. [36] [37] [38]

In early March 2014, 5,525 complaints, the most ever recorded, were made to the United Kingdom Advertising Standards Authority (ASA) via an online petition launched for Paddy Power to withdraw an offer for betting on the outcome of the South African trial of Oscar Pistorius for murder of his girlfriend. [39] On 19 March 2014, the ASA upheld all 5,525 complaints that the advertisement was insensitive, made light of disability, the death of a woman and a murder trial, and brought advertising itself into disrepute. [40] [41] The advert was discussed on an episode of The Last Leg , where Adam Hills made an impassioned speech condemning it. [42]

Prior to the 2014 FIFA World Cup, Paddy Power posted a photo on its Twitter account, sourced from Reddit, allegedly showing an overhead view of a Brazilian rainforest with the message "C'MON ENGLAND PP" spelled out by the former locations of trees that had been cut down. Following major criticisms over the advert from users, it was revealed on 8 June 2014 that the images were fake, and part of a campaign by Paddy Power to promote its anti-deforestation charity effort. The company stated that "we knew we’d drop off a fair few Christmas card lists yesterday, but we couldn’t resist a bit of fake twitter mischief to highlight an important issue to football fans as our World Cup warm up. At least it gave people something to get animated about during last night’s England–Honduras bore fest." [43]

In July 2014, Paddy Power was criticised by the Information Commissioner's Office for its response to an incident in 2010, where a hacker was able to obtain personal information of more than 649,000 people from its website. The data included addresses, email addresses, phone numbers, dates of birth and security questions and answers. Paddy Power did not inform the Information Commissioner's Office until four years later. [44]

In September 2017, Paddy Power offered odds on a dead footballer, Ugo Ehiogu, to become the new manager of Birmingham City F.C. The company said it had made an error. [45] For the 2018 FIFA World Cup, Paddy Power was criticised for its controversial polar bear graffiti stunt, with a Russian polar bear being emblazoned with an England flag. Paddy Power claimed the stunt was to raise awareness of the plight of polar bears in the Russian Arctic. [46]

In October 2018, Paddy Power Betfair received a £2.2 million fine from the UK Gambling Commission, after an investigation revealed that the gaming giant broke the commission's rules regarding social responsibility and anti-money laundering. [47]

In December 2018, Paddy Power and William Hill faced further criticism after allegations that they allowed a gambling addict to wager thousands of pounds in stolen cash. Victims of the theft seek £965,000 from Paddy Power that has not been compensated after the previous fine from October of that year. [48]

In May 2023, Paddy Power was fined £490,000 by The Gambling Commission for sending a promotional push notification to customers who had signed up to exclude themselves from gambling and inviting them to bet on a football match. [49]

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References

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  2. 1 2 "Board of Directors". Paddy Power. Archived from the original on 19 January 2013. Retrieved 20 December 2012.
  3. 1 2 Boyle, Pat (6 September 2003). "Gambler and bookie with a flair for highly unusual bets". Irish Independent . Retrieved 20 December 2012.
  4. 1 2 3 Clower, Michael (17 September 1998). "Man on the Power throne; Paddy Power are out to revolutionise Irish bookmaking by beaming pictures into their shops". The Racing Post. London. Retrieved 20 December 2012.
  5. ↑ Monaghan, Gabrielle (12 December 2010). "Fame & Fortune: Paddy Power". The Sunday Times . Archived from the original on 4 October 2013. Retrieved 20 December 2012.
  6. ↑ "Bookmaker Paddy Power reports profits of Euros 18m". Finfacts Ireland. 31 August 2005. Retrieved 20 December 2012.
  7. ↑ Boyle, Pat (1 August 2001). "Power directors sell 15m of their shares". Irish Independent . Retrieved 20 December 2012.
  8. ↑ Boyle, Pat (23 November 2000). "Power races ahead for year-end float". Irish Independent . Retrieved 20 December 2012.
  9. ↑ "Paddy Power About Us" . Retrieved 21 December 2014.
  10. ↑ "Irish Independent: Bookie in firing line over its sniper bet". Irish Independent. 7 November 2008. Retrieved 23 August 2011.
  11. ↑ April 2009, Gregg Davies 24 (24 April 2009). "Paddy Power: We cocked-up over Stoke". fourfourtwo.com.{{cite web}}: CS1 maint: numeric names: authors list (link)
  12. ↑ Nesbitt, Louisa (14 May 2009). "Paddy Power Buys Stake in Australia's Sportsbet (Update2)". Bloomberg. Retrieved 4 January 2012.
  13. ↑ "Paddy Power Refunds Bets on Massa After Ferrari Farce". Betting.gamingsupermarket.com. 26 July 2010. Retrieved 23 August 2011.
  14. ↑ "Rugby World Cup: Bookmaker pays out early on New Zealand win". WalesOnline. 19 October 2011.
  15. ↑ "Paddy Power biggest in Europe - Irish, Business". Independent.ie. 20 November 2011. Retrieved 4 January 2012.
  16. ↑ "Paddy Power". Archived from the original on 24 January 2016. Retrieved 24 January 2016.
  17. ↑ "BMAC Home page". Managementtoday.co.uk. Retrieved 4 January 2012.
  18. ↑ "Paddy Power (Ireland): Acquisition of Betfair Group (UK)". FTSE. 27 January 2016. Archived from the original on 30 January 2016. Retrieved 29 January 2016.
  19. ↑ "Paddy Power and Betfair merger agreed". the Guardian. Press Association. 8 September 2015. Retrieved 10 September 2015.
  20. ↑ "Paddy Power Betfair begin trading". Racing Post . 2 February 2016. Archived from the original on 19 April 2016. Retrieved 3 February 2016.
  21. ↑ "Paddy Power and Betfair agree terms of merger deal". RTE. 8 September 2015. Retrieved 12 April 2016.
  22. ↑ "Paddy Power Betfair's Andy McCue to leave company". The Irish Times. 23 March 2016. Retrieved 12 April 2016.
  23. ↑ "Global Gaming Awards London 2020 winners revealed". Gambling Insider. 3 February 2020. Retrieved 5 April 2022.
  24. ↑ "GGA London 2021: Betting Shop Operator of the Year". Gambling Insider. 20 July 2021. Retrieved 5 April 2022.
  25. ↑ Reviews, UK Casino (29 June 2022). "Paddy Power Games: 50 Free Spins No Deposit Bonus Code!". OK Casino - New UK Online Casinos. Retrieved 1 July 2022.
  26. ↑ "Gambling Commission website". Gambling Commission. Retrieved 1 July 2022.
  27. ↑ Fottrell, Quentin (24 May 2010). "Paddy Power Seeks To Cash in on Marine Life Extinction – The Source – WSJ". The Wall Street Journal. Retrieved 23 August 2011.
  28. ↑ "Paddy Power Removes Obama Assassination Odds Following Public Outcry". Gambling911.com. 9 November 2008. Retrieved 23 August 2011.
  29. ↑ "Paddy Power Removed Odds on Obama Assassination". SportsIntensity.com. Retrieved 23 August 2011.
  30. ↑ Hickman, Leo (16 December 2009). "Paddy Power offers odds on polar bears | Leo Hickman | Environment | guardian.co.uk". The Guardian. UK. Retrieved 23 August 2011.
  31. ↑ Sweney, Mark (11 May 2010). "ASA to investigate 'offensive' Paddy Power ad | Media | guardian.co.uk". The Guardian. UK. Retrieved 23 August 2011.
  32. ↑ Sweney, Mark; Garside, Juliette (27 May 2011). "Paddy Power runs into controversy over Imogen Thomas newspaper ad | Media | guardian.co.uk". The Guardian. UK. Retrieved 23 August 2011.
  33. ↑ Sweney, Mark (20 February 2012). "Paddy Power faces investigation over 'transgendered ladies' ad". The Guardian. London.
  34. ↑ "Transgender TV ad 'was offensive'". BBC News. 16 May 2012. Retrieved 15 July 2019.
  35. ↑ "Lowry's faithful fans empty out the bookies' tills in €1m winnings coup – National News, Frontpage". Irish Independent. 20 May 2009. Retrieved 23 August 2011.
  36. ↑ "Euro 2012: Nicklas Bendtner banned for underpants celebration". BBC Sport. 18 June 2012. Retrieved 18 June 2012.
  37. ↑ "'Danish Striker in hot water over ambush marketing': Bookmaker causes controversy at Euro2012". Irish Independent. 14 June 2012. Retrieved 14 June 2012.
  38. ↑ "'UEFA opens case against Bendtner': Bookmaker causes controversy at Euro2012". 15 June 2012. Retrieved 15 June 2012.
  39. ↑ Jivanda, Tomas (2 March 2014). "Oscar Pistorius murder trial: Paddy Power prompts outrage by offering 'money back if he walks' bets" . The Independent . London. Archived from the original on 24 May 2022. Retrieved 25 March 2014.
  40. ↑ "Rulings - Oscar Pistorius". Advertising Standards Authority (United Kingdom) . 19 March 2014. Retrieved 24 March 2014.
  41. ↑ Press Association (19 March 2014). "Paddy Power's Pistorius ad brought advertising into disrepute, ASA rules". The Guardian . Retrieved 24 March 2014.
  42. ↑ "Adam Hills lets rip at Paddy Power over Oscar Pistorius advert". Metro UK . 7 March 2014. Retrieved 11 April 2014.
  43. ↑ "Is this the daftest Paddy Power PR stunt to date?". The Independent. Retrieved 9 June 2014.
  44. ↑ Leyden, John (31 July 2014). "Grabby baddie scours Paddy Power's towers: 650k punters leaked and it took 4 years to admit it". The Register. Retrieved 20 March 2015.
  45. ↑ "Paddy Power offers 66/1 on Ugo Ehiogu replacing Redknapp". BBC News. 18 September 2017.
  46. ↑ John, McCarthy. "Paddy Power's polarising world cup bear stunt revealed charity awareness drive". The Drum . Retrieved 7 June 2018.
  47. ↑ "UK Gambling Commission Imposes a £2.2m Penalty on Paddy Power Betfair". www.casin.co.uk. Retrieved 21 October 2018.
  48. ↑ Davies, Rob (10 December 2018). "Gambler's victims to sue bookmakers where he spent stolen cash". The Guardian.
  49. ↑ "Paddy Power fined after push notifications sent to people self-excluding from gambling". The Guardian. 25 May 2023. Retrieved 28 October 2023.
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