The new company will take the leading position on the online gaming market.
It appears that the online gaming industry is growing rapidly. Not long after the purchase of Bwin by GVC which was estimated to be worth over £1.1 billion other two giants decided to join forces in the competition for their share in the online gambling market. Namely, Paddy Power and Betfair finalized 5 billion pounds worth merger yesterday.
An Online Gaming Giant Is Born
Last month on August 26th it was officially announced that Paddy Power and Betfair have agreed on the key points of the merger. The deal was finalized this Wednesday and as a result came “the biggest publicly listed online gambling company in the world” as reported by Bloomberg. The new company will be called Paddy Power Betfair and the Irish partner will hold the majority of shares, 52 percent, while Betfair will hold the rest. Betfair’s Breon Corcoran will act as the CEO of the new company, while Paddy Power’s Chairman Gary McGann will assume the role of the Chairman of Paddy Power Betfair. The new company will be based in Dublin but the two companies will continue to act as two separate brands.
New Regulations Demand New Approaches
The decision to join forces is the answer to higher taxes on online gambling and the attempt to be more competitive on strictly regulated market. The combination of UK’s leading online gaming provider Betfair that also offer Live Dealer Games, and Irish bookmaking giant Paddy Power is estimated to be the leader on the market in the fierce competition of many other recent mergers, including GVC’s purchase of Bwin.party Digital Entertainment Plc for over £1.1 billion after a long battle with 888. According to Reuters bringing together Betfair’s online gaming technology and Paddy Powers over 600 stores in the UK will have a share of 16 per cent on UK market, placing them ahead of Ladbrokes and William Hill. The new company aims to take the leading position in both UK and Ireland online gaming industry.
Betfair is one of the largest online betting exchange and gaming provider in the UK and the world. Founded in 1999 it has grown to be one of the biggest online gambling companies with over 4 million customers in over 100 countries in the world. Apart from sports betting they also host a Live Casino. Read more about Betfair’s Live Casino in our review section.
About Paddy Power
Paddy Power was founded in 1988 after the merger of several Irish bookmakers. Three bookmakers joined their shops and started expanding progressively in UK and Ireland only to operate around 600 shops today. They operate as both offline and online bookmakers.