Paddy Power increasing activity in Australia

In May this year Paddy Power bought a 51% stake in the Australian Bookmaking business Sportsbet for an initial 48.5 million Australian Dollars(AUD). This was financed by AUD 45.8 million cash and the issue of Paddy Power shares. Sportsbet was an established Northern Territory Licensed operator but more importantly held a 19.98% stake in International All Sports (IAS). Paddy Power has now completed the takeover of IAS seeing off a rival bid from Centrebet. Paddy Power Chief Executive Patrick Kennedy claimed the takeover “creates by some distance the largest corporate bookmaking business in Australia”. The option to buy the remaining 49% will be at a cost dependent upon the profits of the business.

Centrebet itself has vowed to continue its hunt for acquisitions by taking advantage of sell offs of betting agencies and wagering licenses by the state governments of New South Wales, Tasmania and Victoria but can expect stiff competition from other operators.

At the same time Paddy Power is looking to trial 30 of its new touch screen terminals into bars and hotels in Victoria but has run into trouble when introducing the first one into a Melbourne pub. Australian company Tabcorp claims the terminal breaches the terms of its monopoly of the state licensed totaliser. The Victorian Commission for Gambling Regulation has written to Paddy Power. Watch this space.