Paddy Power

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Table Of Contents

Background Research                                                                2

• History and Present situation                                                        3
• Paddy Powers Products                                                        4
• Key management for current year                                                6

Areas of Emphasis                                                                        8

Logistical Issues                                                                        10

Risk of Fraud                                                                        11

Conclusion                                                                                12

References                                                                                13                                                        

Background Research

Paddy power plc is an international betting and gaming group. It is Ireland’s largest bookmaker. Paddy Power is publicly quoted company listed on the Irish stock exchange and has operations in Ireland, the UK and Australia. Paddy Power competes in a very competitive market and offers a wide range of products to their customers. These include online betting, casino, poker, bingo, online games, telephone betting, retail stores, Sportsbet in Australia and Business to business offerings such as risk management.

One must look at the external environment at first. The Gambling industry in Ireland was flooded with operators in the boom times. Land based gambling in 2007 was valued at €1.7 billion. (www.glai.ie accessed on 29/11/2011).  A tax levy of 1% has perhaps had a factor on the profits of some companies but one sector of gambling that cannot be ignored is the online element to it. Huge growth levels have been witnessed in this sector. The employment levels and operating profits of the industry have remained stable in general. The market however is very open to volatile changes such as the volcanic ash cloud in 2010 that resulted in the cancellation of many sporting events. The future of the industry is not definite. 2012 will see the introduction of more legislation. This change in regulations should ideally reflect societal factors. It is hoped that stricter laws for online gambling will be introduced as well as measures to protect young people. Licensing laws will also change where the minister will only administer a licence to those “who satisfies the Minister in relation to his personal suitability, financial resources, tax compliance, previous record as a licence holder (whether in Ireland or elsewhere) and criminal history (if any).” (www.lkshields.ie accessed 29/11/2011).

One thing that bookmakers and online gambling providers can be assured of is that no licence will be granted to large casinos or fixed odd betting terminals. Unfortunately, for many bookmakers, they could see a rise in betting taxes in the near future as the government grasps at the many money making schemes that is proposed to them. The value of online betting in 2020 is expected to be €150 billion. If Ireland just captures 5% of this it means that Irelands share would be worth €7.5 billion in that same year. (www.glai.ie accessed 29/11/2011).