High street bookmakers Paddy Power has created a B2B division to provide fixed-odds risk management and pricing tools to gaming and betting providers.
The new arm has been created after Paddy Power signed a five-year deal with French duopoly operator Pari Mutuel Urbain (PMU), the largest tote operator in Europe.
The deal, which will see Paddy Power provide PMU with fixed-odds risk management and pricing tools, is expected to add between â¬3m and â¬5m to Paddy Power’s revenues by 2012, as well as increasing the likelihood of similar ties between the Irish bookmaker’s new B2B arm and other European tote monopolies.
Paddy Power chief executive Patrick Kennedy said, “This deal with PMU is the ideal start for our new business-to-business operation. We continue to look for other quality opportunities in international markets, capitalising on our investment in people, expertise and particularly in our proprietary pricing and risk management technology.”
Paddy Power managing director Breon Corcoran added that Paddy Power expected to expand further through outsourcing deals and partnerships with local partners as a number of regulatory markets open up over the next three to five years.