Paddy Power Betfair Receives Positive Reception from Stock Market

Paddy Power Betfair merger complete.

Paddy Power Betfair’s future looks bright after stock market reacts positively to the merger. (Image: zuckermanfirm.com)

The £5 billion merger between Paddy Power and Betfair was made official this week after the newly formed company was listed on the London and Dublin stock exchanges.

Paddy Power Betfair, as the two companies are now jointly known, will have its headquarters in Dublin, but it will continue to serve players in a variety of markets, including the UK, Ireland, Australia and the US.

In the 24 hours before Paddy Power Betfair went live on the London Stock Exchange, Paddy Power’s individual valuation increased by 4 percent after shares worth £750 million changed hands.

Market Bullish Over Paddy Power Betfair

With Paddy Power’s value on the up, the newly listed Paddy Power Betfair opened on the London Stock Exchange with a share price of £10.50 on Tuesday and reached a high of £10.71 by the close of trading.

For sports bettors, casino fans and poker players in the UK, the outlook for 2016 will likely be much of the same as Paddy Power and Betfair will continue to offer separate gaming platforms.

However, as the newly formed entity matures and grows, it’s likely we’ll see a host of innovations in a range of areas; not least the sports betting arena where both companies have previously excelled.

In Other UK Gambling News…

Although the outlook is looking bright for Paddy Power and Betfair in the online arena, British betting shops are facing yet more criticism from anti-gambling advocates.

According to the UK Gambling Commission, 633 reports of drug barons laundering money through UK Fixed Odds Betting Terminals (FOBTS) were filed in the last year.

Releasing the data through the Freedom of Information Act, the Commission stated that Suspicious Activity Reports (SARs) had increased dramatically between 2014 and 2015, with much of the activity being linked to drug crimes.

Although there has long been suspicion that drug dealers would use FBOTs to clean their dirty money, there has been little data to back up these assumptions.

However, following the statement by the UK Gambling Commission, there now appears to be a pattern of evidence which suggests that FBOTs are being used for criminal activities.

As for how drug dealers are using the machines, the SARs have indicated that those reported would routinely visit betting shops, load up the machines with large amounts of money, lose around 5 percent of it and then cash it out.

The printed receipt that followed would then allow the drug dealer to not only claim a fresh bundle of money, but provide proof to police that any large amounts of cash on their person (something drug dealers typically carry) had come from gambling and not anything illicit.

Following the report, many anti-gambling advocates are now calling for tighter regulations on FBOTs across the UK.

Share Now: