Irish online gambling group Paddy Power has completed a deal with the French gambling cartel Pari Mutuel Urbain that is projected to create for them an opportunity for the company to enter the French gambling market when it is opened up in 2010. As a result of this announcement by Paddy Power of the deal with PMU, and their added announcement that they would be meeting their targeted market expectations for this year, there was a 5.6 percent increase in the value its stock.

It has been reported by the Reuters news agency that the agreement with Pari Mutuel Urbain commits Paddy Power to a five-year outsourcing deal that will provide the French horse racing operator with betting technology and pricing as well. Pari Mutuel Urbain is Europe’s largest betting group with a reported turnover for the year of 2008 of 9.3 billion Euros.

Also according to the Reuters report, financial director Jack Massey of Paddy Power, projects that the deal with Pari Mutuel Urbain will come into full effect in the month of May or June 2010. This will allow them to add somewhere in the vicinity of 3 to 5 million Euros in revenue by 2012. But this means only a beginning for Paddy Power. When the deal comes online it is expected to trigger yet other partnerships and allow the company to participate in even more business to business opportunities.

According to Massey in his statement to Reuters, the power of this deal is located in the quality of the partner with which the company is dealing, which then gives Paddy Power Group an excellent opportunity to approach other companies and thus creates other similar opportunities that may emerge in the future.

Paddy Power’s Chief Executive Officer, Patrick Kennedy, says that their agreement with Pari Mutuel Urbain stands as an impressive beginning to the company's new B2B division. He adds that his company will be capitalizing on its expertise and technology to bring about agreements with still other major betting companies.

The Chief Executive Officer of the Pari Mutuel Urbain group, Philippe Germond says that the present arrangement with Paddy Power Group and impending partnership will enable PMU, using its own brand, to offer online sport betting and to still retain direct management of its present client database. He says that the Paddy Power Group provides Pari Mutuel Urbain with its expertise in sports betting. He also notes that this partnership with Paddy Power Group enables Pari Mutuel Urbain the means to be prepared for the coming next year of the opening of online betting and of that market, in France.

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