Paddy Power confirms Nevada licence application

Paddy Power has applied for and invested “significant time and resources” in a Nevada licence, despite so far not officially being on the list of operators to have done so, Peter O’Donovan, managing director of Paddy Power online and technology, has told eGaming Review.

O’Donovan, who replaced Breon Corcoran who left late last year to become Betfair’s new chief executive, told eGR that its service provider application to offer both online and mobile B2B services to existing US companies had been lodged in the summer of last year but was still in the process of being reviewed.

This confirms eGR’s findings late last year that discovered Paddy Power lodged licence applications on16 August 2010, one to be a manufacturer and distributor of gaming equipment, the other to be an operator of mobile gaming systems and handheld devices. An official at the State Gaming Control Board at the time confirmed to eGR that the applications were on a “tentative agenda” of the Gaming Control Board, however since then little has been heard of its progress and the operator’s company name has not been added to the list of known applicants.

The official list of applicants, according to the Nevada Gambling Control Commission and not including Paddy Power, now stands at 15 companies (see below).

“Our application is for a ‘Preliminary Finding of Suitability’ which is issued after demonstrating the same level of probity as is required for an applicant to be issued a full non-restricted gaming licence. We can then subsequently apply for the relevant licence from the Nevada Gambling Control Board. Our licence application is very thorough and comprehensive and we continue to work with the Board to progress the application,” O’Donovan said.

“We’ve made various trips in the last few months and they continue to engage with us and tell us this is how long the process takes. We’ve invested significant amount of time and resources into this and we have people on the ground full-time. We work closely with the regulator and hope for a favourable outcome,” he added.

Asked what the licence would entail O’Donovan said Paddy Power would look to “provide online and mobile services to facilitate potential partnerships with land-based or other US-licensed bodies to provide them with pricing, products and/or services”.

“Time will tell on how the market will open up. We’re not an 888 and we don’t bring proprietary casino or poker software, but what we do bring is a proven track record in one of the most competitive gaming markets in the world [the UK] and in terms of growing market share, operating a business and developing products as well as pricing and products in terms of sportsbook as well,” he said.

“There is no indication on how long this will take ““ we give them [the regulator] time at their pleasure, but we’ve invested a lot of time in it and a lot of people and continue to have conversations with them. Whatever way it opens up we have the right relationships and they understand what we could do for them,” he added.

At the end of last year Paddy Power made its first move into North America signing a three-year agreement with the British Columbia Lottery Corporation (BCLC), the first Canadian province to allow sportsbetting, poker and casino. Under the terms of the agreement, Paddy Power will supply product, pricing and risk management services for BCLC’s OpenBet-powered sportsbook PlayNow.com from this summer.

O’Donovan said this deal as well as its more established relationship with former French monopoly PMU, one of the largest Tote organisations in the world, would “add credibility” to its potential approval in Nevada.

“The B2B arm is an important arm for us and a good calling card. One of the reasons why we’re positive about our application in Nevada is because we have such good B2B relations with PMU (20% market share in France) and BCLC who have a very strong regulatory burden placed upon them so hopefully that will add credibility to our Nevada application as well. Both serve as a calling card for other countries as they open up,” he said.

Asked whether it had put itself forward for the Ontario contract, the largest lottery outside of the US, O’Donovan said the company was “talking to other players in Canada and anyone who allows us to talk to them”.

Canada does not currently allow single bets, meaning customers are required to bet on at least two events at once due to concerns that allowing players to bet on single events could incite match fixing and damage the integrity of sports. This, however is thought to be changing with O’Donovan hinting that the the country is close to “liberalising” its stance on single bets or “singles”.

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List of Nevada gaming licence applicants:

888 Holdings plc/888 US Limited – Manufacturer/Distributor/Service Provider

ACEP Interactive, LLC – Operator/Service Provider

Aristocrat Technologies – Manufacturer/Distributor/Service Provider

Bally Technologies – Manufacturer/Service Provider

Cantor G&W (Nevada) L.P. – Service Provider

Fertitta Interactive, LLC – Operator/Service Provider

Fertitta Acquisitions Co, LLC – Manufacturer/Service Provider

IGT – Manufacturer/Service Provider

Shuffle Master – Service Provider

South Point Poker (Gaughan Straight Holdings) ““ Operator

Monarch Casino – Operator

MGM Resorts Online, LLC – Operator

Boyd Gaming – Operator

Caesars Entertainment – Operator

NetEffect Networks Ltd ““ Class II service provider licence