Some partnerships prove to be more successful than others and both companies benefit greatly. A shining example is the agreement between Paddy Power and Betfair, as the two large gambling operator shook hands to create one of the most successful poker rooms. Since their merger, the number of customers grew greatly and they are now a serious contender for even the biggest players in the industry.
In 2016, the number of clients increased considerably and the fact that you tournaments were introduced, partially explains this situation. In early March they decided to release the financial figures and they look stellar, greatly exceeding even the most optimistic expectations. The revenue has increased significantly and cross the psychological threshold of €1 billion, which is an important milestone.
Compared to the previous year, the new poker room increased its profits by 24% and the numbers are going up at a steady pace. The operating profit has risen significantly and this can be explained by the fact that more poker players decided to sign up for real money account. Until recently, some highrollers and professionals were disappointed by the fact that they didn't have too many tournaments to choose from and action was not that intense at nosebleed limits.
With all these players behind them, Paddy Power Betfair managed to post these great numbers, despite the fact that they had some operational costs to cover. The merger took its toll but at the end of the day it was all for the better and many punters and casino players have made the transition to poker. The bookmakers are also very profitable on both sides of the aisle and the relatively high number of surprising events in the Premier League explains this.
The new company will have access to more resources and can use more complex strategies, to attract poker players, while improving customer retention. Those who already have an account with either of the poker rooms have no reason to look elsewhere for poker alternatives. Meanwhile, the industry is more competitive than ever before and other poker companies are contemplating similar scenarios. It is increasingly difficult for them to succeed on their own and mergers are in order.
Paddy Power Betfair still has a couple of steps to complete in order to make the integration of the two businesses seamless, but they do all the right things. New company is one of the world's largest and it's hard to compete against them in all the gambling niches in which they operate. The online business is arguably the most successful one, but both gambling operators have a healthy land-based presence. Many punters still prefer to bet in brick-and-mortar venues owned and operated by these guys.