Online gaming company Paddy Power said this morning that it is to generate 500 new jobs in Ireland as part of a major expansion of its online operations. The company said this will bring total employment in its Irish operations to 2,210.
Internationally, Paddy Power’s expansion will generate a total of 1,440 new jobs in Ireland, Australia and the UK.
In what can be a clear indication to Ireland’s policy makers of the kind of gains that can be made if Ireland fully embraced the digital economy, 375 of the new jobs will be located at Paddy Power’s online operations in Tallaght. Some 86 positions will open today.
In addition to the Irish-based jobs, Paddy Power is creating 810 new jobs in the UK as it expands its retail network and 130 jobs in Australia, where it is the No 1 online corporate bookmaker. All of the new jobs will be in place by December 2013.
Of the 500 new jobs being created in Ireland, 375 will be located in Tallaght, in areas such as e-commerce, technology, quantitative research, online marketing and risk management. Paddy Power’s international online turnover has grown by 315pc in the last three years and the group’s strategy is to exploit additional new opportunities that arise as international markets liberalise.
A further 125 jobs will be created in the Paddy Power’s retail estate in Ireland.
These new jobs are on top of 725 existing “smart economy” jobs in Paddy Power’s Tallaght head office, 80 of which have been created and filled in the past 12 months.
Announcing the new jobs, the Minister for Enterprise Trade and Innovation Batt O’Keeffe TD, described the investment by Paddy Power as a significant employment boost for west Dublin and for the country.
“Paddy Power is now a major Irish employer and today’s announcement will bring the firm’s workforce here to more than 2,200,” O’Keefe said.
“The new high-end jobs align well with the Government’s policy focus on driving new levels of innovation and skills across the labour force so that we can achieve sustainable employment growth as our economy recovers.
“Paddy Power’s rapid international expansion has direct revenue benefits for the Irish exchequer and, as overseas markets deregulate, growth prospects are strong for the firm’s online business. The Government’s overriding priority is the protection and creation of jobs and we will continue to shape a pro-business policy environment that allows innovative firms, such as Paddy Power, to grow and generate jobs.
Rapid expansion at Paddy Power
The jobs news come as Paddy Power plc issued its interim management statement, which showed a 70pc increase in its Australian online business, more than 28 new shops open in the UK and a 9pc increase in gross wins in its Irish retail stores.
As of 31 October, the group had net cash of €137m or €94m, excluding customer balances.
“We have very strong home-grown expertise which has already opened doors in the UK, Australia and France,” Patrick Kennedy, chief executive of Paddy Power, explained.
“Our strategy is to continue to seek opportunities through organic means, joint ventures, strategic partnerships and where the value and fit is right, through acquisitions. We operate in highly competitive markets and it is essential that we remain competitive here, out of Ireland, in order to continue to expand this business and create more jobs.
“The benefit to the economy of our international expansion extends beyond job creation. Paddy Power pays corporation tax in Ireland on all our internet and telephone profits from the 162 countries where we do business. In 2009, we paid €41m to the Irish exchequer, €19m of which was generated from locating our internet and telephone business in Tallaght.
"As the business expands in the coming years, this figure will rise significantly. An internet tax, if applied in a manner which does not disadvantage Irish employers, is fully enforceable on all international operators, thereby protecting job creation in Ireland, will add further to the exchequer coffers,” Kennedy said.