Taken from a newsreel I receive:
Irish bookies, Paddy Power, has initiated what is effectively a price war across its Irish retail, online and phone betting divisions.
The unprecedented move comes amid rising competition and will have the effect of driving down the gross win margins (GWMs) of the business and those of all competitors who follow suit, according to David Jennings of Davy Research.
The move involves Paddy Power offering a best-price guarantee on all horse and dog races in the UK and Ireland across the three respective businesses.
For now, the bookie is confining the deal to Ireland and not to its larger UK market.
"Paddy Power has not extended the offer to its UK retail estate, marking this out as the most high-profile price differentiation that we have observed between its Irish and UK retail estates," Davy said.
"The breadth of this offer is unprecedented in recent times. The company has not said for how long it will apply. However, if made permanent, or even if it becomes increasingly regular, GWM guidance would likely have to be lowered," it added.
The analyst said he believed the move is related to intense competition for a dwindling market as the economy slows.
Irish bookies, Paddy Power, has initiated what is effectively a price war across its Irish retail, online and phone betting divisions.
The unprecedented move comes amid rising competition and will have the effect of driving down the gross win margins (GWMs) of the business and those of all competitors who follow suit, according to David Jennings of Davy Research.
The move involves Paddy Power offering a best-price guarantee on all horse and dog races in the UK and Ireland across the three respective businesses.
For now, the bookie is confining the deal to Ireland and not to its larger UK market.
"Paddy Power has not extended the offer to its UK retail estate, marking this out as the most high-profile price differentiation that we have observed between its Irish and UK retail estates," Davy said.
"The breadth of this offer is unprecedented in recent times. The company has not said for how long it will apply. However, if made permanent, or even if it becomes increasingly regular, GWM guidance would likely have to be lowered," it added.
The analyst said he believed the move is related to intense competition for a dwindling market as the economy slows.