Punters: How Paddy Power Bet Billions and Changed Gambling Forever

by Aaron Rogan

From cheeky high-street bookmaker to billion-dollar the incredible story behind Paddy Power’s unstoppable rise. Flutter Entertainment, the parent company of Paddy Power, is the largest gambling business in the world. The evidence of that success is visible everywhere, from shop fronts and bus shelters to sporting arenas and smartphone screens. The company’s rise to this point has been rapid, but like any gambler worth their salt, Paddy Power has always succeeded in finding an edge. At the outset those innovations were modest, like offering odds on television shows and giving punters money back on losing bets, but as the company’s ambition grew, so too did its determination to stay one step ahead of the competition, whatever the cost… Impeccably researched and informed by dozens of insider interviews, Punters is the incredible story of how an unlikely band of misfits and visionaries bet on the future of the gambling industry and won big. But it’s also the story of how that victory may have come at an extraordinary cost – to their customers and society at large.

Genres: Nonfiction, Audiobook, Journalism, Irish Literature, Ireland, Business

416 pages, Paperback

Published January 4, 2022

Reviews

[Joe O'Donnell · Rating 4 out of 5]

Never trust a multinational corporation that keeps insisting they are your mate. That’s just one of the lessons from “Punters”, Aaron Rogan’s meticulous but fair-minded investigation of the Paddy Power gambling organisation. A few other key lessons from “Punters” are that the business models of global betting behemoths like Paddy Power are predicated on ruthlessly targeting and exploiting chronic addicts, using hugely advanced technology to keep them betting as much as possible for as long as possible, and that without robust regulation our societies are facing a tsunami of addiction and related societal calamities. In short, Big Gambling is the new Big Tobacco.

In providing a forensic history of Paddy Power, from their origins as a grassroots Irish challenger to the traditional UK betting giants like Ladbrokes and Coral, Aaron Rogan shows that initially there might have been aspects of the company that were faintly admirable. Even just at the level of the balance sheet, Paddy Power is a huge business success story, and they have undoubtedly had some incredibly smart people running their operations over the years (not least their founder Stewart Kenny, who is really the fulcrum around which “Punters” is written).

But, of course, Paddy Power aren’t operating in any old industry. “Punters” details how as mobile technology has become vastly more advanced – and Paddy Power have become mercilessly more adept at exploiting the customer data this tech has created – it has become “more difficult for gamblers to win, and much easier for addicts to lose everything”. Paddy Power have supercharged the mining of their punters’ data with a ruthlessness that completely belies their carefully cultivated cheeky-chappy, “we’re your pals and it’s all a bit of banter” public persona. Rogan demonstrates how the company have perfected the concept of ‘Future Expected Margin’, where after laying as few as a dozen bets, Paddy Power can predict exactly how much money they expect to cream from you over your life. Show too much shrewdness, and Paddy Power will rig you out of the game so you can’t bet with them at all. Show any signs of compulsive gambling, and Paddy Power will push ever more addictive products at you (and if you’re really unlucky, designate you as one of their ‘VIPs’).

From the many interviews Aaron Rogan has carried out for “Punters”, some of the most staggering are those with industry experts who divulge that the gambling technology at the heart of Paddy Power Betfair’s vast operations is essentially “addictive by design”. Far from their low-rent origins in smoke-filled bookies, online gambling companies now represent one of the most advanced examples of surveillance capitalism. Perhaps most cynically of all, Rogan discloses how Paddy Power have long known through their own internal ‘Project Vanguard’ research that up to 25% of their profits are derived directly from chronic gambling addicts. Yet, despite being aware of this since 2013, the organisation has stymied almost all measures that might protect these desperately vulnerable customers out of fear that Paddy Power’s bottom line might take a hit from any form of corporate responsibility.

Notwithstanding the appalling corporate negligence presented throughout its pages, “Punters” is far from a foaming diatribe, and the book is all the more powerful for the coolness of its analysis. Aaron Rogan is even-handed and avoids an overtly puritanical attitude towards the gambling industry, which might ensure this vitally-important book stands a greater chance of being seen by the people – whether they be industry executives or mug-punters – who really need to read it.
While Rogan doesn’t explicitly make the connection throughout “Punters”, reading about the turbo-charged growth of Paddy Power I couldn’t help noticing the similarities with Facebook. Like Zuckerberg’s repellent organisation, Paddy Power executives often resemble a pack of coked-up fratboys, high on their own hubris, yet utterly out of their depth when it comes to dealing with the societal consequences of the Frankenstein they have created. There are few clearer examples of this in “Punters” than the account of Paddy Power’s inexcusably ill-judged attempt to arrange a celebrity basketball match in North Korea, but with PP’s supposed edgelords ending up being played by Kim Jong-Un’s despotic regime in as blatant an example of sportswashing as you could ever imagine.

One criticism I’d offer about “Punters” is that I would have liked some more analysis of the psychological underpinnings of modern-day gambling, and how exactly betting corporations are rapaciously combining tech and behavioural economics so as to take their customers to the cleaners. But this caveat should not detract from the astonishing work Aaron Rogan has done in uncovering the machinations of a multi-billion industry, and in getting so many high-ranking industry insiders to admit just how pernicious these companies are behind their lad-friendly corporate personas. “Punters” is a subtle yet expose of a sector out of control and urgently in need of root and branch regulation.

[Louise · Rating 4 out of 5]

Really good book. Amazing history behind Paddy Power but shows the darker side of grooming people who have gambling problems. A lot of food for thought

[Brendan Crowley · Rating 5 out of 5]

Very interesting book both about the corporate journey of paddy power but also the dangers of the industry . A balanced, fair account.

[Stephen Allis · Rating 3 out of 5]

First 3/4 of the book was interesting, but the last 50 pages or so dragged.

[Dave McGrath · Rating 3 out of 5]

Overall I enjoyed reading this. I am an ex-PPB employee and there are alot things I learned about my alma mater that i never knew (wasn't privy to).

Pros: Really intriguing recount of the early days of PP. The author must have done alot of work and spoken to alot of the early players to find out as much as he did. I thought some of the recounts of Safer gambling issues were eye opening

Cons: It's clear that this is a very Irish-centric book, which is great for the story of PP pre-2010 but beyond that the business expanded and the author does not do a great job at recounting the rise of the Australian operator, or any of PP's business in other (grey) markets (Italy, Spain, Netherlands, Germeny). The treatment of the US business as an epilogue is an open layup missed.
Whilst I think safer gambling measures are important, I'm not sure this book brings that much new to the conversation, given how much of the book centres on the safer gambling sentiment. In fairness the author has one primary source of a customer that fell through the cracks, but the rest are just copy/paste from other books (tony10) and the UK parliamentary inquest. The fact that Flutter refused to comment for the book is treated as a signal by the author to pile-on the company.

Overall it is worth reading. Although it's 400 pages it can be read in a single flight.

[Adam Maher · Rating 4 out of 5]

V good - ties in nicely with the product design book I’m reading and the Irelandia/ryanair book I just finished prior to starting this

[Rachel Barry · Rating 5 out of 5]

We open with an introduction to Stewart Kenny, - Buddhist, cyclist, son of a Supreme Court Judge and ex MD of a multi million euro gambling firm who is now calling it out for socially irresponsible business practices. A man with a conscience? Or someone who, having made his money, wants to cleanse his soul?

Here follows a roaring read. We start in 80s Dublin, and in an effort to “beat the brits”, a new gambling firm is put together using the best business and marketing minds of the indigenous industry.

The journey only gathers pace thereafter, fuelled by double faces and ruthless ambition - from taking on the brits through the tax wars (and squeezing out the small bookies in the process) to strategising with and against politicians, Kenny’s savvy rings through. The murkier parts of the business are also explored, including the Gilligan connection and how winners are excluded from placing bets, including the surveillance operations previously conducted on serial winners. The humble beginnings of the online business are incredible to listen to when juxtaposed to the sophistication of its operation driven by its investment in quants and derivatives.

The story of the company’s growth from a Dublin shed to multi billion Euro global entity via savvy investments in foreign markets coupled with constant innovation and a simple strategy - do what the others do, but better and more ruthlessly - are fascinating.

On the other hand, the brand’s previous problems (including it’s inexcusable punching down at the trans community and issues with dealing with addiction) are laid bare, as well as the issues with the state of the gambling industry in general.

Where is Kenny at the end of it all? Asserting that the industry can and should make itself less addictive, particularly to young people. What next? Who knows…

[Kevin Burke · Rating 4 out of 5]

One of the reasons you'd read a book on Paddy Power is to work out why to dislike them more. But while there is a fair bit of that, much of this story is really that of a very successful and smart business. Much of it wouldn't be out of place in a Marketing 101 course. This is a company that realised betting, not winning, was the core entertainment product it was selling; that different people bet on different things (men on sport, women on the Lotto numbers, politicans on themselves); that a lot of people liked betting but wouldn't be seen near a race track; that Irish people bet on different things to the English. It's a company that played to its target market's enjoyment of political uncorrectness, the best example of which is the blind football team kicking a cat ad in England - an ad placed purely to generate publicity from complaints, and when that didn't happen, they set about better ad placement to have it run in segments where cat lovers would be more likely to watch, at which point it generated more complaints than any other ad that year, including one promoting abortion services which launched which prompted anti-abortion groups to launch a concerted letter-writing campaign.

There's darker sides to the story too - not just pushing competition out of business, but also dealing with some pretty shady characters. Best is the story of John Gilligan laundering cash through the shops in the days shortly before the CAB; when, one day, he screws the company out of £20k in cash, the shop teller who has to report this to head office is rather surprised to hear the directors are delighted; this gives them the opportunity they'd been looking for to ban him, and they stick to their decision even as Gilligan rings them to appeal his ban.

There's also the development of technology to move out of the betting shops and into the mobile phone app age - not without bumps, as technology couldn't keep up with the pace required, sometimes leading to a lack of confidence in it, and sometimes leading to brief time lags which savvy betters could take advantage of. And there's fun little details like the employee whose job it was to watch a football match and temporarily pause betting on next goal when a team won a corner in order to put up much-amended odds.

But there's plenty on the insidiousness of gambling, much of it towards the end. Some of it looks at Fixed Odds Betting Terminals in England, which Paddy Power kept away from, but other areas look at how friendly Paddy Power were towards their best betters (ie their biggest losers) and encouraged them to keep gambling with an account manager offering a series of incentives to keep their turnover up, or designed gambling events with quick results to keep them gambling (next point in tennis, etc). The story of Tony10, who gambled €10m over 15 years before suddenly stopping (having run out of stolen money), shows a company with completely the wrong attitude towards big gamblers - curiosity, the sense of a legend, but not the remotest sense of concern. An internal report showed that problem gamblers account for around 25% of their profits, but neither company nor Government (who benefit from the taxes) have made much more than token efforts to address this. It says a lot that one of the founders, Stewart Kenny, has left the company and now voices concern at its behaviour.

Interestingly, having merged with Betfair, there's a sense that Paddy Power is maybe losing its original fun working ways as profit becomes the be-all-and-end-all. And there's a sense that the draconian rules imposed by Catholic Ireland - high betting tax (20%), drab shop interiors, no gambling near pubs - mayn't have been all that bad after all.

A fascinating read.

[Colin Wheatley · Rating 4 out of 5]

The chapters on Paddy Power’s North Korean venture were too drawn out without adding substantially to the point, even if it was one of the first high profile promotional ventures in which the company may have felt they went too far. Otherwise it was well researched and concise.

I’m not into gambling. Even so I don’t think people will be too shocked to learn that bookies prey on gamblers, and especially addicts—though they may be surprised by the lengths at which this is achieved through money back deals, VIP programs for high stakes losers, and increasingly data-mining efforts to find the next potential punter. (On a side note, since listening to the book on Audible, I’ve started receiving ads for bookies.)

[Sean O'Sullivan · Rating 4 out of 5]

A great insight into both the history of Paddy Power and how it and companies like it operate. A sobering read to see how the gambling company attracts and keep its customers. A few typos here and there but still enjoyable

[Conor Daly · Rating 4 out of 5]

Well researched and even handed overview of a company and the murky industry it has helped cultivate. Very interesting insights into Irish society as PP came to prominence. Good pace to it, humorous in parts and serious in others as the topic would demand.

[Mark Nolan · Rating 4 out of 5]

A really good book on building a business against strong competition. Good insights too on gambling addiction, how Paddy Power has failed to address this in pursuit of growth and profitability. It's a regulatory issue primarily. Ideas in the book on how that might work.

[Jess Mehmet · Rating 4 out of 5]

Very good book detailing the rise of Paddy Power. Some disturbing insights regarding their knowledge of gambling addiction and the lack of will to help in order to keep profits high.

[Richard Byrne · Rating 4 out of 5]

Really interesting background on how the company grew from small beginnings to a global behemoth

[Sean McKennedy · Rating 4 out of 5]

Great insight into the gambling industry and the tactics used by Stewart Kenny and co to bring Paddy Power to the top of the industry.

[Claire Connell · Rating 4 out of 5]

Eye opening