Paddy Power was founded in 1988, by the merger of up to forty shops of three Irish bookmakers: Stewart Kenny, David Power and John Corcoran. The Power name was considered the strongest brand among all of the merged shops, while the ‘Paddy’ name and green colouring emphasised the chains Irish-ness at a time when the fragmented Irish Industry was facing competition from British betting chains entering the market in response to changes in the Irish tax code.

The company had a strong expansion strategy involving opening prominent shops in most Irish towns, rather than side streets usually preferred. The firms novelty bets broadened its media coverage beyond the horseracing news. Its share of the Irish off course betting market grew from 8% in 1988 to 33% in 2001.

Power Leisure, parent company of Paddy Power PLC, listed on the London Stock Exchange in December 2000, to fund an expansion in the UK. At the end of 2005, Paddy Power operated 195 outlets across Ireland & the UK, 150 in Ireland and 45 in the United Kingdom. The total number of employees was 1,374. As of November 2011, Paddy Power was the largest bookmaker in Europe by a total share value. Its group income was €444m in 2010.