Chief executive Patrick Kennedy said the Irish bookmaker had leapfrogged British rival Coral and now ranks behind only William Hill and Ladbrokes in terms of revenue derived from online betting in the UK.

Paddy Power saw earnings from its online division increase by 54% over the first half of this year to 248m.

The online division generates two-thirds of its revenue in the UK.

Paddy Power's success in attracting British bettors to its online sports betting and gaming sites has been achieved despite the fact that it has minimal high-street presence relative to its competitors. The Irish bookmaker has just 51 shops in Britain, all in the greater London area. William Hill and Ladbrokes have over 2,100 shops each and Coral Eurobet operates more than 1,300.

"We talk about UK retail but, in fact, the big game for us in the UK is online, " said Kennedy.

Paddy Power has built awareness and grown its online customer base in the UK in much the same way it has in Ireland. Quirky advertising campaigns, moneyback specials for customers and promotional stunts such as sponsoring the first world strip poker championship in London last month have worked well for the Irish company.

Kennedy said Paddy Power had also benefited from broadening the appeal of its online offer. During the World Cup, for example, Paddy Power offered up to 70 different betting markets on each individual game, covering a wide range of events from score predictions to first goal scorer, as well as allowing punters to bet on matches that had already begun.

Its nearest competitor, Betfair, offered just 46 markets on each game. Paddy Power's approach proved a hit with punters and helped the company recruit large numbers of new customers during the tournament, said Kennedy.