The agency won the brief after pitching against Mother and CHI & Partners.
DDB UK also competed but was knocked out of the running at an earlier stage.
A pitch was called in June following the appointment of Paddy Power's previous incumbent, Big Al's Creative Emporium, to the ad account for its rival Betfair. Adam Perrin, Paddy Power's head of brand, handled the review process.
The account includes the advertising for both Paddy Power's sports betting and e-gaming business.
Its previous advertising included last year's "blind football" execution, by Big Al's Creative Emporium, which featured a cat being kicked by a blind footballer. It was the Advertising Standards Authority's most-complained-about ad of 2010.
The business is the first significant win for CP&B since it opened a London office in June and appointed the joint executive creative directors, Ben Walker and Matt Gooden, from Beattie McGuinness Bungay.
Perrin said: "We were blown away by the freshness of Crispin Porter & Bogusky's approach and its use of resource across the US and Europe."