M2M was the incumbent on offline media planning and buying. It was awarded the consolidated business, estimated to be worth £8 million, after a closed pitch with the digital incumbent, Zenith.
The consolidation process was led by Tom Wyse, the head of media at Paddy Power. Search and affiliate marketing will remain in-house.
As part of the appointment, Paddy Power plans to work with Omnicom Media Group agencies across international markets as it looks to expand into Europe and beyond.
M2M will continue to work alongside the creative agency Crispin Porter & Bogusky, which was appointed to the business in October last year after a pitch against Mother and CHI & Partners.
Paddy Power launched a new ad in its "we hear you" campaign this week with an online film ahead of the start of Euro 2012 in June.