Published on 10th December 2014 by Becky Mosley

Sky Bet is a service that most UK gamblers will be familiar with. The online gaming firm is a part of the Sky Broadcasting Company, and has become much loved over recent years. This week, though, a controlling stake in their betting company was sold to CVC Capital, a London based Private Equity firm.

Money needed for Sky’s pay TV

What reason could Sky possibly have for selling a massive chunk of their gambling company? According to reports, the move has been made to stimulate growth in Sky’s pay TV package. The extra influx of cash (believed to be around £800 million), will allow Sky to grow their pay TV business.After the deal has been concluded, Sky will retain 20% of Sky Bet, and maintain a seat on the Board of Directors. The deal is set to see Sky receive £600 million upon completion of the agreement, plus a further payment of £120 million based on the performance of Sky Bet. CVC will also be able to maintain the Sky name and brand.

Successful Company since 2001

Sky Bet first launched in 2001. They are one of the largest online gambling companies in the United Kingdom, owning Sky Vegas, Sky Casino, Sky Poker and Sky Bingo. Following the failure of the Football League to find a sponsor, Sky stepped in to save them. The Football League is sponsored by Sky Bet this year, and is a major name attached to the brand.Nothing concrete has been processed yet, though. First the deal will have to be cleared by several regulators in the UK and Ireland. The finalisation of the deal is expected to be announced within the first quarter of next year, if everything goes as planned.