Sky offloads remaining stake in betting operator

Sky, one of Europe’s leading pay-television sports broadcasters, has agreed to sell its 20-per-cent stake in the online betting and gaming business, Sky Betting & Gaming, to the Stars Group, a Canadian company that specialises in online gaming.

Sky offloaded its initial majority stake in Sky Betting & Gaming to CVC Capital Partners in 2015. The latest deal is part of a transaction under which CVC will sell the whole of its stake in Sky Betting & Gaming to the Stars Group.

Under the new deal, Sky will receive £425m (€485m/$592m) in cash and about three per cent of the Stars Group – with that stake currently valued at £145m.

Sky, which operates in the UK, Italy and Germany, said it would use the proceeds to reduce debt and reinvest in further growth opportunities.

Formed by Sky in 2001, Sky Betting & Gaming benefited from a strong partnership with the Sky Sports division to grow rapidly and become one of the leading operators in the UK.

Sky has rights to a number of top sports properties and has been the primary live domestic rights-holder of English Premier League football since the league launched in 1992.