Satellite broadcaster Sky has offered a bulk stake in Sky Bet, valuing the gaming operation at ₤ 800m.
The Leeds-based operation, that includes websites such as Sky Vegas and Sky Bingo, is being bought by personal equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the offer is finished next year and will retain a 20% stake.
Betting and gaming was not regarded as part of Sky's core company, a spokesperson stated.
The sale would allow it to focus on the "substantial development opportunities" in pay-tv in the 5 European markets it ran in, Sky said.
The business recently finished the yohaig code acquisition of Sky Italia and a 90% stake in Sky Deutschland, bringing its customer base to 20 million across Britain, Ireland, Germany, Austria and Italy.
Jeremy Darroch, president of Sky, stated the sale realised "substantial value" for shareholders.
Shares in Sky rose 1.2% to 938p in London, valuing the business at just over ₤ 16bn. The stock has actually risen by nearly 20% in the past 12 months.
'Successful possession'
Analysts at Citi said Sky might utilize some of the profits to buy out the remaining minority investors in Germany, including: "We believe a sale of Sky Bet is a reasonable strategic relocation."
Investec described Sky Bet is a "non-core but highly successful property" and stated earnings must help the company pay for debt, which was anticipated to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has had an interest in the betting and video gaming sector with stakes in business such as William Hill and IG Group, attempted to buy Betfair last year in a ₤ 1bn bet9ja's welcome offer. However, the two companies stopped working to concur on cost.
The personal equity group manages the Formula One motor racing business.
Sky Bet will remain in Leeds with all personnel relocating to the new entity.
Business created net profits of ₤ 182m in the yohaig code year to June 30 and pre-tax profits of ₤ 50m.
Sky has struck a long-lasting brand licence agreement with Sky Bet.
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