Satellite broadcaster Sky has actually sold a bulk stake in Sky Bet, valuing the betting operation at ₤ 800m.
The Leeds-based operation, that includes websites such as Sky Vegas and Sky Bingo, is being bought by private equity group CVC Capital Partners., external
Sky will be paid ₤ 600m when the deal is finished next year and will keep a 20% stake.
Betting and gaming was not considered part of Sky's core service, a representative said.
The sale would enable it to focus on the "significant development opportunities" in pay television in the 5 European markets it ran in, Sky stated.
The business recently completed the 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, chief executive of Sky, stated the sale understood "significant value" for investors.
Shares in Sky increased 1.2% to 938p in London, valuing the company at just over ₤ 16bn. The stock has risen by nearly 20% in the previous 12 months.
'Successful property'
Analysts at Citi said Sky could use a few of the earnings to buy out the remaining minority investors in Germany, adding: "We believe a sale of Sky Bet is a reasonable strategic relocation."
Investec explained Sky Bet is a "non-core however extremely effective possession" and stated proceeds should help the business pay down financial obligation, which was anticipated to be ₤ 6.3 bn for the 2015 financial year.
CVC, which has had an interest in the wagering and gaming sector with stakes in business such as William Hill and IG Group, attempted to buy Betfair last year in a ₤ 1bn deal. However, the 2 companies stopped working to agree on price.
The private equity group manages the Formula One motor racing company.
Sky Bet will stay in Leeds with all staff transferring to the new entity.
The business created net earnings of ₤ 182m in the year to June 30 and pre-tax earnings of ₤ 50m.
Sky has struck a long-term brand name licence arrangement with Sky Bet.
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