Sky join forces with Ladbrokes

Ladbrokes and BSkyB are joining forces in a multi-million pound deal to develop and operate a fixed-odds and pools betting business linked to Sky Digital channels.

Ladbrokes` Vernons pools business, which has 400,000 regular players, will also be transferred to the new scheme.

For their part BSkyB will contribute their wholly-owned bookmaker Surrey Sports. Surrey has operated an interactive betting service on Sky Digital since last December.

The joint venture will have exclusive rights for five years to offer interactive sports betting on Sky Sports Extra and certain other Sky Sports channels plus non-exclusive rights for a further five years.

Ladbrokes are to pay BSkyB Stg£30million once the business deal has been completed and the broadcasting company will receive on-going operational payments from the joint venture linked to betting volume and profitability.

David Michels, group chief executive of the Hilton Group of which Ladbrokes is the betting and gaming division, said: 'Linking innovative betting opportunities to live broadcasting is a compelling proposition.

'This partnership means Ladbrokes and BSkyB will be the first companies in the world to develop betting via interactive television to its full potential.'

Tony Ball, BSkyB`s chief executive commented: 'This partnership brings together two leading companies to build and promote new services which will add to the enjoyment of Sky`s sports coverage for our customers.'