CVC scoops nearly £400m from its punt on Sky Bet

Private equity giant CVC has landed a windfall of almost £400 million from betting website Sky Bet less than three years after swooping for the business in an £800 million deal, the Standard understands.

The revelation of the huge return came after broadcaster Sky, which retained a 20% stake in the company following the December 2014 takeover, this week said it had received £113 million after CVC refinanced the debt used to buy Sky Bet in the summer, and made the distribution to shareholders.

Sources said that the total payout was around £500 million, leaving the remainder — nearly £400 million — heading into CVC’s coffers.

The stellar return comes after a period of rapid growth as the Leeds-based business ruthlessly leverages the Sky brand to pick up small-stakes football punters, taking some 200 bets a second on most Saturdays.

The spurt under CVC’s ownership, including a push overseas, has provoked speculation that CVC will bank even more profits on the bookmaker with a £2 billion float, or seek to merge it with another operator.

Sky Bet’s financial performance is opaque as its ultimate parent is based in Jersey, but the firm said last year that revenues jumped 36% to £247 million in the year to June 2015.

Sky Bet and CVC declined to comment.