BSkyB will receive the cash on completion of the deal and on top of its share of the profits. The service is expected to be profitable from launch.
Sky Digital customers will have access to a raft of new interactive betting and gaming services, which are being developed by the joint venture. Vernons football pools, the Irish Lottery, spot the ball and numbers betting will be among the services.
Ladbrokes' wholly owned bookmaker Surrey Sports, which already operates on Sky Digital, will be thrown into the deal as will Ladbrokes' Vernons Pools business, which has 400,000 regular players and a customer database of more than 6m.
Ladbrokes will promote and market the service.