Betting & Gaming (SB&G) is to spend £11m on creating 200 jobs and opening a new customer hub.
Half of the new positions will be based in Leeds, primarily in the technology and contact centre teams, with the other 100 based at the recently opened Sheffield Technology Hub at the Electric Works.
A new Customer Hub is to launch at the firm's Leeds city centre site, with details to be confirmed shortly.
The recruitment drive will be supported by a £250,000 marketing campaign promoting the company's working environment.
Sky Betting & Gaming chief executive Richard Flint said: "With the business performing well we have decided that now is the time to significantly increase our investment in people and facilities.
"This is a vote of confidence not only in our own plans to make betting and gaming better but also in the health of the Yorkshire economy."
The investment means that over the next 12 months the company will employ more than 900 people across three sites in Yorkshire – its Leeds headquarters, Sheffield Technology Hub and the new Leeds Customer Hub.