Ladbrokes owner GVC and MGM Resorts have confirmed a $200 million join venture.
In a statement, GVC said the partnership would “well-positioned” for future expansion, particularly following a recent Supreme Court ruling regarding sports betting in the U.S.
Earlier this year, The Supreme Court made a landmark decision which pave the way for states across the country to legalise sports betting.
Justice Samuel Alito wrote on behalf of the Supreme Court: “The legalisation of sports gambling requires an important policy choice, but the choice is not ours to make.
“Congress can regulate sports gambling directly, but if it elects not to do so, each state is free to act on its own.”
News of the ruling in May sent shares in various bookmakers soaring, including shares in Paddy Power Betfair, 888 Holdings, William Hill, with GVC Holdings also rallying 6 percent on the day.
The business will be split 50/50 between the two firms, with each investing an initial $100 million (£76 million).
MGM is the firm behind various well-known Las Vegas hotel brands such as the MGM Grand and Bellagio. Meanwhile, GVC owns various betting companies such as Ladbrokes Coral, Betboo, party poker and Foxy Bingo as well as others.
MGM Resorts chief executive Jim Murren said: “We are proud to join forces with GVC, the largest and most dynamic global online betting operator, with existing reputable and trusted operations in the US.
“With MGM Resorts’ expertise and leading position in key markets across the US, this historic partnership will be positioned to become the instant leader in technology, market access, sports relationships and brands.
“Together, we are creating a one-of-a-kind platform that we expect will dominate the US sports betting market.”
Shares in GVC are currently trading +4.94 percent. Similarly, MGM Resorts was up 0.098 percent during pre-market trading, as of 13.47PM (GMT).