Last week, William Hill, which employs 1,300 people in Leeds, told investors it had received takeover approaches from Caesars and private equity giant Apollo.
Caesars said that the board of directors at William Hill had indicated the offer is at a level that “they would be minded to recommend to shareholders”.
Tom Reeg, chief executive officer of Caesars, said: “The opportunity to combine our land-based casinos, sports betting and online gaming in the US is a truly exciting prospect.
“William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market.
“We look forward to working with William Hill to support future growth in the US by providing our customers with a superior and comprehensive experience across all areas of gaming, sports betting and entertainment.”