Ladbrokes owner Entain has confirmed it received a takeover offer from US fantasy sports betting firm DraftKings – reportedly valuing it at around $20bn (£14.6bn).

The offer comes after Entain spurned an £8.1bn approach from another American suitor, casino operator MGM Resorts, earlier this year.

Shares in the UK-listed gambling firm – which owns betting shop chain Coral as well as online brands including Sportingbet, bwin and Foxy Bingo, surged by 18% on the DraftKings move.

In a statement, Entain confirmed that it had a cash-and-share based takeover offer from DraftKings.

“There can be no certainty that any offer will be made for the company, nor as to the terms on which any such offer may be made,” it added.

Entain urged shareholders to take no further action at this time.

The offer comes at a time when US-based companies are looking to expand overseas and acquire the expertise of London-based firms as America opens up to sports betting.

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Earlier this year, Caesars Entertainment snapped up Britain’s William Hill – a traditional rival to Ladbrokes – for £2.9bn but is now selling the non-US assets, including its chain of betting shops in the UK, to online operator 888.

Entain already has a joint US venture with MGM called BetMGM, an online sports platform for betting on American football and basketball games.

MGM said said any deal which could see Entain own a competing business in the US would require its consent.

Analysts also expect MGM to come back with a new bid after walking away from Entain when its offer earlier this year was turned down.

Entain said that under City takeover rules, DraftKings has until 19 October to make a firm offer for the company.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “At first glance, staid UK high street bookmakers are not an obvious fit for a US fantasy sports giant, but it’s Entain’s US sports betting venture with MGM that’s drawn DraftKings eye.

“Rapid growth in market share in a market which is itself exploding makes Entain hot stuff, and a bid from MGM back in January is proof that rivals are prepared to put their hands in their pockets to secure a slice of the action.

“A subsequent spin off/sale of more mature assets, as we saw with William Hill, would probably follow.”

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