Casino operator MGM Resorts International has today scrapped plans to buy Ladbrokes owner Entain, saying it does not intend to submit a revised proposal for the British firm that snubbed an $11 billion takeover approach earlier this month.
Entain shares fell 17% on the news, paring almost all the gains made since the US company's approach was made public.
"We look forward to continuing to work closely with MGM to drive further success in the US through the BetMGM joint venture," Entain said in a statement.
MGM said it would not make a firm offer for Entain, which at the start of the year said the US company's approach significantly undervalued its business.
The US is seen as the next big growth market for sports betting, spawning a series of transatlantic partnerships tapping into European expertise such as Britain's William Hill being bought by Caesars Entertainment in a £2.9 billion deal.
The announcement from MGM also comes days after Entain's chief executive Shay Segev decided to step down, after just seven months in the role.
