William Hill is in talks with a US casino giant Penn National Gaming about a tie-up that would give the British bookmaker a greater share of a potentially multibillion-dollar sports betting market.

City sources said a deal, which is understood to be in the early stages, would marry the FTSE 250 chain’s expertise in technology and sports betting with the footprint of Penn National Gaming, which operates 29 casinos in 16 states, largely under the Hollywood brand.

It would make William Hill the latest British betting firm to team up with a large American casino group. There has been a frenzy of dealmaking since a landmark ruling in May overturned the 1992 Professional and Amateur Sports Protection Act, which made sports betting illegal in most states. All agreements are subject to regulatory approval.