UK gambling giant Entain on Wednesday said it had received a takeover bid from US rival DraftKings worth £16.5 billion (€19.3bn), as the sector undergoes a shakeup.

Entain, which had already revealed the bid but did not disclose the price, said in a statement that it had also rejected a lower bid from DraftKings, as the gambling sector looks to consolidate. Entain said DraftKings’ improved offer was priced at £28 (€32.78) per share, giving a value of £16.5 billion.

“The board of Entain will carefully consider the proposal and a further announcement will be made as and when appropriate,” the statement added.

The board of Entain will carefully consider the proposal and a further announcement will be made as and when appropriate

The rejected offer had been priced at £25 per share and comes after Entain in January rejected a takeover approach from US casino giant MGM worth £8 billion.

Entain owns Britain’s betting-shop chains Ladbrokes and Coral, as well as various online gambling websites.

The British group’s share price soared 18 per cent on news of the fresh takeover approach that was made shortly before the close of London trading on Tuesday.

The announcement comes after gambling group 888 earlier in the month agreed to buy the non-US operations of rival William Hill in a deal aimed at creating a leading online betting group. US group Caesars Entertainment agreed to the sale in a deal worth £2.2 billion.

Caesars had bought all of William Hill, which has more than 1,400 betting shops in the UK, for around £3.0 billion last year but said at the time that it was interested in holding onto only the US part of the business.