Wagering and keno provider Tabcorp has entered the UK online gambling market, signing a 10-year deal with Rupert Murdoch's News Corp to set up a wagering and gaming website linked to The Sun newspaper.
The online business, called Sun Bets, will launch in 2016 and have its own dedicated website.
Tabcorp and News UK will share the revenue, and News UK will promote the business.
The UK's online gambling market is worth about $7 billion.
"This partnership provides us with the opportunity to create a leading online bookmaker in the UK market under the Sun Bets brand over the coming years and fits with our strategy of pursuing close-to-core international opportunities," Tabcorp chief executive David Attenborough said on Thursday.
The Sun is the UK's most widely read print newspaper with about 1.8 million copies sold each day, and the third most read online after the Daily Mail and The Guardian.
More than a million soccer fans already participate in The Sun's Dream Team fantasy football linked to the English Premier League.
News UK chief executive Rebekah Brooks said The Sun and its Dream Team fantasy football competition had incredible reach.
"I have every confidence that this will be a rewarding partnership, which will see Sun Bets firmly established as a key player in the online betting business," Ms Brooks said.
The deal between Tabcorp and News UK is subject to Tabcorp obtaining licences and regulatory approvals.
Tabcorp has not disclosed details of the revenue-sharing arrangements, its potential market share, nor the cost of setting up the new business.
The company already has some small business-to-business operations in the UK, but Sun Bets will be its first UK operation that directly targets consumers.
Most of Sun Bets' offering to consumers will be focused on racing and sports betting.
Shares in Tabcorp were seven cents lower at $4.60 at 1051 AEDT.
