Sports betting and gaming companies Bwin and Partygaming have agreed to merge to create the world's largest online gambling company.

The decision still has to be backed by at least 75 per cent of the shareholders in each company, however, with 28.5 per cent and 14.4 per cent of the respective shareholders in Partygaming and Bwin have already confirmed "irrevocable...support of the proposed merger".

Partygaming CEO, Jim Ryan, said: "For us, and I think the sector, this is a historic day. This is the transformation acquisition in the sector. We will be creating the industry's largest online gaming company and the world's largest listed online gaming company and probably, I think it is fair to say, the largest deal in the history of this sector."