Apollo said it would not make a bid for betting giant William Hill, unless Caesars pulls out, or a third party gets involved.
“Apollo Management International … on behalf of certain of its affiliated funds, confirms that it is not intending to make an offer for William Hill,” the potential bidder told Press Association.
Caesars in September had agreed to buy the gambling group for £2.9bn to expand in the fast-growing US sports-betting market.
It had also received an approach from Apollo, but decided to reject the private equity giant in favour of its US peer.
At the time William Hill chairman Roger Devlin said: “The William Hill board believes this is the best option for William Hill at an attractive price for shareholders.
“It recognises the significant progress the William Hill Group has made over the last 18 months, as well as the risk and significant investment required to maximise the US opportunity, given intense competition in the US and the potential for regulatory disruption in the UK and Europe.”