Verizon Media CEO Guru Gowrappan and MGM Chairman and CEO Jim Murren announced the deal will "power sports betting for Yahoo Sports and create collaborative content experiences and live events."
Yahoo joins ESPN and Fox as US media companies looking to expand their horizons into sports wagering.
The firm will be the official digital media sports partner of MGM and the Yahoo Sports app, powered by BetMGM, will launch in the US in November.
Murren said: "This partnership marks an important moment for BetMGM in the growing US sports betting sector.
"Integrating Yahoo’s leading fantasy sports operations and content with BetMGM’s world-class sports betting and interactive platform uniquely positions us to drive market share and large-scale adoption among sports fans."
Gowrappan said: "The historic partnership with Yahoo Sports and BetMGM will change the future of fandom, providing new ways for sports fans to go beyond engaging with content and interact through commerce."
