Caesar's subsidiary, Caesars Interactive Entertainment Inc., said it had reached agreement with Microgame, which operates the largest Internet poker network in the newly regulated Italian market, the Las Vegas Review-Journal reported.
"There is plenty of upside to this deal if we execute it properly," said Seth Palansky, a spokesman with Caesars Interactive.
The new site will carry Caesar's World Series of Poker brand.
The European Commission, the executive body of the European Union, opened the Italian online gambling market to offshore firms following a ruling in May.
Until the law was changed, the Italian Olympic Committee and the National Horse Breeders Enhancement Society had the exclusive right to organize sports betting, including online gambling.
"This agreement is a logical step in our European and global expansion strategy," said Caesars Interactive Chief Executive Officer Mitch Garber.
Microgame has a network of more than 120 sites and will serve as the online hub for poker in the Italian market.