"Following the premature disclosure of preliminary discussions Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction," Wynn Resorts, the world's No. 2 casino operator, said in a statement.
Crown Resorts said earlier Tuesday that it had been approached by Wynn with a A$10 billion ($7.1 billion) takeover offer.
"The discussions between Crown and Wynn are at a preliminary stage," said Crown, which is one of Australia's largest gaming and entertainment companies, said earlier Tuesday. "There is no certainty that these discussions will result in a transaction."
Crown Resorts owns casinos in Melbourne and Perth, Australia, and London.
The deal would have offered Wynn a hedge against Macau, the Chinese gambling hub where its licenses are up for renewal, by giving it two lavishly revamped Australian casinos and a third still being built on the Sydney harbor front, Reuters reported.
Crown said Wynn was proposing to buy the company in a cash-and-stock deal.
Crown Resorts shares ended the trading day in Sydney up 19.7% to A$14.05. Wynn shares fell 3.2% to $140.25.