The two companies are set to launch the All American Poker Network, which will offer online poker in states that have officially legalized the game.
So far Nevada, Delaware and New Jersey have all passed laws that allow online poker.
The contract between 888poker and Avenue Capital is the first of its kind. The All American Poker Network will start by launching in Nevada with casino Treasure Island as the first skin on the network.
888poker and Avenue Capital can pick up their licenses as early as March 21.
888poker Working with Caesars on WSOP-Branded Room
888poker also has a deal with Caesars Entertainment to offer online poker in the U.S. under the WSOP brand. The Nevada Gaming Commission has already approved the partnership.
The Avenue Capital Group usually focuses on distressed securities and private equity with approximately 200 employees spread across eight offices worldwide.
Chelsea Clinton, daughter of former U.S. president Bill Clinton, famously worked for the firm.
Meanwhile 888poker is one of the most popular poker sites in the world and its revamped software has been winning awards in recent years.