UPDATE 1-UK's Bwin receives revised proposal from 888

(Adds details, GVC spokesperson comments)

Sept 1 (Reuters) - Online gambling firm 888 Holdings Plc stepped up the battle for Bwin.party DigitalEntertainment Plc on Tuesday, submitting a revisedtakeover proposal as it looks to see off rival interest from GVCHoldings Plc.

Bwin, up for sale since November, said it had received arevised offer from 888 and was evaluating it together with aproposal received from GVC Holdings. It did not give details ofthe new proposal.

Bwin had previously accepted a 900 million-pound offer from888, saying GVC's offer of 1.03 billion pounds ($1.6 billion)was too complex and the growth prospects were less attractive.

GVC's spokesman confirmed that the company had made a formaloffer to Bwin on the same terms made on Aug. 7.

The bid battle fits into wider consolidation in the gamblingsector as firms try to bulk up in response to higher tax billsin Britain and tighter regulation.

888 has promised cost benefits of at least $70 million perannum by the end of 2018, while GVC has promised benefits ofmore than $150 million per annum by the end of 2017.

Bwin said its board's unanimous recommendation of 888Holdings offer, that was announced on July 17, was unchanged bythis announcement. ($1 = 0.6496 pounds) (Reporting by Aastha Agnihotri in Bengaluru and Neil Maidmentin London; Editing by Anupama Dwivedi and Keith Weir)