The Australian Financial Review today published speculation that rival gaming giants Tabcorp and Tattersalls might merge into one gambling colossus.
The speculation comes as we hear on the grapevine that both are quietly backing off their threatened litigation against the Victorian Government over their decision to end their strange duopoly over poker machines in Victoria. At one stage there was talk they'd be due hundreds of millions of dollars in compensation.
Sticking it to pokies operators, even in the bold and dramatic fashion unleashed by Minister Tony Robinson, is considered very good sport politically, with some in government actually hoping the gaming giants would sue and in so doing draw even further attention to the government's move.
The state Libs have been largely quiet on the issue, knowing that defending the interests of billion-dollar pokies giants is even less popular than other Ted Baillieu enthusiasms like opposing Port Phillip Bay channel deepening, going to the polo and such.
Some observers say that Tabcorp's legal position differs from Tatts but the politics remains the same. They are considered fair game.
Also worth watching in this context is the state government's decision on who will be granted the single, stand-alone wagering licence in Victoria from 2012. Tabcorp is widely expected to retain the monopoly but will be forced to pay more if there are seriously interested rival bidders, which might also explain some of that merger speculation.
Game on.
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