Two of Australia’s largest gambling companies announced Wednesday that they're going to merge in a deal to form a combined company worth greater than $11 billion.

Tabcorp, a racecourse-betting powerhouse, and lottery behemoth Tatts said the merger will generate $130 million in saved costs in a “rapidly changing [betting] landscape.”

Tabcorp pays $4.9 billion for Tatts, the corporations said. The merger is predicted to be completed by the center of next year, dependent on shareholder and regulatory approval.

Tatts’ Chairman, Harry Boon, said in an announcement: “The combination of Tabcorp and Tatts relies on clear industrial logic and a powerful and tangible synergy proposition. It comes at a time of escalating competition from new business models and rapid consolidation of gaming and wagering companies globally.”

In the web gambling industry, about $14 billion in mergers and acquisitions has occurred over the last two years alone, in step with Bloomberg.

Australia’s gambling market grew six percent in 2015 to about $17.4 billion (A$24.1 billion). Way to a population of approximately 23 million, Australians spend more on gambling than people anywhere else within the world.

An estimated 80 percent of Australians gamble in some form, also the top rate on this planet. Gambling represents 1.2 percent of Australia’s GDP.

Read More... [Source: CardPlayer Poker News]