US regional casino operator Penn National Gaming (PNG) has confirmed that it is discussing a potential acquisition of rival Pinnacle Entertainment.

In October, rumors swirled that PNG and Pinnacle had been holding “on-again, off-again” discussions regarding some form of tie-up.

On Thursday, PNG issued a statement saying that “in light of recent market speculation,” it would confirm that it is “engaged in discussions” with Pinnacle regarding a “potential business combination” by which PNG would acquire Pinnacle in “a cash and stock transaction.”

Pinnacle issued a carbon copy statement, adding that there was no guarantee that these discussions would actually lead to a deal of any kind between the two regional racing and gaming operators, who operate a combined 45 properties across 12 states and the Canadian province of Ontario that generate over $5b in annual revenue.