Australian gambling operators Tabcorp and Tatts Group are reportedly discussing a merger that would create a $9.4b betting behemoth.

On Friday, The Australian quoted ‘top-level’ sources saying the two betting firms were “on the verge of a merger” that was likely to be announced “in the near future.” Tatts has a market cap of $5.7b while Tabcorp is worth $3.7b.

CLSA analyst Sacha Krien suggested that if Tabcorp were to acquire Tatts, Tabcorp would pay a 30% premium to Tatts’ current share price, while subsequently realizing about $80m in annual synergies. Should the parties proceed with a merger of equals, Tatts’ shareholders would end up controlling 58% of the new entity.

Neither company has seen fit to confirm or deny the reports, but the two parties have been down this road before. Exploratory talks in 2011 ended up going nowhere but as recently as this April, Tatts CEO Robbie Cooke was forced to deny rumors that Tabcorp was mulling a $1.7b takeover of Tatts’ wagering operations.