Australia’s competition watchdog says the proposed merger of gaming operators Tabcorp Holdings and Tatts Group is likely to lessen competition in certain regions and sectors.

On Thursday, the Australian Competition and Consumer Commission (ACCC) issued a statement of issues involving the impact that the proposed Tabcorp-Tatts union would have on the wagering, racing media and gaming industries.

ACCC Chairman Rod Sims said his office had “consulted extensively” with gaming industry participants and it was the ACCC’s preliminary view that the proposed merger “is likely to substantially lessen competition in the supply of monitoring and other services to pokies (video poker machines) venues in Queensland.”

The ACCC says Tabcorp has already acknowledged this concern by providing the ACCC with a divestment proposal to sell Odyssey, the company’s Queensland electronic gaming machine monitoring business. The ACCC is seeking public comment on this proposal, which has been posted to the ACCC website.