The Australian casino gambling scene is undergoing some very large shifts, which in the grand scheme of things is strengthening the industry and producing some substantial heavyweight casino operators. The greater the mergers and consolidation within a particular industry, the greater that industry is growing and expanding to meet increased demand. Gambling execs are now speculating on the strong possibility of Tabcorp buying out Sky City Entertainment.

Following the merger last week between two very large Australian casino gaming operators - Unitab and Tattersall's - all eyes turned on Tabcorp when Sky City Entertainment made it known shortly thereafter the company was open to the possibility of being bought out. Being the largest and most successful gambling conglomerate in Australia for some time now, the merger between Unitab and Tattersall's will very easily create a focused source of competition for Tabcorp, which could only keep building stronger if Tabcorp does not seek out a growth strategy of their own.

Tabcorp has confirmed that a takeover bid for Sky City is not out of the question, although the company's top priority was to renew its casino wagering and gaming license, which potentially could be a tricky matter considering the notorious touchiness of Australian gambling regulators. As for Sky City Entertainment, all of their casinos in Queensland, Darwin, Adelaide and Auckland continue to operate as usual, while word of the news that Tabcorp may be thinking about a bid caused Sky City's shares to jump 13 cents to $4.50 per share.