a sleeping giant

Industry speculation has turned to Sky City as the industry's next
acquisition target after shareholders of Queensland wagering company...See
attached articles as well.


This is an interesting scenario. TAH (Tabcorp) and TTS (Tattersall's) are
both interested in SKC (Sky City) but both SKC and TAH are publicly reported
to be interested in Asian gaming opportunities. PBL is the only one with
anything real in Asia, ie Macau. Yet there is no room for growth in
Australian or New Zealand gaming. Hence the only way to grow for these
companies is external or take over each other. After the merger of TTS and
UTB (Unitab), the size of any takeover domestically is becoming very big,
even SKC is capitalised at over A$2 bil and will cost a lot of dilution for
any one of the majors ie PBL or TAH or worse for even the combined UTB and
TTS. SSI is the only listed gaming stock here with serious China gaming
interests. A market any one of the local players will covet for but is
beyond their reach. Game set and ready to play? Who will take over who?