According to latest reports, A proposed merger of Australian gambling firms Tabcorp and Tatts Group has been agreed by authorities.

This news arrived in 2016 to create a company which will be on close worth A$11.3bn or $8.6bn.

Notwithstanding objections from competitor betting companies, the Australian Competition Tribunal establish the merger would have “substantial public benefits.”

Reports said that Tabcorp and Tatts anticipate that the future merger will help compete against the rise of online betting.

Following the report on Tuesday, stock in both firms surged by almost 5% on Tuesday.

Along with running traditional sports betting services, often found in bars and clubs, Tabcorp and Tatts also have trades like state lotteries and slot machines, known generally as pokies.

While profits drop at both firms last year, some states suppose the merger could turn Australia into one of the most lucrative markets in the world, outside of Hong Kong.

As per recent study’s betting is a national passion in Australia which has the world’s highest gambling loss per head, according to UK consultancy H2 Gambling Capital, with Australians losing an average of US$1,130 every year.

Meanwhile the country’s supervisory body, the Australian Competition and Consumer Commission (ACCC) had highlighted “major concerns” about the merger agreement including the market power of Tabcorp’s broadcast business.

However Tabcorp bypassed the ACCC by taking the future merger straight to the tribunal.

Moreover reports said that the only clause obligatory on the deal is that Tabcorp goes ahead with the planned sale of a gambling compliance business.