Aussie casino bets on acquisition.

Byline: Josh Karlen

Australia's biggest gaming company, Tabcorp Holdings Ltd., has placed an expensive wager that the acquisition of casino and hotel operator Jupiters Ltd. will provide the bulk it needs to successfully expand at home and abroad and reverse a decline in profit.

On Wednesday, March 5, the companies announced that Tabcorp will pay A$1.2 billion ($740.2 million) for Jupiters in a deal they say will forge one of the world's largest gaming groups, with a market value of about A$5 billion and 18,000 gambling machines.

For Tabcorp, the deal also appeared to be partly a defensive move, meant to break up a possible merger of Jupiters with a big Australian sports betting group, UNiTAB Ltd. That combination would …