The casino industry is abuzz with the news that MGM Resorts and Caesars Entertainment are rumoured to be looking into a potential merger. The New York Post reported investment bank Morgan Stanley and law firm Weil, Gotshal & Manges have been hired to look into the possibility of merging the two gaming giants. The unification would create a business valued at more than US$50bn.

The report comes just days after Caesars announced CEO Mark Frissora would step down from his post in February 2019.

The merger, however, would face scrutiny from federal regulators  — the U.S. Securities and Exchange Commission and the Federal Trade Commission — as well as from state gaming regulators across the country.

Worldwide, MGM Resorts was the second-largest casino company (by revenue) last year behind Las Vegas Sands, and Caesars Entertainment was eight. In the United States, MGM was also the second-largest casino company last year (behind Las Vegas Sands), with Caesars the fourth-largest.

The Post article also noted that MGM may not be the only suitors for Caesars adding Wynn Resorts may table a bid and Malaysia’s Genting Group, owners of Resorts World could also be interested, as could other private firms representing other casinos.

While no offer is on the table, if MGM and Caesars were to merge the resulting company would be massive and own about half the hotel rooms in Las Vegas and Atlantic City.

Neither MGM nor Caesars have commented on the speculation.