LONDON, July 24 (Reuters) - Casino operator Rank Holdings is in talks with online rival 888 Holdings aboutcreating a 2 billion pounds ($2.6 billion) gambling group, theSunday Times reported.
Discussions between the companies were "relatively advanced"and an announcement could be made on Monday, the newspaper said,citing sources.
A tie-up between the two groups would be the latest in astring of major deals in an industry consolidating in the faceof tighter regulations and rising taxes.
British bookmakers Ladbrokes and Gala Coral areawaiting clearance for 2.3 billion pound deal, while Paddy Power and Betfair agreed to join forces in September.
888 had agreed to buy UK-listed Bwin.party last year, but itwas jilted in favour of a higher offer from GVC Holdings.
A spokesman for Rank declined to comment. 888 did notimmediately respond to a request for comment.($1 = 0.7628 pounds) (Reporting by Paul Sandle; Editing by Raissa Kasolowsky)
Rank (RNK)