The difficult task of achieving scale in a sports betting market dominated by FanDuel and DraftKings could help prompt more large-scale dealmaking among the industry’s challengers.

Casino operator Boyd Gaming has approached Penn Entertainment, the operating partner of ESPN Bet, about a potential takeover, according to a Reuters report. The proposed deal—likely premised in part on Boyd Gaming’s interest in Penn Entertainment’s land-based casinos—still faces a variety of obstacles, including the need for approval from regulators and ESPN parent Disney.