The UK’s Competition and Markets Authority (CMA) has given phase one clearance to the merger between Flutter Entertainment and Canadian company The Stars Group (TSG).
Under the deal announced last year Flutter shareholders will own just over 54pc of the enlarged company.
CMA found that, "while the merging companies complete closely, they are among a number of close competitors, and the merger will not worsen the offering to people who choose to bet online."
Flutter owns a number of gambling firms including Paddy Power Betfair and the market-leading online Sportsbet brand in Australia.
The deal for TSG remains conditional on approval from a small number of other regulatory bodies, some of whom have indicated to Flutter that their usual timeframes may be delayed by the current coronavirus crisis.
Peter Jackson, CEO of Flutter, said: "This morning's announcement from the CMA marks a further important milestone in the process towards completion of our proposed combination with The Stars Group.
We continue to work with the remaining international regulatory authorities to obtain the last of the outstanding approvals.”
The shareholders of both companies will vote on the deal next month.