The company behind Paddy Power and Betfair will be allowed to go ahead with its plans to create the world’s biggest online betting company after UK regulators gave a thumbs-up to its multi-billion pound takeover of a major rival.

The UK’s Competition and Markets Authority cleared Flutter Entertainment’s £10 billion merger with Stars Group, which owns Sky Bet and PokerStars in the island.

The CMA said that there would still be enough competition left for customers after the deal had gone through.

’The CMA has found that online betting companies compete strongly for customers. There are a number of large and small online sportsbook operators, in addition to the merging companies, with whom customers frequently open accounts and to whom they could easily switch,’ it said, naming bet365, Ladbrokes Coral and William Hill.

It added: ’The CMA therefore found that, while the merging companies compete closely, they are among a number of close competitors, and the merger will not worsen the offering to people who choose to bet online.’

It is the last major regulatory hurdle for Flutter, which has already had the deal approved in the US, Germany and Austria.

There are still some smaller regulators that need to clear the deal, a process that might be delayed due to the coronavirus pandemic, Flutter said.

It is now up to shareholders of both companies to approve or reject the deal at meetings towards the end of April.

Flutter chief executive Peter Jackson said the process had reached an ’important milestone’ after the CMA’s decision.

’We continue to work with the remaining international regulatory authorities to obtain the last of the outstanding approvals.

’Separately last week we published the necessary documentation ahead of the shareholder votes in April and we continue to make good progress in our post-completion planning.’

Last month the Stars Group insisted its staff in the island are playing a vital role in the online gaming business including the ’flagship’ poker brand despite revenue plunging here by more than 73%.

The Toronto-based business has been gearing up for the ’mega-merger’ with the Irish betting group Flutter Entertainment and recently it emerged that the Stars Group has been laying off employees at its offices in Dublin.

Following the full-year financial statements and fourth quarter results we posed some questions to The Stars Group.

We asked: ’How will the Isle of Man figure in the plans to enhance the global appeal of the PokerStars brand as mentioned prominently in the report and by the chief executive Rafi Ashkenazi?’

The Stars Group told us: ’The Stars Group is proud to employ hundreds of staff at its offices in the Isle of Man, which has always been and remains a critical operational hub for the company.’

They played an important role in making The Stars Group brands among the safest and most respected in the online gaming industry, and this continued to be the case in 2020 as the company planned to enhance the appeal of the ’flagship’ poker brand, PokerStars.