A Competition and Markets Authority (CMA) report found that with a combined total of approximately 4,077 shops across the UK, a merger between the two bookmakers could result in a substantial lessening of competition in 642 local areas. 

The CMA concluded that the two bookmakers must sell around 350 to 400 betting shops to CMA-approved buyers before the merger can go ahead.

Martin Cave, inquiry chair, said: “We’ve found that the merger between two of the largest bookmakers in the country would reduce competition and choice for customers in a large number of local areas.

“Although online betting has grown substantially in recent years, the evidence we’ve seen confirms that a significant proportion of customers still choose to bet in shops – and many will continue to do so after the merger.

“We therefore believe that a sale of shops of this scale is needed to protect these customers.”

Ladbrokes and Coral are, respectively, the second and third largest retail bookmakers in the UK by number of betting shops. 

Ladbrokes operates approximately 2,150 betting shops in Great Britain and 77 in Northern Ireland, while Coral operates approximately 1,850 in Great Britain. 

The CMA’s final full report will be published in the near future.