The mega-merger between bookies Ladbrokes PLC (LON:LAD) and Coral looks set to go ahead - but at a price.
Competition watchdogs have told the pair they can proceed with the £2bn deal provided they offload about 350 to 400 shops.
Ladbrokes and Gala Coral Group are, respectively, the second and third largest retail bookmakers in the UK by number of betting shops.
They also provide betting and gaming online and by phone and 'on-course' betting at some racecourses, as well as each running two greyhound tracks.
Ladbrokes runs about 2,150 betting shops on the UK mainland and 77 in Northern Ireland and Coral has about 1,850 on the mainland.
The Competition & Markets Authority (CMA) identified 642 local areas where the deal could hit competition and where the pair must dispose of shops to buyers approved by the CMA.
The watchdog said the sales must be substantially complete before the merger can go ahead.
Inquiry chairman Martin Cave said: "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.
"For these customers, competition comes from the choice of shops in their local area and they would lose out from any reduction of competition and choice.
"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 a sale of shops of this scale is needed to protect these customers.
"It is now for the parties to propose a divestment package and one or more suitable purchasers for the CMA to approve."
The Ladbrokes/Coral deal is among a number of completed and pending merger deals in the consolidating betting industry.
On Monday, Rank Group PLC (LON:RNK) and 888 Holdings PLC (LON:888) said they were considering a possible offer for William Hill PLC (LON:WMH), which last week said its chief executive had quit.
Paddy Power has joined forces with Betfair to form Paddy Power Betfair (LON:PPB) and GVC Holdings PLC (LON:GVC) bought Bwin.Party in February.