Paddy Power and Betfair shareholders have approved the merger that is set to create the UK's biggest gambling operator.

More than 99 per cent of Betfair shareholders agreed to the £5bn (€7.1bn/$7.6bn) deal, with Paddy Power also confirming that the proposal had been accepted at an extraordinary general meeting.

The merger, which was last week given approval by the UK Competition and Markets Authority (CMA), is expected to be completed in the first quarter of 2016. Betfair said that completion of the merger is now just awaiting the satisfaction of the remaining conditions, including clearance from Ireland's Competition and Consumer Protection Commission.

The combined Paddy Power Betfair is expected to produce annual revenues of more than £1.1bn and an online market share of 16 per cent in the UK – above the 14 per cent of a merged Ladbrokes-Coral group as well as William Hill and Bet365.

Under the terms of the all-stock merger, Paddy Power would own 52 per cent of the group, with Betfair shareholders controlling the remaining 48 per cent. Paddy Power shareholders would receive a special dividend of €80m immediately prior to completion.