(Adds background, shares) SYDNEY, June 20 (Reuters) -...

(Adds background, shares)

SYDNEY, June 20 (Reuters) - Australia's competition watchdog said on Tuesday it would let the country's top sports betting company, Tabcorp Holdings Ltd (TAH), buy lottery owner Tatts Group Ltd (TTS) for A$6.15 billion ($4.67 billion).

Australian Competition Tribunal president John Middleton said in a written summary of his ruling that he was "satisfied that the proposed merger is likely to result in substantial public benefits".

Middleton said the only condition he would impose on the proposed deal would be that Tabcorp proceed with a planned sale of a gambling compliance business.

The ruling vindicates Tabcorp's decision to bypass the usual arbiter of corporate buyouts, the Australian Competition and Consumer Commission (ACCC), and take its planned deal straight to the Federal Court's ACT which usually acts as an appeal court.

In March, the ACCC published a lengthy list of concerns about the proposed deal, although it made no ruling. Tabcorp then offered to sell gambling compliance unit Odyssey before presenting its case to the ACT.

ACT President Middleton said he would publish his reasons for the decision in two days.

A Tabcorp spokesman was not immediately available for comment, while a Tatts spokesman said the company had no comment.

Shares of Tabcorp and Tatts were in a trading halt on Tuesday morning.