The UK’s Competition and Markets Authority (CMA) has ordered Spreadex to sell Sporting Index, concluding that the merger of the two firms has created a monopoly in the online sports spread-betting market.
Spreadex acquired the business-to-consumer arm of Sporting Index from Sporting Group Holding Ltd in November 2023. Both companies are the sole licensed providers of online sports spread-betting services in the UK.
The CMA launched an inquiry into the merger earlier this year, raising concerns that the deal eliminated competition in the niche market. An independent panel determined that the merger could lead to a worse user experience, fewer product offerings, and higher prices for consumers.
“This deal eliminates competition in the supply of licensed online sports spread-betting services in the UK,” said Richard Feasey, chair of the CMA panel. “Sports spread-betting, like any other market, needs competition to drive good customer experience, maintain choice, and keep prices competitive.”
To address these concerns, the CMA has mandated that Spreadex divest Sporting Index to a buyer approved by the regulator. Spreadex has 12 weeks to propose final undertakings or comply with a binding sale order.
Spreadex has criticized the CMA’s ruling, describing it as “entirely disproportionate” given the scale of the deal and its impact on the UK betting market.
“The level of public resources, time, and money spent on this review feels wholly disproportionate to the benefits it is purported to provide,” a company representative said. Spreadex also argued that Sporting Index was a “failing firm” and claimed the acquisition had significantly benefited customers. The spokesperson further said the company would review all available options.
