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The UK’s Competition and Markets Authority (CMA) has stepped in to halt the merger between Spreadex and Sporting Index, ordering Spreadex to sell Sporting Index. The regulator’s decision stems from concerns that the merger would create a monopoly in the online sports spread-betting market, significantly reducing competition.
In November 2023, Spreadex acquired the business-to-consumer arm of Sporting Index from Sporting Group Holding Ltd. Both companies were the sole licensed providers of online sports spread-betting services in the UK. Following the merger, the CMA launched an investigation, raising alarms over the lack of competition in this niche market.
An independent panel reviewed the deal and concluded that the merger could harm consumers by limiting their options, reducing the quality of services, and driving up prices. “This deal eliminates competition in the supply of licensed online sports spread-betting services in the UK,” Richard Feasey, chair of the CMA panel, stated. He emphasized that competition is essential for maintaining good customer experience, product choice, and fair pricing.
To address these concerns, the CMA has ordered Spreadex to sell Sporting Index to a buyer approved by the regulator. The company must present its final plans within 12 weeks, either proposing conditions or complying with the binding sale order. The CMA’s ruling aims to restore competition to the UK sports spread-betting market.
Spreadex, however, has strongly disagreed with the CMA’s decision. A company spokesperson called the ruling “entirely disproportionate” given the scale of the merger and its potential impact. “The level of public resources, time, and money spent on this review feels wholly disproportionate to the benefits it is purported to provide,” the spokesperson said. They further argued that Sporting Index was a “failing firm” and that the acquisition had ultimately benefitted customers by improving the market.
As Spreadex evaluates its next steps, the situation highlights the CMA’s role in ensuring fair competition in the UK betting industry, particularly in niche markets like online sports spread betting.