Spreadex Forced to Abandon Sporting Index Merger After CMA Ruling

The Competition and Markets Authority (CMA) has reaffirmed its earlier ruling that Spreadex’s bid to keep control of Sporting Index’s consumer-facing business would harm competition in the sports spread betting sector. This development means that an alternative buyer must acquire Sporting Index, ensuring that Spreadex does not establish a monopoly over the sports spread betting sector.

A Multi-Year-Long Dispute Nears Its End

In a Friday ruling, the CMA reaffirmed the view that the merger would substantially lessen competition in sports spread betting, leaving Spreadex as the only significant operator offering licensed sports spread betting in the UK. An independent CMA panel noted that the acquisition risked establishing a monopoly, which could harm the user experience, product variety, and consumer prices.

The CMA has found that the completed acquisition has resulted, or may be expected to result, in a substantial lessening of competition in the supply of licensed online sports spread betting services in the UK.

CMA statement

This development likely marks the end of a two-year-long dispute over the acquisition. Spreadex purchased Sporting Index’s B2C operation from Sporting Group in 2023, merging the only two spread-betting operators in the UK into a single entity. Late last year, the CMA concluded that this acquisition threatened to eliminate competition in the sector and ordered Spreadex to sell the unit.

Unsatisfied with the decision, Spreadex appealed to the Competition Appeal Tribunal (CAT). The authority sent the matter back to CMA for fresh consideration, giving the operator a lifeline. However, the CMA panel once again reached the same conclusion, noting that Spreadex’s objections did not lessen the risk of creating a monopoly in the sector.

Sporting Index Must Find a New Buyer

Spreadex noted it was “disappointed” by the decision and continues to believe that the ruling fails to take into account the commercial realities of the sector. The company noted that the acquisition was necessary to offset rising compliance costs and falling consumer demand. Spreadex also questioned the existence of any alternative buyer capable of running this operation profitably as a standalone competitor.

Nonetheless, the CMA will now require Spreadex to divest the consumer arm of Sporting Index either by an agreed sale or a forced disposal to a buyer approved by the regulator. The process should likely commence in the next few months. Industry insiders note that independent bookmaker Star Sports could be interested in acquiring the business, but no offer has been made.

Whoever takes control of Sporting Index will face a challenging market. Spread betting remains a niche product compared with fixed-odds wagering, and tighter regulation has squeezed margins across the board. While Spreadex hoped the acquisition would create efficiencies and protect sports spread betting in the UK, the sector’s future now remains uncertain.