The Competition and Markets Authority (CMA) has decided (22 November) that Spreadex must divest Sporting Index, following an investigation that found their merger significantly reduced competition in the UK’s licensed online sports spread betting market.
Spreadex acquired Sporting Index’s consumer-facing business last year, creating a monopoly in the niche sports spread betting sector. Sports spread betting differs from fixed-odds betting by allowing customers to win or lose varying amounts depending on how close their bets are to actual outcomes, rather than wagering on simple win/loss results.
After an in-depth Phase 2 investigation, the CMA’s independent panel concluded that the deal harmed competition, potentially resulting in higher prices, reduced product offerings, and a poorer user experience for consumers. To remedy these issues, Spreadex proposed selling Sporting Index, a solution the CMA deemed acceptable with specific modifications and enhancements.
Richard Feasey, chair of the independent panel, emphasized the importance of competition in ensuring consumer choice and value:
“This deal eliminates competition in the supply of licensed online sports spread betting services in the UK. To ensure customers benefit from competitive prices and better experiences, Spreadex must sell Sporting Index.”
The CMA now has 12 weeks to finalize the sale process, either by accepting undertakings from Spreadex or issuing a final order.
Background and Next Steps
- The CMA’s Phase 1 investigation, launched in February 2024, identified risks of a “substantial lessening of competition,” prompting a more detailed Phase 2 review.
- The Phase 2 investigation lasted 24 weeks, extended by eight weeks due to the complexity of potential remedies and delays in Spreadex’s responses.
- Sporting Group Holdings Limited, which sold Sporting Index to Spreadex, retains no ties to the consumer business, as its business-to-business division, Sporting Solutions, was sold separately in August 2024.
The CMA will monitor the implementation of the sale to ensure compliance and a restoration of competition in the market. Further updates are available on the CMA’s Spreadex/Sporting Index case page.
Source: https://www.gov.uk/government/news/spreadex-required-to-sell-sporting-index
