The UK’s Competition and Markets Authority (CMA) has dominated that Spreadex’s 2023 acquisition of Sporting Index’s shopper enterprise eradicated the one rival within the nation’s licensed on-line sports activities spread-betting market. Following a renewed evaluate, the watchdog concluded that the deal “substantially lessens competition” and that divestment is the one efficient repair. Spreadex, which maintains the goal was a failing agency and the choice “entirely disproportionate,” says it’s reviewing its choices.
What the CMA Decided and Why
An unbiased CMA panel discovered the mixture diminished the variety of specialist sports activities spread-betting suppliers from two to one, making a monopoly and risking tangible hurt for purchasers via poorer experiences, a narrower product set, and doubtlessly increased costs. As PA Media reports via Yahoo Finance, as panel chair Richard Feasey put it: “We discovered that the merger considerably lessens competitors by eradicating Spreadex’s solely competitor within the sports activities unfold betting market within the UK.
“We additionally discovered that the one efficient treatment could be for Spreadex to promote Sporting Index to restore competitors within the provide of licensed on-line sports activities unfold betting within the UK.
“Doing so would mean customers in the UK have greater choice between two independent businesses, rather than one.”
Sports unfold betting differs from fixed-odds wagering by permitting stakes on a variety of outcomes; returns can scale with how shut the prediction lands to the end result, however losses may exceed the preliminary stake. The CMA’s concern focuses on the diminished rivalry inside this area of interest, licensed phase slightly than the fixed-odds market extra broadly.
The regulator first decided in 2024 that the merger harmed competitors and proposed a sale. Spreadex appealed to the Competition Appeal Tribunal (CAT), which in March 2025 despatched the case again for additional consideration. After reassessing further proof, the CMA’s unbiased panel reached the identical substantive conclusion: with Sporting Index absorbed, no credible competitor stays for Spreadex in UK-licensed on-line sports activities unfold betting.
With Friday’s ultimate report (pdf) issued, procedural subsequent steps are set. The CMA stated it’s going to both settle for undertakings from Spreadex to divest Sporting Index or, if crucial, require a sale to a purchaser authorised by the authority. Either route is aimed toward recreating the two-player construction the panel says is important for preserving selection and aggressive strain on this slim market.
Spreadex’s Response and the Road Ahead
Spreadex has been forthright in its opposition. A spokesperson acknowledged, “Spreadex strongly disagrees with this entirely disproportionate decision and are reviewing all available options.” In a fuller assertion, the corporate described itself as “extremely disappointed,” arguing it had “co-operated and engaged positively with the CMA throughout what has now been a 20-month review period into an immaterial transaction involving a failing firm serving a very small number of customers in a tiny sub-section of the UK sports betting market.” It added: “Sporting Index’s customers have greatly benefited from Spreadex’s infrastructure, resources, improved services, and increased oversight since the acquisition,” and reiterated that it “recognised the importance of the CMA’s role in protecting and promoting competition” whereas sustaining the evaluate was “wholly disproportionate.”
For prospects of UK-licensed on-line sports activities spread-betting companies, the speedy influence hinges on the mechanics and timing of any divestment. The CMA’s most popular treatment—returning Sporting Index to unbiased possession—would, in its view, restore head-to-head competitors on product, pricing, and repair high quality. Until undertakings are accepted or a mandated sale is executed, nevertheless, the transaction stays below the regulator’s remedial highlight.
