Key points:
- The CMA requires Spreadex to sell Sporting Index to address antitrust concerns following their merger
- The acquisition was deemed to create a monopoly in the UK sports spread betting market
- The remedy aims to restore competition and consumer choice
The UK's Competition and Markets Authority (CMA) has concluded its investigation into the Spreadex-Sporting Index merger, requiring Spreadex to sell Sporting Index to maintain competition in the online sports spread betting market.
Following Spreadex's acquisition of Sporting Index's business-to-consumer division from Sporting Group Holding Limited in 2023, the CMA conducted an extensive Phase 2 investigation. The probe revealed significant concerns about market competition in sports spread betting.
Sports spread betting differs from traditional fixed-odds betting by allowing customers to bet on various sporting event outcomes, with potential winnings and losses fluctuating based on the accuracy of their predictions.
The market previously consisted of only two licensed providers: Spreadex and Sporting Index.
The independent CMA panel determined that the merger would effectively create a monopoly, potentially leading to reduced consumer choice, limited product offerings and potentially higher prices.
Good to know: The investigation process was complex, with the statutory timetable extended by eight weeks due to the remedy's intricacy and Spreadex's delayed document submissions
Richard Feasey, the panel's chair, emphasised the importance of maintaining market competition, stating: “This deal eliminates competition in the supply of licensed online sports spread betting services in the UK.
"Sports spread betting – like any other market – needs competition to drive good customer experience, maintain choice and keep prices competitive.
“To achieve this, we have decided that Spreadex should sell Sporting Index, so that customers can choose between two firms for the best user experience and prices, rather than having to use only one.”
The CMA has given Spreadex 12 weeks to sell Sporting Index to a CMA-approved buyer – a remedy that aims to restore competitive dynamics in the UK's licensed online sports spread betting services market.
The CMA has said it will continue to monitor the implementation of this remedy closely.
