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Deal Creates Market Monopoly
The CMA investigation found that Spreadex’s purchase of Sporting Index substantially lessened competition in the UK’s licensed online sports spread betting market. The authority determined that customers now face reduced choice between independent operators, potentially leading to higher prices, limited product ranges, and diminished user experiences.
The investigation began with the CMA’s original Phase 2 decision published in November 2024. Following Spreadex’s appeal to the Competition Appeal Tribunal (CAT), the case was referred back to the CMA for reconsideration in March 2025. After reviewing additional evidence, the independent panel reached its final conclusion about the merger’s competitive impact.
Panel Demands Divestiture Solution
Richard Feasey, chair of the independent panel reviewing the merger, stated: “We found that the merger substantially lessens competition by removing Spreadex’s only competitor in the sports spread betting market in the UK. We also found that the only effective remedy would be for Spreadex to sell Sporting Index to restore competition in the supply of licensed online sports spread betting in the UK. Doing so would mean customers in the UK have greater choice between two independent businesses, rather than one.”
The CMA has identified divestiture as the sole effective remedy to restore market competition. The authority will now proceed with accepting undertakings from Spreadex to sell Sporting Index or impose an order requiring the sale to a CMA-approved buyer.
Market Background and Deal Structure
Sports spread betting allows customers to wager on various sporting event outcomes beyond traditional win-or-lose scenarios offered by fixed-odds operators. In spread betting, customer winnings and losses correlate with prediction accuracy, potentially resulting in payouts or losses exceeding the original stake amount.
Sporting Group Holdings Limited, a subsidiary of French operator La Française des Jeux (FDJ), served as the holding company for Sporting Index’s business-to-consumer operations before Spreadex completed the acquisition in 2023.
Throughout the investigation process, the CMA imposed interim orders on Spreadex under the Enterprise Act 2002 to maintain pre-merger competitive conditions and ensure both companies operated independently pending the final decision.
Next Steps and Industry Impact
The CMA’s final determination requires Spreadex to either voluntarily offer undertakings to divest Sporting Index or face a mandatory sale order. This decision aims to restore competitive dynamics in the UK’s specialized sports spread betting market and protect consumer interests.
The case highlights ongoing regulatory scrutiny of gaming industry consolidation and demonstrates the CMA’s commitment to maintaining competitive markets in specialized betting segments. The outcome will significantly impact the structure of the UK’s sports spread betting landscape and establish precedent for future gaming sector mergers.
Source: UKGovernment
