The UK Competition and Markets Authority (CMA) has officially blocked Spreadex’s proposed acquisition of Sporting Index, the country’s leading spread betting operator, citing risks of creating a monopoly in the licensed online sports spread betting market. The ruling comes after a thorough year-long investigation following Spreadex’s purchase of Sporting Index from FDJ United in November 2023.
The CMA concluded that the merger would substantially reduce competition, leaving UK customers with fewer choices, limited product offerings, and potentially higher prices. Spreadex is now required to divest Sporting Index to an approved buyer to restore market balance. Independent bookmakers, including Star Sports, had previously expressed interest in acquiring the operator, though the final buyer remains unconfirmed.
Richard Feasey, chair of the independent panel reviewing the merger, emphasized that removing Sporting Index from the market would significantly lessen competition, adversely affecting customers. The CMA’s final decision reflects a careful consideration of market dynamics, consumer protection, and operational economics. Spreadex had challenged the ruling, arguing that the UK spread betting market is small and questioning the availability of serious buyers. However, the panel confirmed that the merger would have created a monopoly, negatively impacting competition.
This decision highlights the UK regulator’s commitment to ensuring fair competition and safeguarding the consumer experience in the iGaming industry. Operators in the online spread betting sector are now reminded of the importance of regulatory compliance and the potential implications of consolidation. The ruling ensures that the UK spread betting market remains competitive, fostering innovation, choice, and fair pricing for players.
