Spreadex Forced to Abandon Sporting Index Merger After CMA Ruling
Summary
The Competition and Markets Authority (CMA) has upheld its earlier finding that Spreadex retaining Sporting Index’s consumer-facing business would substantially lessen competition in the UK sports spread betting market. The regulator concluded the completed acquisition risks creating a monopoly and has ordered Spreadex to divest Sporting Index’s B2C arm to an alternative buyer approved by the CMA.
Key Points
- The CMA reaffirmed that the merger would substantially lessen competition in licensed online sports spread betting in the UK.
- Spreadex bought Sporting Index’s B2C business in 2023, combining the only two UK spread-betting operators into one entity.
- The Competition Appeal Tribunal sent the case back for fresh consideration, but the CMA panel reached the same conclusion on competition risk.
- Spreadex says the deal was needed to offset rising compliance costs and falling consumer demand and questions whether a viable standalone buyer exists.
- The CMA will require an agreed sale or a forced disposal to an approved buyer; the divestment process should begin in the coming months.
- Potential interest from independent bookmaker Star Sports has been noted, but no firm offer has been made.
- The wider market outlook is challenging: spread betting is niche compared with fixed-odds, regulation is tighter and margins are under pressure.
Content summary
The CMA’s decision closes a multi-year dispute after Spreadex’s 2023 purchase of Sporting Index’s consumer arm. Regulators found that leaving both businesses under Spreadex would likely leave consumers with fewer product choices, worse experience and potentially higher prices. Spreadex appealed, forcing the CMA to re-examine the deal; the authority has now reaffirmed its original view and will compel a divestment.
The forced sale will require Sporting Index to find a buyer able to run the operation as a standalone competitor in a tough market. Spreadex maintains the purchase was commercially necessary, citing costs and declining demand, and has expressed disappointment at the ruling.
Context and relevance
This ruling is significant for UK gambling M&A and competition policy. It demonstrates the CMA’s willingness to block or unwind deals where consolidation risks eliminating niche market competition — here, in sports spread betting. Operators, investors and advisers should note the regulator’s focus on preserving consumer choice and preventing dominant positions even in specialised segments.
For customers the immediate effect should be preservation of marketplace choice; for potential buyers it opens an acquisition opportunity but with clear regulatory scrutiny and a difficult commercial backdrop.
Author’s take
Punchy: This is a major regulatory win for competition — and a reminder that buying your way out of structural pressures isn’t guaranteed to survive scrutiny. Anyone tracking betting-sector consolidation should pay attention.
Why should I read this?
Short version: the CMA just told Spreadex it can’t keep Sporting Index — so if you care about who controls niche betting products, industry consolidation, or are watching how regulators handle gambling M&A, this matters. We’ve skimmed the legal ping‑pong and saved you the faff — here’s the bit that actually changes the market.