The UK’s Competitors and Markets Authority (CMA) has dominated that Spreadex’s 2023 acquisition of Sporting Index’s client enterprise eradicated the one rival within the nation’s licensed on-line sports activities spread-betting market. Following a renewed overview, the watchdog concluded that the deal “considerably lessens competitors” and that divestment is the one efficient repair. Spreadex, which maintains the goal was a failing agency and the choice “fully disproportionate,” says it’s reviewing its choices.
What the CMA Determined and Why
An impartial CMA panel discovered the mix diminished the variety of specialist sports activities spread-betting suppliers from two to at least one, making a monopoly and risking tangible hurt for purchasers by way of poorer experiences, a narrower product set, and doubtlessly increased costs. As PA Media reviews through 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 revive competitors within the provide of licensed on-line sports activities unfold betting within the UK.
“Doing so would imply prospects within the UK have larger selection between two impartial companies, somewhat than one.”
Sports activities unfold betting differs from fixed-odds wagering by permitting stakes on a spread of outcomes; returns can scale with how shut the prediction lands to the outcome, however losses may exceed the preliminary stake. The CMA’s concern focuses on the diminished rivalry inside this area of interest, licensed phase somewhat 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 Competitors Enchantment Tribunal (CAT), which in March 2025 despatched the case again for additional consideration. After reassessing extra proof, the CMA’s impartial 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 mentioned it would both settle for undertakings from Spreadex to divest Sporting Index or, if essential, require a sale to a purchaser accepted by the authority. Both route is geared 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 Highway Forward
Spreadex has been forthright in its opposition. A spokesperson said, “Spreadex strongly disagrees with this fully disproportionate determination and are reviewing all obtainable choices.” In a fuller assertion, the corporate described itself as “extraordinarily upset,” arguing it had “co-operated and engaged positively with the CMA all through what has now been a 20-month overview interval into an immaterial transaction involving a failing agency serving a really small variety of prospects in a tiny sub-section of the UK sports activities betting market.” It added: “Sporting Index’s prospects have drastically benefited from Spreadex’s infrastructure, assets, improved providers, and elevated oversight for the reason that acquisition,” and reiterated that it “recognised the significance of the CMA’s function in defending and selling competitors” whereas sustaining the overview was “wholly disproportionate.”
For purchasers of UK-licensed on-line sports activities spread-betting providers, the speedy influence hinges on the mechanics and timing of any divestment. The CMA’s most well-liked treatment—returning Sporting Index to impartial possession—would, in its view, restore head-to-head competitors on product, pricing, and repair high quality. Till undertakings are accepted or a mandated sale is executed, nonetheless, the transaction stays below the regulator’s remedial highlight.
