Competition watchdog finds issues again after reconsidering Spreadex takeover of Sporting Index

The UK's competition watchdog has again found issues with the takeover of spread betting company Sporting Index by market rival Spreadex in the latest twist in its long-running investigation into the deal.

The Competition and Markets Authority (CMA) has provisionally found the merger has resulted in, or might be expected to result in, a "substantial lessening of competition".

French gambling giant Francaise des Jeux sold Sporting Index to Spreadex, the only two UK-licensed providers of online sports spread betting, in a deal completed in November 2023. The CMA launched its merger inquiry two months later.

Last November the CMA announced it had found the merger of the two operators had created a monopoly, deciding Spreadex should sell Sporting Index as the deal had eliminated competition in the provision of online sports spread betting in the UK and might lead to a "worse user experience, a more limited range of products and/or higher prices for consumers in the UK".

Spreadex applied to the Competition Appeal Tribunal (CAT) for a review of the CMA's decision, the result of which was that in March the CAT quashed the verdict and referred the case back to the CMA "to reconsider and make a new decision or decisions".

However, in an announcement made on Thursday, the CMA said it had again found competition concerns.

The CMA has invited comments on potential remedies, which could include the sale of Sporting Index's assets to a purchaser approved by the CMA, by June 19.

Spreadex, which had called on the CMA to come to a "proportionate and common-sense decision" following the CAT's decision in March, did not comment following the latest announcement.

The company was last month hit by a £2 million fine from the Gambling Commission for anti-money laundering and social responsibility failings.

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