Spreadex reviewing options after competition watchdog tells it to sell Sporting Index

The Competition and Markets Authority has told Spreadex it must sell fellow spread-betting company Sporting Index after it found the merger of the two operators had created a monopoly.

Spreadex reacted to the announcement by saying it strongly disagreed with the "disproportionate decision", adding it would review "all available options".

French gambling giant Francaise des Jeux (FDJ) sold Sporting Index to Spreadex, the only licensed providers of online sports spread betting in the UK, in a deal completed in November 2023.

However, two months later the CMA launched a merger inquiry to consider whether the deal would lead to a "substantial lessening of competition".

After conducting an in-depth investigation, the CMA’s independent panel has concluded the deal eliminated competition in the UK online sports spread-betting market, creating a monopoly.

The panel found the merger could lead to a "worse user experience, a more limited range of products and/or higher prices for consumers in the UK" but that after "modifications and enhancements", the sale remedy proposed by Spreadex would be enough to address concerns and restore competition in the market.

Panel chairman Richard Feasey said: "This deal eliminates competition in the supply of licensed online sports spread-betting services in the UK.

"Sports spread betting, like any other market, needs competition to drive good customer experience, maintain choice and keep prices competitive. 

"To achieve this, we have decided that Spreadex should sell Sporting Index, so that customers can choose between two firms for the best user experience and prices, rather than having to use only one."

The Sporting Index trading floor in 2017

In response, a representative of Spreadex said the company noted the CMA's decision and that it had co-operated with the watchdog throughout the review and recognised the importance of the CMA's role.

They added: "However, we strongly disagree with this entirely disproportionate decision and we are reviewing all available options. As part of the UK sports-betting market, Spreadex faces significant ongoing competitive pressure from leading firms and continues to enhance and invest in its spread-betting services as a result."

Spreadex described Sporting Index as a "failing firm" and claimed customers had "greatly benefited" since the acquisition.

The spokesperson added: "The level of public resources, time and money spent on this review feels wholly disproportionate to the benefits it is purported to provide either the UK economy or consumers, given the immaterial size of both the transaction and the sub-section of the UK sports betting market it impacted."

The CMA now has 12 weeks to either accept final undertakings from Spreadex or to make a final order requiring Spreadex to sell Sporting Index to a suitable CMA-approved buyer.

Read these next:

Spreadex-Sporting Index merger in jeopardy after watchdog's independent panel raises 'serious competition concerns' 

Watchdog warns Spreadex-Sporting Index merger raises competition concerns following investigation 

Investigation launched into Spreadex acquisition of Sporting Index 

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