The UK competition authority has ordered Spreadex to sell Sporting Index following an investigation into concerns over reduced competition in the sports betting market. The ruling aims to prevent market dominance and ensure greater consumer choice, marking a significant regulatory intervention in the expanding online betting sector
The Competition and Markets Authority (CMA) has mandated that Spreadex divest its Sporting Index business to resolve competition concerns within the UK market.
Spreadex acquired Sporting Index’s business-to-consumer (B2C) operations from La Française des Jeux (FDJ) last November. However, in February 2024, the CMA launched a merger inquiry amid concerns that this transaction could undermine competition in the licensed online sports spread betting sector.
Following an initial Phase 1 review completed in April, the CMA proceeded to a comprehensive Phase 2 investigation. This in-depth assessment concluded that the acquisition effectively creates a monopoly within the UK’s licensed online sports spread betting market, eliminating competitive alternatives.
The CMA panel expressed concerns that the merger could result in a diminished user experience, reduced product variety, and potentially higher prices for consumers.
Richard Feasey, chair of the independent panel overseeing the merger review, stated, “This deal eliminates competition in the provision of licensed online sports spread betting services in the UK. Competition is essential to drive superior customer experiences, maintain product choice, and keep prices competitive.”
“To uphold these principles, we have determined that Spreadex must divest Sporting Index. This ensures UK customers retain the ability to choose between multiple providers for the best pricing and experience, rather than defaulting to a single operator.”
Following discussions, the CMA has accepted a sale remedy proposal from Spreadex, subject to certain modifications and enhancements.
Spreadex now has 12 weeks to submit final undertakings for approval or face a binding order from the CMA to sell Sporting Index to an approved buyer
