Spreadex Agrees to Sell Sporting Index

Spreadex will sell Sporting Index following a ruling by the UK Competition and Markets Authority (CMA) to address monopoly concerns.

The CMA deemed Spreadex’s acquisition of Sporting Index a threat to competition in the UK sports spread betting market.

By divesting Sporting Index, Spreadex aims to resolve concerns, ensuring fair competition and better options for sports bettors.

Learn how this decision impacts the UK betting market and what it means for Spreadex’s future operations.

Spreadex to Sell Sporting Index Amid UK Competition Authority Ruling

Key Points:

1. CMA Investigation: Spreadex’s acquisition of Sporting Index was found to create a monopoly, reducing competition in UK sports spread betting.
2. Divestment Decision: Spreadex agreed to sell Sporting Index to resolve concerns and ensure fair competition for sports bettors.
3. Specialized Market Impact: Sports spread betting relies on competition to drive innovation, pricing fairness, and customer choice.

Spreadex Forced to Divest Sporting Index After CMA Ruling

Spreadex, a major player in the UK sports spread betting industry, has announced plans to sell Sporting Index following an in-depth investigation by the UK Competition and Markets Authority (CMA). The CMA concluded that the acquisition created a monopoly in the licensed online sports spread betting market, significantly reducing competition and consumer choice.

This decision marks the end of Spreadex’s brief ownership of Sporting Index, which it acquired from FDJ (Française des Jeux) in November 2023 for an undisclosed sum.

The CMA’s Findings: Protecting Competition in Sports Spread Betting

The CMA’s independent panel highlighted concerns that the merger eliminated the competition essential for fostering better user experiences, product variety, and competitive pricing.

Richard Feasey, chair of the panel, stated:

“Sports spread betting – like any other market – needs competition to drive good customer experience, maintain choice, and keep prices competitive. Spreadex’s acquisition of Sporting Index would have reduced this competition significantly.”

The investigation’s Phase 2 findings emphasized the risks of creating a monopoly, which could lead to higher prices, limited product ranges, and inferior experiences for bettors. The CMA ultimately decided that the best course of action was for Spreadex to divest Sporting Index.

Spreadex Pushes Back Against CMA’s Findings

Spreadex strongly contested the CMA’s conclusions. The company argued that the sports spread betting market is a niche segment within the broader sports betting industry and, therefore, has limited impact on the overall market.

In its initial response to the CMA’s provisional findings in July 2024, Spreadex stated:

“We strongly reject the CMA’s conclusion that the acquisition harmed competition. Without this deal, Sporting Index’s assets would likely have been shut down due to a lack of credible alternative bidders.”

Despite this pushback, Spreadex has agreed to proceed with the sale of Sporting Index to resolve the CMA’s concerns.

What Is Sports Spread Betting?

Unlike traditional fixed-odds sports betting, where wagers are based on “win or lose” outcomes, sports spread betting involves predicting a range of outcomes. This type of wagering provides dynamic payouts that depend on the accuracy of a bettor’s prediction.

While this form of betting caters to a more specialized audience, it requires robust competition to ensure fair pricing and innovative offerings for customers.

Spreadex’s Financial Performance and the Road Ahead

According to Spreadex’s latest annual financial report, the company generated £103.2 million in revenue for the financial year ending May 2024. While the sale of Sporting Index will address regulatory concerns, it also represents a significant operational shift for Spreadex, which must now refocus on its core offerings.

Spreadex’s agreement to divest Sporting Index demonstrates its commitment to maintaining regulatory compliance while preserving its reputation as a leader in the spread betting market.

The UK Competition and Markets Authority’s ruling has forced Spreadex to divest Sporting Index, highlighting the critical role of competition in the specialized sports spread betting market. While Spreadex initially resisted the CMA’s findings, its decision to sell the platform ensures compliance and safeguards the interests of UK sports bettors.

This development underscores the importance of fair competition in gambling markets, particularly in niche segments like sports spread betting. As Spreadex moves forward without Sporting Index, the sale provides an opportunity for the UK market to maintain diversity and innovation, ensuring bettors continue to enjoy competitive offerings.

For bettors and industry players alike, the CMA’s actions reaffirm the regulatory commitment to fostering a fair and transparent gaming ecosystem in the UK.