CMA orders Spreadex to divest Sporting Index after finding UK spread betting monopoly | Yogonet International
Summary
The UK Competition and Markets Authority (CMA) has ordered Spreadex Ltd to sell Sporting Index after concluding that Spreadex’s 2023 acquisition of Sporting Index’s business-to-consumer operations removed the only effective competitor in the licensed online sports spread betting market. The CMA found the merger produced a monopoly, risking reduced choice, higher prices and a poorer user experience for UK customers. The Competition Appeal Tribunal quashed parts of the original CMA ruling in March 2025 and remitted the case; after reassessment the CMA reconfirmed its view and says divestiture is the only effective remedy. Spreadex may propose a buyer and transitional arrangements, but the CMA will consult publicly on the divestiture process before issuing final orders.
Key Points
- The CMA concluded Spreadex and Sporting Index were each other’s closest competitors and that the merger substantially lessened competition in licensed online sports spread betting in the UK.
- Spreadex bought Sporting Index from La Française des Jeux (FDJ) in November 2023; the CMA first raised concerns in a Phase 2 report in November 2024.
- The Competition Appeal Tribunal quashed parts of the CMA decision in March 2025 and remitted the case; the CMA re-examined evidence and reconfirmed the monopoly finding.
- The regulator found a combined 100% share of the licensed online sports spread betting market and rejected Spreadex’s argument that Sporting Index would have exited absent the sale.
- The CMA identified high barriers to entry and said claimed efficiencies were not merger-specific, leaving divestiture as the only effective remedy.
- Spreadex can propose a buyer and offer undertakings (including transitional services); if it does not, the CMA may force divestment to an approved purchaser.
Context and relevance
This is a significant regulatory intervention in a specialised corner of UK gambling markets. It underlines the CMA’s willingness to unwind completed deals where competition is harmed and confirms that licences and technical barriers in spread betting create durable market power. Operators, investors and regulators should note the precedent: completed transactions done without prior CMA clearance can still be reversed if they remove effective rivalry.
Why should I read this?
Because this isn’t just another corporate squabble — the CMA has effectively told Spreadex to sell back a business it bought, saying the deal wiped out real competition. If you follow UK gambling markets, regulatory risk or M&A in tightly licensed sectors, this is the sort of ruling that changes deal calculus and could ripple into valuations, bids and future consolidation plans. We’ve skimmed the detail so you don’t have to — quick, clear and useful.
