Merger raises competition concerns

The Competition and Markets Authority (CMA) has raised provisional competition concerns over Spreadex's acquisition of Sporting Index. Last year, Spreadex acquired the ‘retail business’ of Sporting Index from Sporting Group Holding Limited. Both companies provide fixed odds betting and sports spread betting to customers in the UK, with sports spread betting involving bets on a range of outcomes rather than standard 'win or lose' bets.

The CMA's Phase 2 investigation, led by an independent panel, focused on the impact of the merger on licensed online sports spread betting, where Sporting Index and Spreadex were the only two operators. The panel provisionally concluded that the merger has substantially lessened competition in the market, potentially leading to a worse user experience, a more limited range of products, and higher prices.

Richard Feasey, chair of the independent panel, stated that the removal of the only other licensed provider could lead to serious competition concerns. The panel is considering remedies, including requiring Spreadex to sell some or all of the acquired Sporting Index assets, and potentially some of its own assets, to maintain a competitive market.

The CMA is seeking responses to its provisional findings by 15 August 2024, and potential remedies by 8 August 2024. The final report is expected by 26 November 2024. Further details are available on the CMA's Spreadex / Sporting Index case page.