UK regulators order sale of Sporting Index after 'monopoly' takeover

The Competition and Markets Authority has ordered Spreadex to sell Sporting Index after determining that its 2023 takeover created a monopoly risk in the spread-betting market. The CMA said the acquisition reduced the number of specialist betting firms from two to one, leaving customers with diminished choices. Spreadex must now confirm plans to divest Sporting Index or risk a CMA-ordered sale to an approved buyer.

In its ruling, the CMA concluded that the merger substantially lessened competition by removing Spreadex's only competitor. Richard Feasey, chair of the review panel, said: "We found that merger substantially lessens competition by removing Spreadex's only competitor. We also found that the only effective remedy would be for Spreadex to sell Sporting Index. Doing so would mean customers have greater choice between two independent businesses." The decision underscores regulators' willingness to intervene in niche sectors where a single remaining player could influence pricing, service levels and innovation in a tightly regulated market. The remedy is designed to restore competitive dynamics and protect consumer options in spread betting.

Spreadex, which had argued the deal would bring efficiency and scale, now faces a divestment path that could involve finding an approved buyer or potentially transferring Sporting Index to a regulator-approved intermediary. The CMA noted that if Spreadex fails to proceed with a sale, it has the authority to order the sale itself to a purchaser approved by the regulator. In the UK, a payout in spread betting is based on the accuracy of a wager rather than a binary win or loss, making competitive pricing and product breadth particularly important for customers.

The CMA’s action comes as part of ongoing scrutiny of consolidation in the gambling and financial-services-adjacent sectors. The agency opened its review in 2023 after Spreadex’s purchase of Sporting Index, a move that reduced the number of specialist spread-betting firms from two to one, leaving a relatively small market with limited direct competition. By mandating a sale, the CMA aims to preserve consumer choice and to prevent top-line concentration from eroding price and service quality.

Sporting Index has positioned itself as a specialist in spread betting, an area that blends financial-style trading with sports markets. Spreadex, a rival, has argued that the practical benefits of the deal would have included improved technology, broader product sets, and more robust risk management. Critics, however, warned that reducing the field could curb innovation and lead to higher spreads or less favorable terms for customers. The CMA’s decision focuses on preserving competitive dynamics and ensuring customers retain access to multiple independent firms in this niche segment.

The regulator’s remedy—divesting Sporting Index—seeks to reintroduce plurality in a market described as highly technical and platform-driven. If a sale proceeds, the CMA will monitor the divestment to ensure it results in the transfer of Sporting Index into hands that will maintain or enhance competition rather than concentrate market power again. The CMA emphasized that it would only accept a divestment that meaningfully restores competitive options for consumers and B2B partners.

Industry observers say the ruling could have broader implications for how regulators review future mergers in the betting and financial services space, where a handful of platforms compete for a limited, highly engaged customer base. The decision also signals heightened vigilance over deals that could erode market structure even when immediate consumer harm is not obvious, a trend seen in several sectors where digital platforms dominate.

As the market awaits the specifics of the sale process, Spreadex will need to engage with the CMA on the timing, terms, and potential candidates for Sporting Index’s divestment. The CMA did not specify a deadline in its announcement, but it indicated it would enforce the remedy if the divestment is not completed to an acceptable standard. Analysts say the timeline will depend on negotiations with potential buyers and the regulatory clearance process, which could involve additional scrutiny to ensure any new owner maintains competitive practice and customer protections.

The images below illustrate the regulatory and market context surrounding the decision.

Further branding and industry context appear in associated institutional materials from market participants and industry observers. The decision to compel a sale aligns with a broader regulatory emphasis on maintaining competitive marketplaces in financial and betting products that are increasingly delivered via digital platforms. For consumers, the outcome could translate into renewed choice between independent services and potentially more favorable pricing and innovation in product offerings.

Sporting Index and Spreadex have not publicly commented beyond the CMA’s ruling, and it remains to be seen how quickly a sale might be executed or who the eventual buyer might be. The CMA’s intervention highlights the agency’s willingness to act even in specialized segments where competition risk is centered on two entities rather than the broader public market, underscoring the regulator’s mandate to sustain healthy competition even in niche, technology-driven sectors.