Spreadex Appeals CMA’s Order to Divest Sporting Index

Spread betting firm Spreadex has submitted a formal appeal to the Competition and Markets Authority (CMA)’s ruling to divest Sporting Index. The company challenges the regulator’s conclusions that the merger would create a monopoly and limit consumer freedoms in the UK’s sports spread betting market. Star Racing, which has expressed interest in acquiring Sporting Index, is also interested in the outcome of this case.

The CMA Raised Significant Concerns

In November 2024, the CMA concluded that Spreadex’s acquisition of  Sporting Index had created a monopoly in the sector, considerably impacting fair competition. The regulator further noted that such consolidation could limit consumer choice, stifle innovation, and degrade customer service quality. The CMA also warned that diminished competitive pressures could manifest as steeper end prices for consumers.

Following its investigation, the CMA issued a 12-week deadline for Spreadex to submit a plan for its divestiture of Sporting Index. The regulator threatened to issue a formal order mandating a sale if the operator failed to comply. Potential Sporting Index buyers must first obtain CMA approval to ensure a return to a fair and competitive sports spread betting market.

Spreadex has vehemently opposed the regulator’s decision, describing it as “entirely disproportionate.” The company stated that Sporting Index was a “failing firm” at the time of its acquisition and argued that its intervention had been highly beneficial for consumers and had significantly improved Sporting Index’s financial position. A divestment order would essentially invalidate Spreadex’s investments in the brand.

Spreadex Maintains It Is in the Right

Spreadex has appealed to the Competition Appeal Tribunal (CAT), contesting the CMA’s findings on two primary grounds. The company alleges that the CMA denied it access to third-party evidence, which was reportedly critical for the regulator’s final evaluation. Spreadex notes that this lack of clarity made it impossible to construct an effective response to the authority’s conclusions.

The operator also contests the CMA’s assertion that other bidders would have acquired and operated Sporting Index in direct competition with Spreadex. The appeal maintains that such a conclusion was “not properly justified by the evidence and was irrational.” Spreadex seeks to have the CMA’s decision overturned and return the matter to the regulator for reconsideration.

While Star Racing has expressed interest in purchasing Sporting Index if the divestment goes through, the company has recognized that integrating and revitalizing the business would be no easy task. Whether the company decides to proceed with its plans depends on the CAT’s judgment as the Tribunal considers Spreadex’s appeal and rules on whether the CMA’s decision was legally sound.