The takeover of spread betting firm Sporting Index by rival Spreadex should be reversed, regulators have ruled.
The Competition and Markets Authority (CMA) said Spreadex must sell Sporting Index after deciding the deal eliminated its ‘only competitor’.
Its acquisition in 2023 cut the number of specialist betting firms from two to one. Richard Feasey, chairman 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.’
Finger on the pulse: The Competition and Markets Authority said Spreadex must sell Sporting Index after deciding the deal eliminated its ‘only competitor’
A payout in spread betting is based on the accuracy of one’s wager, instead of win or lose.
Spreadex must now assure the regulator it will sell Sporting Index or the CMA could order a sale to an approved buyer.
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