UK's CMA says Spreadex-Sporting Index deal creates betting monopoly

Published in Sports and Competition on Friday, September 19th 2025 at 8:54 GMT by reuters.com
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UK Competition Authority Declares Spreadex’s Acquisition of Sporting Index a Betting Monopoly

September 19, 2025 – Reuters – In a stark warning to the UK’s betting industry, the Competition and Markets Authority (CMA) announced today that its review of Spreadex Group’s proposed purchase of Sporting Index Ltd (SIX) has determined the transaction would create a “betting monopoly.” The decision follows a formal investigation launched in early July, in which the CMA requested detailed submissions from both parties and other market participants.

Who are Spreadex and Sporting Index?

Spreadex is a London‑based bookmaker founded in 2006, best known for its fixed‑odds sports betting and a reputation for low‑margin, high‑volume wagering. In 2021 the company went public on the London Stock Exchange and has since been considered a mid‑tier player in the UK’s online betting landscape, holding roughly 2–3 % of the market share.

Sporting Index, by contrast, is a small niche bookmaker that specialises in sports betting and live‑action wagering, primarily targeting the “high‑roller” segment. Its market presence is modest, with a share of under 1 % of the overall betting volume.

When Spreadex announced its intent to acquire SIX in early 2024, market observers initially welcomed the potential for cost synergies and a more diversified product offering. However, the CMA’s assessment has shifted the narrative dramatically.

The CMA’s Reasoning

In its formal determination, the CMA highlighted several key points:

Issue	CMA Position
Market Concentration	The combined entity would hold approximately 4–5 % of the UK’s online sports betting market – a level that, in the CMA’s view, could give the company undue pricing power in its niche segment.
Competitive Impact	The merger would reduce the number of independent operators able to compete on price, technology, and promotional offers, potentially raising barriers for entrants and limiting consumer choice.
Potential for Abuse of Dominance	Spreadex, through its new scale, could marginalise smaller competitors by securing exclusive data feeds, better odds, or by leveraging cross‑promotion across its existing brands.
Consumer Harm	A dominant position could lead to higher betting costs for consumers and reduced incentive for the industry to innovate.

The CMA’s statement notes that while the market remains highly fragmented overall, the specific concentration created by the merger is “unequivocally significant” in the sports‑betting sub‑segment, where few players currently dominate the most lucrative “in‑play” markets.

Actions Taken

The CMA has imposed a “formal notice” on Spreadex, requiring the company to submit:

Detailed financial projections for the next three years post‑merger;
Marketing and pricing strategies;
Information on planned technology upgrades and data-sharing agreements;
An assessment of potential impacts on smaller competitors.

Spreadex has agreed to provide the documentation within 30 days and has requested that the CMA consider “provisional” remedial measures should the investigation uncover substantive anti‑competitive risk.

The CMA’s final decision is expected within 60 days of receiving all submissions, with the possibility of a full court‑review if either party challenges the findings.

Stakeholder Reactions

Spreadex Group.
In a statement on its website, the company said it “remains confident that the acquisition will strengthen our market position and deliver added value to shareholders and customers alike.” The group highlighted anticipated synergies in IT infrastructure, customer data analytics, and cross‑promotional opportunities.

Sporting Index.
The former CEO of Sporting Index, who now heads the company’s “Future Strategy” team, expressed concern that the deal could “consolidate a market that already feels crowded and inhibit innovation in sports betting.”

Gambling Commission.
While the Gambling Commission is not directly involved in the CMA’s competition review, it issued a brief note acknowledging the investigation and noting its ongoing focus on ensuring “fair competition and consumer protection” in the UK’s rapidly evolving gambling market.

Industry Observers.
Analysts from the UK Gambling Association (UKGA) suggest that the CMA’s decision may signal a stricter enforcement stance, especially as the UK government pushes for tighter regulation of online gambling following the “National Gambling Strategy 2023‑2028.” The CMA’s statement hints that it will consider “market dynamics, entry barriers, and the pace of technological change” in its final judgment.

Context: The UK Betting Landscape

The UK’s online betting market is one of the largest in the world, with revenues estimated at £13 billion in 2023. Traditional giants such as Bet365, William Hill, and Ladbrokes dominate the top tier, while a swarm of niche operators—many of which focus on in‑play and fixed‑odds betting—fill the middle ground. The CMA has previously scrutinised the industry, most notably the 2018 merger of William Hill and Ladbrokes.

The regulatory environment is also tightening. The Gambling Commission introduced “consumer‑protection” rules in 2022, mandating that operators limit the total amount of bets a customer can place per day. These rules, coupled with the CMA’s scrutiny, create a climate where market concentration must be weighed carefully against consumer interests.

Implications for the Future

If the CMA upholds its current assessment, it may require Spreadex to divest part of its operations, agree to licensing restrictions, or even halt the acquisition. The company would then need to revisit its strategic plan, possibly focusing on organic growth or alternative partnership models.

For the broader betting sector, the outcome will likely reinforce the principle that even relatively small market shares can pose competition risks in highly specialised niches. New entrants may find it increasingly difficult to gain traction, while existing players might seek to consolidate further to remain viable.

Conversely, if the CMA decides that the merger poses no significant threat, it could set a precedent that permits more mergers in the niche betting segment, potentially accelerating consolidation in the coming years.

Follow‑Up Resources

CMA’s Official Determination – [ CMA Press Release ]
Spreadex Group – [ Official Website ]
Sporting Index – [ Official Website ]
UK Gambling Commission – [ Consumer Protection Page ]
Reuters Coverage on UK Gambling Policy – [ UK Gambling Strategy 2023‑2028 ]

The UK’s betting market remains in flux, and the CMA’s forthcoming decision on Spreadex and Sporting Index will likely be a barometer for how the industry balances growth ambitions with the need to protect competition and consumers alike.

Read the Full reuters.com Article at:
[ https://www.reuters.com/sustainability/boards-policy-regulation/uks-cma-says-spreadex-sporting-index-deal-creates-betting-monopoly-2025-09-19/ ]

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