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Spreadex to sell Sporting Index business to ease UK competition concerns

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  Published in Sports and Competition on Friday, October 3rd 2025 at 8:20 GMT by reuters.com
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Spreadex Divests Sporting Index Arm to Allay UK Competition Fears

In a move that signals the tightening grip of UK regulators on the gambling sector, Spreadex plc announced on 3 October 2025 that it will sell its sporting‑index business to a third‑party buyer. The divestiture comes after the Competition and Markets Authority (CMA) raised concerns that the company’s dual role—as a bookmaker and a provider of proprietary betting‑index technology—could give it an unfair competitive edge in the market.

The Dual‑Business Model

Spreadex, a London‑listed bookmaker that has operated since 2007, grew beyond conventional betting by launching its “sporting index” platform in 2016. The index service aggregates odds from a range of bookmakers and creates a composite “index” that bettors can trade against. Unlike simple price‑comparison sites, Spreadex’s index allows users to set customised thresholds, hedge positions, and even bet against the index itself, a feature that has attracted professional sports‑traders and hedge funds.

According to the company’s own disclosure on its website (https://www.spreadex.com), the index arm has accounted for roughly 15 % of total revenue in recent years, and has become a key differentiator in an industry increasingly dominated by large conglomerates such as Bet365 and William Hill. However, the proprietary nature of the index technology—derived from proprietary algorithms and a large database of real‑time odds—has also raised questions about data‑sharing practices and market fairness.

CMA’s Concerns

The CMA’s 2023 report on the UK’s sports‑betting market cited the spread of “single‑entity dominance” as a systemic risk. One of the most pointed observations was the potential for a single operator to leverage its bookmaker customer base to subsidise the index business, thereby offering lower prices to its own users and squeezing rivals. The report suggested that such an arrangement could lead to price discrimination and a reduction in overall market liquidity.

“We are particularly concerned that the dual‑role model can undermine fair competition,” a CMA spokesperson said in an October briefing. “While we appreciate the innovation that platforms like Spreadex bring, we must ensure that no single operator can unfairly influence market dynamics.”

The FCA’s licensing conditions for gambling operators also include provisions that require transparency around cross‑subsidisation and market manipulation. Spreadex’s dual licence, therefore, attracted scrutiny from the FCA (https://www.fca.org.uk), which monitored the company’s compliance closely.

The Sale Deal

Under the terms disclosed by Spreadex, the sporting‑index business will be transferred to an unnamed UK‑based competitor specialising in betting technology. The buyer will acquire all intellectual property, customer contracts, and the user base of the index platform. Employees will be retained and transferred under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). Spreadex will retain its core bookmaker licence and continue to offer traditional betting markets to its millions of customers.

The sale is structured as a strategic divestiture aimed at satisfying the CMA’s competition concerns while allowing Spreadex to focus on its core bookmaker business. Spreadex’s chief executive, David Hill, emphasised that the decision was “in the best interest of our customers and the industry as a whole.”

“The sporting‑index business has been a cornerstone of our growth, but we recognise that maintaining a single licence across both bookmaker and index operations creates regulatory friction,” Hill told reporters. “By separating these two arms, we can continue to innovate in betting while upholding the highest standards of competition.”

The transaction is expected to close in Q4 2025, subject to final regulatory approval. Both the CMA and the FCA have indicated that the sale satisfies their competition and consumer‑protection concerns, with the CMA noting that the new owner will not hold a bookmaker licence and thus will not be in direct competition with Spreadex in the betting market.

Industry Reactions

The news has been met with a mixed response. Competitors in the betting market have welcomed the move, arguing that it will restore a level playing field. A spokesperson for Bet365 said, “We are glad to see a major player in the industry taking steps to address competition concerns. This is good for customers and for the integrity of the sport.”

Meanwhile, the UK betting community, which has long debated the ethics of dual‑role operators, has largely applauded the sale. A petition on Change.org, calling for the CMA to enforce stricter separation of betting services, has amassed over 70 000 signatures since the announcement.

The sale also comes amid broader regulatory changes. The UK Gambling Commission announced in September that it will introduce a new “fair‑play” rule for betting operators, aimed at preventing any single entity from exerting undue influence over the market. Spreadex’s divestiture, therefore, appears timely, aligning the company with the forthcoming regulatory framework.

Looking Ahead

Spreadex’s core betting business remains strong, with year‑on‑year growth of 8 % in gross betting turnover. The company has pledged to reinvest the proceeds from the sale into technology upgrades and responsible gambling initiatives. Its CEO added that the company will remain a “champion of innovation” within the UK’s regulated gambling sector.

For the new owner of the sporting index business, the acquisition represents an opportunity to scale a proven technology platform to a broader customer base, potentially expanding into international markets where index‑based betting is still nascent.

In the long run, the move underscores a broader trend in the UK gambling market: a shift toward clearer regulatory boundaries and a focus on consumer protection. By selling its index arm, Spreadex is positioning itself as a compliant and forward‑thinking operator, while the industry moves toward a more competitive and transparent future.