Spreadex has been told by the Competition and Markets Authority (CMA) to sell Sporting Index following concerns that their acquisition created an unchallenged dominance in the market.
After acquiring Sporting Index from Sporting Group last year, Spreadex has been directed to sell the 'business-to-consumer' firm to reinstate competition within the sector.
Both companies have been prominent providers of sports fixed odds betting and sports spread betting services to a º£½ÇÊÓƵ customer base, as reported by . Nevertheless, the CMA's independent panel has determined that the merger established a monopoly in the º£½ÇÊÓƵ licensed online sports spread betting realm, effectively "eliminating competition in that market".
There are further worries that the union "could lead to a worse user experience, a more limited range of products and/or higher prices for consumers in the º£½ÇÊÓƵ" according to the findings.
Chair of the reviewing panel Richard Feasey said: "This deal eliminates competition in the supply of licensed online sports spread betting services in the º£½ÇÊÓƵ.
"Sports spread betting like any other market needs competition to drive good customer experience, maintain choice and keep prices competitive."
"'To achieve this, we have decided that Spreadex should sell Sporting Index, so that customers can choose between two firms for the best user experience and prices, rather than having to use only one."
These developments come upon the heels of a report by City AM highlighting Spreadexs significant sponsorship deals with Championship football teams which notably increased the company's turnover in its most recent financial year.
The company, a significant sponsor of clubs such as Watford, Sheffield United, Sunderland and West Bromwich Albion, Spreadex has reported a turnover of £103.2m for its financial year to 31 May, 2024, according to documents recently filed with Companies House.
This latest total follows the firm's previously reported turnover of £88.8m for its preceding 12 months.
The newly released accounts also reveal that the company's pre-tax profit rose from £35.3m to £42.2m over the same period. In light of its enhanced financial performance, Spreadex boosted its dividend from £12.5m to £15.8m.
Founded by Jonathan Hufford in 1999, the business is based in St Albans.
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