Sports broadcaster Star Sports aims to acquire Sporting Index amidst an ongoing competition investigation in the United Kingdom
The UK's Competition and Markets Authority (CMA) is currently investigating Star Racing's proposed acquisition of Sporting Index from Spreadex in the UK betting market. The deal, which raises concerns about potential monopoly power, has substantial long-term implications for the UK sports spread-betting market.
Star Racing, a division of Star Sports, has proposed the acquisition in response to the ongoing investigation by the CMA into the merger between Spreadex and Sporting Index. The two companies are sister brands, with Spreadex Limited owning Sporting Index entirely. The CMA's investigation aims to assess whether the acquisition would reduce competition and harm consumer choice, particularly as Sporting Index and Spreadex already hold a significant combined position.
The potential long-term implications of the acquisition, if approved, include market consolidation, changes in customer offerings, and a potential reduction in promotional offers. The CMA fears that the merger could create a monopoly in the sports spread betting sector, leading to less competitive pricing and fewer choices for customers.
Spreadex, however, has laid out its views on a potential divestiture, but remains apprehensive regarding Star's newest proposal. The company is concerned that two leading suppliers of online sports spread betting services using the same basic technology could stifle innovation in the sector.
The CMA has recommended the sale of assets as a remedy for the potential anti-competitive nature of the Spreadex-Sporting Index merger. Star Sports, on the other hand, plans to leverage its experience in spread betting and fixed-odds sports betting to re-establish Sporting Index as a strong competitor.
Spreadex has suggested a limited divestment of Sporting Index's assets and a Transitional Service Agreement (TSA) to allow a potential buyer to temporarily rely on Spreadex's infrastructure. The CMA has outlined two avenues to resolve the issues: either a more substantial merger or a divestiture package containing key Sporting Index assets.
The Spreadex-Sporting Index merger, first announced in November 2023, drew the regulator's attention due to its broader market implications. The CMA must navigate a delicate balance between ensuring competition, protecting consumers, and fostering innovation in the sector. The ultimate outcome and impact remain uncertain, but the investigation highlights the regulator's role in maintaining competition in the UK betting market, especially in niche sectors like spread betting.
As of August 2025, no final decision by the CMA has been reported, and no new additional developments or official CMA decisions are present in the search results. The ongoing scrutiny, however, underscores the importance of regulatory oversight in maintaining a competitive and innovative UK betting market.
[1] Source: Competition and Markets Authority (CMA) investigation documents [2] Source: Spreadex and Sporting Index promotional materials and customer feedback
- Star Racing's proposed acquisition of Sporting Index from Spreadex, if approved, could potentially lead to significant changes in the finance and business aspects of the UK sports spread-betting market, including market consolidation and possible alterations in customer offerings.
- The competition between sports spread betting companies, such as Star Racing and Spreadex, plays a crucial role in fostering innovation in the sector, and concerns regarding a potential merger between the two could hamper this innovation.
