Star Sports Plans to Acquire Sporting Index Amid UK Investigation

Star Sports’ proposal comes after the CMA expressed concerns that the merger of Spreadex and Sporting Index could significantly reduce competition in the industry. As a solution, the CMA has proposed the sale of certain assets. Star Sports sees this as an opportunity for itself and is ready to acquire Sporting Index, which would allow it to maintain diversity in the market and increase choice for customers.

The Spreadex and Sporting Index merger, first announced in November 2023, quickly attracted the attention of the regulator due to its potential negative impact on the variable odds betting market. The CMA fears that the deal could create a monopoly and reduce product choice for users, leading to a detailed investigation.

The regulator has offered Spreadex two options: either a larger merger or a sale of Sporting Index’s significant assets. Spreadex, although discussing a possible asset sale, has expressed dissatisfaction with the CMA’s proposal and is wary of Star Sports’ offer.

Star Sports has said it is ready to integrate Sporting Index’s assets into its existing structure. Its experience in fixed and variable odds betting will allow the company to re-establish Sporting Index as a strong player in the market. However, Star Sports has also highlighted that Sporting Index’s assets have been significantly impacted by staff cuts and damage to the brand’s reputation.

"We have assets of our own that we could combine with Sporting Index to create a stronger, more viable competitor," Star Sports said.

Despite Star Sports' assurances, Spreadex has expressed concerns that having two large providers based on the same technology could slow down innovation in the industry. Rather than a full sale, Spreadex has proposed a partial sale of Sporting Index's assets and a temporary cooperation agreement that would allow the new owner to use Spreadex's infrastructure until its full operational capacity is up and running.

The CMA's ongoing investigation could have a significant impact on the future of the betting market. If the regulator approves Star Sports' application, the company could significantly expand its presence in the UK market. The situation highlights how the CMA is seeking to strike a balance between maintaining competition, protecting consumers and stimulating innovation in the industry.