An independent CMA panel has decided Spreadex should sell Sporting Index after finding the deal harmed competition for licensed online sports spread betting services.

The Competition and Markets Authority (CMA) has accepted the proposed sale of Sporting Index, to address the competition concerns it had found in the licensed online sports spread betting market, with some modifications and enhancements.

Last year, Spreadex acquired the ‘business-to-consumer’ business of Sporting Index from Sporting Group Holding Limited (Sporting Group). Spreadex and Sporting Index both provide sports fixed odds betting and sports spread betting services to customers based in the UK.

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Sports spread betting involves customers betting on a range of outcomes of sporting events rather than the standard ‘win or lose’ outcomes offered by fixed-odds betting. In spread betting, the closer a customer’s bet is to an outcome, the more money they stand to win, and the further away from the outcome they are, the more they stand to lose. This means that, in contrast to fixed odds betting, customers’ wins and losses could be far higher than the amount they bet.

After conducting an in-depth Phase 2 investigation into the deal, the CMA’s independent panel has concluded the deal created a monopoly in the UK licensed online sports spread betting market, eliminating competition in that market. The panel concluded that the merger could lead to a worse user experience, a more limited range of products and/or higher prices for consumers in the UK.

The panel has concluded that, with some modifications and enhancements, the sale remedy proposed by Spreadex is sufficient to remedy the competition concerns and restore competition in this market that is lost as a result of the deal.

The CMA now has 12 weeks to either accept Final Undertakings from Spreadex, or to make a Final Order requiring Spreadex, to sell Sporting Index to a suitable CMA-approved buyer.

Richard Feasey, the chair of the independent panel reviewing the merger, said:

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“This deal eliminates competition in the supply of licensed online sports spread betting services in the UK.

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. “

Further details are available on the SpreadEx / Sporting Index case page.

The Dutch Gaming Authority (KSA) has imposed a fine of €1,125,000 on Blue High House SA for offering online games of chance without the necessary permit. This is prohibited. Blue High House had previously been given a penalty payment order for the illegal offer.

On the website betonline.ag, owned by Blue High House, Dutch players could participate in online gambling. No measures had been taken to keep players from the Netherlands out. During its investigation, the KSA found various abuses that led to a higher fine than the basic fine of €600,000 being imposed. The offer on the website in question has now been stopped, but the KSA is closely monitoring that the provider does not offer illegally on the Dutch market again via other channels. If the KSA does find this, new sanctions may follow.

Michel Groothuizen, chairman of the board of the KSA, said: “The Netherlands has a legal market to ensure that people who want to gamble can do so safely. With illegal providers, such as in this case blue high house, we often see that risky gaming behavior is not taken into account in any way. For example, players can create an account on this website without having to verify their age, which means that minors can also play. We also saw things like autoplay and turboplay, which can encourage excessive gaming, and there were no gaming limits. The KSA takes tough action against these types of illegal websites.”

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The UK Government has been urged to restrict gambling advertising in Northern Ireland.

Members of the Stormont Assembly’s All Party Group on Reducing Harm Relating to Gambling have written to Lisa Nandy, Secretary of State for Culture, Media and Sport, asking her to act to protect the public in the region.

In a letter sent at the end of Safer Gambling Week, the MLAs, including the group’s chairman Philip McGuigan (Sinn Fein) and Robbie Butler (UUP), have asked Ms Nandy to bridge a gap around gambling advertising online.

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They said Northern Ireland is an outlier in the UK in not having updated gambling legislation since the advent of the internet.

While gambling policy is devolved, MLAs are concerned there is not enough time remaining in the current Assembly mandate to be able to pass a new Bill.

The Irish Parliament recently passed legislation introducing tight restrictions on gambling marketing.

It includes a new Gambling Regulatory Authority of Ireland which has the power to set the times, places and events where gambling advertising can be broadcast, displayed or published.

In their letter to Ms Nandy, the MLAs write: “We urge you to use your existing powers under the Gambling Act 2005 to take immediate action on gambling advertising and promotion and protect people across these islands from further gambling-related harm.”

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They pointed to a recent cross-border report by Maynooth University and Ulster University showing that young people across the island of Ireland are exposed to “extremely high levels of gambling marketing” through televised sports programmes and social media content.

“Northern Ireland now stands alone as the only jurisdiction on these islands without updated gambling legislation since the advent of the internet,” they wrote.

“Unfortunately, our Executive does not have sufficient legislative time in the current Assembly mandate to take forward a Gambling Bill.

“This leaves our population here (who already experience the highest levels of gambling-related harm across these islands) highly vulnerable.”

“While remote gambling operators licensed by the Gambling Commission can freely advertise in Northern Ireland, as online and broadcast advertising is a reserved matter, our population is afforded no protection by the regulator.

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“However, you have the power under existing laws to prevent our children from being bombarded with gambling related marketing during major sports broadcasts, such as Premier League matches, and prevent those already experiencing gambling harms from being targeted by gambling companies on social media.

“Introducing restrictions similar to those in Ireland would have a profound benefit for Northern Ireland, Britain and Ireland, where British TV is widely watched.”

“We urge you to use your existing powers to take immediate action to restrict the promotion of gambling in the UK and reduce the harm caused by gambling across these islands.”

A spokesperson for the Department for Culture, Media and Sport indicated they would respond to the letter from the MLAs in due course.