London Capital Group has confirmed that Irish betting company Paddy Power is to cancel its white label contract as it exits spread betting space.

Paddy Power, which operated online spread betting company PaddyPowerTrader, has decided to leave the market following a review of the business.

In a statement from London Capital Group (LCG), the spread betting company said it was in negotiations to agree a 'mutually beneficial termination agreement'.

A spokesman added, 'PaddyPowerTrader customers will be invited to transfer to LCG's Capital Spreads brand at a date to be agreed.

'As a result of this transfer, LCG will continue to receive revenue from these customers.'

The news comes a week after London Capital Group announced that a review of the business was taking place.

According to LCG, PaddyPowerTrader currently represents 17 per cent of its active clients. Under the white label system, LCG provides the spread betting platform. Clients remain clients of LCG, however, it pays for the client acquisition activities.