Sportradar Denies Reports It Works With Illegal Operators
Two firms that shorted Sportradar stock made claims in reports published Wednesday
Sportradar late Wednesday refuted claims made in two separate research reports released earlier in the day, both of which alleged the Swiss-based data and integrity services provider for sportsbooks and leagues received a substantial portion of its revenue from unlicensed sports betting operators.
Callisto Research and Muddy Waters Research issued the reports, with both indicating they have placed short positions on Sportradar’s stock. In other words, they believe the stock price will drop, with both citing their findings as their reasons for their positions. If their bets are correct, they stand to make a profit, although Muddy Waters noted it intended “to begin covering a substantial majority – possibly all” of its holdings to protect its investors.
Callisto’s 43-page report said it believes that more than a third of Sportradar’s operator clients are not licensed in regulated markets where they take wagers or are accepting bets from customers in jurisdictions where gambling is illegal.
In its 123-slide study, Muddy Waters said its investigators met with Sportradar earlier this year at ICE, a major gaming convention held in Barcelona. The investigators claimed to represent a startup seeking to operate a sportsbook in China, Indonesia, Thailand, and Vietnam, all countries where gambling is against the law. Rather than turning down the overture, a Sportradar sales executive said he could broker a meeting with the Yabo Group, a Chinese-based operator that uses victims of human trafficking and slavery to staff its call centers, according the Muddy Waters report.
“SRAD’s (Sportradar’s stock ticker symbol) CEO likes to call his company the FBI of gambling,” the Muddy Waters report stated. “The FBI does not offer to introduce informants to human traffickers at trade shows.”
Reports Say Illegal Betting a Major Part of Sportradar’s Business
Both reports estimated that Sportradar could generate as much as 40% of its revenue from unlicensed operators.
As a publicly traded company whose stock trades on the US NASDAQ market, Sportradar must publish quarterly and annual reports of its revenue. It released its 2025 annual report earlier this month, showing revenues for the calendar year totaled nearly €1.29 billion (or more than $1.5 billion).
Callisto said it found around 100 Sportradar clients claiming a license from a bogus regulatory agency in Anjouan, a small African island with a population of less than 300,000 located between Mozambique and Madagascar. In addition, the firm said it shared its report with numerous gambling regulators in North America and Europe and that three American regulators have commenced investigations.
We believe Sportradar will have to choose between surrendering its revenue from illegal operators or losing its licenses in Europe and North America,” the Callisto report stated.
Muddy Waters’ report urged the top sports leagues that partner with Sportradar to get involved, arguing they are “unwittingly profiting” from the company’s work with illegal books. Several leagues have revenue-sharing deals, although the firm’s research indicated most of the leagues received a smaller than 10% share.
Sportradar has also awarded shares of its stock to the National Basketball Association, National Hockey League, and Major League Baseball, according to the report.
The company’s stock tumbled Wednesday after the release of both reports. After shares opened at $16.70, they dropped to as low as $11.69 in midday trading before closing the day at $13.04, a loss of nearly 22.6%. After-hours trading showed a penny decline from the closing price.
‘A Fundamental Misunderstanding of Our Business’
In a four-paragraph statement, Sportradar said the Muddy Waters and Callisto reports included “several factual inaccuracies” and noted the authors’ intent was to “profit from stock disruption.” The company also said it runs its business “with the highest ethical standards consistent with” its policies and applicable laws and regulations where it operates.
These reports demonstrate a fundamental misunderstanding of our business and the industry… Sportradar works exclusively with licensed operators, follows strict global compliance, and due diligence standards, and we stand by our independently audited financial statements, risk disclosures, and information provided to investors and regulators,” the company told Gambling Insider.
What is Sportradar
Sportradar provides a number of services to sportsbooks, sports leagues, the media, and other stakeholders. It provides data feeds in more than 30 sports to betting operators and provides real-time odds as well.
With media, Sportradar provides streaming capabilities and provides content from several leagues and tournaments, such as the Copa del Rey for Spanish soccer and ATP tennis. The company also purchased XLMedia’s North American sports- and gaming-related news sites in late 2024.
Sportradar also says more than 250 partners, as well as law enforcement agencies worldwide, use its fraud detection services to ensure the integrity of their contests and events.
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