Sportradar Refutes Claims That It Works With Illegal Gambling Companies

Sports data company Sportradar pushed back further against short-seller reports that raised concerns about ties to unregulated gambling operators overseas, with CEO Carsten Koerl calling the accusations “unfounded” during Tuesday’s first-quarter earnings call.

Sportradar, based in Switzerland, is an integrity monitor that compiles global betting and prediction-market data to spot abnormal line movement and wagering patterns. Its presence is ubiquitous in sports, gambling, and prediction markets, although it works behind the scenes with leagues including the NBA, WNBA, NHL, MLB, PGA Tour, and FIFA, as well as law enforcement when necessary. While it does not disclose the cases it’s specifically involved in, the recent ones involving Terry Rozier and Guardians pitchers Emmanuel Clase and Luis Ortiz are examples of the type of suspicious betting activity Sportradar aims to detect and flag. 

Sportradar’s business has expanded into prediction markets amid the rise of that industry.  The company, for example, has a role in the recently announced deal between MLB and Polymarket.

The company’s earnings call came during a turbulent time for Sportradar, which on April 22 was accused by two short-sellers—Muddy Waters and Callisto Research—of secretly having exposure to hundreds of illegal gambling operators, including those with direct links to match-fixing. Muddy Waters claims that earlier this year it had “investigators” pose as operators of a startup sportsbook in Barcelona, and that Sportsradar’s sales team offered to connect them with a Chinese illegal gambling operator. The firm alleges the goal was to help the non-existent company expand into markets like Vietnam, Thailand, Indonesia, and China, where online gambling is illegal.

Sportradar shares plunged as much as 30% following the report. As of Tuesday morning, Sportradar was trading at under $12 per share, down more than 60% from its all-time high closing price of $31.79 per share on Aug. 26, 2025.

The day the short-seller reports came out, Sportradar issued a statement saying they “contain several factual inaccuracies about Sportradar, and we unequivocally challenge these assertions.”

During Tuesday’s earnings call, Koerl went a step further, saying “unfortunately, these actors thrive on misinformation and repackaging historical allegations to drive down company stock prices at the expense of long-term focused investors.” 

“The company takes very seriously our obligation to our stakeholders,” he added, noting Sportradar “maintains a robust compliance framework with oversight from the board of directors.”

In a Tuesday filing with the U.S. Securities and Exchange Commission Sportradar said it “will not tolerate efforts to manipulate its securities and it takes very seriously its obligations to stockholders.”

That filing also outlined the know-your-customer process it employs to ensure it’s working with licensed operators. Steps the company says it takes include verifying ownership and control of partners and screening global sanctions lists and other databases.

A person close to Callisto Research tells Front Office Sports that Sportradar’s response so far has not adequately addressed questions around its relationships with operators in so-called “grey markets,” broadly referring to jurisdictions with legal ambiguity, and its alleged ties to unlicensed operators. “There’s so many unanswered questions.”

The short-seller allegations come after Sportradar was sued last month by online sports-betting software provider Altenar. Two suits were filed, one in New Jersey federal court, and another in the London High Court. Both claim Sportradar has a monopoly over live data and betting odds.

Financial Results

For the first quarter of 2026, Sportradar posted revenue of $406 million (€347 million), representing 11% growth year-over-year. It reported a loss of $7 million (€6 million) after having posted a profit of $28 million (€24 million) in Q1 2025.

Results missed analyst expectations, and Jefferies downgraded the company from a “buy” to a “hold” rating, and reduced its price target from $30 per share to $14. 

The company also said it repurchased $90 million of shares under its existing share buyback plan, unveiled a new $250 million share repurchase program, and announced the hiring of Sameer Deen as chief operating officer—he was previously chief commercial officer and president at U.K. based gambling giant Entain.