TLDR
- Research firms Muddy Waters and Callisto published reports claiming Sportradar generates as much as 40% of revenues from unlicensed betting sites.
- Muddy Waters alleged that Sportradar representatives offered to introduce undercover operatives to Yabo Group, a Chinese betting operation reportedly involved in human trafficking.
- Callisto’s analysis suggested more than one-third of Sportradar’s operator partners lack proper licensing or operate in markets where betting is prohibited.
- Shares of Sportradar plummeted approximately 22.6% on Wednesday, ending the session at $13.04 from an opening price of $16.70.
- The Swiss company dismissed the accusations, describing the reports as showing a “fundamental misunderstanding” of its operations and suggesting the authors aimed to profit from market volatility.
The Swiss sports data and integrity provider Sportradar experienced a dramatic stock decline on Wednesday following the publication of research reports by two firms alleging the company maintains business relationships with unlicensed gambling platforms.
Callisto Research and Muddy Waters Research issued the reports. Both organizations revealed they maintained short positions in Sportradar shares, positioning themselves to gain financially from declining stock values.
Sportradar issued a rebuttal late Wednesday through a brief four-paragraph statement, characterizing the reports as containing “several factual inaccuracies.”
The company asserted the researchers’ objective was to “profit from stock disruption.” Sportradar emphasized it conducts business “with the highest ethical standards” while adhering to all relevant laws and regulatory requirements.
Callisto’s extensive 43-page analysis asserted that over one-third of Sportradar’s betting operator partners either lack licenses in regulated jurisdictions or accept wagers in territories where gambling is prohibited.
Research Firms Estimate Unlicensed Partners Generate Up to 40% of Total Revenue
Both investigative reports calculated that unlicensed operators might represent up to 40% of Sportradar’s overall revenue. The Swiss firm trades publicly on the US NASDAQ stock exchange.
Earlier in the current month, Sportradar released its annual financial report for 2025. The document disclosed full-year revenues approaching 1.29 billion euros, exceeding $1.5 billion in US currency.
Callisto reported identifying approximately 100 Sportradar partners asserting licensing from what the firm characterized as a fraudulent regulatory authority in Anjouan. Anjouan is a modest island situated between Mozambique and Madagascar with fewer than 300,000 residents.
The research organization also indicated it transmitted its discoveries to gambling regulatory bodies across North America and Europe. Callisto stated that three US regulators have initiated inquiries based on the information.
Callisto projected that Sportradar will ultimately face a decision between abandoning revenue from illegal operators or forfeiting its regulatory permissions in Europe and North America.
Muddy Waters issued a comprehensive 123-page document containing additional allegations. The organization said its operatives engaged with Sportradar staff at ICE, a prominent gaming industry conference conducted in Barcelona this year.
Muddy Waters Claims Sportradar Proposed Connection to Questionable Betting Group
The undercover operatives portrayed themselves as representatives of a new venture seeking to launch a sportsbook across China, Vietnam, Thailand, and Indonesia. Gambling operations are prohibited by law in each of these nations.
According to Muddy Waters, instead of declining the business opportunity, a Sportradar sales professional proposed facilitating an introduction to the Yabo Group. Muddy Waters characterized Yabo as a Chinese-headquartered operator that employs human trafficking and slavery victims in its customer service operations.
“Sportradar’s 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.”
Muddy Waters additionally called upon major professional sports organizations partnering with Sportradar to investigate the situation. The firm contended these leagues are “unwittingly profiting” from Sportradar’s relationships with illegal bookmakers.
Multiple sports leagues maintain revenue-sharing partnerships with Sportradar, although the report indicated most receive percentages below 10%. Sportradar has additionally granted equity stakes to the National Basketball Association, the National Hockey League, and Major League Baseball.
Despite maintaining a short position, Muddy Waters indicated it intended to close out a “substantial majority — possibly all” of its position to safeguard other investors.
Sportradar informed Gambling Insider that the reports demonstrate “a fundamental misunderstanding of our business and the industry.” The organization stated it partners “exclusively with licensed operators” and maintains “strict global compliance and due diligence standards.”
Sportradar delivers data streams and live odds across more than 30 sports to betting platforms. The company additionally provides streaming services and fraud prevention solutions utilized by over 250 partners and law enforcement organizations globally.
Shares began Wednesday trading at $16.70, declined to as low as $11.69 during midday activity, and concluded at $13.04 — representing a decline of approximately 22.6%. Extended-hours trading revealed an additional one-cent decrease from the closing value.
