TLDR
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- Research firms Muddy Waters and Callisto Research published reports claiming Sportradar generates as much as 40% of revenue from unlicensed betting operations.
- Muddy Waters alleged that Sportradar representatives offered to facilitate introductions with Yabo Group, a Chinese gambling operator accused of involvement in human trafficking.
- Callisto’s research suggested more than one-third of Sportradar’s gambling clients lack proper licensing or operate in markets where betting is prohibited.
- Shares of Sportradar fell approximately 22.6% on Wednesday, ending the day at $13.04 after starting at $16.70.
- The Swiss company rejected all accusations, describing the research as a “fundamental misunderstanding” and suggesting the firms aim to profit from market manipulation.
Sportradar, a Switzerland-headquartered sports data and monitoring services provider, experienced a significant stock decline on Wednesday following the publication of two investigative reports alleging the company maintains business relationships with unlicensed gambling platforms.
The damaging reports originated from Callisto Research and Muddy Waters Research. Both organizations revealed they maintained short positions in Sportradar’s shares, positioning themselves to gain financially from any price decline.
Sportradar issued a denial late Wednesday through a brief four-paragraph response, characterizing the reports as containing “several factual inaccuracies.”
The organization stated the researchers’ objective was to “profit from stock disruption.” Sportradar emphasized that it conducts business “with the highest ethical standards” while adhering to all relevant laws and regulatory requirements.
Callisto’s extensive 43-page analysis alleged that over one-third of Sportradar’s betting operator partners either lack proper licensing in regulated jurisdictions or accept wagers in territories where gambling activities are prohibited.
Research Firms Estimate Up to 40% of Revenue Linked to Unlicensed Platforms
Both investigative reports suggested that unlicensed gambling operators might represent as much as 40% of Sportradar’s overall revenue. The company trades publicly on the NASDAQ stock exchange in the United States.
Earlier in the month, Sportradar released its annual financial report for 2025. The document revealed total revenues approaching 1.29 billion euros, equivalent to over $1.5 billion.
Callisto reported discovering approximately 100 Sportradar business partners citing licensure from what the research firm characterized as a fraudulent regulatory authority based in Anjouan. This small island territory, located between Mozambique and Madagascar, has fewer than 300,000 residents.
The research organization also indicated it had provided its evidence to gambling regulatory authorities across North America and Europe. Callisto reported that three U.S. regulators have initiated preliminary investigations based on the findings.
Callisto projected that Sportradar would ultimately face a decision between abandoning revenue streams from unlicensed operators or risking the loss of its regulatory licenses in Europe and North America.
Muddy Waters released a comprehensive 123-page analysis containing additional allegations. The organization stated that its undercover investigators encountered Sportradar personnel at ICE, a prominent gaming industry conference that took place in Barcelona this year.
Muddy Waters Claims Sportradar Proposed Connection to Disputed Operator
The undercover operatives posed as representatives of a new venture seeking to establish a sportsbook in China, Vietnam, Thailand, and Indonesia. Gambling remains illegal across all four nations.
According to Muddy Waters’ account, instead of refusing service, a Sportradar sales employee proposed facilitating an introduction to the Yabo Group. Muddy Waters characterized Yabo as a China-based gambling operation that allegedly employs human trafficking victims and enslaved individuals in its call center 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 sports organizations that maintain partnerships with Sportradar to investigate these matters. The firm contended these leagues are “unwittingly profiting” from Sportradar’s alleged relationships with illegal betting platforms.
Numerous professional leagues have established revenue-sharing arrangements with Sportradar, although the report indicated most receive portions under 10%. Sportradar has also distributed equity stakes to the National Basketball Association, the National Hockey League, and Major League Baseball.
Despite maintaining a short position, Muddy Waters announced intentions to begin covering a “substantial majority — possibly all” of its stake to safeguard other investors.
Sportradar communicated to Gambling Insider that the reports demonstrate “a fundamental misunderstanding of our business and the industry.” The company asserted it partners “exclusively with licensed operators” and maintains “strict global compliance and due diligence standards.”
Sportradar supplies data feeds and live odds across more than 30 sports to betting platforms. The company additionally provides streaming services and fraud prevention technology utilized by over 250 partners and law enforcement organizations globally.
Shares commenced trading Wednesday at $16.70, declined to a low of $11.69 during mid-session, and finished at $13.04 — representing a decrease of approximately 22.6%. Extended trading hours reflected an additional one-cent decline from the closing value.
