TLDR
- Short sellers Muddy Waters and Callisto Research released reports alleging Sportradar earns up to 40% of its revenue from unlicensed gambling operators.
- Muddy Waters claimed Sportradar offered to connect undercover investigators with the Yabo Group, a Chinese operator allegedly linked to human trafficking.
- Callisto said over a third of Sportradar’s operator clients are unlicensed or operating in jurisdictions where gambling is illegal.
- Sportradar’s stock dropped roughly 22.6% on Wednesday, closing at $13.04 after opening at $16.70.
- Sportradar denied the claims, calling the reports a “fundamental misunderstanding” of its business and accusing the authors of seeking to profit from stock disruption.
Sportradar, the Swiss-based sports data and integrity services company, saw its stock plunge on Wednesday after two research firms released reports accusing the company of doing business with unlicensed gambling operators.
The reports came from Callisto Research and Muddy Waters Research. Both firms disclosed that they held short positions on Sportradar’s stock, meaning they stood to profit if the share price fell.
Sportradar denied the allegations late Wednesday in a four-paragraph statement, calling the reports filled with “several factual inaccuracies.”
The company said the authors’ goal was to “profit from stock disruption.” It added that it operates “with the highest ethical standards” and follows all applicable laws and regulations.
Callisto’s 43-page report claimed that more than a third of Sportradar’s operator clients are either not licensed in regulated markets or are taking bets in places where gambling is illegal.
Short Sellers Claim Up to 40% of Revenue Tied to Unlicensed Operators
Both reports estimated that unlicensed operators could account for as much as 40% of Sportradar’s total revenue. The company is publicly traded on the US NASDAQ exchange.
Earlier this month, Sportradar published its 2025 annual report. It showed full-year revenues of nearly 1.29 billion euros, which is more than $1.5 billion.
Callisto said it found around 100 Sportradar clients claiming a license from what it described as a fraudulent regulatory body in Anjouan. Anjouan is a small island between Mozambique and Madagascar with a population under 300,000.
The firm also said it shared its findings with gambling regulators in North America and Europe. According to Callisto, three American regulators have already started investigations.
Callisto stated it believes Sportradar will eventually have to choose between giving up revenue from illegal operators or losing its licenses in Europe and North America.
Muddy Waters published a 123-page report with its own set of allegations. The firm said its investigators met with Sportradar representatives at ICE, a major gaming convention held in Barcelona earlier this year.
Muddy Waters Alleges Sportradar Offered Introduction to Controversial Operator
The investigators claimed to represent a startup looking to operate a sportsbook in China, Vietnam, Thailand, and Indonesia. Gambling is illegal in all four countries.
According to Muddy Waters, rather than turning them away, a Sportradar sales representative offered to arrange a meeting with the Yabo Group. Muddy Waters described Yabo as a Chinese-based operator that uses victims of human trafficking and slavery to staff its call centers.
“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 also urged major sports leagues that partner with Sportradar to look into the matter. It argued they are “unwittingly profiting” from the company’s work with illegal books.
Several leagues have revenue-sharing agreements with Sportradar, though the report said most receive a share of less than 10%. Sportradar has also awarded stock to the National Basketball Association, the National Hockey League, and Major League Baseball.
Despite holding a short position, Muddy Waters said it planned to begin covering a “substantial majority — possibly all” of its holdings to protect investors.
Sportradar told Gambling Insider that the reports show “a fundamental misunderstanding of our business and the industry.” The company said it works “exclusively with licensed operators” and follows “strict global compliance and due diligence standards.”
Sportradar provides data feeds and real-time odds in over 30 sports to betting operators. It also offers streaming content and fraud detection services used by more than 250 partners and law enforcement agencies worldwide.
Shares opened Wednesday at $16.70, dropped as low as $11.69 during midday trading, and closed at $13.04 — a loss of roughly 22.6%. After-hours trading showed an additional penny decline from the closing price.
