TLDR
- Sportradar CEO Carsten Koerl said unregulated revenue accounts for 5% to 13% of the company’s total, far below the 30%-40% claimed by short sellers
- Short-seller reports from Callisto Research and Muddy Waters caused Sportradar shares to drop 22.6% in a single day last week
- Koerl called the reports “false, misleading and defamatory” and said the company does not work with black market operators
- Sportradar posted a Q1 loss of €6 million despite revenue rising 11% to €347 million
- The company appointed former Entain COO Sameer Deen as its new chief operating officer, effective May 18
Sportradar CEO Carsten Koerl told analysts on Tuesday that the company’s revenue from unlicensed operators sits between 5% and 13%. The disclosure came during the company’s Q1 earnings call, where analysts pressed Koerl on two short-seller reports released last week.
Those reports, published by Callisto Research and Muddy Waters, alleged that Sportradar was doing business with a large number of unlicensed gambling platforms. Callisto estimated that the number of unlicensed operators could exceed 270.
A former senior employee cited in the Callisto report claimed unlicensed operators could make up between 30% and 40% of Sportradar’s revenue. Koerl rejected that figure on the call.
“We do not work with black market operators,” Koerl said. “For the grey market, we have a solid compliance structure in place, and we only work with licensed operators.”
The reports hit Sportradar’s stock hard. Shares fell 22.6% by close on Wednesday last week after the two firms shorted the stock.
Koerl responded on LinkedIn the next day, calling the reports “false, misleading and defamatory.” He repeated that message on Tuesday’s earnings call.
Koerl Pushes Back on ICE Barcelona Claims
Muddy Waters had also alleged that a Sportradar sales team member offered to introduce its investigators to Yabo Group, described as China’s largest illegal gambling operator. The interaction reportedly took place at the ICE Barcelona 2026 conference.
Koerl said the firm had targeted a junior salesperson and that Sportradar held around 4,000 meetings during the event. He said the company interviewed the employee afterward.
He described the interaction as being at the very start of any potential sales process, well before any contract could be signed.
“When a sales guy is selling something, there is a kickoff of a very intensive KYC process,” Koerl said. That process includes identification, license verification, corporate filing checks, and screening against sanctions lists before a legal review.
“This was far off from signing a contract,” Koerl added. “This was a purposeful sting campaign on a relatively young sales employee at ICE.”
He acknowledged the interaction should not have happened but stressed it did not reflect the company’s compliance standards.
Q1 Results Show Revenue Growth but Net Loss
Despite the controversy, Sportradar reported its Q1 results on Tuesday. Revenue rose 11% year-on-year to €347 million.
Adjusted EBITDA grew 12% to €66 million during the same period. However, the company posted a net loss of €6 million for the quarter.
Koerl said he had received strong support from partners, clients, league commissioners, and regulators following the short-seller reports.
“I get a lot of support from all sides,” he said. “Some regulators contacted our teams, they explained to them the situation, and that’s an ongoing process.”
He described the response as “overwhelming.”
Sportradar also announced that Sameer Deen will join as chief operating officer on May 18. Deen most recently served as COO and president at Entain since December 2023.
Koerl said he expected Deen to be “instrumental” in driving the company’s commercial efforts and optimizing operations.
