Sportradar defends against claims of targeting illegal Asian markets

(AsiaGameHub) –   Sports data integrity company Sportradar has strongly refuted allegations that it generates as much as 40% of its revenue from the black market, following claims that it targets regions including Russia and China.

These claims were independently leveled by investor research firms Muddy Waters and Callisto Research, both of which have disclosed short positions in Sportradar.

Callisto asserts it has discovered more than 270 unlicensed platforms utilizing Sportradar’s offerings, leading it to estimate that 30% to 40% of the firm’s turnover stems from these operators.

The firm further states it interviewed several former Sportradar staff members who admitted to the company’s involvement with grey or black markets.

With Sportradar reporting 2025 revenue of €1.29bn, Callisto’s top-end projection suggests approximately €516m comes from black market activities.

Separately, Muddy Waters reports that its investigators posed as sportsbook operators targeting Vietnam, Thailand, Indonesia and China – jurisdictions where online betting is banned – while attending January’s ICE conference.

The research group alleges that a sales director specializing in Asia presented solutions customized for these markets and offered to connect the investigators with Yabo Group, China’s biggest illicit gambling operator.

A statement from Muddy Waters declared: “Our research finds that SRAD has actively aided and abetted illegal gambling across the world’s black and grey markets — not as an accident or an oversight, but as a business strategy.”

Both firms allege that most of the unlicensed operators served by Sportradar hold licenses from Anjouan – an autonomous island in the Comoros Union – where the regulator is accused of distributing fraudulent licenses.

Other platforms are reportedly licensed under jurisdictions such as Curacao and Malta.

Callisto also contends that Sportradar is still pursuing new business in Russia, despite a 2022 pledge to halt new investment there to adhere to sanctions regarding the war in Ukraine.

The research organizations argue that Sportradar would be unprofitable without its black market revenue. Consequently, both have taken short positions on the stock and are positioned to gain substantially if the share price falls.

Following the publication of the reports, Sportradar shares plummeted yesterday (22 April), closing at $13.04, a drop of 22.6% from the opening price of $16.70.

In rebuttal, Sportradar issued a four-paragraph statement asserting the reports’ ‘several factual inaccuracies’ and claiming they ‘demonstrate a fundamental misunderstanding of our business and the industry”

“We unequivocally challenge these assertions,” the company stated. “[The reports] were authored by short sellers trying to erode shareholder value and profit from stock disruption.

“Sportradar works exclusively with licensed operators, follows strict global compliance, and due diligence standards, and we stand by our independently audited financial statements, risk disclosures, and information provided to investors and regulators.

“We conduct our business with the highest ethical standards consistent with Sportradar’s policies and applicable laws and regulations.”

In addition to serving numerous gambling operators, Sportradar holds valuable data rights agreements with major global sports leagues and bodies, including the NBA, NFL, MLB, FIFA, UEFA and the Bundesliga.

Callisto notes it has submitted its findings to ‘multiple regulators’ in North America and Europe, expressing its view that Sportradar must now decide between ‘surrendering its revenue from illegal operators’ or forfeiting its licenses in those regions.

It further warned that allegations of unethical conduct could damage relationships with key sports leagues, further negatively impacting the company’s financial performance.