Sports betting integrity firm Sportradar has vehemently denied that it derives up to 40% of its income from the black market, after allegations that its targets include Russia and China.
The accusations were made independently by the investor research firms Muddy Waters and Callisto Research, both of which disclosed short positions in Sportradar.
Callisto claims to have identified over 270 platforms operating illegally using Sportradar’s products or services, which led to it concluding that between 30% and 40% of the company’s revenue could be derived from these operators.
The firm also says that it has spoken to multiple former employees of Sportradar who acknowledged its ‘exposure to grey or black markets’.
Sportradar reported revenue of €1.29bn in 2025. Based on Callisto’s upper estimate, its black market exposure would account for around €516m in revenue.
Meanwhile, Muddy Waters claims that its investigators attended January’s ICE conference posing as operators of a sportsbook targeting Vietnam, Thailand, Indonesia and China – all jurisdictions where online gambling is prohibited.
The research firm alleges that an Asia-focused sales executive walked the investigators through offering tailored solutions to these markets and offered to introduce them to Yabo Group, China’s largest illegal gambling operator.
A statement from Muddy Waters read: “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.”
Allegations made by both firms claim that the majority of illegal operators served by Sportradar are licensed in Anjouan – an autonomous island in the Union of Comoros, where the gaming regulator has been accused of issuing fake licences.
Other platforms are allegedly licensed by jurisdictions such as Curacao and Malta.
Callisto also claims that Sportsradar is continuing to court new business in Russia, despite stating in 2022 that it would suspend all new investment in the country to comply with sanctions related to its ongoing war with Ukraine.
The research firms contend that without its black market exposure, Sportradar would not be profitable. Therefore, both have taken short positions on the company and stand to make significant profits if its stock price decreases.
Sportradar’s stocks tumbled yesterday (22 April) following the release of the reports and closed at $13.04, down 22.6% compared to their opening price of $16.70.
In response to the claims, Sportradar released a four-paragraph statement which said that the reports contain ‘several factual inaccuracies’ and ‘demonstrate a fundamental misunderstanding of our business and the industry”
“We unequivocally challenge these assertions,” the company continued. “[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.”
Alongside providing services to a plethora of gambling operators, Sportradar also has lucrative data rights deals with major sports leagues and organisations around the world – including the NBA, NFL, MLB, FIFA, UEFA and the Bundesliga.
Callisto says that it has shared its findings with ‘multiple regulators’ across North America and Europe, and shared its belief that Sportradar must now choose between ‘surrendering its revenue from illegal operators’ or losing its licences in North America and Europe.
It added that any accusations of improper business practices risk souring relationships with major sports leagues, further harming the company’s financials.
