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,