Sportradar CEO Carsten Koerl has published an open letter on LinkedIn rejecting short seller reports from Muddy Waters Research and Callisto Research that allege the sports data company has deliberately serviced illegal gambling operators across black and grey markets worldwide.
The Short Seller Allegations
The reports, published within hours of each other on 22 April 2026, triggered a 23% collapse in Sportradar’s share price (NASDAQ: SRAD) — its lowest level in nearly two years — wiping more than $800 million from the company’s market capitalisation in a single session.
Muddy Waters, which conducted an undercover investigation that included interviews with 15 current and former Sportradar employees and analysis of its website code, concluded that the company 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.” The firm estimated that illegal operators account for 20% to 40% of Sportradar’s total revenues, and that without this exposure the company would be unprofitable.
As part of its investigation, Muddy Waters sent undercover investigators to Sportradar’s stand at ICE Barcelona in January 2026, posing as employees of a start-up sportsbook. According to the report, sales staff were told “repeatedly and explicitly” that target markets included China, Vietnam, Indonesia and Thailand — jurisdictions where online sports betting is banned. Rather than declining, staff allegedly walked the investigators through product offerings tailored to each market and offered an introduction to the Yabo Group, described as China’s largest illegal operator.
Callisto Research, which published its report first, examined hundreds of gambling platforms and found evidence that over 270 of the roughly 800 operators Sportradar claims to serve are using its products or services while operating illegally in regulated or prohibited markets. Many, Callisto said, hold no licence at all. Both firms have shared their findings with regulators in the US and Europe, with several state gaming licensing reviews said to be underway.
Among the operators named in the Muddy Waters report: organised crime-linked 1xBet and FonBet in Russia, Cambodia-based 8xBet, which has alleged ties to modern slavery operations, OKVIP and SBOBet in Southeast Asia, and the Yabo Group in China.
Koerl’s Response
In his open letter, Koerl called the allegations a “personal attack” and dismissed the claims as “either entirely false, poorly researched, deliberately taken out of context or, at best, repackaging the same tired stories we have heard for years.”
We are committed to full compliance with the applicable laws and regulations in each jurisdiction where we operate. If there is an issue with a client in our portfolio, we have a robust compliance infrastructure in place to act immediately. We take this so seriously that we created a division dedicated solely to finding bookmakers who attempt to use our data illegally.
The CEO also described Sportradar as having “one of the most rigorous compliance processes in a complex, highly regulated industry,” and pushed back on separate allegations in both reports concerning his personal ties to Russian interests.
I bought shares in Liga Stavok, a licensed, regulated entity, several years ago, and when it no longer felt appropriate to invest in something perceived to be connected to a geopolitical conflict, I sold it. I made no profit from my original stake. To frame this as anything other than a principled exit is unfounded.
In an earlier statement to investors, Sportradar said the Muddy Waters report “contains factual inaccuracies” and demonstrated “a fundamental misunderstanding of our business and the industry,” adding that the company “works exclusively with licensed operators, follows strict global compliance, and due diligence standards.”
Market and Analyst Reaction
Despite the severity of the share price move, several brokerages maintained positive ratings on the stock while trimming price targets. BTIG lowered its target from $24 to $23 and Truist Financial cut its target from $32 to $26, with both firms keeping a Buy rating ahead of Q1 2026 results due on 6 May.
Industry observers noted that the near-simultaneous release of both reports implied a degree of coordination, though Muddy Waters stated its conclusions were reached independently. One short seller expert told industry publication NEXT.io that both firms had “probably made their profits already off the share price slump” and were unlikely to push further.
The twin reports arrive as regulatory scrutiny of supplier exposure to unregulated markets intensifies across multiple jurisdictions. Callisto said it has already shared its findings with regulators in the US and Europe. The question of whether Sportradar’s licensing positions in key regulated markets come under active review ahead of its May earnings call represents the clearest near-term risk the company faces.
Sportradar’s stock has fallen 44% in 2026 to date.
For context on the broader regulatory environment affecting B2B suppliers, see The iGaming EU’s Regulatory News coverage and the Evolution–Playtech legal battle analysis, which examined how corporate misconduct allegations can reshape investor confidence in B2B gaming.
Source: Muddy Waters Research, Callisto Research, Sportradar Group AG
