Sportradar Group AG saw its share price collapse by more than 22% on 22 April 2026 after two activist short sellers published coordinated reports accusing the Swiss sports data and technology company of knowingly supplying services to illegal gambling operators across global black and grey markets.
The sell-off was triggered by reports published by Muddy Waters Research and Callisto Research, each accusing the company of misleading investors about the legality of its business model. The market reaction wiped out more than $800 million of Sportradar’s market capitalisation in a single trading session.
Sportradar’s stock declined $3.80 per share, or 22.6%, from $16.84 per share on 21 April to $13.04 per share on 22 April — its lowest close since October 2024.
The Muddy Waters Report
Muddy Waters Research conducted an undercover investigation, analysed Sportradar’s website code, and interviewed 15 current and former company employees, concluding that Sportradar had actively aided and abetted illegal gambling across the world’s black and grey markets — not as an accident or oversight, but as a deliberate business strategy. The firm estimated that illegal operators account for approximately 20% to 40% of Sportradar’s total revenues.
Central to Muddy Waters’ investigation was an operation conducted at ICE 2026 in Barcelona. The firm sent investigators posing as operators of a startup sportsbook, who approached Sportradar sales representatives about potentially opening an internet sportsbook in China, Indonesia, Thailand, and Vietnam — jurisdictions where sports wagering is prohibited or tightly restricted. Muddy Waters alleges that not one Sportradar salesperson rejected the approach, and that its representatives were subsequently referred to an Asia-focused Sportradar salesperson.
According to the report, Muddy Waters’ investigators identified nearly 50 clients linked to black and grey markets, including groups with alleged ties to organised crime. Named among them were 1xBet and FonBet in Russia, 8xBet in Cambodia, OKVIP and SBOBet in Southeast Asia, and the Yabo Group in China.
The Callisto Report
Callisto Research, publishing its report within hours of Muddy Waters, stated that more than 270 betting platforms — over a third of those Sportradar claims to serve — may be operating illegally while using its data or services.
Callisto also claimed to have spoken to multiple former Sportradar employees who acknowledged the company’s exposure to grey and black markets, and alleged that Sportradar has continued to court new business in Russia, despite publicly stating in 2022 that it would suspend all new investment in the country in response to international sanctions.
Callisto stated that it had shared its research with European and North American regulators, asserting that three of the latter have commenced reviews into the company’s conduct. The firm concluded that Sportradar faces a binary choice: surrender revenue from illegal operators, or risk losing its licences in regulated markets.
Sportradar reported revenue of €1.29 billion in 2025. Based on Callisto’s upper estimate of 40%, its black market exposure would account for approximately €516 million in revenue.
Sportradar’s Response
Sportradar issued a statement rejecting both reports in full. The company said the reports contained factual inaccuracies, demonstrated a fundamental misunderstanding of its business and the industry, and were authored by short sellers seeking to erode shareholder value and profit from stock disruption. Sportradar stated that it works exclusively with licensed operators, follows strict global compliance and due diligence standards, and stands by its independently audited financial statements, risk disclosures, and information provided to investors and regulators.
Analyst Reaction and Legal Scrutiny
Wall Street’s response was measured but cautious. BTIG lowered its price target to $23 from $24, while Truist Financial cut its target to $26 from $32.
The legal exposure is broadening. Hagens Berman opened an investigation into whether Sportradar’s disclosures before 22 April may have violated federal securities laws. BFA Law (Bleichmar Fonti & Auld LLP) separately announced it was investigating potential securities fraud relating to allegations that Sportradar aided and abetted illegal gambling and derived a substantial portion of its revenue from such activities.
Sportradar is scheduled to report its Q1 2026 results on 6 May. The company has not indicated whether it intends to address the short seller allegations in detail at that time.
The allegations carry particular weight given Sportradar’s positioning as a sports integrity provider. Its chief executive, Carsten Koerl, has previously compared the company’s role to that of a law enforcement agency within the global betting ecosystem. On the company’s Q3 2025 earnings call, Koerl described a four-level KYC (Know Your Customer) process and claimed the company monitors illegal market activity closely — assertions Muddy Waters characterised as false, contradicted by its own investigation and testimony from current and former employees.
IMAGE By Luis Villa del Campo – Times Square – NASDAQ, CC BY 2.0, Link