A report accuses betting and data firm Sportradar of ties to hundreds of unlicensed gambling providers, some seemingly active in Iran and Russian-controlled Crimea. The analysis by financial researchers at Callisto Research identifies over 270 unauthorized entities offering sports wagering, virtual games, and cryptocurrency casinos, which display Sportradar’s branding and features on their sites. Callisto Research, an advocacy-oriented firm, revealed it holds short positions in Sportradar’s shares after publishing the findings. Sportradar AG, traded on Nasdaq, saw its stock plummet up to 30% after the report’s release on Wednesday, ending the day 23% lower than the opening price. The company earns revenue through partnerships that support and oversee the gambling sector. Its integrity division tracks betting activities for sports organizations and leagues, such as FIFA, UEFA, Major League Baseball, and the NBA, notifying them of possible match-fixing or spot-fixing risks. Sportradar has served as FIFA’s integrity collaborator since 2017, overseeing more than 600,000 matches, with the agreement renewed this year to extend through 2031, including the upcoming men’s and women’s World Cups. Sportradar maintains it partners solely with regulated operators that pay taxes in their operating regions and provide consumer safeguards, unlike illicit markets. Most unauthorized providers are located in Curaçao in the Caribbean or Anjouan in the Indian Ocean. The report quotes a past Sportradar staff member stating that arrangements with unlicensed entities account for about one-third of the company’s income, which totaled €1.2 billion last year. In a separate claim on Wednesday, short-selling group Muddy Waters alleged that Sportradar’s sales personnel indicated intentions to pursue unregulated markets. Short sellers profit from anticipated drops in stock prices and frequently issue reports highlighting supposed corporate issues or misconduct to influence market shifts. Sportradar rejected the claims from both Callisto and Muddy Waters, describing them as efforts to manipulate its stock value. The company did not respond to specific inquiries from the Guardian but affirmed it collaborates only with licensed entities and adheres to top ethical practices. In a statement to the Guardian, Sportradar said: ‘Today’s short report includes incorrect details about our operations, and we firmly dispute these claims. It reflects a basic lack of knowledge about our business and the sector, produced by a short seller aiming to diminish investor value and gain from market volatility. Sportradar engages exclusively with regulated operators, maintains rigorous international compliance and vetting processes, and supports our independently verified financial reports, risk statements, and data shared with investors and authorities. We operate with the utmost ethical integrity in line with our policies, legal requirements, and regulations.’ A source from Sportradar noted that the firm regularly checks sportsbooks for violations of intellectual property and scans online for infractions to investigate them fully. Upon identifying any breach of agreement terms, the company acts promptly. Callisto’s document asserts that Sportradar and its betting division, Betradar, maintain agreements with hundreds of illegal operators, including those in U.S.-sanctioned nations. Such associations in Iran and Russia could question Sportradar’s adherence to sanctions from the U.S., U.K., and EU. The report features images appearing to display Betradar’s virtual sports offerings on Berrybet and Betfido, Persian-language sites allowing deposits through Iranian payment systems. Berrybet provides guidance on using Nobitex, an Iranian cryptocurrency platform connected to the Islamic Revolutionary Guard Corps in a U.S. Senate session. Sportradar states it follows U.S. sanctions barring involvement in the Iranian market. Its business conduct code on the investor site indicates that any sign of Iranian links should pause commercial ties. After Russia’s invasion of Ukraine in March 2022, Sportradar halted new investments and client engagements in Russia to align with global sanctions, though Callisto alleges ongoing operations on several Russian-oriented platforms.
