Sportradar claims to protect sporting integrity, monitoring for match-fixing in esports and other major sporting events. However, the company has been accused of generating as much as 40% of its revenue from illegal gambling. 

A new report published by Muddy Waters Research has revealed that the company is actively promoting gambling companies targeting restricted markets across Asia, Russia, and other regions where they do not hold licenses. 

“SRAD’s CEO likes to call his company the FBI of gambling. The FBI does not offer to introduce informants to human traffickers at trade shows,” said the report.

Sportradar Actively Promoting Illegal Gambling

Muddy Waters investigators went undercover at this year’s ICE conference in Barcelona, posing as a betting company startup looking to make inroads in Asia. The undercover agents said they wanted to break into Vietnam, China, Indonesia, and Thailand. 

All four countries strictly prohibit online gambling, but that did not stop Sportradar’s sales team from promising that it could open doors into the black market. 

We “serve everyone,” said an unnamed Sportradar staff member, who then offered to introduce the investigators to the Yabo Group, China’s largest illegal gambling operator.

Sportradar claims to monitor sports for integrity issues and recently claimed match-fixing was on the decline, particularly in esports. 

Getting sporting organizations to sign up for its services is necessary for the company to boost revenue by also doing deals with illegal operators, claims Muddy Waters. 

“The paradox is structural,” according to the report. “SRAD needs the low-level leagues to generate margin. It needs the integrity program to justify access to those leagues. It needs the illegal operators to boost revenues and help cover costs.“

Report Impacts Stock Price

Muddy Waters admits to having a short position on Sportradar (SRAD), and as a result of the report, the company’s stock price has tanked. 

It has dropped by almost 30% since the report was released on Wednesday. Sportradar issued a statement denying the claims and says the false allegations are “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,” added the company.

As well as disrupting the company’s stock price, the allegations threaten to derail deals with sporting organizations and prevent the company from expanding into new markets. 

Sportradar has partnerships with high-profile leagues, including the NBA, NFL, MLB, FIFA, and UEFA. It also has a deal with Oddin to distribute the company’s live esports streams.  
Last year, it acquired a license in the UAE, but if the claims are found to be true, it could find licenses revoked in many jurisdictions.