Sportradar faces a class action lawsuit after its shares plunged more than 22% in a single day.
The law firm Bleichmar Fonti & Auld LLP, which announced the case, accuses the company of involvement with illegal gaming operators and fraud.
The report, published by Muddy Waters, was titled “Sportradar AG: Putting the BET into Aiding and Abetting. The Leader of Sports Integrity Powers the World’s Illegal Online Sports Books.” It presented Sportradar’s business model as a company that “depends on illegal operators to survive.”
According to Muddy Waters, between 20 and 40% of Sportradar’s revenues may have come from such operators, with nearly 50 clients identified as working in illegal markets.
On the same day, Callisto Research released its own results. According to Callisto’s estimates, one-third of the platforms associated with Sportradar operate illegally, and unlicensed operators could account for as much as 30-40% of the company’s revenue. Callisto disclosed that at least three U.S. regulators have already begun investigations on Sportradar.
The damage happened very quickly for Sportradar, with shares dropping from $16.84 on 21st April 2023 to close at $13.04 on 22nd April 2023, a decline of $3.80 per share.
Sportradar has denied any accusations that its business is dependent on illegal gambling; as a worldwide leader in the collection and distribution of real-time data to betting companies, sports leagues, and media outlets, they say their operations are built upon integrity.
Regardless of these assurances, investors have submitted a class action lawsuit at U.S. District Court for the Southern District of New York.
Sportradar Class A Ordinary shareholders have until July 17, 2026, to apply to be appointed as lead plaintiff in the lawsuit. Sportradar also continues to tout its partnerships with major sports leagues like the NBA, MLB, NHL, and PGA Tour, expressing that its reputation hinges upon full compliance and transparency.
