Sportradar execs push back on allegations in earnings call
Adversity for Sportradar continued in its first-quarter earnings call, which saw lengthy audio dropouts during its 65-minute duration. The company reported financial results early on 28 April.
Two hours before the call, the New York firm of Bronstein, Gewirtz & Grossman announced it was investigating Sportradar, which has been accused by short sellers of “providing its services to illegal and unlicensed gambling operators,” the Wall Street Journal reported. The charges had sent Sportradar stock tumbling.
Sportradar announced on Tuesday an initiative to repurchase US$250 million in shares. CEO Carsten Koerl said he would buy US$10 million shares, too.
“Sportradar and I reject the unfounded allegations in the reports,” remarked Koerl. “The company’s current valuation does not reflect the strength of our business.” He said the company had bought back $90 million worth of shares during the first quarter.
“We support only businesses that have a license,” Koerl continued. “We are running a very rigid [know your customer] process. He flatly denied that Sportradar was working with black-market or unlicensed gaming operators.
“The feedback so far is overwhelming,” said Koerl. “I get a lot of support” from business partners and regulators. Conversations with the latter were described as “an ongoing process.” He estimated that only a low-to-mid-single-digit percentage of Sportradar’s revenue was imperiled by the scandal.
Queried about an instance of Sportradar uploading black-market data, Koerl attributed it to “a relatively young sales guy [that] was teased into it” at the recent ICE expo. “This is never a contract. When the sales team is selling something, this is the kickoff of a very intense KYC process. This is far from signing a contract,” he ended.
Koerl likened Sportradar’s products to a Bloomberg terminal: Once it it sold to a customer, Sportradar has no control over potential sub-licensing. “Some of this content is stolen and you have to have mitigation methods in place.”
Sportradar has, Koerl said, intensive KYC measures on tap for its business-to-consumer trade. But business-to-business dealings “also have some syndication” to bad actors. “As soon as we [heard] this, we shut it down immediately. We indeed have piracy. Sportradar is probably the most-attacked company.”
Koerl also announced the appointment of former Entain President Sameer Deen as Chief Operating Officer. The latter, it was said, “will be instrumental in driving our commercial efforts.”
The CEO lauded the first quarter for “strong performance in betting and gaming content,” with 75% of clients using IMG Arena intellectual property. Sportradar’s relationship with Hard Rock Bet was, Koerl said, “a clear example of this.”
Koerl added that Sportradar intends to stream 700,000 matches in 2026. Less-than-expected financial results were dismissed as being “impacted by player-friendly outcomes,” particularly in European soccer.
“We see prediction markets as a significant opportunity where Sportradar is uniquely positioned” as a data provider, Koerl transitioned. He said they add new territories and total addressable market in the United States. The CEO continued that Sportradar was in talks with various event-contract providers and “we are being very deliberate in our discussions.”
He added that the National Hockey League, United Fighting Championship, Major League Soccer and Major League Baseball have all green-lit the marketing of Sportradar to prediction markets. He teased “bigger news and contents … very soon. We have nothing to announce now.”
Koerl laughed and said, “it’s very tricky territory,” as to whether Sportradar would place limits on prediction-market offerings. “At the moment we don’t see limitations,” which he characterized as a regulatory matter.
Chief Financial Officer Craig Felenstein added that “we’re still very early days” in terms of working with prediction-market and traditional sports betting providers. The former were not on a scale comparable to legacy operators. Asked what the effect of prediction-market business would be, he replied, “the magnitude of the impact depends on what gets done.”
“The cannibalization is pretty small” between traditional sports betting and event contracts, Felenstein said. He explained that the market growth came from jurisdictions like California, Texas and Florida, and the addition of 18-to-20-year-old players to the fold.
Felenstein predicted “tens of millions” from prediction markets, with IMG Arena “continuing to perform better. We layer all those things in together [and] you get revenue in the range which we expected,” even if the US market wasn’t accelerating.
Despite slower growth from US sportsbooks, said Felenstein, revenue improvement would be have been 16% were it not for a weak dollar. He later said that he expected the currency adversity to ease in the second and third quarters. He also said Sportradar was spending less on marketing.
Felenstein reported that Sportradar had experienced an 18% spike in sports-rights expenses but had “significant visibility” into such costs going forward. The absorption of IMG Arena, meanwhile, had increased personnel costs by 5%.
Cash on hand, Felenstein continued, had fallen 44% because of share repurchases. He added, “there is no better fundamental use of capital than investing in Sportradar shares.”
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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The Backstory
Why Sportradar’s denial matters now
Sportradar’s pushback against short-seller allegations lands in a market already questioning data providers, operators and the line between legal and gray-market activity. While the company says it serves only licensed operators and is tightening know-your-customer controls, peers have been forced to describe how they manage similar risks and where they draw boundaries on fast-growing prediction markets. The broader context helps explain why Sportradar moved quickly to authorize a major share repurchase and emphasize compliance and controls: investors have been punishing perceived regulatory exposure and rewarding clarity on strategy, cash flow and risk management.
Across recent earnings calls, gaming leaders have been pressed on integrity, counterparties and the collision between sports betting and event contracts. The split-screen is stark. Some operators treat prediction markets as a regulatory and reputational threat. Others see them as a new funnel in nonbetting states. Sportradar, which sells into both sportsbooks and adjacent markets, sits in the middle of that debate, making governance claims and client screening central to its defense.
Rivals split over prediction markets
BetMGM has carved out the industry’s most explicit opposition. Chief Executive Adam Greenblatt called sports prediction markets “in essence illegal sports betting” and warned they lack consumer protections and state taxes, adding the company would not cross regulators on the issue. He said handle trends show “no signs of degradation,” arguing growth in prediction markets is concentrated in states without legal wagering. That stance anchored a broader message of discipline and cash returns in its latest update, including a first-ever distribution to its parents, as detailed in BetMGM swears off prediction markets.
BetMGM has since sharpened its critique. On a subsequent call, Greenblatt blamed elevated customer acquisition costs on new “prediction market” entrants and aligned the company with state attorneys general while awaiting court clarity. He argued hyper-spend by newcomers was unsustainable and forecast most casual players would return to traditional sportsbooks over time. See BetMGM blasts prediction markets.
DraftKings is taking the other route. It is building a parallel business with DraftKings Predictions, aiming first at states without legal online sports betting and positioning event contracts as a new audience and revenue stream. Chief Executive Jason Robins said the company would be selective on where and how it launches, leaning on existing media assets to limit incremental spend. He also noted ongoing talks with lawmakers and regulators to navigate sensitivities, particularly in sports-betting states. That strategy came alongside a high-profile media pact to become ESPN’s exclusive sportsbook and odds provider, which DraftKings expects to leverage for both acquisition and engagement. Details are in DraftKings earnings call focuses on prediction markets and how new partnership with ESPN can be leveraged.
Rush Street is more agnostic. The company frames prediction markets as a possible catalyst for expanded iGaming, its core focus. If event contracts erode state sports-betting tax bases, leadership argues, lawmakers could accelerate casino legalization online, which Rush Street views as a net positive. That positioning accompanied record revenue and margins across multiple jurisdictions, as noted in Rush Street leaders take victory lap in earnings call.
Regulatory pressure shapes strategy
Regulators are exerting more influence on product road maps, marketing intensity and cash allocation. BetMGM said it received letters from state overseers warning against engagement with prediction markets, with license risk explicitly raised. The company reiterated it would not jeopardize relationships with regulators, a throughline of BetMGM swears off prediction markets.
DraftKings, by contrast, has emphasized preemptive outreach. Robins told investors the company informed policymakers when it acquired a CFTC-licensed exchange, positioning the move within existing relationships. Even so, he acknowledged DraftKings will avoid certain states and products where sensitivity is high, underscoring the patchwork the sector must navigate. See DraftKings earnings call focuses on prediction markets.
Tax policy is another lever. Flutter’s leadership flagged an Illinois tax hike that hit results and could foreshadow similar moves elsewhere, telling analysts it expects to offset roughly half the impact in the near term. That fiscal squeeze informs where and how operators deploy promotions, pursue licenses and bid for lotteries. The tension surfaced on a call where executives clashed with analysts over disclosure on handle and hold, recapped in Flutter executives spar with analysts during earnings call.
Margin swings and “player-friendly” results
Volatile quarterly outcomes have become a fixture of sector commentary. Operators repeatedly cited “player-friendly” results that pinched revenue and obscured underlying growth. Flutter reported a fourth quarter buffeted by NFL results but said 2025 started well, while holding the line on long-term margin targets despite refusing granular guidance on hold. The company again downplayed handle as a KPI, arguing it can be distorted by promos and parlays. See Flutter executives spar with analysts during earnings call.
DraftKings cut its revenue outlook after $300 million of adverse outcomes but stressed the hit represented a small share of full-year revenue. Robins emphasized risk management discipline and liquidity, signaling readiness to slow spend in new categories if returns lag. That stance underpins DraftKings earnings call focuses on prediction markets.
Rush Street, meanwhile, said favorable sports results boosted revenue in the second quarter and touted stable marketing outlays and improved flow-through. The company’s commentary reinforced how outsized swings can amplify or mask execution. More in Rush Street leaders take victory lap in earnings call.
Expansion bets from Brazil to Alberta
Growth agendas are shifting alongside regulatory realities and competitive risks. Flutter highlighted Missouri launch costs and a fresh push in Brazil, calling the latter a legacy market where 200 initial bidders could consolidate rapidly. Its leaders expect a $100 million cash flow drag from Brazil entry, then a quicker shakeout as incumbents assert share. That view is captured in Flutter executives spar with analysts during earnings call.
BetMGM is targeting near-term go-lives in Missouri and sees Alberta iGaming as a mid-2026 opportunity, signaling confidence it can be “the biggest game in town.” The operator is also prioritizing jurisdictions with friendlier iGaming tax regimes as it lobbies for broader legalization, a throughline in BetMGM swears off prediction markets.
Rush Street’s expansion playbook remains iGaming-first, pointing to strong returns in new states and international markets. It is also leaning into live-dealer content and product merchandising to deepen engagement, while watching Colombia’s VAT closely for potential revenue friction. See Rush Street leaders take victory lap in earnings call.
That backdrop explains the stakes for Sportradar. The company sits at the nexus of data rights, streaming and integrity services that power both traditional sportsbooks and adjacent products. As operators diverge on prediction markets and regulators flex, counterparties will demand firmer assurances on licensing, KYC and content protection. Share repurchases and new leadership appointments can steady sentiment, but the decisive variable remains trust—of clients, regulators and investors—at a time when lines around who is a permissible customer are being redrawn in real time.
