Data supply to illegal bookmakers under the spotlight as Sportradar denies short-sellers’ accusations

The business practices of data companies that provide sports and racing information to the world’s bookmakers have come under the spotlight after global sports technology giant Sportradar was forced to deny it was supplying data to illegal bookmakers.

Swiss-based Sporttradar saw its share price slashed by up to 30 per cent late last week after Callisto Research claimed that up to 270 unlicensed and unregulated betting companies were the recipients of Sportradar’s data.

It is an accusation that Sportsradar has strenuously denied, issuing a statement in response to the reports by Callisto, and another group called Muddy Waters, who both held short positions on the company’s NASDAQ-listed stocks.

Known as an integrity partner of FIFA, the NBA and Major League Baseball, Sportradar also lists the Australian Football League and Football Australia as clients.

Callisto’s report suggested up to 33 per cent of Sportradar’s global revenue came from deals with unlicensed operators. In response, Sportradar sought to correct what it said were “factual inaccuracies”.

“These reports demonstrate a fundamental misunderstanding of our business and the industry and were authored by short sellers trying to erode shareholder value and profit from stock disruption,” it said.

“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.

“We conduct our business with the highest ethical standards consistent with Sportradar’s policies and applicable laws and regulations.”

Nevertheless, the reports made investors nervous and the market capitalisation of the company fell to under US$4 billion by the end of last week.

Sportradar has now brought forward its first-quarter 2026 earnings call to April 28, as it looks to address investor concerns.

The allegations have hit a nerve across the sports and racing data landscape, with the global boom in unregulated or illegal bookmakers facilitated by data provision and trading solutions.

A report conducted by H2 Gambling Capital on behalf of Responsible Wagering Australia recommended that there be a prohibition of the supply of official sports and racing data by Australian companies to betting operators not licensed in Australia.

That would impact deals such as BetMakers’ current agreement with Stake.com, which involves the Australian listed company delivering a global horse racing solution.

The Straight is not suggesting that BetMakers is not operating within the law, only that it has an agreement with a company which is not licensed to operate in Australia. Legally, Stake can not offer betting to Australian-based clients and The Straight is not suggesting it does.

A study by the International Federation of Horseracing Authorities released in March found four of the top five crypto gambling operators, which are banned in Australia, operate on Australian and New Zealand racing, thanks to supply of market, content and technology solutions.

That content appears on over 50 of these grey/black market-operated sites, which are licensed in places like Curacao, Anjouan (Comoros), Estonia, Costa Rica, British Virgin Islands and St Vincent.

The H2 report established that the illegal offshore gambling market has reached $3.9 billion a year in Australia and is projected to surpass $5 billion by 2029. The market has more than doubled since 2019.