Sportradar Group AG is facing a federal securities class action lawsuit after investors accused the sports data company of concealing alleged relationships with illegal gambling operators while presenting itself as a compliance-focused business to shareholders and regulators.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, claims Sportradar and several senior executives misled investors about the company’s operations and internal compliance procedures. Plaintiffs allege the company benefited financially from business tied to black-market and unlicensed betting platforms while publicly emphasizing ethical standards and regulatory oversight.

The case, captioned Smale v. Sportradar Group AG, No. 26-cv-4112, seeks damages under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Investors have until July 17, 2026, to request appointment as lead plaintiff in the matter, according to Business Wire.

Research Reports Trigger Sharp Share Decline

The lawsuit centers on events that unfolded on April 22, 2026, when investigative firms Muddy Waters Research and Callisto Research published separate reports examining Sportradar’s business relationships and revenue sources.

According to the complaint, the reports alleged that the company worked extensively with illegal gambling operators across multiple international markets. Plaintiffs claim those findings contradicted Sportradar’s repeated public statements regarding licensing verification and compliance controls.

Muddy Waters published a report titled “Sportradar AG: Putting the BET into Aiding and Abetting. The Leader of Sports Integrity Powers the World’s Illegal Online Sports Books.” The report alleged that Sportradar’s operations “depends on illegal operators to survive” and claimed the company “has actively aided and abetted illegal gambling across the world’s black and grey markets — not as an accident or an oversight, but as a business strategy.”

The report estimated that between 20% and 40% of Sportradar’s total revenue may have come from illegal operators. Muddy Waters also stated that its research, along with interviews conducted with former employees, identified nearly 50 clients and collaborators connected to illegal gambling markets.

Callisto Research released a separate report the same day titled “Sportradar Group AG: the ‘integrity’ giant threatening its own existence with ties to illegal gambling, sanctioned parties and criminals.” According to the lawsuit, Callisto reviewed hundreds of gambling platforms and found evidence suggesting that more than 270 sites using Sportradar products or claiming to use them were operating illegally in regulated or prohibited markets.

The research firm also stated that exposure to unlicensed operators may have accounted for roughly 30% to 40% of company revenue. In addition, Callisto reported that gambling regulators in three U.S. jurisdictions had already initiated reviews involving Sportradar.

Following publication of the reports, Sportradar’s Class A ordinary shares fell sharply. The stock dropped from $16.84 per share on April 21, 2026, to $13.04 on April 22, representing a decline of approximately 22.6%.

Investors Challenge Public Statements on Compliance

The complaint argues that Sportradar reassured investors for years that it maintained strict oversight regarding who could access its products and services.

Sportradar, founded in 2001, supplies sports data, betting technology, integrity monitoring, and analytics services to betting operators, sports leagues, teams, and media organizations. The company maintains partnerships with major organizations including the NBA, MLB, NHL, PGA Tour, and FIFA.

According to the lawsuit, Sportradar repeatedly emphasized that compliance and integrity formed a central part of its operations. Investors cited statements in which the company said it was “crucial” to “conduct [its] business in a manner that upholds [its] high standards of ethics and integrity.”

Plaintiffs also pointed to comments made during a November 2025 earnings call, when CEO Carsten Koerl discussed the company’s review process for customers. During that call, Koerl stated the company’s “four-level process” ensured that it “only work[s] with licensed operators.”

The lawsuit contends those assurances failed to reflect the company’s actual practices. Investors allege Sportradar intentionally maintained relationships with black-market gambling platforms as part of a broader growth strategy in regions including Asia and Russia.

Court filings describe the company’s alleged approach as “see nothing, know nothing” regarding illegal operators. Plaintiffs claim the reports published in April 2026 revealed conduct that had previously been hidden from shareholders.

Company Declines Comment as Case Moves Forward

The complaint further alleges that Sportradar’s statements regarding regulatory compliance exposed investors to financial losses once the reports became public and the company’s stock price declined.

Sportradar has not publicly addressed the specific allegations contained in the lawsuit. According to one report, the company declined to comment after the case was filed in federal court.

The legal action seeks a jury trial and accuses Sportradar of violating federal securities laws and SEC rules tied to investor disclosures.

The lawsuit also draws attention to Sportradar’s public role in monitoring betting integrity. During an April 2025 appearance on CNBC’s “Mad Money,” host Jim Cramer referred to Sportradar as “the SEC … for gambling.” Koerl responded by describing the company as “the SEC or the FBI” for the sports betting industry.

Investors now argue that the reports released in April 2026 raised questions about whether the company’s internal controls and business relationships aligned with those public descriptions.