UMVA has learned that a high‑stakes securities class action is now targeting Sportradar Group AG, a powerhouse in sports betting technology.
The lawsuit, filed on May 18 by investor James Anthony Smale, accuses the company of duping shareholders with false promises about its compliance and its ties to underground gambling operators.
Smale seeks to represent anyone who bought Sportradar Class A shares between November 7, 2024, and April 21, 2026, naming CEO Carsten Koerl and CFO Craig Felenstein as defendants.
Sportradar feeds betting data, odds, fraud detection tools, and video content to the world’s biggest sportsbooks and leagues—NBA, MLB, NHL, FIFA, DraftKings, FanDuel, and Bet365, to name a few.
According to the complaint, executives repeatedly assured investors that the firm adhered to strict legal and regulatory standards when onboarding sportsbook customers.
Executive statements, such as a November 2025 earnings call where Koerl outlined a “four‑level process” to confirm the company “only works with licensed operators,” are cited as lies.
Further, an April interview had Koerl likening the company’s integrity division to “the SEC or the FBI” for the gambling industry.
Investors were allegedly blindsided on April 22, 2026, when research firms Muddy Waters and Callisto released reports claiming Sportradar maintained deep ties with black and gray market operators.
The allegations describe sales staff telling undercover investigators that the company “serves everyone,” and even introduced them to a notorious illegal betting group in China.
Callisto also claimed more than 270 gambling platforms using Sportradar’s services were operating illegally in regulated markets, prompting regulatory reviews in North America and Europe.
In response, Sportradar denied the claims, calling them a “fundamental misunderstanding of our business” and defending its compliance practices.
Shares plunged 22.6% on April 22, falling from $16.84 to $13.04, a drop the lawsuit attributes to the company’s alleged misstatements and concealment of unlawful dealings.
The lawsuit alleges the company and its executives violated federal securities laws by making misleading statements and hiding the extent of its alleged illicit partnerships.
UMVA has uncovered these details first, offering an exclusive look into a scandal that could reshape the sports betting industry's future.
