Muddy Waters And Callisto Research Shorted A Stock – It’s Down 14%

• Muddy Waters claimed that during the ICE 2026 conference in Barcelona in January, Sportradar sales staff did not reject requests to operate in countries where online gambling is banned.
• The Callisto report stated that more than 270 betting platforms may be operating illegally while using Sportradar data or services.
• BTIG lowered its target to $23 from $24, while Truist Financial cut its target to $26 from $32, according to The Fly.

Shares of Sportradar Group AG (SRAD) plunged 24% to their lowest level since October 2024 after Muddy Waters Research and Callisto Research disclosed short positions, alleging that the company has facilitated illegal gambling across global black and grey markets.

Muddy Waters Research said Sportradar Group AG did not support illegal gambling by accident, but as part of a deliberate strategy, estimating that such operators contribute roughly 20% to 40% of its total revenue.

The short seller claimed that during the ICE 2026 conference in Barcelona in January, Sportradar sales staff did not reject requests to operate in countries where online gambling is banned, instead offering tailored solutions and potential introductions to major illegal operators. The report also alleges the company has deep visibility into user data, enabling it to track where bets originate.

According to the report, investigators said they identified nearly 50 clients linked to black and grey markets, including groups with alleged ties to organized crime.

Callisto Shares Findings With Regulators In US And Europe

Callisto argued that Sportradar’s image as a leader in sports integrity does not align with its alleged exposure to illegal gambling markets. The report claimed more than 270 betting platforms, over a third of those that Sportradar says it serves, may be operating illegally while using its data or services.

Some of these operators reportedly lack licenses altogether. Callisto added that it has shared findings with regulators in the U.S. and Europe, with several reviews already underway. The investigators warned that the company may face a difficult choice between cutting ties with such operators or risking regulatory action that could impact its licenses and future growth.

Brokerages Slash Price Target Ahead Of Q1 Results

Meanwhile, brokerages trimmed their price targets on Sportradar Group but kept a positive view on the stock.

BTIG lowered its target to $23 from $24, while Truist Financial cut its target to $26 from $32. Both firms maintained a “Buy” rating ahead of first-quarter (Q1) results, according to The Fly.

BTIG said it is adjusting estimates across the gaming sector, noting potential pressure from higher state launch costs and a back-end loaded year.

Truist added that while the broader gaming sector remains out of favor, regional casinos may perform better. However, the firm highlighted persistent challenges in Las Vegas and the digital betting segment, with growth slowing and concerns around online sports betting trends.

The company is scheduled to report its Q1 results on May 6. According to Fiscal.ai, Sportradar is expected to post revenue of $361 million, up from $311 million last year. Earnings is expected to come in at $0.04 per share.

Retail sentiment for SRAD on Stocktwits remained ‘bullish’ over the past 24 hours, amid ‘high’ message volumes.

The stock has slumped 44% so far in 2026.

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