Sportradar Faces U.S. Lawsuit as Investor Accuses Company of Concealing Ties to Illegal Gambling Operators

A U.S. shareholder in Sportradar has filed a proposed class-action lawsuit against the company, alleging that the sports betting data provider misled investors about its customer vetting procedures and possible links to illegal gambling operators.

The lawsuit was filed by investor James Anthony Smale on May 18 in federal court in Manhattan. Sportradar Chief Executive Carsten Koerl and Chief Financial Officer Craig Felenstein were also named as defendants.

The complaint cites reports by research firms Muddy Waters Research and Callisto Research. The reports alleged that Sportradar worked with operators that accepted bets in countries where online betting is banned or where they lacked the required local licenses.

Smale alleges that the company and its executives may have violated U.S. securities laws by withholding material information about alleged relationships with illegal gambling operators.

The complaint says Sportradar had assured investors that it complied with regulatory requirements and worked only with licensed operators. In November 2025, Koerl referred to a “four-level process” for vetting the company’s customers.

Sportradar shares fell 22.6% after the reports were published, dropping from $16.84 to $13.04. Sportradar has denied the allegations.

Smale is seeking class-action status on behalf of investors who bought Sportradar shares between November 7, 2024, and April 21, 2026, as well as damages and legal expenses from the defendants.

Smale himself bought 299 Sportradar shares between May 2025 and February 2026 for a total of about $7,000.