On April 22, shares of Swiss B2B data provider and integrity services firm Sportradar (NASDAQ: SRAD) fell by 22.6%, dropping from $16.70 to $13.04. This decline followed the simultaneous release of reports by analytics firms Muddy Waters Research and Callisto Research, which accused Sportradar of deriving 20-40% of its revenue from illegal bookmakers.
Both firms have taken short positions on the company's stock. Callisto has submitted their report's findings to regulators, prompting investigations by three American regulatory bodies.
According to Muddy Waters, at ICE Barcelona 2026, representatives of the firm posed as a startup looking to launch a bookmaker in China, Indonesia, Thailand, and Vietnam, despite the gambling bans in these countries. One manager allegedly suggested organizing a meeting with the Chinese Yabo Group, which Muddy Waters links to human trafficking and slavery in call centers.
Among the 50 clients of Sportradar that Muddy Waters claims are associated with illegal markets are 1xBet, Fonbet, the Cambodian 8xBet, which Muddy Waters connects to modern slavery, as well as OKVIP and SBOBet (Southeast Asia). Sportradar has rejected these allegations, stating that there are factual inaccuracies in the reports and that the authors aim to profit from the stock's decline. They emphasized that they only work with licensed operators.