Sportradar shrugs off state bans on prediction markets as revenue surges
Sportradar's US revenue jumped 47% in the third quarter, with chief executive Carsten Koerl saying state-level crackdowns on sports event contracts have not dented growth.
Sportradar has dismissed concerns over a growing number of US states pushing prediction market operators out of sports event contracts, pointing instead to a surge in American revenue driven by the sector.
Speaking on the company's Q3 2026 earnings call on Tuesday, chief executive Carsten Koerl said Sportradar remains in what he called a net-win position even as states including Michigan, Nevada and Utah have had some success in getting operators to withdraw sports contracts from their markets.
Koerl said Sportradar's operator contracts include clauses preventing the use of its content in any market where offering it becomes illegal, limiting the company's exposure to regulatory setbacks.
"At the moment, the markets which are excluded are not really the significant ones, so we see that the growth is continuing and accelerating," Koerl said. He added that the company continues to monitor the position but views the impact from excluded states as "not material" to its prediction markets business.
Sportradar reported company-wide revenue of €363m (roughly $406m) for the quarter, up 24% year on year, according to figures reported by SBC Americas. Profit rose 20% to €27m ($30.2m), while adjusted EBITDA climbed 21% to €102m ($114.2m).
US revenue outpaced the global figures by a wide margin, rising 47% to €98m ($109.7m) compared with the same quarter in 2025, while revenue from the rest of the world grew 17%. Analysts Jordan Bender and Isabelle Slavin noted that the overall revenue growth beat consensus expectations and that the US jump was the sharpest since 2024. Sportradar's share price rose from $12.84 to a high of $14.94 on Tuesday morning.
Koerl attributed the US surge to rising demand for Sportradar's data and technology products, including new business generated through prediction markets. "This is the first quarter we saw the benefits of the extension of our flywheel in prediction markets with exchanges," he said, adding that the company has established itself as "the leading sports data and technology solution partner for the sports prediction market ecosystem."
He said the push into prediction markets required only "minimal incremental investment" because Sportradar is deploying the same sports rights and technology it already uses in regulated sports betting. "We see prediction markets as a meaningful expansion of the global sports team," Koerl said, describing the sector as bringing new participants and demand for sports content alongside, rather than in place of, regulated betting.
Sportradar's prediction market partners include Kalshi, Polymarket, Novig and Robinhood. Koerl said Novig has become the company's third-leading exchange partner and that it recently signed its first broker agreement with Robinhood.
Executives said the larger opportunity may lie with market-making firms rather than exchanges. Koerl said Sportradar now works with around ten market makers under a model combining a minimum fee with a revenue-share component, and that the company is investing heavily in lowering the latency of its data feeds to meet demand from firms trading sports event contracts at speed.
Koerl also pointed to the NBA's recent move to name Kalshi and Polymarket as its preferred prediction market exchanges as a positive development for Sportradar's position in the sector.