Sportradar says prediction markets will generate tens of millions in revenue this year after signing deals with Kalshi and Polymarket, even as full-year guidance was cut.
Sportradar used much of its second-quarter earnings call to talk up prediction markets, telling investors the emerging sector should bring in tens of millions of euros this year and considerably more in 2027.
Key Takeaways
- Revenue grew 19% year over year, but Sportradar cut its full-year guidance
- Delayed prediction market agreements with sports leagues were a key factor in that reduction
- Sportradar has signed multi-year data and infrastructure deals with both Kalshi and Polymarket
What Happened
CEO Carsten Koerl told analysts the prediction markets business should generate tens of millions of euros in revenue this year, with a significantly larger contribution expected in 2027. He said striking those deals took longer than anticipated, largely because Sportradar first needed sign-off from its sports league partners before expanding into the space, and said the company is still working through that process with a handful of leagues.
CFO Craig Felenstein pointed to that delay as one of the main reasons Sportradar lowered its 2026 outlook. The company now expects constant-currency revenue growth of 19% to 21%, down from its earlier guidance of 23% to 25%, alongside a wider-than-expected quarterly loss driven largely by foreign exchange effects on dollar-denominated sports rights.
Executives also pushed back on the idea that prediction markets are pulling meaningful volume away from traditional sportsbooks. Koerl said client data shows only limited crossover so far, and noted that most prediction market activity is concentrated in states like California, Texas, and Florida, where legal sports betting is limited or unavailable.
Building Out the Prediction Market Infrastructure
Beyond the earnings numbers, Sportradar laid out a broader plan to position itself as an infrastructure provider across the prediction market space. The company has already signed multi-year agreements with both Kalshi and Polymarket, supplying official sports data, live odds, streaming, integrity monitoring, and customer acquisition tools.
Those agreements also let Sportradar work directly with brokers and market makers connected to each exchange, adding a revenue stream beyond the exchanges themselves. Koerl said more commercial agreements are in the pipeline and expected in the coming months, along with a dedicated ultra-low-latency data feed for market makers, set to launch around the U.S. Open and the start of the NBA season.
PlayRadar and Other Notes
Sportradar also highlighted growth in PlayRadar, its combined sports betting and iGaming platform, which Koerl said drives significantly higher lifetime value from players who engage with both products compared to sports betting alone. The platform is already live in the U.K. and Ontario, with U.S. debuts planned for Michigan and New Jersey in the third quarter, alongside the newly opened Alberta market.
Management also briefly addressed short-seller allegations that overshadowed the company’s first-quarter call. Koerl said an internal audit committee review, supported by outside legal counsel, found the claims presented a misleading picture of the business, pointing to recent regulatory approvals and renewed rights deals, including Wimbledon, as signs of continued confidence in the company.
Sportradar’s shares fell nearly 19% in premarket trading following the results.