Sportradar expects prediction markets to generate tens of millions of euros in revenue this year and significantly more in 2027. The company has signed multi-year agreements with Kalshi and Polymarket, but negotiations with leagues and other partners took longer than anticipated, contributing to a lowered full-year outlook.
Second-quarter revenue rose 19% year-on-year to €377.8 million ($434.8 million), but Sportradar posted a net loss of €4 million against a €49 million profit in the prior-year period. Management revised its constant-currency revenue growth guidance from 23–25% to 19–21%, with full-year revenue now expected between €1.52 billion and €1.53 billion. CFO Craig Felenstein cited three factors: slower US online betting growth, tax and regulatory pressure in several jurisdictions, and delayed prediction market deal closures.
CEO Carsten Koerl said the company needed league approval before entering prediction markets. He noted minimal cannibalisation of traditional betting, with most prediction market revenue coming from states such as California, Texas and Florida where legal sports betting is restricted or unavailable.
Sportradar supplies exchanges with official sports data, live odds, streaming and integration services. The company is developing ultra-low-latency feeds for market makers, with a launch planned for the start of the NBA season. The agreements allow direct work with exchange partners including brokers and market makers, opening additional revenue streams.
Sportradar is also expanding its PlayRadar platform, which combines betting and casino. It will launch in the US states of Michigan and New Jersey, and in Alberta, Canada, during the third quarter.
