Sportradar saw its stock rise nearly 10% to $15.26 at close on Monday after it announced its first entrance into prediction markets with a Kalshi partnership.
The stock has been down since late April after short sellers suggested the company was operating in illegal markets, causing the stock to fall more than 20%. Sportradar denied the allegations and CEO Carsten Koerl bought $10 million in shares after the stock hit a 52 week low on its Q1 earnings announcement.
Monday’s deal makes Sportradar an official data and solutions provider for Kalshi. The agreement gives the prediction market access to official league data, live odds feeds, fan engagement products, customer acquisition services and integrity monitoring tools.
In other words, Kalshi will receive many of the same data, pricing and integrity services that Sportradar provides to traditional sportsbook operators with state licenses.
“Prediction markets represent a compelling growth engine for the global sports ecosystem,” Koerl said in a statement. “Our partnership with Kalshi marks a critical first step.”
Sportradar expands beyond sportsbooks
Under the agreement, Sportradar will provide Kalshi with official data from sports properties including MLB, NHL, MLS and UFC. The company will also supply live odds and integrity services designed to monitor suspicious activity and protect market participants.
Sportradar said the agreement further opens opportunities to work directly with brokers and market makers operating within the Kalshi ecosystem, allowing the supplier to distribute data and other products across multiple participants in the prediction market value chain.
The company launched a dedicated Prediction Services offering as part of the agreement.
Earlier this year, Sportradar executives identified prediction markets as a potential growth opportunity for the company, telling investors the emerging sector could generate tens of millions of dollars in incremental revenue over time.
Prediction markets turn to supplier opportunity
Several sportsbook operators have launched prediction market products through third-party exchanges over the past year, while DraftKings has begun pursuing its own proprietary event contracts through Railbird Exchange. BetRivers parent Rush Street Interactive is also seeking regulatory approval for its own designated contract market.
Those developments have created a new commercial opportunity for suppliers that already provide data, odds and integrity services to the sports betting industry.
Sportradar said it expects prediction markets to become an increasingly important segment for its business as the sector matures. The company also noted it plans to provide products and services to other licensed prediction market operators that comply with applicable legal and regulatory requirements.
“The breadth and depth of this partnership is what makes it a big deal,” Kalshi co-founder and CEO Tarek Mansour said in a statement. “We’re using official league data to ensure quicker trade settlements, creating an overall better customer experience.”
