Sportradar Q2 2026: Prediction Markets Expected to Generate Tens of Millions in Revenue This Year
TL;DR — Sportradar expects prediction markets to generate tens of millions of euros in 2026 revenue and significantly more in 2027. Delays in league approvals led to cutting full-year revenue growth guidance to 19-21%. Q2 revenue rose 19% to €377.8 million with limited observed cannibalization of traditional sportsbooks.
Sportradar executives used the second-quarter earnings call to outline expectations for prediction markets as a significant revenue contributor. The company projects “tens of millions” of euros from the sector this year, with significantly higher revenue in 2027. Delayed agreements with leagues contributed to a reduction in full-year guidance.
The sports technology provider has signed multi-year deals with Kalshi and Polymarket, supplying official data, live odds, streaming, integrity services, fan engagement tools, and customer acquisition products. Negotiations took longer than expected due to the need for league approvals. As reported by Gambling Insider, this timing issue was a key factor in the revised outlook.
Prediction Market Revenue and Client Insights
CEO Carsten Koerl said the sector should generate “tens of millions” of euros this year. He stated: “It was, for us in 2026, a lot of work to negotiate the deals, but also to convince our league partners that they’re going into this. We are still in progress here with a couple of them. We are very optimistic that we found the right framework.”
Koerl noted that the majority of prediction market revenue comes from states like California, Texas and Florida, where there is limited or no legal sports betting. He added that operators have reported little evidence of customers shifting from conventional sports betting, stating: “According to our clients, there is very limited cannibalization.”
CFO Craig Felenstein cited the delayed agreements as one of the primary reasons for lowering 2026 guidance. Sportradar is developing ultra-low-latency data feeds for market makers, with rollout planned alongside the U.S. Open and NBA season start. Each agreement is structured differently, but Felenstein said they do not expect lower economics than comparable sportsbook partnerships.
Revised Guidance Reflects Near-Term Headwinds
Sportradar reported revenue of €377.8 million, up 19% year over year. Betting Technology & Solutions reached €315.4 million, up 21%. The company posted a net loss of €4 million versus a €49 million profit a year earlier. Adjusted EBITDA was €76.3 million, with a 20.2% margin. First-half free cash flow hit €103 million, up 23%.
The firm now expects constant-currency revenue growth of 19% to 21%, forecasting between €1.518 billion and €1.533 billion. Adjusted EBITDA guidance is €360 million to €368 million, down from prior projections of 23% to 25% growth. Felenstein attributed the change to U.S. sportsbook market moderation, tax and regulatory headwinds, and the later completion of prediction market deals.
The lowered outlook and execution delays represent a clear near-term limitation in an otherwise promising area. This represents an inflection point where league frameworks and infrastructure readiness will determine the pace of adoption. Operators and investors should track how quickly additional agreements materialize, as the 2027 outlook suggests prediction markets may complement rather than displace existing products in the broader sports betting ecosystem.
Reporting: Gambling Insider
Prediction markets are becoming a real revenue stream, not a distraction — and Sportradar says cannibalization of sportsbooks is minimal.
We've watched prediction markets evolve from regulatory curiosity to operational reality. Sportradar's data partnerships with Kalshi and Polymarket — and their assertion that most volume comes from non-betting states — validates what SCCG has been telling clients: this is incremental growth, not a zero-sum threat to traditional sportsbooks.
- Sportradar projects tens of millions in 2026 prediction market revenue, ramping significantly in 2027
- Majority of prediction market activity in non-betting states like California, Texas, Florida
- Minimal cannibalization observed; ultra-low-latency feeds rolling out for NBA and U.S. Open
SCCG angle: SCCG has direct relationships with major prediction market platforms and sports data providers across all regulated markets. We help operators evaluate these deals, structure partnerships, and connect the right technology partners to capitalize on incremental volume without risking core sportsbook revenue.