Sportradar Registers First Positive Prediction Markets Impact in Q3 as U.S. Revenue Accelerates

Prediction markets delivered their first positive contribution to Sportradar results in Q3. Carsten Koerl, the CEO, said the category is now driving growth as the company builds relationships with exchanges, brokers and market makers. U.S. revenue accelerated to 47% in the quarter, up from approximately 10% in the first half, reaching €98 million.

Craig Felenstein, the CFO, called prediction markets "a meaningful new revenue stream, demonstrating our ability to monetize our core capabilities in adjacent markets," as reported by Gambling Insider. The company did not disclose the exact share of its U.S. revenue tied to the category. Marketing and media services revenue rose 15% in the period.

Partnerships Span Exchanges, Brokers and Market Makers

Sportradar holds agreements with three exchanges: Kalshi, Polymarket and Novig. It added a first broker deal with Robinhood and around 10 market-maker agreements. The Polymarket partnership now covers more than 20 sports leagues. Kalshi uses the firm's data, integrity, fan-engagement and customer-acquisition tools.

These deals follow delays noted in the second quarter that forced a cut to full-year guidance. Koerl highlighted demand from market makers for faster data, citing line calls delivered 0.2 seconds quicker in tennis. The company is building a dedicated prediction-market feed, including an NBA model for near real-time event forecasts. Executives stressed the business requires minimal new investment, relying on existing rights, technology and teams.

Outlook for 2027 Growth and Offsetting Headwinds

Felenstein said the company expects "some significant growth for prediction markets next year" but declined to quantify it, citing a mix of fixed fees and variable payments linked to market expansion. Earlier comments pointed to possible "tens of millions" of euros in 2026 revenue from the category and significantly more in 2027. The segment is replacing some anticipated growth from slowing traditional sports betting and helping counter uncertainty in Brazil.

Sportradar reported total Q3 revenue of €362.5 million, up 24% year over year. Adjusted EBITDA rose 21% to €102.2 million. The firm maintained its full-year guidance. While the new revenue stream leverages core infrastructure, the absence of breakout figures and reliance on variable components introduce forecasting challenges that operators and investors must track closely as these markets mature.