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Sportradar Pitches Data Role in Prediction-Market Growth

Sportradar targets prediction markets by providing data infrastructure rather than operating consumer exchanges.

ReadWrite2 min

1Strategic Market Positioning

Sportradar is positioning itself as a critical infrastructure provider for the emerging prediction-market sector. By focusing on data distribution rather than operating a consumer-facing exchange, the company aims to support various platforms. This strategy leverages their existing sports-betting technology, official data rights, and industry relationships to facilitate market growth.

2Rapid Sector Expansion

Industry reports indicate significant growth, with U.S. prediction-market contract volume projected to reach 49 billion by July 2026. This represents a massive increase from the 0.9 billion recorded in August 2025. Sports-related activity is a primary driver, accounting for 82% of Kalshi’s U.S. prediction volume over the past year.

3Regulatory and Jurisdictional Advantages

Platforms like Kalshi and Polymarket operate under CFTC regulation rather than state gaming oversight. This distinction allows these exchanges to enter jurisdictions where traditional sports betting remains unavailable. Sportradar views this regulatory framework as a key opportunity to reach new customer segments and expand their total addressable market beyond traditional sportsbooks.

4Data as a Core Utility

Prediction markets require official results for contract settlement, creating a high demand for reliable data. Sportradar intends to provide real-time information, live odds, and integrity tools to support this process. Their role involves supplying data to exchanges, market makers, and brokers to ensure liquidity and accurate pricing for all traded contracts.

5Platform Agnostic Business Model

CEO Carsten Koerl emphasizes that Sportradar will not rely on the success of a single exchange. Instead, they are adopting a platform-agnostic approach, selling services across the entire ecosystem. This model allows them to work with multiple operators, including established sportsbooks like FanDuel and DraftKings, which are also developing their own prediction-market products.

6Market Engagement Metrics

Data indicates that sports prediction-market handle reached 30% of the combined U.S. prediction and online sports-betting handle in June 2026. This is a substantial rise from the 1% to 2% share observed just one year earlier. Additionally, app downloads for these platforms surpassed 6 million, reflecting growing consumer interest in real-world outcome contracts.

7Competitive Landscape Shifts

The entry of major sportsbook operators like DraftKings into the prediction-market space signals a broader commercial shift. These companies are now competing alongside dedicated prediction platforms. Sportradar aims to remain neutral by providing the underlying infrastructure that all these entities require to function, regardless of their specific consumer-facing brand or strategy.

8Future Growth Implications

While valuation targets for exchanges have reached as high as 40 billion, Sportradar has not provided specific financial forecasts for this business segment. The company remains committed to working only with authorized, licensed operators. Their focus remains on scaling infrastructure to capture value from the increasing integration of sports data into financial markets.

Original article: ReadWrite — Sportradar Pitches Data Role in Prediction-Market Growth