Under the recent non-exclusive agreement with Sportradar, Kalshi will gain access to Sportradar’s official data feeds covering Major League Baseball (MLB), the National Hockey League (NHL), Major League Soccer (MLS), and the Ultimate Fighting Championship (UFC). With such a big development in the field, industry experts had a few important things to say about the ramifications of such a partnership.
J.P. Morgan Analyst Weighs In on the Deal
Earlier this week, Sportradar and Kalshi announced their deal, which immediately sparked many questions in the industry, as the two companies didn’t disclose many terms of the deal. However, one aspect of the agreement that was disclosed allows Sportradar to sublicense its data directly to Kalshi’s clients, including sportsbooks and market makers.
According to J.P. Morgan analyst Samuel Nielsen, although the National Basketball Association (NBA) was not explicitly mentioned, its data could be incorporated into the deal when or if the league gives the green light. If Sportradar earns a 1% rake on Kalshi’s betting volume, the upside could reach the “tens of millions” projected by Koerl. Nielsen estimated that, over the long term, the arrangement could generate up to $100 million in revenue and $30 million in cash flow for Sportradar.
Nielsen also wanted to know how the agreement might affect Sportradar’s 2026 revenue outlook. Additionally, questions remain whether its economics are comparable to the company’s existing partnerships with online sports betting operators. The analyst also asked if agreements with brokers and market makers are expected to follow immediately now that the Kalshi deal has been finalized, or if additional details still need to be worked out.
Jefferies Equity Research Analyst Also Chimes In
Jefferies Equity Research analyst David Katz viewed the agreement as likely to provide only a modest contribution to Sportradar’s 2026 financial performance. He also noted that the partnership underscores the potential upside of offering similar services to market makers.
Katz outlined the range of Sportradar services available to Kalshi, including data, odds, visualization, integrity, and customer acquisition solutions. In his assessment, integrity and customer acquisition services are likely to be delivered under fixed-fee arrangements. Meanwhile, data, odds, and visualization services are expected to be variable in nature and linked to trading volumes.
Katz also argued that micro-betting could become a significant growth driver for prediction markets. At the same time, he cautioned that such a development could further blur the distinction between event contracts and traditional sports betting. This, in turn, could weaken the case that prediction market products are fundamentally different from gambling.
Despite these concerns, Katz characterized the arrangement as an attractive opportunity for the time being. However, he emphasized that the long-term outlook for prediction markets remains uncertain, particularly given the possibility of an unfavorable ruling from the US Supreme Court that could reshape the regulatory landscape for these products.
In other news regarding Sportradar, its deal with Kalshi actually comes just a week after the sports data company was hit with a lawsuit as its stocks dropped by a whopping 22%.