Look, I’ll admit it… my wife is crushing me in our March Madness bracket pool. She must have picked teams based on their closeness to a TJ Maxx, ignored all my “expert” analysis, and is somehow leading the pack while I’m contemplating burning my bracket in the backyard. 

Anyways, if you haven’t noticed, sports betting is blowing up. More Americans than ever are throwing money at their favorite teams, hoping they don’t pull a Dallas Cowboys in the playoffs. And while my buddy Dave is still trying to win back his rent money from the Super Bowl, one company has been sucking in cash with none of the risk… Sportradar.

Sportradar plays a cool part in the whole sports betting business. Instead of being the slimy sportsbook taking your bets… it’s the behind-the-scenes tech wizard making it all possible. Think of it as the guy selling pickaxes during the Gold Rush, except instead of gold, it’s live game data, real-time odds, and fancy audiovisual overlays keeping degenerates constantly staring at the money lines.

Sportradar just posted a 26% revenue jump and a 36% spike in cash flow for 2024. That’s some serious growth, considering they aren’t even the ones taking bets… just providing the data that fuels them. The stock popped 10% this week as investors clearly took notice. And given that sports betting revenue in the U.S. hit $14 billion last year, up 28%, it’s safe to say Sportradar is sitting in the perfect spot.

Oh and you better believe there’s more… Sportradar also pulled off a chess-level acquisition move that had Wall Street nodding in approval. The company acquired IMG Arena from Endeavor, a deal that gave Sportradar the rights to a chef’s kiss portfolio of top-tier sports, including three Grand Slam tennis tournaments, PGA Tour events, UFC fights, and Major League Soccer. Even better? Sportradar somehow convinced Endeavor to pay them $225 million as part of the transaction. 

This move is big because it strengthens Sportradar’s stranglehold on the industry. They already partner with 400+ sports leagues, 800+ betting operators, and 900+ media companies, covering 1 million matches across 70 different sports. With IMG Arena under their belt, they now have even more exclusive rights, ensuring sportsbooks and media companies need them like New York Jets fans need therapy 2 weeks into the season.

Investors are paying attention. Citigroup just bumped Sportradar’s price target from $25 to $27, implying a 20% upside from current levels. Management is already guiding for 15% revenue growth in 2025, without even factoring in the IMG Arena acquisition. 

Remember, sports betting isn’t slowing down, and neither is Sportradar. They aren’t taking on the risk of payouts, bad beats, or wild parlays… they’re just supplying the data and letting the sportsbooks (and your wallet) handle the volatility. If you’re betting on the long-term growth of sports betting, Sportradar might just be the safest play on the board.

Stocks.News has positions in Sportradar, Endeavor, and Citigroup mentioned in article.