Sportradar Most AI-Advanced Gaming Company, Says Analyst
Posted on: June 26, 2025, 03:49h.
Last updated on: June 26, 2025, 03:49h.
- Artificial intelligence (AI) adoption still in early innings in gaming industry
- Sportradar in AI pole position in broader travel and leisure space
When it comes to adoption of artificial intelligence (AI), Sportradar (NASDAQ: SRAD) is the most advanced not only in the gaming industry, but the broader gaming, lodging, and leisure arena, too.
That’s the take of Jefferies analyst David Katz who in a new report to clients highlighted the sports betting data provider as the most advanced AI adopter in the gaming sub-group and the overall leader in the leisure space.
SRAD is the most advanced of the group, and they are prototyping an assistant for potential sports bettors to build customized bets through both type and voice commands,” observes the analyst. “They are also using it to automate real-time data collection across thousands of sports matches worldwide. SRAD has said that AI is stifling its need for headcount growth, so not layoffs, but it is reducing the need to hire more staff.”
Sportradar is already displaying a restrained approach when it comes to capital spending and that prudence could be among the reasons why the shares are up 56.63% year-to-date, easily making it one of the best-performing gaming equities.
AI Inroads Make Sense for Sportradar
Sportradar and rival Genius Sports (NYSE: GENI), which has AI credibility in its own right, make for ideal AI adopters in the gaming realm because they’re already among the most technology-centric companies in the space.
Collecting the data that’s sold to sportsbook operators is a tech-intensive pursuit and one with emerging demands due to the rise of in-game betting. That makes AI a necessity for companies such as Genius and Sportradar. The latter has previously leveraged AI as part of its longstanding partnership with the NBA, using the technology and machine learning models to enhance bettor and fan engagement.
Importantly, Sportradar isn’t showing signs of being a profligate AI spender. That’s something investors demand because AI is expensive at the corporate, prompting shareholders to demand spending that bears fruit, not expenditures for the sake of saying there’s AI involvement.
“A red flag would be a company trying to spend a ton of money on purely generative capabilities, rather than the efficiency enhancements,” adds Katz. “We are not yet sold on the efficacy of generative AI (hallucinations), but the efficiency improvements (doing what normal computers have been doing for years, but at faster speeds/great scale) clearly has merit.”
AI/Gaming Relationship in Early Stages
While the number of companies outside of the communication services and technology sectors referencing AI on earnings calls is increasing, those mentions aren’t yet broadly permeating the gaming industry. Katz points out DraftKings (NASDAQ: DKNG) recently mentioned AI on an earnings call, but that’s about it for AI/gaming talk.
DraftKings makes for a logical AI adopter due to its emergence as an in-game betting leader and because the technology could help the operator realize efficiencies in trading operations, which are currently human-intensive.
Katz said other AI leaders in the broader leisure industry include Hilton and Marriott as well as cruise operators Carnival and Royal Caribbean.
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