Codere Online is currently monitoring the prediction markets sector, according to CEO Aviv Sher. During an interview with iGB, Sher previously indicated in May that the company might venture into this area, viewing it as a promising extension of its existing offerings.
When asked for updates on this potential expansion, Sher confirmed that entering the prediction market space remains a viable option for Codere Online, although no concrete steps have been taken yet. He believes this move could be especially beneficial in specific geographic regions.
"I think it complements some of our strategy in Mexico towards, let’s say, the southern part of the US, the Spanish-speaking people," Sher stated. He hinted that this addition might be on the horizon, possibly as soon as next year, while emphasizing that the company continues to keep a close watch on market developments.
Codere Online has been experiencing a robust period, as evidenced by its strong performance in Q2 of this year. The company reported a record NGR of €69.4 million ($77.6 million) and €5.8 million in adjusted EBITDA, prompting an increase in its fiscal 2026 guidance. Sher now anticipates reaching an NGR between €255 million and €265 million by year-end, alongside adjusted EBITDA of €20 million to €25 million. "We are pretty sure that we will meet the new guidance," he remarked.
The company is also developing a new five-year plan aimed at substantially boosting its current revenues. Sher highlighted their emphasis on investment over immediate profitability, stating, "We could have generated more EBITDA, but we decided to invest extra money into the current markets."
With Mexico and Spain as its two most lucrative markets, Codere Online's focus remains on securing regulatory stability to maintain its growth trajectory. In Q2 alone, the combined NGR from these markets reached €63.7 million, with both countries showing year-on-year growth exceeding 20%. However, Sher noted that Mexico's increased tax rate of 50% of GGR, set to take effect in 2026, and new regulations in Spain, including joint deposit limits planned for 2027, pose challenges to their operations.
"I think the regulator in Spain is pushing us more and more," Sher explained. He expressed concern that while the regulations aim to reduce GGR in Spain, Codere Online's ambition is to grow within this framework, generating higher tax revenues for the government.
Sher expressed frustration over what he perceives as a failure to adequately enforce regulations against unlicensed operators in Spain. He argued that while additional restrictions are placed on licensed businesses, the black market continues to flourish, negatively impacting both legitimate operators and government tax revenues. "This lack of enforcement is not just working against us; it’s working against the government," he said.
To boost its presence in Mexico, Codere Online recently secured a multi-year partnership with the NFL. This agreement aims to enhance the company’s promotional opportunities during NFL games, an advantage that competitors may not enjoy. Sher noted that American football has a strong following in Mexico, making the NFL a valuable brand to ally with.
"NFL in Mexico is quite a big thing, so we have good exposure. Of course, [the NFL is] an amazing brand to connect to our brand. We are very excited for this partnership," he remarked, adding that Codere Online adopts a measured approach to sponsorship spending, focused on evaluating potential returns before making commitments.
"We try to have an ROI on that, which is not common in the industry. I think we will see the ROI after a few years, and we’re very excited. It’s a big partner for us in Mexico right now," Sher concluded.
