Codere Online is actively observing the prediction markets sector, according to CEO Aviv Sher. In May, Sher hinted at this possibility, describing prediction markets as a potential "really nice extension" to the company's current offerings.
In a recent update, Sher classified this move into prediction markets as a "realistic option" for Codere Online, while indicating that no definitive plans have been set in motion yet. He believes that such an addition could benefit the company significantly in various markets.
"It complements some of our strategy in Mexico towards, let’s say, the southern part of the US, the Spanish-speaking people," he noted. Sher mentioned that the company might explore this avenue next year but emphasized that they are still in the monitoring phase, signaling optimism about prediction markets as a valuable addition to their portfolio.
Codere Online has been experiencing a strong performance lately, raising its fiscal year 2026 guidance after a successful second quarter. The company reported record net gaming revenue (NGR) of €69.4 million ($77.6 million) and an adjusted EBITDA of €5.8 million for Q2. With this momentum, Codere Online expects to achieve an NGR between €255 million and €265 million by year-end, along with an adjusted EBITDA of €20 million to €25 million.
Sher expressed confidence in reaching these new targets, stating, "We are pretty sure that we will meet the new guidance." The company is also working on a new five-year plan, which is expected to set ambitious revenue targets for its next growth phase. "Our goal is to substantially increase the revenues that we have today, and continue to grow there," Sher said, highlighting a focus on long-term investment rather than immediate profitability. "We could have generated more EBITDA, but we decided to invest extra money into the current markets," he added.
Regulatory stability in Codere Online's core markets, Mexico and Spain, is a significant concern for the company. These two countries generated a combined NGR of €63.7 million in Q2, with each market seeing over 20% growth year-on-year. However, Sher is apprehensive about upcoming changes in regulations, particularly as Mexico is set to increase its tax rate to 50% of gross gaming revenue (GGR) starting in 2026. In Spain, the introduction of joint deposit limits is expected in 2027, with other regulatory changes likely on the horizon.
"I think the regulator in Spain is pushing us more and more," Sher explained. He believes that while the regulators aim to lower GGR in Spain, Codere Online's goal is to grow and increase tax contributions to the country, indicating a conflicting direction.
Sher has expressed frustration over what he sees as inadequate enforcement against unlicensed operators in the Spanish market. He argues that while licensed companies face increasing restrictions, the black market continues to thrive, ultimately undermining both operators and government tax revenues. "This lack of enforcement is not just working against us; it’s working against the government," he stated, suggesting that licensed operators are unfairly burdened while unregulated brands benefit.
In addition to monitoring prediction markets, Codere Online is enhancing its Mexican presence through strategic partnerships, including a recent multi-year agreement with the NFL. Sher noted that this partnership will provide unique betting promotion opportunities during NFL games, which competitors will not access, leveraging the NFL's significant appeal in Mexico.
"NFL in Mexico is quite a big thing, so we have good exposure," he remarked. "Of course, [the NFL is] an amazing brand to connect to our brand. We are very excited for this partnership."
Sher mentioned that the company takes a careful approach to sponsorship investments, analyzing potential returns before finalizing agreements. "We try to have an ROI on that, which is not common in the industry," he pointed out, adding that he expects to see the returns from this partnership in the coming years. "It’s a big partner for us in Mexico right now."
