Codere Online is closely monitoring developments in the prediction markets sector, according to CEO Aviv Sher. He previously hinted at this potential expansion in May, describing prediction markets as a “really nice extension” to Codere's existing offerings. In a recent update, Sher indicated that entering this market remains a “realistic option” for the company, though it has yet to make a definitive move into this space. He noted that it could be particularly beneficial in certain geographic areas.
"I think it complements some of our strategy in Mexico towards, let’s say, the southern part of the US, the Spanish-speaking people," he explained.
Sher suggested that a foray into prediction markets could materialize as early as next year, affirming that the company is attentively observing the market dynamics.
Codere Online has been experiencing a robust financial period, prompting the company to raise its fiscal year 2026 guidance following a strong second quarter. The company reported record net gaming revenue (NGR) of €69.4 million ($77.6 million) and €5.8 million in adjusted EBITDA during this quarter. With this positive momentum, Codere now anticipates NGR for the year will reach between €255 million and €265 million, alongside expected adjusted EBITDA of €20 million to €25 million. Sher expressed confidence, stating, "We are pretty sure that we will meet the new guidance."
The company is currently preparing a new five-year plan that includes ambitious targets aimed at significantly increasing revenue. Sher emphasized a focus on investment over immediate profitability, stating, "We could have generated more EBITDA, but we decided to invest extra money into the current markets."
Codere Online’s primary markets are Mexico and Spain, where, in the second quarter, the two territories combined yielded €63.7 million in NGR, both showing over 20% year-on-year growth. With these regions contributing more than 90% of Codere's Q2 NGR, Sher is advocating for greater regulatory stability to support ongoing growth.
Notably, Mexico will impose a 50% tax rate on gross gaming revenue (GGR) starting January 2026, while Spain plans to introduce joint deposit limits in 2027 along with additional regulatory measures.
Sher expressed concern over increasing regulatory hurdles in Spain, noting, "I think the regulator in Spain is pushing us more and more. I already in the past said that its goal is to lower the GGR in the country, while our goal is to be able to grow with the GGR and pay more taxes to the country. So we’re kind of in an opposite direction on that."
He is frustrated by what he sees as inadequate enforcement against unlicensed operators in Spain, claiming that licensed businesses face growing restrictions while the black market continues to expand, undermining both operators and government tax revenues.
“This lack of enforcement is not just working against us; it’s working against the government. And instead of using part of the money that we are paying in taxes to enforce black market regulation, they are not doing so, and only putting more and more restrictions on us, which pushes eventually the players to the unregulated brands,” Sher argued.
Meanwhile, Codere Online is aggressively pursuing growth in Mexico through strategic sports partnerships, having secured a multi-year agreement with the NFL last month. Sher stated that this partnership would allow Codere to engage in betting promotions during NFL games, giving them advantages over competitors and leveraging the established popularity of American football in Mexico.
“NFL in Mexico is quite a big thing, so we have good exposure,” he said. “Of course, [the NFL is] an amazing brand to connect to our brand. We are very excited for this partnership.”
Codere Online approaches sponsorship investments conservatively, focusing on potential returns before finalizing deals. Sher concluded, "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."
