Codere Online is closely monitoring the prediction markets sector, according to CEO Aviv Sher. Earlier this year, Sher indicated that such markets might serve as a "really nice extension" to the company’s offerings. In a recent discussion, he confirmed that venturing into prediction markets remains a "realistic option" for Codere, although a specific launch date has not yet been set.
Sher believes that prediction markets could be particularly beneficial in certain regions, especially in Mexico and among Spanish speakers in the southern United States. He noted, "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 expressed optimism about seeing developments in the area, stating, "Maybe next year it will come, but we are still monitoring it. I think prediction markets can be a nice addition to our portfolio."
Recently, Codere Online has experienced significant momentum, recently adjusting its fiscal year 2026 guidance following a robust second quarter. The company recorded a record net gaming revenue (NGR) of €69.4 million (approximately $77.6 million) and an adjusted EBITDA of €5.8 million. Codere now anticipates achieving an NGR between €255 million and €265 million by year’s end, with an adjusted EBITDA of €20 million to €25 million. Sher remarked, "We are pretty sure that we will meet the new guidance."
As part of its growth strategy, Codere is developing a five-year plan aimed at substantially increasing current revenues. Sher emphasized investment over immediate profit margins, pointing out, "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, which together generated €63.7 million in NGR in Q2, each showing an annual growth of over 20%. With both countries contributing to over 90% of the company’s NGR for the quarter, Sher is advocating for more regulatory stability to support continued growth. He highlighted changes such as Mexico's planned tax rate increase to 50% from GGR starting in 2026, and new joint deposit limits set for Spain in 2027 along with forthcoming regulatory adjustments.
Sher expressed concern about increasing regulatory pressure in Spain, stating, "I think the regulator in Spain is pushing us more and more." He criticized the focus on reducing GGR while Codere aims to grow it, claiming this creates conflicting goals. Additionally, he pointed out the challenges posed by unlicensed operators in Spain, arguing that current regulations hinder licensed businesses while fostering a black market that undermines both operators and government revenue.
"This lack of enforcement is not just working against us; it’s working against the government," Sher argued. He believes the allocation of tax revenues to combat black market operations is insufficient, leading to an adverse impact on player experiences and tax income for the government.
In terms of growth strategy, Codere Online has partnered with the NFL to bolster its presence in Mexico. The multi-year agreement, signed last month, allows Codere to engage in betting promotions during NFL games, providing unique marketing opportunities against its competitors. Sher noted that American football is hugely popular in Mexico, observing, "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."
Further, Sher outlined Codere's cautious approach to sponsorship investments, aiming for a return on investment that is not often prioritized in the industry. He remarked, "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."
