Codere Online is carefully monitoring the prediction markets sector, as CEO Aviv Sher disclosed in a recent interview with iGB. In May, Sher hinted that Codere Online may consider entering this market, suggesting it could be a substantial addition to their current offerings.
When asked for an update on potential plans, Sher expressed that entering prediction markets is a viable option for Codere Online, although the company has yet to make a move in this area. He noted that such a service could be particularly beneficial in select geographic regions.
Sher stated, "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 indicated that while plans might materialize as early as next year, the company continues to evaluate the market. "I think prediction markets can be a nice addition to our portfolio," he added.
Codere Online is currently experiencing strong growth, having recently raised its guidance for the fiscal year 2026 following a robust second quarter. The company reported a record Net Gaming Revenue (NGR) of €69.4 million ($77.6 million) and an adjusted EBITDA of €5.8 million during this period. Looking ahead, Codere Online expects its NGR to reach between €255 million and €265 million by year-end, along with projected adjusted EBITDA of €20 million to €25 million. Sher is confident in meeting these revised targets: "We are pretty sure that we will meet the new guidance."
The company is in the process of developing a new five-year plan aimed at achieving significant revenue growth. Sher emphasized the intention to increase existing revenue and continue building on past successes. He indicated a focus on investment instead of immediate profitability: "We could have generated more EBITDA, but we decided to invest extra money into the current markets."
Codere Online's most profitable markets are Mexico and Spain, which together generated NGR of €63.7 million in the second quarter, with both markets seeing year-on-year growth exceeding 20%. However, Sher expressed a desire for more regulatory stability in these regions to facilitate continued growth.
He pointed out that Mexico will raise its tax rate to 50% of Gross Gaming Revenue (GGR) starting in 2026, while Spain is preparing to implement joint deposit limits in 2027, among additional regulatory changes. “I think the regulator in Spain is pushing us more and more,” Sher remarked, explaining that the regulatory environment is increasingly at odds with Codere Online's growth objectives. "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."
Sher also expressed frustration with what he perceives as insufficient enforcement against unlicensed operators in Spain. He argued that stricter regulations on licensed companies do not effectively curb the growth of the black market, ultimately harming both operators and the government's tax revenue. He noted, "This lack of enforcement is not just working against us; it’s working against the government."
In conjunction with its interest in prediction markets, Codere Online is looking to bolster its presence in Mexico through sports collaborations, recently signing a multi-year deal with the NFL. Sher stated this partnership will provide unique betting promotion opportunities during NFL games, distinguishing Codere Online from competitors in a market where American football enjoys popularity.
He acknowledged the significance of the NFL brand, noting, "NFL in Mexico is quite a big thing, so we have good exposure." Sher mentioned the company maintains a conservative approach to sponsorship spending, evaluating potential returns before entering deals, and he anticipates a positive return on investment in the years to follow, stating, "We try to have an ROI on that, which is not common in the industry."
As Codere Online moves forward, it remains focused on maximizing its growth potential in current and emerging markets, navigating challenges with a strategic investment mentality.
