Codere Online is evaluating opportunities within the prediction markets sector, according to CEO Aviv Sher. During a recent discussion, he indicated that this market could serve as a valuable extension to the company’s existing offerings, a notion he first mentioned to iGB in May.
When probed for updates on this potential move, Sher termed the prediction markets a “realistic option” for Codere Online, though he clarified that the company has yet to make any definitive steps into this arena. He believes it could be particularly advantageous in certain 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," he stated.
Sher hinted that Codere Online might enter the prediction markets as early as next year but emphasized that the company remains in a monitoring phase. He expressed optimism about this addition, stating, "I think prediction markets can be a nice addition to our portfolio."
Codere Online has recently experienced robust growth, prompting the company to uplift its FY2026 revenue guidance. In their Q2 report, they posted record net gaming revenue (NGR) of €69.4 million ($77.6 million) and €5.8 million in adjusted EBITDA. Now, the company anticipates achieving an NGR between €255 million and €265 million by the end of this year, with projected adjusted EBITDA of €20 million to €25 million. "We are pretty sure that we will meet the new guidance," Sher remarked.
The company is currently developing a new five-year plan aimed at setting ambitious revenue goals for its upcoming growth phase. Sher noted, "Our goal is to substantially increase the revenues that we have today and continue to grow there." He has chosen to prioritize investments over immediate profitability, explaining that opting for long-term growth means potentially sacrificing some short-term EBITDA.
Codere Online's primary markets are Mexico and Spain, which together generated €63.7 million in NGR during Q2, an increase of over 20% year-on-year. These two markets constitute more than 90% of the company’s NGR in that period. Sher emphasized the need for regulatory stability in these regions to support ongoing growth. He pointed out that in Mexico, the tax rate will rise to 50% of gross gaming revenue (GGR) starting in 2026, while Spain is set to introduce joint deposit limits in 2027.
Sher expressed his concern regarding regulatory changes in Spain, feeling that the regulatory body is increasingly pressuring licensed operators while allowing unlicensed entities to flourish. He stated, "I think the regulator in Spain is pushing us more and more. 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 criticized the lack of enforcement against unlicensed operators in Spain, arguing that tougher regulations on licensed businesses are inadvertently pushing players toward unregulated brands, which undermines both the industry and government revenues. "This lack of enforcement is not just working against us; it’s working against the government," he noted, stressing that the consequences lead to a poorer experience for players and diminishing tax revenues for the regulator.
To bolster its presence in Mexico, Codere Online recently forged a multi-year partnership with the NFL. Sher highlighted that this deal would enable the company to offer unique betting promotional opportunities during NFL games, tapping into the existing popularity of American football in Mexico. "NFL in Mexico is quite a big thing, so we have good exposure," he stated, emphasizing the value of aligning the Codere Online brand with a prominent sporting name.
While excited about the potential of this NFL partnership, Sher pointed out that Codere Online maintains a cautious approach to its sponsorship expenditures, ensuring potential returns are assessed before embarking on new deals. "We try to have an ROI on that, which is not common in the industry," he added. "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.",
