Codere Online is closely monitoring the prediction markets sector, according to CEO Aviv Sher. He previously mentioned to iGB in May that prediction markets could serve as a valuable extension of the company's existing offerings.
When asked to provide an update, Sher described this move as a “realistic option” for Codere Online, though he confirmed that the company has yet to enter that space. He believes prediction markets could be particularly beneficial in specific geographic areas.
Sher elaborated, “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 suggested that a launch might occur as soon as next year but emphasized that the company is still in a monitoring phase. “I think prediction markets can be a nice addition to our portfolio,” he stated.
Busy times have recently unfolded for Codere Online. Following a strong second quarter, the company raised its fiscal year 2026 projections, reporting record net gaming revenue (NGR) of €69.4 million ($77.6 million) and an adjusted EBITDA of €5.8 million. Codere Online now anticipates reaching an NGR between €255 million to €265 million by year-end, along with adjusted EBITDA of €20 million to €25 million. “We are pretty sure that we will meet the new guidance,” Sher remarked.
As Codere Online looks ahead, the company is in the process of developing a new five-year plan with ambitious targets for its next growth phase. Sher noted, “Our goal is to substantially increase the revenues that we have today, and continue to grow there.” He has opted to prioritize 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 Q2 of this year, they collectively generated €63.7 million in NGR, both experiencing year-on-year growth exceeding 20%. Given that these two markets contribute over 90% of Codere Online's Q2 NGR, Sher aims for more regulatory stability to maintain the company’s growth momentum.
As of 2026, Mexico is set to increase its tax rate to 50% of gross gaming revenue (GGR), while in Spain, regulators will introduce joint deposit limits in 2027, amid expectations of further regulatory changes. Sher explained, “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.”
Sher expressed frustration over what he perceives as inadequate enforcement against unlicensed operators in Spain, contending that as licensed businesses face stricter regulations, the black market continues to thrive, reducing both operator revenues and tax income for the government.
“This lack of enforcement is not just working against us; it’s working against the government,” he reasoned. He criticized the focus on limitations placed on licensed entities, suggesting, “So it’s a lose-lose situation for us. For our players, worse and worse player experience. And for the regulator, while putting in more and more restrictions, less and less revenues from taxes.”
In addition to considering prediction markets, Codere Online is also looking to bolster its presence in Mexico through sports partnerships. Last month, it entered a multi-year agreement with the NFL, which Sher described as a unique advantage.
The partnership will allow Codere Online to promote betting during NFL games, a benefit that isn't available to its competitors, and gain exposure through a prominent sports brand in a market where American football is popular. “NFL in Mexico is quite a big thing, so we have good exposure,” Sher commented. “Of course, [the NFL is] an amazing brand to connect to our brand. We are very excited for this partnership.”
Sher indicated that Codere Online follows a relatively conservative approach to sponsorship spending, carefully evaluating potential returns before committing. “We try to have an ROI on that, which is not common in the industry,” he explained, expressing confidence that the return on investment will become clear after several years. “It’s a big partner for us in Mexico right now.”
