Codere Online is closely monitoring the prediction markets sector, according to the company’s CEO Aviv Sher. In a conversation with iGB, Sher previously hinted in May at the potential of prediction markets, describing them as a promising extension to Codere Online's current offerings.
Providing an update, he labeled entry into this market as a "realistic option," though he confirmed that the company has not yet made any definitive moves. Sher believes that prediction markets could enhance Codere’s strategy, especially in areas such as Mexico and parts of the southern United States serving Spanish-speaking populations. "Maybe next year it will come, but we are still monitoring it. I think prediction markets can be a nice addition to our portfolio," he stated.
Recent performance has been strong for Codere Online, with the company raising its fiscal year 2026 revenue guidance following a successful second quarter. They reported a record net gaming revenue (NGR) of €69.4 million ($77.6 million) and an adjusted EBITDA of €5.8 million for the period. The company now anticipates reaching an NGR of between €255 million and €265 million by year-end, alongside generating adjusted EBITDA between €20 million to €25 million. "We are pretty sure that we will meet the new guidance," Sher remarked, while outlining plans for a five-year strategy focused on substantial revenue growth.
Sher emphasized a prioritization of 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, Mexico and Spain, contributed significantly to Q2 results, combining for €63.7 million in NGR. Both markets have seen growth exceeding 20% year-on-year. As these regions account for over 90% of the company’s NGR, Sher seeks greater regulatory clarity to sustain this upward trajectory.
Starting in 2026, Mexico will increase its gaming tax rate to 50% of gross gaming revenue, while Spain plans to implement joint deposit limits in 2027 amid expected further regulatory shifts. 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 regulators impose more burdens on licensed firms while giving leeway to the black market, which undermines government tax revenues.
"This lack of enforcement is not just working against us; it’s working against the government," he said. "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 the players to unregulated brands."
In addition to pursuing prediction markets, Codere Online aims to strengthen its footprint in Mexico by forming new sports partnerships. Last month, they signed a multi-year agreement with the NFL, which Sher believes will provide unique betting promotion opportunities during NFL games. He noted that American football enjoys a considerable following in Mexico, and the partnership aligns well with Codere’s ambitions.
"NFL in Mexico is quite a big thing, so we have good exposure," Sher stated. "Of course, [the NFL is] an amazing brand to connect to our brand. We are very excited for this partnership."
Furthermore, Codere Online approaches sponsorship spending with caution, aiming to assess returns before committing.
"We try to have an ROI on that, which is not common in the industry," he acknowledged. "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."
