Codere Online weighs prediction markets entry, CEO Sher says

Codere Online is monitoring developments in prediction markets and views the sector as a realistic future addition to its product range, chief executive Aviv Sher has told iGaming Business.

Sher first raised the possibility in May, describing prediction markets as a potential "really nice extension" to the operator's existing offering. Asked for an update, he said the company has yet to commit but continues to watch the space closely.

He suggested the format could fit naturally alongside Codere Online's push into the Spanish-speaking southern United States from its Mexican base. "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 said.

The comments come during a strong run for the company. Following a second quarter in which it posted record net gaming revenue of €69.4 million ($77.6 million) and adjusted EBITDA of €5.8 million, Codere Online raised its full-year 2026 guidance to NGR of between €255 million and €265 million, with adjusted EBITDA of €20 million to €25 million. "We are pretty sure that we will meet the new guidance," Sher said.

The business is also drawing up a new five-year plan built around what Sher called a substantial increase on current revenues. He said the company had chosen to reinvest in its core markets rather than maximise short-term profit, noting it could have reported higher EBITDA had it not put extra money into existing operations.

Spain and Mexico remain Codere Online's dominant markets, together accounting for €63.7 million of second-quarter NGR, with both growing by more than 20% year-on-year. With the two countries representing over 90% of quarterly revenue, Sher said he wants greater regulatory stability so growth can continue.

Mexico raised its tax rate to 50% of gross gaming revenue from the start of 2026, while Spain's regulator is set to bring in joint deposit limits in 2027 alongside other expected changes.

Sher said he sees the Spanish regulator pursuing a different objective to his own company. "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," he said.

He argued that tighter rules on licensed operators have not been matched by action against unlicensed brands in Spain, calling it a situation that damages both industry and government. "This lack of enforcement is not just working against us; it's working against the government," he said, adding that restrictions pushed onto licensed firms risk driving players towards unregulated sites with no safeguards.

"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."

Separately from its interest in prediction markets, Codere Online is building out its sports partnerships in Mexico, confirming last month a multi-year tie-up with the NFL. Sher said the arrangement gives Codere Online exposure around NFL games that rivals lack, tapping into the sport's established fan base in the country.

"NFL in Mexico is quite a big thing, so we have good exposure," he said, describing the league as "an amazing brand to connect to our brand."

Sher said Codere Online takes a cautious approach to sponsorship spending compared with much of the industry, weighing expected returns before signing deals. "We try to have an ROI on that, which is not common in the industry," he said, adding that he expects the benefits of the NFL partnership to become clear over the coming years.