While many operators are aggressively expanding in Latin America, Codere Online has chosen a slower path. This Madrid-based gambling operator recently reported record-breaking performance—net gambling revenue for the fiscal year 2025 increased by 6% to 224.1 million euros, with adjusted EBITDA falling between 10 million and 15 million euros. Amid a sudden increase in gambling taxes from 30% to 50% in Mexico and the aftermath of Spain's advertising ban, this performance somewhat represents a counter-current breakthrough. In an exclusive interview, CEO Aviv Shalev was straightforward: the next dollar will still be invested in Spain and Mexico, the two core markets, because the ROI there is solid enough. While competitors burn cash in Brazil, Codere Online is digging deeper into its strongholds of Mexico and Spain using the languages and cultures it knows best.
Mexican tax reform is a major obstacle, with outdated laws from 1947 being the biggest stumbling block
Mexico has surpassed Spain as Codere Online's largest market, with net gambling revenue increasing by 12% in fiscal year 2025. However, the gambling tax increase from 30% to 50% at the beginning of this year has been a cold shower for all operators. More troubling for Shalev is the underlying legal framework of the Mexican gambling industry—most of its provisions date back nearly eighty years to 1947. He expressed his frustration: "The current system doesn't even qualify as regulations, and it doesn't provide the confidence needed for long-term commitments." Although Shalev believes the company can offset most of the tax impact, he is also among the many voices pushing for modernization of Mexico's regulatory framework. He sees Mexico as stable and knows how to deal with this market; if a proper regulatory framework could be established in the future, it would be a real relief.
Spain is recovering from an advertising ban, but overregulation is the real enemy of the industry
The Spanish market, after a complete ban on welcome bonuses and celebrity endorsements in November 2020, saw some rules overturned in April 2024. Codere Online spent a considerable amount of time adjusting its customer acquisition and retention strategies, with revenues in Spain growing by 3% to 90.5 million euros in fiscal year 2025. Shalev is confident in the ongoing growth in Spain but remains wary of the tendency towards overregulation across mainland Europe. He pointed to the UK as a cautionary tale—each additional layer of rules reduces the operators' room to maneuver, and the grey market only grows fatter. Shalev's assessment directly addresses the core contradiction of the industry: gambling gross income never disappears due to tighter regulations; it merely redistributes itself along the boundaries between legal and illegal. As the legal market tightens, funds naturally flow towards those unregulated and untaxed dark corners.
Localization strategy from language to sponsorship, using Real Madrid to knock on Latin America's door
Codere Online's success in Mexico, according to Shalev, is largely due to localization. Not just in terms of payment methods and platform interface, but also through sponsorship deals with local football clubs like Monterrey Flash, and leveraging the global brand effect of Real Madrid across the Latin American market—Codere Group has been the official gambling partner of Real Madrid since 2016, with partnerships now extending to over 20 countries in Latin America. Shalev summarizes this strategy as using big brands as door openers and local heroes as glue. In Mexico, it relies on the Flash team; in Argentina, it once partnered with River Plate; in Colombia, it sought collaboration with Valderrama. Each market has its own local face, while Real Madrid's global brand provides a unified narrative. This approach may seem simple, but it is precise—when users see their favorite local team's colors on a gambling app, the conversion rate of registrations is often more solid than any advertising campaign.
Brazil is a firm no-go; the next dollar still goes to core markets
The hot Brazilian market is where Codere Online takes a resolute stance. Shalev admits that the dual barriers of taxation and language make it impossible for the company to start without first financing or incurring debt to amass a sufficient amount of capital to shift market share. Brazil just completed its transition from a grey area to full regulation at the beginning of the year, with 225 operators fiercely competing. Codere Online chooses not to join this fray. Uruguay might be a potential target if its online gambling regulatory framework can be quickly established, but only if conditions are ripe. Codere Online has initially set a target EBITDA margin for 2027 and plans to launch a new five-year growth plan after 2027, with the World Cup co-hosted by Mexico being a key customer acquisition opportunity.
PASA official website continues to track the landscape and strategic dynamics of operators in the Latin American gambling market, noting that Codere Online maintains a counter-restraint in the industry's collective eastward surge, essentially based on a strategic calculation of brand asset localization. In Spanish-speaking markets like Argentina and Colombia, leveraging Real Madrid's sponsorship and the parent company's historical retail footprint in these regions, the localization strategy shows a clear replication curve. When high taxes and language barriers keep many small and medium players out in Brazil, this Spanish-blood gambling company proves one thing with its own pace: there are many fast runners, but only those who run steadily can continue to breathe in the storm of tax reform.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
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