Break-up Looming: Gambling Giant Codere Faces Separate Division Sale

The Spanish gambling group Codere is at a decisive turning point in its corporate history. After the group was officially put up for sale in March, a change in strategy is now emerging. The investors, primarily consisting of bondholders, are seriously considering selling the company in individual parts. The reason for this is the lack of interest from potential buyers in a full acquisition of the entire portfolio, which ranges from Europe deep into Latin America.

The current situation is the result of years of financial instability, which was only mitigated in 2024 through a massive recapitalization. In this process, creditors converted approximately 1.2 billion Euro of debt into equity, which stabilized the balance sheet but also radically changed the ownership structure. Today, between 56 and 84 different investment funds share the company. US hedge fund Davidson Kempner holds the largest stake at 20.37 percent, followed by prominent names such as the Soros Fund and System 2 Capital. These actors are now pushing for an exit to cash in on their investments.

Numbers and facts

While Codere's economic situation is showing improvement under the leadership of CEO Gonzaga Higuero, the hurdles for a sale remain high. In 2025, the group achieved revenue of 1.45 billion Euro, representing a 3 percent increase. The adjusted EBITDA is particularly impressive, climbing 26 percent to 225 million Euro. Despite these operational improvements, the targeted valuation of over 2 billion Euro is being critically questioned by market observers. Experts like Christian Tirabassi from Ficom Leisure see this more as a PR strategy to drive up the market price.

"Clearly, the bond holders or the debt holders found themselves in a position to be the owners of Codere without really wanting to be. They realized it's not for them, and they put it for sale. It’s as simple as this." - Christian Tirabassi, Founder and Senior Partner at Ficom Leisure

The break-up would affect three core areas: the European business focusing on Spain and Italy, the Latin American activities in countries like Argentina, Mexico, Panama, Colombia, and Uruguay, and the separately listed subsidiary Codere Online. Above all, political and fiscal uncertainties in Argentina and Mexico are deterring many interested parties who are actually only interested in the stable European market.

Background

Codere suffers from a phase of chronic underinvestment. Tirabassi compares the company to a boat without direction that has received no fresh capital for innovation for years. While competitors like Flutter Entertainment or Allwyn International grow through acquisitions, Codere appeared frozen. In Italy and Spain, the group also faces a powerful new rival. The planned merger of CIRSA with the Italian market leader Lottomatica creates a European gambling giant valued at over 4 billion Euro. Codere must hold its own against this consolidation pressure, which seems hardly possible without massive new capital.

Why it matters for German players

For German players, the possible break-up of Codere has no direct impact on daily life, provided they play with providers licensed in Germany. Codere itself is not represented on the German market with a GGL license for virtual slot machines or online poker. Nevertheless, the development is an important signal for the industry. It shows that size alone does not protect against instability when regulatory and fiscal conditions in core markets become difficult. In Germany, particularly strict rules apply through the Interstate Treaty on Gambling 2021 (GlüStV 2021), such as the deposit limit of 1,000 Euro per month via the LUGAS system and the maximum stake of 1 Euro per spin on slots. Such regulatory hurdles, which Codere is currently feeling massively in Mexico through tax increases, are also a major factor in the valuation of companies in Europe.

What it means for GGL-licensed casinos

The wave of consolidation fueled by the Codere sale could also reach the German market in the medium term. If giants like Flutter or Allwyn appear as potential buyers for Codere parts, they strengthen their global market position. This increases competitive pressure on providers that are exclusively licensed in Germany. German operators must prepare for international corporations acting more efficiently through synergy effects in marketing and technology. For players, this often means better platforms, but also a stronger concentration on a few large brands. Strict compliance with German player protection rules remains the most important criterion for legality, regardless of who is pulling the strings in the background.