Codere Online CEO: Cautious Approach Saved Company from Brazilian Chaos

The global iGaming landscape recently witnessed one of its most significant setbacks in South America. Brazil, a nation of over 200 million people with an immense passion for sports, was expected to become a cornerstone of the industry. However, the anticipated launch of the regulated market at the start of 2025 turned into a cautionary tale. Aviv Sher, CEO of the Nasdaq-listed operator Codere Online, has now spoken out about why his company’s decision to remain on the sidelines was the correct strategic move for their investors.

In late September 2026, Brazilian President Luiz Inacio Lula da Silva effectively banned the licensed sector, closing a market that many expected to thrive. This sudden shift occurred despite projections that the industry would contribute up to BRL16 billion (approximately $3.18 billion) in taxes to the government by the end of 2026. For Sher, the move confirmed his long-held suspicions regarding the region’s regulatory instability and tax uncertainty.

Numbers and facts

The scale of investment from international competitors was staggering. Flutter Entertainment, for instance, acquired a 56 percent stake in NSX Group, the owner of Betnacional, for a deal valued at more than $350 million. Other major players like Entain, Betano, Betsson, and Stake also secured presence in what they believed would be a stable environment. Codere Online, however, chose to stick to its established markets in Mexico, Colombia, Panama, and Argentina.

"We dodged the bullet. The worst thing is that the government broke an agreement with the regulated brands that invested hundreds of millions into the country with expectations to see returns over the coming years, whether it is in sponsorship deals or marketing deals." - Aviv Sher, CEO of Codere Online

Sher argues that the conservative approach taken by Codere Online was necessary to protect shareholder value. He believes that the subsequent upheaval in Brazil vindicates their strategy. While other operators saw their marketing and sponsorship investments vanish overnight, Codere Online remained focused on markets where the regulatory framework is more predictable and transparent, such as Peru.

Background

Codere Online is not giving up on Latin American expansion, but it is being highly selective. The company currently operates in the City of Buenos Aires and is eyeing a license for the entire province of Buenos Aires, which houses 40 percent of Argentina’s population. However, the path is fraught with difficulties. The province limits the number of online gambling licenses to just seven, and a recently introduced 2 percent levy on online slot winnings threatens to significantly cut into profits. Sher noted that such taxes could "almost kill the business" by reducing profits by two-thirds.

Meanwhile, the situation in Chile remains a point of frustration. Although regulation plans were initiated back in 2021, the online gambling bill is still caught in political limbo. Sher pointed out that while the government delays the formal process, the grey market continues to operate and even sponsor local sports teams, resulting in lost tax revenue for the state. Codere Online is waiting for a more lucrative and stable framework before making a move in Chile or Uruguay.

Why it matters for German players

For German players, the chaos in Brazil serves as a reminder of the importance of playing in a strictly regulated environment. The German Interstate Treaty on Gambling (GlüStV 2021) provides a level of security that was clearly missing in the Brazilian experiment. By choosing operators on the GGL whitelist, German consumers are protected from the kind of sudden market closures seen in South America. The GGL ensures that player funds are safe and that operators adhere to strict social responsibility standards.

Key features of the German system, such as the cross-operator deposit limit of 1,000 Euro per month and the 1 Euro stake limit for virtual slots, might seem restrictive to some, but they offer a degree of legal protection that grey-market sites cannot match. As seen in Brazil, unlicensed or poorly regulated markets can collapse or change rules instantly, leaving players with no recourse. The GGL license is a badge of stability and fairness in an often volatile global market.

What it means for GGL-licensed casinos

For operators holding a GGL license, the situation in Brazil reinforces the value of the German market's reliability. While the tax burden in Germany is significant, it comes with the assurance of a functioning legal system. Unlike in Brazil, where hundreds of millions in marketing investments were wiped out by a presidential decision, GGL-licensed casinos can build long-term brands with the knowledge that the rules of the game are set by law, not by decree. Codere Online’s focus on "organized regulation" mirrors the shift towards high-standard markets like Germany.