Codere Online Stays Clear of Brazil's Betting Storm

When Brazil's online betting market opened, betting companies from around the world flocked to it. Spain's Codere, however, was one of the companies that did not join the rush.

Following President Lula's sudden Bets ban, Aviv Sher, CEO of Nasdaq-listed Codere Online, said Brazil is a large market, but entering it seriously would require significant investment and management resources. Sher said the company's priority is the Spanish-speaking Latin American markets, where Codere has a physical presence and Codere Online runs profitable operations.

Developments in Brazil are a warning for operators in Latin America. They showed that a market can change overnight and that investments can lead to losses of millions of dollars. Sher said the company saw Brazil's regulation as new and still developing, so it chose to watch the market rather than enter immediately. Sher acknowledged that staying out of Brazil was not because they knew what would happen or made a smarter choice, but because of the company's conditions, priorities and risk appetite at the time.

Today, Codere Online is expanding in other Latin American markets while examining opportunities in Chile, Peru and Uruguay. Sher said the company supports stable, well-designed regulation and effective oversight in every market, whether or not it operates there. Rather than chasing every opportunity, the company has focused on strengthening its financial structure and increasing its profitability.