Argentina’s fragmented iGaming marketplace continues to pose major commercial challenges for leading hispano-american online gambling players Codere.
Currently Argentina is being regulated on a province-by-province basis and only three jurisdictions, the Federal Capital District of Buenos Aires, Buenos Aires province itself, and the province of Córdoba, have been regulated — unlike its neighbour, and great rival, Brazil; where sports betting was legalised nationwide on January 1 this year.
Volatile inflation–currently running at a monthly rate of 2.2 percent–only partially tamed by Argentina’s new maverick, chainsaw-wielding president Javier Milei, who took office at the end of 2023, has played its disruptive part too.
Codere’s baseline revenue in mainland “Old World” Spain increased by some 16 percent to €87.7 million (£72.6m) and total net gaming revenue was up 23 percent to €211.6 million (£175.17m), year-on-year in FY24.
Devaluation
But Argentina, one of its core market targets in Latin America, continued to pose its unique issues.
“We made a lot of efforts,” conceded Codere CEO Aviv Sher: “Yet at the moment we are not able to enter the province of Buenos Aires where the majority of the money in the country is coming from.
The news from Mexico, Codere’s key LatAm market, although impacted by that nation’s fiscal woes, devaluation, et cetera, was brighter and net revenue here was up 30 percent, year-on-year, to the equivalent of €106.6 million (£88.24m).
Looking to a positive future, Sher noted–(ed.)president Trump permitting–that the upcoming 2026 FIFA World Cup is scheduled to be hosted in the three North American countries of Canada, USA – and Mexico.
Overall, Codere posted an adjusted EBITDA of €6.4 million (£5.29m) in FY24, up 18.1 percent, compared to the previous year.
Its average monthly active players increased by 13 percent in 2024 to 144,900.
Given the fiscal metrics, Sher emphasised that Mexico and Spain will remain the company’s two top markets.
How To Spend It
“Our next dollar, in terms of ROI [return on investment] should go into Mexico and Spain,” stressed Sher. “Because we know how to spend it and we know the ROI on it.”
For the moment “it doesn’t make sense” to invest in other LatAm markets, such as Chile and Peru.
The other significant regional market of Colombia, with the recent imposition of a 19 percent VAT tax on online deposits, was also losing its lustre.
Codere estimates that its 2025 net gaming revenue will be up to €230 million (£190.41m), with Adjusted EBITDA of between €10m-€15m (£8.27m-£12.41m).
Only one other pesky task remains for Codere Online to close out tax year 2024: filing that all-important 20-F form [for 2023] on or before May 12 – or face de-listing from Nasdaq.
Tax forms?
We know how you feel Cordere.
