Codere on the Market: A €2 Billion "Private Equity Play"?
Spanish gaming giant Codere is reportedly on the market, with a purchase agreement being sought before August. The potential Codere sale, which is said to include its online division, Codere Online, has been valued at over €2 billion. This development has sparked significant discussion among industry analysts about who the likely buyer will be.
M&A expert Christian Tirabassi, founder of Ficom Leisure, has characterized the deal as “very much a private equity play.” He noted that while major operators might show interest, a private equity gambling acquisition seems most probable. This assessment is shared by Ed Birkin of H2 Gambling Capital, who also sees private equity as a strong possibility.
Potential Suitors and Valuation Doubts
Despite the private equity focus, several large gambling companies are expected to examine the opportunity. Tirabassi suggests that industry giants like Lottomatica, DraftKings, and Entain will likely review the deal. Birkin added Allwyn International and Flutter Entertainment to the list of potential strategic buyers.
However, the €2 billion valuation has been met with skepticism. Both Tirabassi and Birkin believe the price is too high, with Tirabassi dismissing it as a public relations tactic. He claims the leaked price is an attempt to set a high benchmark in the market, but an analysis of Codere's market performance does not support such a figure.
An "Underinvested" Business in Need of a Plan
Codere's current ownership structure, comprising around 84 investment funds, is seen as a key factor driving the sale. Tirabassi explains that these debt holders became owners unexpectedly and lack the interest to manage the company. This has resulted in a significant lack of investment, leaving the business in what he calls a "fatigued" state.
“It's being underinvested, undercapitalised and now they are suffering because of the competition that they have in each market. There is a need for somebody that has a really clear industrial plan to relaunch the business.” - Christian Tirabassi, Ficom Leisure
Despite these challenges, Tirabassi believes value can be created with a clear plan and substantial capital injection. The company's land-based assets remain profitable, and an effective omnichannel strategy that properly integrates Codere Online could be a very strong proposition, especially in its core Spanish-centric and Italian markets.
Regulatory and Strategic Shifts Across Europe
Beyond the major M&A news, the European iGaming landscape is experiencing significant strategic and regulatory changes. Companies and governments are adapting to new tax laws, emerging markets, and responsible gaming needs.
Playtech Reviews Sun Bingo Amid UK Tax Hike
Technology supplier Playtech has initiated an operational review of its Sun Bingo white-label business in the UK. CFO Chris McGinnis confirmed that the incoming 40% remote gaming duty (RGD) will render the business unprofitable. This move follows a 20% year-on-year decline in Playtech's B2C revenue for 2025.
While facing headwinds in the UK, Playtech is highly optimistic about its opportunities in Latin America, particularly Brazil. CEO Mor Weizer highlighted the massive potential of a partnership with the state-owned bank Caixa Economica Federal, calling it “one of the most significant opportunities for Playtech for the coming years.”
| Playtech FY2025 Financials | Figure | Year-on-Year Change |
|---|---|---|
| Group Revenue | €763.6 million | -10% |
| EBITDA | €197 million | -9% |
| B2B Revenue | €688.3 million | -9% |
| B2C Revenue | €78.5 million | -20% |
Malta Explores Landmark Prediction Market Rules
In a pioneering move, Malta is “actively exploring” the creation of a statutory framework for regulating prediction markets. Economy Minister Silvio Schembri emphasized the need for a clear legislative framework to allow the rapidly growing sector to develop responsibly. This would make Malta the first European market to establish specific rules for platforms like Polymarket and Kalshi, which currently operate in a gray area between gambling and financial trading in most of Europe.
Ukraine to Block Military from Online Gambling
As part of its systematic effort to combat gambling addiction, Ukraine is introducing an automated system to block military personnel from accessing online gambling. The mechanism will cross-reference login attempts with a military roster and a list of barred individuals. This Ukraine gambling block is the latest measure in a broader digital overhaul aimed at regulating the market and protecting vulnerable populations during the ongoing period of martial law.
Industry-Wide Push Against Online Fraud
The European Gaming and Betting Association (EGBA) is actively contributing to the European Commission's (EC) plan to fight online fraud. The association submitted evidence highlighting how illegal operators exploit the trust consumers place in the regulated market through fake websites, fraudulent apps, and phishing scams.
The EGBA online fraud report reminded the EC that the illegal market accounted for an estimated €18 billion, or 27% of Europe’s total online gambling GGR in 2025. This poses significant risks to consumers, including identity theft and financial loss.
“Fragmented national approaches to these types of fraud are not enough – we need coordinated EU-level action to ensure consumers and legitimate operators aren’t left fighting an uphill battle against fraud.” - Dr Ekaterina Hartmann, EGBA
The EC's Action Plan on Fighting Online Fraud is expected to be adopted in the second quarter of 2026, aiming to create a more unified European approach to tackling these illicit activities.
