Spanish gambling operator Codere has put itself on the market with a price tag north of €2bn (£1.8bn/$2.3bn), according to sources speaking to business daily Expansión. The company has brought in Jefferies and Macquarie Capital to handle what could be one of the year’s biggest gaming sector deals.

Indicative bids are expected by mid-May. Binding offers due in early July. The timeline suggests Codere’s backers want this wrapped up before everyone disappears for the summer, which tells you something about how keen they are to get it done.

From Family Business to Investment Fund Portfolio

Codere’s ownership structure reads like a who’s who of investment funds. More than 80 of them holding shares. That came about through a 2024 debt-for-equity swap that ended the founding Martinez Sampedro family’s control of Spain’s second-largest gambling group.

The same year saw Codere slash its corporate debt from a hefty €1.4bn down to around €190m through a recapitalisation deal. The plan then was expansion across Latin America and Europe, but with this sale that strategy’s been binned.

Leaves Cirsa, owned by Blackstone, sitting pretty as the clear Spanish market leader.

Who Might Come Knocking?

Industry watchers reckon both private equity firms and strategic buyers could fancy a punt. Names like Allwyn International and Flutter Entertainment have been mentioned as potential suitors, though nothing’s confirmed at this stage.

The asset itself is solid enough. Codere runs regulated retail and online gambling across Spain, Italy, and several Latin American markets including Mexico, Colombia, Argentina, Panama, and Uruguay. Been doing it since 1980, starting out in Madrid.

Current lead shareholder is Davidson Kempner Capital Management out of New York, holding 13.3%. Behind them sit Palmerston Capital, Deltroit Asset Management, System 2 Capital, and Invesco among the major stakeholders.

Digital Arm Included in Package

The sale includes Codere Online, the group’s Luxembourg-based digital operation that trades on Nasdaq. That’s a decent sweetener for any buyer looking at both land-based and online exposure across multiple jurisdictions.

Whether Codere stays in private equity hands or moves to a strategic operator depends entirely on who’s willing to stump up the cash. With the process just kicking off, expect plenty of movement over the coming weeks as potential buyers size up the opportunity.