Spanish gambling giant Codere has put itself up for sale with a £1.8 billion price tag, marking one of the biggest potential deals in European gaming this year. The Madrid-based operator, which runs everything from slot parlours to sports betting shops across seven countries, has brought in heavyweight advisors Jefferies and Macquarie Capital to handle the auction.

The sale process kicked off this month, with initial bids expected by mid-May. Things should move fairly quickly from there. Binding offers likely landing around July and a deal potentially wrapped by August. For a company that’s been through the financial wringer in recent years, it’s a remarkable turnaround story.

From Family Business to Investment Fund Ownership

Codere started life in 1980 as a family venture under the Martínez Sampedro clan. These days, the ownership structure looks rather different.

The company’s shares are now scattered among roughly 84 investment funds, with Davidson Kempner holding the largest chunk at 13.3%. Palmerston Capital, Deltroit, System 2 Capital, and Invesco round out the top five stakeholders.

That shift happened largely thanks to a major debt restructuring last year, when creditors agreed to convert approximately £1 billion of debt into equity. CEO Gonzaga Higuero called it “a decisive success” that secured the company’s future and set them up for growth. The numbers seem to back that up, revenues hitting £1.17 billion in 2024 and adjusted EBITDA reaching £155 million.

A Multi-Market Operation

What makes Codere attractive to potential buyers is its geographic spread and operational diversity. The company operates across Spain, Italy, Argentina, Mexico, Panama, Colombia, and Uruguay, running physical venues alongside digital platforms. Their estate includes slot machines, bingo halls, sports betting terminals, arcades, gaming rooms, bars, and even racetracks.

The online division, which trades separately on Nasdaq, would be bundled into any sale. Digital accounted for 12% of total revenue last year, a modest but growing slice of the business.

Italy led the revenue breakdown at 21%, followed by Mexico at 17%. Interestingly, Spain itself only generated about 16% of group turnover, despite being home turf.

Regulatory Headwinds at Home

That relatively small Spanish contribution tells its own story. The country has taken an increasingly tough line on gambling operators, introducing restrictions that some in the industry reckon go too far. Companies now have to display stark warning messages similar to what you’d see on cigarette packets, part of a broader regulatory tightening that came into force last year.

Codere found itself on the wrong side of regulators recently, copping a £15,000 fine for using unapproved technical systems. It was part of a wider crackdown that caught several operators. Social Rights Minister Pablo Bustinduy has been driving these reforms, arguing that authorities bear responsibility for creating safe gambling environments rather than leaving it all to punters.

Whether Spain’s stricter stance will affect Codere’s sale price remains to be seen. The company’s strong performance in other markets, particularly Italy and Mexico, should provide some comfort to prospective buyers. With the process now underway, the next few months will reveal just how much appetite exists for a major European gambling platform with genuine scale across multiple jurisdictions.