Codere Goes Up for Sale as Private Equity Cashes Out

Codere is heading back to the market, this time as a cleaned-up, post-restructuring asset with a global footprint and a digital arm bolted on. On paper, it looks like exactly the kind of platform buyers love. In reality, gambling deals are never that simple, and this one will test how much appetite remains for the sector at scale.

Spanish gambling group Codere has hired Jefferies and Macquarie Capital to advise on a potential sale that could value the business at more than €2 billion ($2.3 billion).

The process is moving quickly. Interested bidders are expected to submit initial, non-binding offers by mid-May, followed by binding bids in early July. The aim is to agree a deal before the August summer break.

Codere’s ownership structure reflects its recent past. After a 2024 debt-for-equity restructuring that slashed liabilities from around €1.4 billion to roughly €190 million, control shifted away from its founding family to a fragmented base of around 84 investment funds. Davidson Kempner is the largest shareholder, with a 13.3% stake.

The business itself spans both physical and digital gambling. Codere operates casinos, betting shops and bingo halls across Spain, Italy and several Latin American markets including Mexico, Argentina, Colombia and Uruguay. The sale is also expected to include Codere Online, its Nasdaq-listed digital unit.

Potential buyers are likely to include a mix of strategic operators seeking geographic expansion and financial investors looking for stable cash-generating assets, although ESG restrictions may limit private equity participation.

Because this is not just a sale. It is an exit.

Codere has already been through the hard part. The balance sheet has been reset. Debt has been slashed. Liquidity has improved. Operational control has been stabilized. What is left is a business that looks, on the surface, like a classic private equity success story ready to be monetised.

But exits only work if someone wants to buy.

And that is where things get complicated. Gambling is one of the most polarising sectors in global investing. It throws off cash, has strong margins and benefits from structural demand. But it also sits in the ESG penalty box, faces constant regulatory scrutiny and carries reputational baggage that many investors would rather avoid.

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That immediately narrows the buyer universe. Large private equity firms increasingly have mandates that restrict exposure to gambling. That leaves either smaller funds with fewer constraints or strategic buyers who are already in the sector.

Strategics make more sense on paper. Codere offers something valuable: instant scale across Southern Europe and Latin America. Those are fragmented, high-growth markets where regulatory frameworks are tightening but still expanding. For a global operator, buying Codere is not just an acquisition. It is a shortcut.

The inclusion of Codere Online adds another layer. Digital is where the growth is, and building a competitive online platform from scratch is expensive and slow. Codere offers a ready-made solution with a public listing attached. That is attractive, especially for traditional operators trying to accelerate their digital shift.

But integration risk is real. This is a business that has already been reshaped once. It operates across multiple jurisdictions with different regulatory regimes, tax structures and competitive dynamics. Buying Codere means buying complexity.

There is also the question of timing. The gambling industry is entering a more mature phase in many markets. Regulation is tightening, marketing restrictions are increasing and customer acquisition costs are rising. The easy growth story is over. Buyers today are paying for operational discipline, not just expansion potential.

That makes valuation tricky. €2 billion-plus might look reasonable for a global platform with improving fundamentals. But in a sector facing structural headwinds, buyers will push hard on price.

Which brings us back to the core tension. Codere is a better business than it was two years ago. But that does not automatically make it an easy sell.

The next few months will reveal how deep the buyer pool really is.

If multiple strategic bidders emerge, the process could move quickly and validate the idea that scale still commands a premium in gambling. A competitive auction would likely push valuations toward the top end of expectations.

If interest is more muted, the timeline could slip or pricing could come under pressure. ESG constraints and regulatory uncertainty may keep some bidders on the sidelines.

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