Codere Online CEO Says Brazil Ban Vindicates Cautious Expansion Strategy
Aviv Sher says the operator's decision to stay out of Brazil's regulated market was justified after the government's sudden ban.
Codere Online CEO Aviv Sher says the operator’s decision to avoid Brazil’s regulated market was vindicated after the government banned the sector in late September.
Sher said the move by President Luiz Inácio Lula da Silva, which closed a market projected to generate up to BRL16 billion ($3.18 billion) in tax by 2026, validated the company’s focus on regulatory stability.
“The worst thing is that the government broke an agreement with the regulated brands that invested hundreds of millions into the country with expectations to see returns over the coming years, whether it’s in sponsorship deals or marketing deals,” Sher said.
He argued that Codere Online’s conservative strategy protected its investors from the upheaval.
“I think our conservative approach here towards this market and the conservative approach that we’re constantly taking to protect our investors paid off in this case,” Sher said.
International operators including Flutter, Entain and Betano had entered Brazil, with Flutter acquiring a 56% stake in NSX Group for over $350 million.
Sher believes the Brazilian situation could have regional implications.
“I think when such a large market in LatAm undergoes a significant regulatory change, you may see some effects across the region,” he said.
Codere Online currently operates in Mexico, Colombia, Panama and Argentina, and is assessing expansion into Chile, Peru and Uruguay.
Regarding Peru, where Betsson, Bet365 and Stake have licences, Sher said the market is of interest but the company will wait to see how it evolves.
He noted Peru’s regulation is now stable and transparent, unlike Brazil’s.
In Chile, Sher expressed frustration with the slow progress of an online gambling bill first proposed in 2021.
“I met people that were involved in the Chilean regulation and they promised me by the end of last year that it will be out,” he explained. “Now we are already a year after, so I think they are moving slowly forward, [but] not fast enough.”
He said the government is losing tax revenue to grey market activity while the framework is debated.
In Argentina, Codere Online is already authorised in the City of Buenos Aires but is seeking a licence for the entire province, which holds about 40% of the population.
Only seven online gambling licences are permitted there, with current holders including Betano, Betsson, Bet365 and Stake.
A new 2% levy on online slot winnings has further complicated plans.
“The regulator over there in the province wants to introduce new taxes that will almost kill the business [and] will cut around two-thirds of the profit of all the operators over there,” Sher said.
He added that Codere Online is still focused on the market and will try to secure a licence if possible.
Sher concluded by saying, “I don’t think 2027 will be a boring year.”
