Codere Online CEO says Brazil ban vindicates cautious approach, eyes Chile, Peru and Uruguay

Aviv Sher, CEO of Nasdaq-listed operator Codere Online, has told iGaming Business that his company's cautious expansion strategy helped it avoid a costly mistake in Brazil. In late September, President Luiz Inácio Lula da Silva banned the country's licensed gambling sector, closing a market that had been projected to contribute up to BRL16 billion ($3.18 billion) in tax by the end of 2026.

Brazil's regulated market opened at the start of 2025, drawing operators such as Flutter, Entain and Betano. Flutter took a 56% stake in the Betnacional owner NSX Group in a deal worth upwards of $350 million. Codere Online said it was interested in the market but kept its distance because of the financial outlay and the risk of regulatory instability. "We dodged the bullet," Sher said, adding that the government had broken an agreement with regulated brands that had invested hundreds of millions in sponsorship and marketing, with no prospect of a return.

Although Codere Online was not in Brazil, Sher is watching for knock-on effects elsewhere in Latin America. He said other regulators are following the situation closely to understand the impact and the response. The company currently operates in Mexico, Colombia, Panama and Argentina, and Sher said 2027 would not be a boring year, with Chile, Peru and Uruguay under assessment.

On Peru, where Betsson, Bet365 and Stake have all obtained licences, Sher described the regulation as well organised and the regulator as transparent. Even so, he said many competitors had already invested heavily, so Codere Online will wait and observe metrics such as CPAs and LTVs before deciding. In Chile and Uruguay, the company is waiting for online gambling rules to be introduced. Sher expressed frustration with Chile, where a bill that began moving in 2021 remains stalled. He argued the delay costs the state tax revenue while grey-market operators continue to sponsor teams.

Codere Online is already authorised in the City of Buenos Aires and is now looking at a licence covering the whole province, which holds around 40% of Argentina's population. The framework allows a maximum of seven online licences, with Betano, Betsson, Bet365 and Stake among current licensees. A recently introduced 2% levy on online slot winnings complicates the case, and Sher said proposed new taxes could cut around two-thirds of operators' profit there, making the opportunity less attractive.