Codere Online Gambling Operations Grow in Latin America

Spanish online gambling firm Codere reported a 28 percent increase in earnings despite ongoing serious troubles in in their home market, Spain.

Revenues from the first nine months in 2012 were EUR 1.261 billion. Most of the revenue was coming from the growing Argentinian online casino market, as well as successful internet gaming enterprises in Mexico and Italy.

Argentina reported a turnover increase of 26.2 percent amounting to EUR 508.3 million, and increase in earnings by 9.1 percent. The Latin American country is considered by the industry to be one of the most promising markets since changes in the Argentinian gambling laws allow the operation of foreign gaming companies.

In Mexico, turnover grew strongly by 60 percent to EUR 327.4 million, with earnings increased by 68.5 percent to EUR 72.1 million.

Turnover in Italy grew 28.3 percent to EUR 93.7 million, but decreased by 12.3 percent due to high gambling tax rates.

The reports from Codere’s home country, Spain, are worrying, at the very least. The operator revealed a turnover decrease of 11 percent. Spain faces serious economic problems, and it seems like its citizens chose not to gamble on Codere sites in the hard times.

Altogether, the group reported a net loss of EUR 34.4 million, which they mostly attributed to restructuring costs in Mexico apart from the weak Spanish market.

Last week, Codere lost a legal battle against Poker Stars.

After a long case, the court decision said that the latter’s Spanish online poker operations were indeed legit according to the gambling regulations at that time.