Private Equity Emerges as Prime Suitor for Spanish Gaming Giant Codere Amid €2 Billion Valuation Skepticism

Is Codere's €2bn sale a foregone conclusion for private equity? M&A experts weigh in on Lottomatica, Flutter, and the need for a relaunch.

By: AXL Media

Published: Mar 26, 2026, 10:16 AM EDT

Source: The information in this article was sourced from iGB

Market Speculation and High Stakes Valuations

Codere, the Spanish-centric gambling powerhouse, has reportedly been placed on the market by its current owners—a consortium of approximately 84 investment funds. Reports from the Spanish outlet Expansión suggest a valuation of over €2 billion ($2.3 billion), with a goal to reach a purchase agreement before the August summer break. However, industry analysts, including Christian Tirabassi of Ficom Leisure, have questioned the legitimacy of this price tag. Tirabassi suggests the leaked valuation may be a strategic PR tactic intended to anchor the market price, noting that current capital expenditure and market performance data make such a high figure difficult to justify.

A Business in Search of Direction

The current ownership structure of Codere is largely composed of former bondholders and debt holders who became shareholders by necessity rather than strategic intent. This accidental ownership has led to what experts describe as a severe lack of industrial vision and capital infusion. Tirabassi characterizes the company as a "boat without direction," noting that it appears as though investment in the business was "frozen five years ago." Consequently, any potential acquirer will need to possess a robust industrial plan and significant capital to relaunch the brand and effectively compete in its core Spanish, Latin American, and Italian markets.

Strategic Appeal of Land-Based Assets

Despite its current struggles, Codere offers significant value for the right investor, particularly due to its strong land-based presence. While the global industry continues to pivot toward digital platforms, the "omnichannel" model remains highly profitable when executed correctly. Land-based assets provide a steady revenue stream and offer a natural hedge against the increasing advertising restrictions affecting the digital sector in Europe and LatAm. For a "tier-one" operator or a private equity firm with a clear rationalization plan, Codere’s physical footprint represents a durable foundation for future growth.