Codere Online Breaks Revenue Record in Q2 2026 as Tax Risks Pile Up Across Core Markets

Key Points

• Codere Online reported its best-ever quarter, with Q2 2026 net gaming revenue rising 27% year-over-year and adjusted EBITDA more than doubling, leading to a higher full-year forecast.
• The excise tax in Mexico went up from 30% to 50% in January; the gambling tax in Colombia was reintroduced at 16% in March; Spain has initiated consultations regarding the tightening of advertising rules – all three factors directly threaten Codere Online’s two largest markets.
• The 2026 FIFA World Cup drove strong customer growth, boosting betting volume by 180%, increasing active players, and delivering record revenues across key markets.

Codere Online Posts Best Quarter, Ups Annual Forecast

Internet gambling company Codere Online (Nasdaq: CDRO) saw net gambling revenues amount to €69.4 million during Q2 2026, rising by 27% year-over-year compared to the same quarter in 2025. The company’s total income amounted to €64.4 million, marking an increase of 25%, while its EBITDA grew twofold to €5.8 million.

As CEO Aviv Sher explained, the quarter has been very successful: “Following a good start to the year, the second quarter demonstrated further acceleration and delivered our best performance on record. The net gaming revenue for the second quarter was at around €69 million, which is an increase of 27 per cent compared to the previous year. The World Cup served as an additional stimulus for player activity.”

Spain’s quarterly net gaming income stood at €27.6 million, representing a rise of 25% compared to the same quarter last year. For the operator’s largest market, namely Mexico, the figures were higher, amounting to €36.1 million and rising by 24%. The rest of the markets included Colombia, Panama, and the City of Buenos Aires which brought in a net gaming revenue of €5.7 million, marking a growth of 54%.

What the World Cup Actually Did to the Numbers?

This is certainly not to be seen as a minor event for Codere Online in light of the FIFA World Cup 2026. As per the online casino, the number of users participating in the World Cup 2026 increased by 56% compared to the 2022 World Cup without taking into account the success stories in Colombia, with 40,000 additional customers for the company.

World Cup betting amounted to €63 million, which is 180% more than in 2022. Net revenue from gaming due to the event increased by over 100% despite the results for customers being quite positive, indicating that margins on each individual bet were less than usual.

Monthly average number of active players increased by 12% to reach 173,000 during the quarter. In Spain, there were 54,400 active players; Mexico had 88,200 active players. Other markets contributed 30,400, showing an increase of 54%.

H1 2026 Completes a Full Turnaround in Profitability

Quarter two followed a record-breaking Quarter one 2026 where net gaming revenue stood at €64.4 million, representing a growth of 13% YOY. The total net gaming revenue in the first half was at €133.8 million, indicating an increase of 20% in the first half of 2025. The adjusted EBITDA was up to €11.9 million from €4.1 million.

Net income was the Group-wide headline number change. In the first six months of this year, Codere Online’s net income was €5.6 million, whereas its net loss for the corresponding six-month period last year was €3.1 million. This year, in the second quarter, the company incurred a net loss of €1.4 million, compared to the loss of €2.4 million the previous year.

At the close of June, the company had €62.7 million in cash balance with zero financial debt against €56.2 million recorded in March. Marcus Arildsson, CFO, commented that “Q2 saw yet another significant advance in terms of financial results for us, where our net gaming revenue is some €15 million higher compared to the same period of last year, with Adjusted EBITDA being around €6 million, more than twice as much as Q2 2025.”

Guidance Jumps by €20 Million – Here Is What That Implies

Codere Online started Q2 with an annual net gaming revenue guidance of €235 million to €245 million, announced in May 2026 following the Q1 performance. The Management widened the range by €20 million to €255 million to €265 million after delivering earnings which beat estimates in Q2. There was a revision to the guidance on adjusted EBITDA from €15 million to €20 million to €20 million to €25 million.

As per management, the midpoint of the new revenue range would represent 16% net gaming revenue growth. For instance, the net gaming revenue and adjusted EBITDA for the entire year 2025 stood at €224.1 million and €13.8 million, respectively. Further, according to Arildsson, the company can now consider acquisitions and entry into new markets due to its strong cash position.

The Tax Headwinds That Did Not Disappear

The largest market for the firm in terms of net gaming revenues is Mexico, where an increase in the excise tax for online gambling was enacted starting January 1, 2026 from 30% to 50%. The bill was passed in the Mexican Senate in October 2025. New real-time tax data reporting requirements began in April 2026.

Sher acknowledged the direct EBITDA effect but expressed measured confidence: “In terms of revenues, we don’t see a risk to the revenue generation… Regarding the EBITDA, there will be an EBITDA effect. We see it. It’s not as big as we thought. We are able to mitigate most of it.” Arildsson identified marketing efficiency, supplier renegotiations, and operational improvements as the main mitigation levers.

Colombia, part of the “other markets” division of Codere Online, has been a consistent contributor to uncertainty regarding its finances. Colombia instituted a provisional 19% levy tax on gambling deposits through its online service in February 2025. After the court’s intervention which led to the suspension of this levy, the government passed a 16% national consumption tax on online gambling deposits through Decree 0240 in March 2026.

Spain, meanwhile, has opened consultation on restricting influencer marketing, acquisition bonuses, and the visibility of gambling products in search results. No final rules have been published, but any tightening would affect Spain’s €27.6 million quarterly revenue contribution directly.

Expert Analysis: Record Quarter, But the Real Test Starts Now

What competitors are not focusing on is the specific competitive dynamics inside Mexico. Two major rivals were shut down for regulatory reasons ahead of the World Cup, per Sher’s own remarks on the earnings call, reducing the field precisely when tournament-driven acquisition was at its most productive. Fewer competitors plus a loyal active player base entering the World Cup is a structural advantage, not pure market growth.

The regulatory picture complicates any straightforward extrapolation from H1 into H2. Mexico’s 50% excise tax is applied on turnover rather than net gaming revenue in some industry interpretations, which makes its effective burden substantially heavier than the headline rate suggests. Colombia’s repeated attempts to impose gambling levies, each time through emergency powers after legislative failures, signal a government reaching for the sector as a reliable revenue source. That pattern does not resolve cleanly.

Any final rules restricting new player activity in Spain would pressure a market still growing at 25% annually.

The guidance raise from €255 million to €265 million is achievable if Mexico holds. Whether the back half of 2026 maintains Q2’s acceleration, or whether tax and regulatory drag begins to show, is the question the next two quarters will answer.