Spanish gambling operator Codere Group, through its Italian subsidiary Codere Italia, has obtained an online operating license from the Italian Revenue Agency and Monopoly (ADM), officially entering the regulated online gambling market in Italy. The company has launched a localized platform, Codere.it, offering online casino and sports betting services. Codere had previously operated physical gambling businesses in Italy, including gaming halls, bingo venues, and a network of betting machines. This expansion is seen as an important step in its European market strategy, with the company also seeking to establish B2B partnerships with local operators.
Company Background and Market Entry
Codere Group is a multinational, multi-channel gambling operator that has officially entered the regulated online gambling market in Italy through its branch, Codere Italia. The company previously had an extensive network of physical businesses in Italy.
Codere Italia operates gaming halls, bingo venues, and a network of betting machines in bars and other locations. Obtaining the ADM online operating license is a natural extension of its business, marking the company's strategic transformation from physical gambling to full-channel operations.
Regulatory License and Platform Launch
The Italian Revenue Agency and Monopoly (ADM) has issued an extended license to Codere Italia, allowing it to conduct online gambling operations. This license is based on Italy's current gambling regulatory framework and meets all legal requirements.
The company has launched a localized online platform, Codere.it, which offers a complete range of online gambling services, including sports betting and casino games. The platform is designed to comply with Italian regulatory requirements, providing services in Italian and localized payment methods.
Business Strategy and Market Positioning
Codere describes this market entry as a "natural and strategic" move. The company aims to consolidate its position in the market as a compliant, customer-centric operator through the expansion of its online business.
Alejandro Pascual, the regional manager for Europe and country manager, stated that the company's goal is to provide a "consistent, high-quality" full-channel experience. This experience will integrate online and offline services, offering a seamless gambling experience to Italian customers.
Partnership Relationships and Development Plans
Codere Italia is actively seeking to establish B2B partnerships with local operators, particularly those who have already been operating in Italy and wish to expand their online business under the support of an established brand.
Roberto Russo, the director of online operations, emphasized that the company has built a "robust and scalable platform" that can adapt to the needs of users and partners. The long-term goal is to create a safe gaming ecosystem and become a benchmark in the Italian market.
Analysis of the Italian Regulatory Environment
The Italian iGaming market has a strict regulatory framework. In May this year, ADM concluded the tender process for remote gambling concessions, receiving only about 50 applications, significantly fewer than the previous 93.
Regulatory changes include a significant increase in license fees, with new license costs amounting to 7 million euros, far higher than the previous 200,000 euros. Additionally, operators must pay higher taxes and annual fees.
Market Entry Costs and Requirements
The entry costs for the Italian online gambling market have significantly increased. New operators need to pay a license fee of 7 million euros, a substantial increase from the previous 200,000 euros.
Operating costs include: online sports betting and casino operators paying a gambling revenue tax rate of 24.5% and 25.5% respectively; an annual fee equivalent to 3% of gambling revenue; and allocating at least 0.2% of gambling revenue to responsible gambling activities.
Market Competition Landscape
Although Codere is a newcomer to the Italian iGaming market, the market already has several well-known operators. ADM recently approved 46 new online gambling license applications.
Operators granted licenses include Betfair, Snaitech, Sisal (all under Flutter Entertainment), 888 Italia (Evoke), Hillside (Bet365), LeoVegas, and William Hill, among other well-known brands. This indicates that the Italian market is competitive but well-regulated.
Development Prospects and Challenges
Codere's European expansion faces opportunities and challenges. Italy is one of the largest gambling markets in Europe, but it has strict regulatory requirements and high operating costs. New market entrants need to cope with a competitive environment.
The company emphasizes its long-term commitment, planning to establish its position in the market by providing a safe gaming environment and high-quality services. Success will depend on effectively implementing a full-channel strategy and establishing valuable partnerships.
