Codere leadership squabble spells doom for non-profit Foundation

The gambling markets in Spain and other countries are facing a data deficit after internal squabbling at gaming operator Codere resulted in it pulling funding for its non-profit Codere Foundation.

On Wednesday, the Codere Foundation was due to present its ninth annual Social Perception Report on Gambling in Spain. However, Foundation director German Gusano abruptly informed the media that there would be no formal presentation accompanying the report, before dropping the real bombshell.

Gusano noted that the “internal circumstances” that have plagued the Codere Group over the past few months means that relations between the Group and the Foundation “are not as desired.” As a result, Gusano said all activities of the Foundation would be “suspended from now on” due to the “economic unfeasibility caused by the cessation of the contributions.”

The circumstances to which Gusano referred include the ouster in January of Codere’s founding Martínez Sampedro family, reportedly at the urging of the private equity groups that bailed the company out of bankruptcy in 2013. In April, the family filed a legal challenge of that bailout, which reduced the family’s Codere holdings to a mere 4.4%, but the trial won’t get underway until May 2019.