Monthly Archives: January 2020

Codere receives two credit lines to bolster gaming ops in Mexico

The man in charge of leading gaming operator Codere’s efforts in Latin America, along with a small group of cohorts, decided that it wasn’t necessary to actually report real figures on revenue statements. Codere uncovered the creative accounting late last year and discovered that full-year earnings could be forced to be lowered by as much as $22 million. Partly as a result of the misleading profit statements, Spain-based Codere had to make up the difference and has now worked out a solution. According to a filing by the company with the Spanish Comisión Nacional del Mercado de Valores (the National Securities Market Commission), it has secured about $40 million (€36 million) in corporate credit lines.

The availability of the funds will allow Codere to upgrade its operations in Mexico and Uruguay. The creative accounting debacle revealed that around $16.5 million of the $22 million was losses out of Mexico, and the new credit lines will be used to make improvements to existing facilities in the countries.

In Mexico, that includes 85 arcades and 90 betting locations. In Uruguay, Codere operates six arcades, 26 betting locations and two racetracks. Any improvements to the properties in Uruguay will be designed to make those venues more attractive to buyers, as Codere is currently looking to offload those operations to another company. It was reported in October of last year that the company was considering selling 50% of the in-country operations to Chile-based Sun Dreams.

Codere is already reportedly sitting on a revolving credit facility of about $100 million, of which it has pulled around $44.5 million. It also has a refinanced bond worth over $858.5 million, which will mature next year.

Belgium sounds alarm over “omnipresent” football betting ads

Belgium’s gambling operators are likely facing further advertising restrictions following a government survey that found gambling promos were “omnipresent” in professional football.

On Friday, the Belgian Gaming Commission (BGC) released a voluminous report (viewable here, in Dutch) on gambling advertising during the 2019 playoffs of the Jupiler Pro League, the top tier of Belgian football.

Belgium imposed tough new restrictions on gambling advertising in June 2019 that included a ban on betting promos during live sports broadcasts. But the BGC now says that prohibition doesn’t go far enough, citing evidence that football fans were exposed to “large scale” gambling ads “in every medium that can be linked to the football events and the surrounding experience.”

The report notes that football fans are exposed to betting promos from the moment they purchase a match ticket, thanks to their teams’ sponsorship relationships with betting firms. The BGC further notes that the Kindred Group’s Unibet brand sponsors the Jupiler league as a whole, giving the brand a presence on each match ticket.

Online casino affiliates gaming UK GamStop self-exclusion scheme

Online gambling affiliates have been publicly shamed for pitching offers at individuals searching online for the UK’s GamStop gambling self-exclusion scheme.

On Thursday, a Twitter user who’d signed up with the UK’s GamStop self-exclusion scheme for problem gamblers reported that Google searches for GamStop were returning results from affiliate marketing partners of several sketchy Curacao-licensed online casino operators.

In some of these search results, the affiliates pitched readers on sites that weren’t part of the GamStop program. The affiliates justified this service by claiming that some gamblers may have “made an impulsive decision” to sign up for the self-exclusion program and might now be having second thoughts.

These sites offered UK gamblers ways to “bypass” GamStop and get back to the gambling action, with a somewhat pathetic caveat that gamblers should “promise us that you don’t have any addiction problems.”

Codere receives two credit lines to bolster gaming ops in Mexico

The man in charge of leading gaming operator Codere’s efforts in Latin America, along with a small group of cohorts, decided that it wasn’t necessary to actually report real figures on revenue statements. Codere uncovered the creative accounting late last year and discovered that full-year earnings could be forced to be lowered by as much as $22 million. Partly as a result of the misleading profit statements, Spain-based Codere had to make up the difference and has now worked out a solution. According to a filing by the company with the Spanish Comisión Nacional del Mercado de Valores (the National Securities Market Commission), it has secured about $40 million (€36 million) in corporate credit lines.

The availability of the funds will allow Codere to upgrade its operations in Mexico and Uruguay. The creative accounting debacle revealed that around $16.5 million of the $22 million was losses out of Mexico, and the new credit lines will be used to make improvements to existing facilities in the countries.

In Mexico, that includes 85 arcades and 90 betting locations. In Uruguay, Codere operates six arcades, 26 betting locations and two racetracks. Any improvements to the properties in Uruguay will be designed to make those venues more attractive to buyers, as Codere is currently looking to offload those operations to another company. It was reported in October of last year that the company was considering selling 50% of the in-country operations to Chile-based Sun Dreams.

Codere is already reportedly sitting on a revolving credit facility of about $100 million, of which it has pulled around $44.5 million. It also has a refinanced bond worth over $858.5 million, which will mature next year.