Operator News
Spain – Codere criticises Spain’s radical political stance on gaming
By Phil - 10 March 2020
The non-executive president of Codere, Norman Sorensen, has attacked the ‘false beliefs’ and ‘radical political and social positions’ that he believes exist against the gaming industry.
Sorensen made the claims as part of Codere’s most recent Integrated Report which highlights the most significant policies and actions adopted by the group over the last year.
“We are witnessing, in recent years and in some of our markets, that the construction of false beliefs about the reality of the industry – possibly exacerbated by an overexposure of online gaming – is leading to radical political and social positions in regards to it in many cases in an unjustified way, if we take into account the data that emerges from the different statistical and social studies, which do not reflect the inappropriate growth of gaming activity or the prevalence of problematic behaviours in recent years,” he wrote.
The statements were part of the annual report that the company sends to the National Securities Market Commission (CNMV), in Spain. Sorensen said that although “2020 presents important regulatory, fiscal and macroeconomic challenges” the group’s perspectives, in a delicate financial situation are “positive.”
In his letter the executive listed some of the “efforts” the company has made to highlight gaming as an “entertainment offer” that is both transparent and highly regulated, which “makes an important social and economic contribution” with “great job creation and tax contribution.”
He also highlighted the progress the company has made when it comes to responsible gaming. “During this year, in Codere we have dedicated important efforts to listen to the needs and expectations regarding the company and the sector of our stakeholders, and respond to them through a Corporate Social Responsibility Plan, which establishes firm positions, commitments and action guidelines to ensure the development of the industry in a sustainable way, minimising its possible social impact through the implementation of best practices of responsible gaming, the promotion of transparency and the promotion of public policies that favour user guarantees and ensure the protection of vulnerable groups, especially minors. This plan includes an ambitious responsible gaming program and expresses Codere’s willingness to lead the industry’s movements in these aspects.”
Sorensen’s comments come after a number of local governments in Spain have agreed to restrict the number of betting establishments in their region. In addition strict advertising rules are now on the way. In February the government introduced its draft of the Royal Decree on the future Law of Gaming, which aims to protect minors with measures such as the limitation of schedules, the restriction of the contents that may appear in betting announcements online and the ban on using celebrities. This law is expected to be approved in the summer.
Earlier this month Codere reported that in 2019 it obtained operating income of €1,389.4m, compared to €1,476.4 the previous year – a drop of 5.9 per cent. The decrease was down mainly due to the results recorded in Argentina which declined by as much as €90.5m as a result of the depreciation of the Argentine peso against the euro (63.5 per cent). This was despite the strong growth of 31.2 per cent made in local currency. Operating income for Panama decreased by €10.5m, Mexico (9.5m) and Colombia (€4.4m). Losses were offset by online business growth (+ 34.5 per cent), Uruguay (+ 5.1 per cent) Italy (+2 per cent) and Spain (+1.7 per cent). When it came to adjusted EBITDA, the company recorded €249.1 m – 11.9 per cent below 2018
