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Spain – Codere’s shares fall 12 per cent before ballying

By - 17 October 2018

Codere’s shares fell in the stock market on Monday falling up to 12 per cent that came after two difficult days on Thursday and Friday.

The company’s price came down to €5.60, a loss of 23 per cent in just three days. However, at the end of the day on Monday things had rallied with the price per share standing at €6.17 (the day had begun at €6.35).

The falls in the price may be related, according to the local press, to a recent agreement with the government and the Podemos Party to restrict gambling advertising in Spain.

Crucially for any operator in Spain the agreement now states that the publicity of gambling statewide, explicitly would be treated “in a similar way to that of tobacco products.” The advertising of all tobacco products have been prohibited since 2005 in Spain.

This measure falls within the package of policies agreed by the socialist Government of President Pedro Sánchez and Podemos, which provides for “more income for a strong welfare state,” said the spokesperson for the Spanish Socialist Workers’ Party in Parliament, Concha Andreu.

The agreement could mean major changes to how gambling is regulated by the state as it will promote a wide-ranging number of additional player protection measures.

It is the first time that a total ban on advertising has been brought up as an option and means that Spain could follow suit after the Italian Senate voted by a narrow majority in August to ban gambling advertising with heavy penalties for non-compliance. Earlier this month it was revealed that Spain’s Ministry of Finance is now finalising the draft of a decree that could restrict the publicity and advertising of sports betting, with the aim of protecting minors. New rules could be passed by the end of the year.

The Podemos party now considers gambling addiction to be a health issue due to the increasing size of the local gaming market. Its proposals would directly prohibit the advertising of sportsbook, prevent gambling halls being close to schools, regulate promotions and would raise taxes on gambling. While the Finance Ministry has rejected raising taxes the new draft, which is now being prepared, would restrict advertising times and promotions.

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