Global Presence

Italy

Bingo Living, Bolonia (Italy)

Together with Spain, Italy represents the other mature European market in which Codere operates. Yet unlike Spain, the Italian market is rife with regulatory uncertainties, which has meant that Codere has had to review some of its businesses in this country.

Codere manages in the country an important gaming machine interconnection network, Codere Network, a gaming machine operation and is the leading operator in the bingo sector with 11 halls.

The Company started its activity in Italy in 2001, providing management services for the Operbingo halls. In December 2005 Codere acquired 8 halls from Operbingo. In March 2006 the Company bought Palace Bingo in Turin and 2007 saw the purchase of Bingo Maxibingo and Mortara. The same year Codere opened Bingo Regina.

The bingo area of Codere Italy continues to improve its results and increase its business volume, through consolidation of the bingo halls purchased and the introduction of gaming machines into these halls.

At the end of 2004, Codere extended its activity into the gaming machines area with the acquisition of Opergiochi, an operator from northern Italy. The Company currently has over 2,500 machines installed in Italian bingo halls, bars, discos and restaurants.

In 2010 new initiatives implemented in response to the regulatory changes made in the last few years, such as the installation of a new model of gaming machine – VLT – and the launch of the online bingo.

In 2011 the already important operations in Italy received a further boost from the installation of VLT terminals, the consolidation of Gaming Hall Royal Caserta and of the three AWP operators acquired during the year 2011. 2011 also brought the consolidation of the online bingo activities at www.codere.it launched at the end of 2010. Codere Italy closed the purchase of the machine operators: FG Slot Services, Gap Games and Gaming Re during 2011.

In 2012, Codere acquires 60% interest in gaming machine operator DP Service S.R.L. This transaction means the Codere Group’s further expansion on the Italian market by incorporating around 2,000 gaming terminals into its product offer.

In 2014, Codere Italy increased its VLT gaming machines (6.6%) and its average daily coin-in in AWPs and VLTs, 0.8% and 6.6% respectively. Throughout the year, and in line with the thrust to responsible gaming, the Company implemented a program offering assistance to problem gamblers through a toll-free line and the website www.giocaresponsabile.it. 
 
In 2015, the company maintained its growth strategy with the integration of new local operators. This year, it signed an agreement with its partner GAP GAMES for the acquisition of PGO SERVICE srl, an operator of gaming machines in the regions of Veneto, Friuli, Tuscany and Lazio. In July, the company announced the acquisition of the 51% of GARET srl and GAME OVER srl, with business operations in Tuscany and Umbria.
 

In 2016, the total number of AWP gaming machines grew (by 7.4%) and VLTs (6.1%), as did the number of units connected to the Codere Network, and there was likewise improvement in the average daily revenues in the AWPs (19.2%). Throughout the year, the Company was highly focused on its commitment to “Responsible Gaming” and promoted important initiatives such as the “Codere Training” program, a training tool for the recognition and management of critical points related to pathological gaming, managed by the legal gaming operators connected to its Network and operating in their own gaming halls or those managed by third parties. In Bologna, the Company also started up the second edition of the event “In the name of legality 2.0”, These meetings have been in force in person or online since 2011. 

Codere Italia is one of the largest operators, with a total of eleven bingo halls (with 5,139 seats), 2,125 bars, and 7,993 slot machines as of March 31, 2020, before the temporary closures caused by the pandemic. It is also one of the 11 network license holders operating in this market. There were 13,610 slot machines, a mix of own and third-party machines, connected to this network as of March 31, 2020.
 
Operations The bingo business is operated through 11 licenses, one per hall. Those licenses are being operated on a temporary basis until the government determines the new concession regime, pending since 2016. The license held by Codere Network and the video-lottery terminal (VLT) licenses expire in March 2022.
 
Over the past few years, Codere’s Italian business suffered significant regulatory and tax impacts. In particular, the enforcement of the 2016 Stability Act translated into a decrease of nearly 30% in the number of the company’s machines. The gaming tax (PREU) for VLTs and AWPs also rose considerably. As a result of Covid-19, all of the group’s gaming halls and its retail business were closed since early March and started reopening gradually from mid-June.
 
As of September 30, 2020, Codere was already operating a total of nine gaming halls, 2,008 bars, 7,043 slot machines, and 2,280 bingo seats, with 12,669 slot machines, including both third-party machines and its own machines, connected to the network.
 
As part of Codere’s goal of gaining a consolidating its position in strategic markets, in 2020 the company was approved for the initial phase for obtaining an online gaming license in the city of Buenos Aires, which the company expects to receive in 2021.
 
At a time of extreme difficulty for the gaming industry and, in particular, for slot machine operators, Codere is committed to forming alliances to face the challenges of the market with determination. Therefore, as part of the Integration and Efficiency Management Plan in Italy, Codere has launched Codwin, a distribution unit for AWP machines in the Italian market, which arose out of the merger of Gap Games and FG Slot. This new division, which has been fully operational since July 2020, is part of a search for greater efficiency in response to the impact of Covid-19 on the country.
 
Thanks to this operation, the company has provided a model of management integration and efficiency that can serve as an example for other companies that want to continue to operate under standards of trust and legality and that have a long-term project to share with Codere.
 
Codere Italy activated its online gaming license in December to operate directly in the country as codere.it. The company had already had the concession since February 15, 2019, and had operated through third parties since then. However, the direct operation of online gaming in Italy reinforces Codere’s strategy of expanding its online business in all of the countries where it operates. In developing this project, Codere Italy collaborated with its partner Microgame, which will support the company in both the gaming platform and in the development of sports betting. Thanks to its partnerships with the largest suppliers on the market, Codere Italy will offer an extensive range of online casino games, live casino, horse racing, bingo, video poker, card games, scratch cards, and lottery games.
 
Since the end of October, Codere’s business in Italy was affected by additional temporary restrictions and closures in some regions as a result of the second and third waves of the pandemic, until the Italian government finally ordered the closure of all gaming activities from early November through March 5, 2021.

Areas of Activity (2020)

  • Gaming machines: -
  • Gaming halls: -
  • Gaming Terminal Network License:1 

Turnover (2020)

  • Revenue: €154.7 million 
  • EBITDA: €(3.9) million 

Milestones

  • 2001: Commencement of operations, bingo halls
  • 2004: Slot machines
  • 2005: Purchase of Operbingo
  • 2006: Purchase of Palace Bingo and CODERE Network
  • 2007: Purchase of Maxibingo and Bingo Mortara
  • 2007: Strategic review of CODERE’s activities in Italy 
  • 2010: Video lottery terminals (VLTs)
  • 2010: Purchase Royal Bingo (Caserta)
  • 2010: Launch of an online bingo operation
  • 2011: Purchase of FG Slot Services, Gap Games and Gaming Re
  • 2012: Acquires 60% interest in gaming machine operator DP Service S.R.L.
  • 2013: Workshop "Nel Nome della Legalità"
  • 2014: The Company is promoting a program of free assistance in situations of problem gambling.
  • 2015: The company promotes growth through local operators and develops its responsible gambling action through the “In nome della legalità 2.0” program.
  • 2016: The Company is committed to Responsible Gaming, and launched the “Codere Training” program to train operators to identify pathological gaming behaviors. It also started the event “In the Name of Legality 2.0” which promotes a culture of Responsible Gaming in the industry.

CODERE Italy

codere network