Codere Entangled in Lobbying Scandal

According to recent reports, the operator allegedly leveraged its influence to secure favorable policies and tax advantagesImage Source: Shutterstock.com

Spanish gambling giant Codere is facing scrutiny following an investigation that connected the firm to an alleged lobbying schemereaching Spain’s highest political circles. According to a report by the regional police force of Catalonia, Codere paid substantial sums to consultancy firm Equipo Económico, founded by former Finance MinisterCristóbal Montoro, in an attempt to promote favorable legislation and tax policies.

The Operator Reportedly Had Ties to High-Profile Politicians

The investigation, part of a broader judicial inquiry, suggests that Codere’s financial support was not an isolated incident but rather part of asystematic attemptto gain a competitive edge during the critical years when Spain was laying the groundwork for online gambling regulation. According to police documents obtained by Spanish news agency EFE, Codere paid Equipo Económico almost€680,000 ($796,000)between 2008 and 2012.

Coincidentally, these transactions reportedly coincided with the creation and passage of Spain’sGambling Law. Codere had long pushed for such legislation, arguing that foreign-based internet operators had anunfair tax advantage in the Spanish market. Investigators allege the consultancy served as an intermediary between Codere and prominent individuals in the Finance Ministry, undermining competition in the gambling sector just as the government was handing out licenses.

The report also implicates former Justice Minister Rafael Cataláin the scandal. Catalá, serving as secretary and directorat Codere between 2005 and 2011, allegedly continued to have relations with the company even after entering public office. Notably, he rejoined Coderein 2019 as a global advisor on institutional relations, just one year after quitting his government position.

Critics Accuse Codere of Underhanded Tactics

Most notably, the Mossos report alleges the financial contributions led to a series of policy decisions thatdisproportionately benefitedlocal operators such as Codere. One example is a 2012 change togambling tax rules under Montoro’s tenure that made players eligible to subtract prior losses from taxable winnings, indirectly benefiting gambling companies.

The report does not accuse Codere of outright criminal conduct. However, it paints a picture of a company leveraging political connections to secureregulatory favorswhile other operators, especially those based abroad, faced hefty taxes andtightened oversight. Critics have pointed out that Codere may havehelped sculpt a marketin which competition was blunted and the playing field skewed.

These revelations come during a turbulent timefor the Spanish gambling sector, with new laws on advertising and affordability checks drawing public attention. For Codere, the rising scandal could lead to reputational damage and regulatory scrutiny, particularly iffurther connectionsto political figures emerge. The company is yet to release a public statement on this matter.