An irrevocable judicial ruling relaxes the restrictions imposed in 2023 and allows the expansion of games such as roulette, dice, and cards, as well as more slot machines.
Mexico.- A Mexican court has issued a ruling that significantly modifies the regulation of casinos in the country, allowing them to expand their offerings of card games, roulette, and dice, as well as to expand their slot machines. The decision, which mainly affects operators Espectáculos Deportivos de Occidente (EDOSA) and other companies in the sector, opens the door to the growth of the industry in the country.
The ruling, unappealable, partially annuls the regulatory reform promoted in November 2023 by the government of Andrés Manuel López Obrador, which had restricted slot machines and established stricter rules for the operation of casinos. The court considered that the Federal Law of Games and Draws (LFJS) allows both slot machines, known as "number draw machines," and chance-based gambling games such as cards, dice, and roulette. Furthermore, it was accepted that card games, roulettes, and dice also comply with the law because chance is a determining factor in their outcome.
This opens the door for Mexican casinos to offer a variety of games similar to those of the major international gaming centers, which could change the landscape of the industry in the country.
See also: Gambling taxes in Mexico: proposal to increase the tax burden in the state of Guanajuato
The ruling benefits EDOSA, which operates casinos like Midas and Grand Toreo, and other companies such as Atracciones y Emociones Vallarta and Eventos Festivos de México. Despite this progress, the sector still faces limitations, as the law continues to regulate the type of operators and other key aspects of the industry.
The company communicated to the United States Securities and Exchange Commission its strategic decision, while maintaining its focus on regularizing its presence on Nasdaq.
Spain.- Codere Online has officially informed the United States Securities and Exchange Commission (SEC) about the hiring of the firm MaloneBailey as its auditor for the fiscal years 2023 and 2024. The decision was approved by the Audit Committee and the Board of Directors on December 31, 2024, and was formalized through a report sent via Form 6-K, signed by Oscar Iglesias, chief financial officer of the company.
In the communication, Codere Online made it clear that, until the date of this hiring, it had not had previous exchanges with MaloneBailey regarding the application of accounting principles in specific transactions or the issuance of opinions on its financial statements. Additionally, the firm highlighted that there have been no disagreements or relevant events in the audit process that could have required the firm's intervention before its official designation.
Alongside this announcement, Codere Online reaffirmed its commitment to submitting the Form 20-F corresponding to the fiscal year of 2023, in order to comply with the requirements demanded by Nasdaq, whose listing status depends on these reports.
The company also included a warning about future projections in its report, making it clear that any expectations related to its regularization in the U.S. stock market are subject to risks and uncertainties. These forecasts are based on information available at the time of publication and are not obligated to be updated, unless regulations require it.
In mid-January, the rating agency Moody’s Ratings decided to withdraw the corporate ratings (CFR) 'Caa2' and the probability of default rating (PDR) 'Caa2-PD' for the Spanish-origin company. The measure, which also affects the instrumental rating 'Caa2' of the senior secured bonds due in 2028 issued by Codere Finance 2 (Luxembourg), is due to the lack of sufficient information to maintain these ratings.
According to the agency, the withdrawal of the ratings is due to the "insufficiency or inadequacy" of the information available to support the previously granted ratings. In particular, Moody’s pointed out that governance issues within Codere, stemming from the recent replacement of its audit and the delay in the submission of the audited annual accounts for 2023, were key factors in making this decision.
“We believe we do not have sufficient or adequate information to support the maintenance of the rating(s),” Moody’s stated in its announcement. The agency added that the lack of transparency and compliance difficulties within the company negatively affected Codere's ability to meet its financial commitments in a clear and predictable manner.
See also: Nasdaq warning: Codere Online could stop trading if it does not present all the required documentation
