Codere Online reports fraud of $500K+ on its iGaming platform in Spain

Codere Online, an online gaming operator in Spain and Latin America, filed a complaint due to presumed fraud for the amount of EUR 500,000 ($536,500) committed by an alleged client in Spain.

According to the company, the fraud would have been committed through "a series of withdrawals for a total of EUR 0.5 million made by a client from his online account in a land-based gaming hall of a third party, in other words, an affiliate".

In their latest financial report, they stated that "an investigation is currently underway and the company will try to recover the embezzled funds."

During a conference with analysts, Codere Online's CFO, Óscar Iglesias, was asked about this issue and stated: "It is a matter that is under police investigation, there is not much more to say. The most important thing, obviously, is that we intend to recover the money. When the investigation progresses, we will give more details to the market".

The company has stated that potential cyber-attacks are identified among the list of risks faced by the business. "Although Codere Online will continue to implement measures aimed at preventing these types of attacks, they are, by nature, technologically sophisticated, and may prove difficult or impossible to detect and successfully defend against," the business explained.

It should be noted that, in the second quarter of 2023, Codere Online reported revenues of EUR 37 million ($40 million). The firm's CEO, Aviv Sher, said: "Our net gaming revenues grew by 34% to EUR 39 million ($42 million), in line with the level of the first quarter, despite the seasonal decline in sporting events."