Codere Under Investigation Amidst Alleged Lobbying Controversy in Spain

Introduction to the Scandal

Spanish gambling giant Codere is under investigation following allegations that it engaged in a lobbying scheme involving Spain’s top political figures. A report from Catalonia’s regional police reveals that Codere made significant payments to the consultancy firm Equipo Económico, which was established by former Finance Minister Cristóbal Montoro, to influence legislation and tax policies in the company’s favor.

Connections with Influential Politicians

This investigation forms part of a larger judicial inquiry, indicating that Codere’s financial involvement was part of a broader, systematic effort to gain an advantage during the pivotal period when Spain was creating its online gambling regulations. Police documents obtained by Spanish media show that Codere paid Equipo Económico approximately €680,000 (around $796,000) from 2008 to 2012.

These payments coincided with the development and enactment of Spain’s Gambling Law. Codere had long advocated for such legislation, claiming that foreign online operators benefitted from an unfair tax advantage. Authorities allege the consultancy acted as a go-between for Codere and key figures within the Finance Ministry, thus undermining fair competition as licenses were distributed.

The scandal also implicates former Justice Minister Rafael Catalá, who worked as secretary and director at Codere between 2005 and 2011 and reportedly maintained connections with the company after taking public office. Notably, Catalá returned to Codere in 2019 as a global advisor on institutional relations, just one year after departing from his government role.

Allegations of Manipulative Practices

The Mossos d’Esquadra police report suggests that these financial contributions influenced policy decisions that disproportionately favored domestic operators like Codere. An example includes a 2012 amendment to gambling tax regulations under Montoro’s leadership, allowing players to deduct previous losses from taxable winnings, which indirectly benefited gambling firms.

Although the report stops short of accusing Codere of criminal activity, it highlights how the company might have used political ties to gain regulatory advantages. While foreign operators faced increased taxes and stricter oversight, Codere seemingly helped shape a market environment where competition was limited and conditions appeared uneven.

Implications and Industry Context

These developments arise amid a tumultuous period for Spain’s gambling industry, with new rules on advertising and affordability checks attracting significant public scrutiny. For Codere, this controversy could result in reputational harm and increased regulatory examination, especially if further links to political figures surface. As of now, the company has not issued a public response regarding these allegations.