Codere - comment

As expected, the Italian gaming license was extended at nil cost for an additional year to June 2023. As the business has not yet returned to pre-Covid levels, a free extension was highly likely. We are still of the view that the licensing regime globally might change from an upfront payment for a license period to an ongoing percentage charge reducing upfront CAPEX but lowering EBITDA. We have spoken to some officials on this and although still in the early stage, it removes any ambiguity over what is the new steady-state run rate.