Sports betting stocks have struggled in 2025, with concerns about competition from prediction market platforms impacting the market. Codere Online Luxembourg, operating sportsbooks and online casinos in Spanish-speaking countries, faces unique challenges but may see growth in 2026 with a major sporting event and high operating leverage.

Despite the struggles in 2025, Codere Online Luxembourg has a clearer path to upside compared to other sportsbook operators like DraftKings and Flutter Entertainment. The company’s focus on Spanish-speaking markets, including Spain and Latin America, has led to improved revenue and positive EBITDA.

Codere Online Luxembourg’s shares have experienced volatility in 2025, with compliance issues and management changes affecting stock performance. However, the company’s recent rebound and growth in adjusted EBITDA hint at potential future earnings growth, driven by factors like the upcoming World Cup and reduced customer acquisition costs.

Investors may want to consider buying Codere Online Luxembourg amid its recent rebound, as the stock shows potential for growth given its forward earnings multiples and analyst estimates. With a focus on key markets and high operating leverage, Codere could outperform expectations in the coming years.

The Motley Fool Stock Advisor does not include Codere Online Luxembourg in its top 10 stocks for investors to buy now. However, the newsletter has a track record of market-crushing returns compared to the S&P 500. Investors can access the latest recommendations and join a community focused on individual investing with Stock Advisor.

Read more at Yahoo Finance: Sports Betting Is Booming Worldwide. Is This DraftKings Competitor Worth the Risk While Its Shares Are Under $8?