Bolsa Madrid-listed gambling group Codere SA is in talks to sell 50% of its casino operations in Uruguay to South American casino operator Sun Dreams, according to reports from Spain.

The move comes after the Spanish group recently issued a profit warning in the wake of the devaluation of the Argentine peso, following the country’s August primary elections.

Amid continuing uncertainty in Argentina, Codere’s largest market, the Spanish company is discussing a sale of up to half of its Uruguayan casinos, which could raise in excess of US$163m.

Sources quoted by El Confidencial and other Spanish outlets report that Codere has already received a first, non-binding offer from Sun Dreams, which is willing to pay around eight times the gross operating profit of Codere’s Uruguayan subsidiary.

Responding to the reports, Codere said that opportunities for business development in Uruguay “are being analyzed” but added that no agreement had been formalized. The sources suggest such an offer to be attractive, and likely to be accepted by Codere’s board when made firm.

Codere’s Uruguayan business reported operating profits of US$22m last year. The Spanish group operates 2,252 gaming terminals in the country, in addition to 26 betting venues and two racetracks, having first launched in 2002.

Sun Dreams, the largest gaming group in Chile, has reportedly requested a revision of Codere’s Uruguayan accounts, with PwC set to check the numbers and measure the legal risks.

Assuming there are no setbacks, the deal could be closed in the coming weeks.