Flutter Expands in Brazil with 56% Stake in Betnacional Operator

Flutter Entertainment Secures Majority Stake in Betnacional Operator NSX Group, Bolstering Brazilian Market Presence

Flutter Entertainment, a global leader in sports betting and gaming, has confirmed a major acquisition that strengthens its footprint in one of the world’s fastest-growing betting markets. With the purchase of a 56% stake in NSX Group, the operator of the popular Betnacional brand in Brazil, Flutter positions itself for significant growth as the Brazilian market edges toward regulation. This strategic move aligns with Flutter’s ongoing efforts to secure leading positions in key international markets, underscoring its commitment to Brazil’s expanding gaming landscape. Discover how this acquisition sets the stage for Flutter’s dominance in Brazil’s booming sports betting sector.

Flutter Acquires 56% Stake in NSX Group to Lead Brazilian Sports Betting Market

Flutter Entertainment has announced the acquisition of a 56% stake in NSX Group, a prominent Brazilian operator best known for its Betnacional brand. The deal, valued at approximately $350 million in cash, represents a strategic leap for Flutter as it seeks to solidify its position in Brazil’s rapidly growing sports betting and iGaming market.

Under the agreement, Flutter will integrate its existing Betfair Brazil business into a newly established Flutter Brazil entity. This newly combined operation will be spearheaded by Flutter’s management, giving the company significant control and influence over the future direction of its Brazilian assets.

The acquisition terms also include options that allow Flutter to increase its stake in NSX Group through reciprocal put/call provisions, exercisable in the fifth and tenth years following the deal’s completion. This structure provides Flutter with the flexibility to deepen its investment in response to market conditions and business performance.

A Strategic Expansion Aligned with Global Growth Objectives

This acquisition is part of Flutter’s broader strategy to achieve “podium positions” in key markets worldwide, a goal reiterated by CEO Peter Jackson during the company’s Q2 2024 earnings call. Jackson emphasized the importance of securing leadership positions in rapidly evolving markets like Brazil, where local expertise and brand strength are essential.

“I am excited to announce the addition of NSX, operator of Betnacional, a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio,” Jackson said. “Combining the extensive local expertise of the NSX team with our existing Betfair business and the power of the Flutter Edge creates a compelling opportunity to capitalize on the growth opportunity in Brazil.”

Leveraging Local Expertise and Market Potential

Flutter expects to benefit significantly from the synergies between Betnacional and Betfair Brazil, enhancing its competitive edge in Brazil’s soon-to-be regulated market. Brazil’s unregulated gaming market has grown at a compound annual rate of 38% since 2018, reaching nearly $3 billion in gross gaming revenue (GGR) in 2023. This explosive growth, driven primarily by local brands, positions established operators like NSX as key players in the post-regulation landscape.

The acquisition aligns with Flutter’s strategy of leveraging established local brands—often referred to as “local heroes”—to drive market share and profitability. NSX, which entered the Brazilian market in 2021, is already the fourth-largest operator, commanding a 12% share of the sports betting market and 9% of the total online market.

Flutter highlighted that once Brazil’s market is regulated, the increased costs associated with taxes, licensing, and compliance will likely drive consolidation, favoring established players like NSX. The company noted that NSX is projected to generate approximately $256 million in revenue and $34 million in Adjusted EBITDA in 2024. Meanwhile, Betfair Brazil is also showing strong growth, with projected 2024 revenue of about $70 million.

Future Prospects for Flutter Brazil

Looking ahead, Flutter expects the newly formed Flutter Brazil to be exceptionally well-positioned to capitalize on the market’s anticipated growth. The company aims to drive market share and future profitability by employing disciplined customer acquisition strategies similar to those used successfully in the US and other regulated markets.

However, initial investments in customer acquisition and market development are expected to result in an Adjusted EBITDA loss of $90-100 million for 2025. Despite these early costs, Flutter remains confident in the long-term profitability of its Brazilian operations and remains committed to maintaining its medium-term leverage ratio of 2.0-2.5x, allowing the group the flexibility to pursue additional value-creating acquisitions.

Flutter’s acquisition of a majority stake in NSX Group signals a bold move into Brazil’s sports betting market, reinforcing its strategy of leveraging local expertise to drive growth in key international markets. As Brazil inches closer to regulatory changes, Flutter’s strategic positioning and robust portfolio promise to make it a dominant force in this burgeoning market, setting the stage for continued expansion and long-term success.

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Flutter Entertainment Secures Majority Stake in Betnacional Operator NSX Group, Bolstering Brazilian Market Presence Flutter Entertainment, a global leader in sports betting and gaming, has confirmed a major acquisition that strengthens its footprint in one of the world’s fastest-growing betting markets. With the purchase of a 56% stake in NSX Group, the operator of the
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