Flutter Entertainment has made a significant move into the Brazilian market by acquiring a 56% stake in NSX Group, the operator behind the popular Betnacional brand, for approximately $350 million. This strategic acquisition aligns with Flutter’s strategy to invest in leadership positions in international markets, particularly in the rapidly growing and newly regulated Brazilian market.
NSX Group, which entered the Brazilian market in 2021, has quickly become one of the leading operators, holding 12% of the sports betting market and 9% of the total online market. The group is expected to generate $256 million in revenue and $34 million in adjusted EBITDA in 2024.
Key aspects of the acquisition
- Enhanced Competitive Position: The acquisition delivers an enhanced competitive position in a fast-growing, newly regulated market. Brazil is set to fully regulate its online sports betting and iGaming market in early 2025, presenting a significant growth opportunity;
- Local Hero Strategy: The deal fits with Flutter’s “local hero” approach, adding recognized local brands to its portfolio. This strategy has been successful in other markets, such as the U.S., and aims to create a podium position in Brazil;
- Synergies and Value Creation: The acquisition is expected to drive synergies through access to Flutter’s proprietary pricing and risk management capabilities, enhancing NSX’s sportsbook offering and iGaming experience;
- Combined Business: Flutter will contribute its existing Betfair Brazil business to create a combined Flutter Brazil business, leveraging the local expertise of the NSX team and the power of the Flutter Edge;
- Future Growth: Despite an expected adjusted EBITDA loss of $90-100 million in 2025 due to high costs associated with building market share, Flutter remains optimistic about the long-term profitability of its Brazilian operations;
Flutter CEO Peter Jackson expressed his enthusiasm for the acquisition, stating, “We believe that combining the extensive local expertise of the NSX team, our existing Betfair business, and the power of the Flutter Edge, will create a compelling opportunity to capitalize on the growth opportunity in Brazil which presents an exciting runway of future growth”.
NSX Group’s portfolio
| Brand | Description |
|---|---|
| Betnacional | Flagship sports betting and iGaming brand with naming rights for the Brazilian Serie B. |
| Pagbet | Additional iGaming and sports betting brand operated by NSX. |
| MrJack.bet | Another iGaming and sports betting brand within NSX’s portfolio. |
| Betpix | Further iGaming and sports betting brand managed by NSX. |
The transaction is subject to customary regulatory approvals and is expected to close by the second quarter of 2025. Further updates on the acquisition will be provided during Flutter’s investor day on September 25.
