Flutter Entertainment Acquires Majority Stake in Brazil’s Betnacional

Flutter Entertainment, listed on both the NYSE and LSE, has completed the acquisition of a majority stake in NSX Group. This deal serves as the foundation for the launch of ‘Flutter Brazil,’ integrating the Betnacional and Betfair BRA brands. With NSX recognized as the fourth-largest operator in Brazil, the acquisition aligns with Flutter’s strategic focus on leading in international markets.

NSX is projected to generate $256 million in revenue and $34 million in Adjusted EBITDA for 2024. Flutter expects this acquisition to secure a strong position in the Brazilian market, a region showing rapid growth in both sports betting and iGaming, with the unregulated market seeing a compound annual growth rate (CAGR) of 38% since 2018.

The company’s long-term ambition is to leverage Betnacional’s “local hero” status and combine it with the technology and expertise from the Flutter Edge programme to enhance the overall offering.

Acquisition Terms

Flutter will have exclusive arrangements to fully acquire NSX within the next five to ten years. In addition to increasing market share in Brazil, this acquisition provides Flutter with an opportunity to benefit from Brazil’s regulatory transition, with an expected Adjusted EBITDA loss of $90-100 million in 2025. Flutter’s leadership believes that its investment in NSX will accelerate future profitability in Brazil.

Peter Jackson, Flutter’s CEO, shared his excitement about the acquisition: “I am excited to announce the addition of NSX, operator of Betnacional, a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio. 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 capitalise on the growth opportunity in Brazil, which presents an exciting runway of future growth.”

Next Steps and Timeline

The synergies between Betnacional and Flutter’s resources are expected to create a robust combined entity. The Flutter Edge programme will enhance Betnacional’s offerings through proprietary technology, pricing strategies, and risk management expertise. Leadership is optimistic that Flutter Brazil will gain significant market share through this partnership, positioning itself as a leading player in the sports betting and iGaming sectors in Brazil.

The transaction is subject to regulatory approval and is expected to close by Q2 2025. Flutter plans to provide further updates on the acquisition and future growth strategies during its Investor Day on 25th September, where it will outline its organic growth and capital allocation opportunities.