Flutter Entertainment acquires majority stake in Brazil’s Betnacional

Flutter Entertainment has made a significant move into the Brazilian online betting and gaming market through the acquisition of an initial 56 per cent stake in Betnacional owner NSX Group.

Flutter will pay a cash consideration of R$1,981m (approx. $350 million) and contribute its existing Betfair Brazil business, in return for a 56 per cent stake in the newly combined Flutter Brazil business.

In addition, Flutter will have the option to increase its shareholding through reciprocal put/call arrangements in years five and ten following completion.

“I am excited to announce the addition of NSX, operator of Betnacional a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio,” said Flutter CEO Peter Jackson. “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.”

Flutter said that revenue synergies will be achieved by providing NSX with access to Flutter’s proprietary pricing and risk management capabilities to deliver a differentiated sportsbook product offering. This is in addition to the sharing of Flutter’s iGaming expertise and content to enhance the iGaming experience.

NSX entered the market in 2021 and is estimated to be the fourth largest operator in Brazil, with its own proprietary technology platform developed locally in Brazil. Alongside its flagship Betnacional brand, NSX also operates the Mr. Jackbet, Pagbet and Betpix brands in Brazil.

On a standalone basis, NSX is expected to generate revenue of $256m and adjusted EBITDA of $34m in 2024, while Betfair Brazil is slated to deliver strong growth with forecast revenue of $70m this year.

Brazil is due to fully regulate its online sports betting and iGaming market early next year, with the enlarged Flutter Brazil business expected to generate an EBITDA loss of approximately $90-100 million in 2025.

Completion of the transaction is subject to customary regulatory clearances and is expected to close by the second quarter of 2025.

Shares in Flutter Entertainment plc. (NYSE:FLUT) closed 0.32 per cent lower at $219.50 per share in New York Thursday, prior to this morning’s announcement.