Flutter acquires 56% stake in Betnacional as launchpad for new Brazil business

Flutter Entertainment Plc has acquired a 56% stake in NSX Group, the operating firm of the Betnacional brand in Brazil.

The NYSE and LSE gambling group put forward a cash consideration of approximately $350m to acquire its majority stake in NSX. The deal is viewed as the platform to launch the ‘Flutter Brazil’ business, that will be formed by the brands of Betnacional and Betfair BRA.

NSX is recognised as the fourth-largest operator in Brazil. Prior to the launch of the Bets regime, Betnacional is expected to generate circa $256m in revenue and $34m in Adjusted EBITDA for 2024 trading.

Flutter noted: “The transaction fully aligns with Flutter’s strategy to invest in leadership positions in international markets, securing a podium position for Flutter on completion in the regulated and fast-growing Brazilian market.”

The deal terms see Flutter maintain exclusive arrangements to take full ownership of NSX within a five-to-ten-year period.

The acquisition sees Flutter rubber-stamp Brazil as its next target destination, in which it seeks to be top of the podium in a market of 200m consumers with strong demand for sports betting and iGaming products, with compound annual gross gaming revenue (GGR) growth in the unregulated market of 38% since 2018, reaching almost $3bn in 2023.

Leadership views that the “majority of growth and market share gains have been delivered by locally focused brands,” in which Flutter Brazil will enhance its status and presence with the ‘local hero’ brand of Betnacional.

Synergies will see Betnacional’s offering enhanced by the Flutter Edge programme, providing NSX with proprietary technology, pricing, and risk management expertise.

Launching Flutter Brazil, the combined entity will be well-positioned to capitalise on Brazil’s regulatory transition, with an expected Adjusted EBITDA loss of $90-100m in 2025. Leadership underscored that the investment in NSX will accelerate its Brazil business towards future profitability.

Completion of the transaction is subject to customary regulatory clearances and is expected to close by Q2 2025.

Peter Jackson, CEO, commented: “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.”

We will provide a further update at our Investor Day on 25th September, where we expect to discuss Flutter’s exciting organic growth and cash generation potential in the medium term, together with the capital allocation opportunities that this will unlock.