Flutter Entertainment, a global leader in online sports betting and iGaming, has announced the acquisition of a 56% stake in NSX Group, a prominent Brazilian operator known for its Betnacional brand. This strategic move, valued at approximately $350 million, aligns with Flutter’s international growth strategy and strengthens its position in the rapidly growing Brazilian market.
NSX Group, the fourth-largest operator in Brazil, boasts a portfolio of successful brands, including Betnacional. The company is expected to generate $256 million in revenue and $34 million in Adjusted EBITDA by 2024. As part of the acquisition, Flutter will combine its existing Betfair Brazil business with NSX, creating the new Flutter Brazil entity. Flutter has also established a mechanism to increase its stake over time, with put/call arrangements in place for years five and ten post-completion.
Strengthening Flutter’s Position in a Fast-Growing Market
Brazil’s online sports betting and iGaming market is set to fully regulate by early 2025, making it one of the most attractive global opportunities. With a population exceeding 200 million and a strong cultural connection to sports, particularly soccer, the Brazilian market has seen annual gross gaming revenue (GGR) growth of 38% since 2018, reaching nearly $3 billion in 2023.
The newly formed Flutter Brazil business will benefit from the strength of local brands and a strong local management team, ensuring a competitive edge in the newly regulated landscape. The company is poised to capitalize on this growing market, where consolidation is expected to favor established, locally focused operators.
Enhancing the “Local Hero” Brand Portfolio
The addition of NSX’s fast-growing brands to Flutter’s portfolio, alongside Betfair Brazil, will create a dominant position in the Brazilian market. NSX, which entered the market in 2021, has quickly captured 12% of the sports betting market and 9% of the total online market. Betfair Brazil is also forecasted to generate $70 million in revenue by 2024.
The combined Flutter Brazil entity will be supported by a proprietary technology platform developed locally, offering a dynamic and agile product to meet customer demands.
Driving Synergies and Value Creation
By integrating NSX with Flutter’s proprietary pricing, risk management, and iGaming expertise, the company expects to drive significant synergies. This will enable a differentiated sportsbook product and enhanced iGaming experience for Brazilian players. Despite expected initial Adjusted EBITDA losses of $90-100 million in 2025, Flutter Brazil is well-positioned to capture market share and future profitability.
The acquisition reflects Flutter’s disciplined approach to capital allocation, aiming to create long-term shareholder value. The transaction, which is subject to regulatory approval, 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 capitalize on the growth opportunity in Brazil which presents an exciting runway of future growth.”
