Flutter Entertainment, the world’s leading sports betting and iGaming operator, today announced the acquisition of an initial 56% stake in Grupo NSX, owner of Betnacional.
This transaction was carried out for approximately US$350 million. The acquisition is fully aligned with Flutter’s strategy of investing in leading positions in international markets.
Flutter will have a prominent position in Brazil with the acquisition of Betnacional
In this way, Flutter will obtain a prominent position, once Brazilian regulation advances. NSX is the fourth largest operator in Brazil, with a portfolio of brands that includes the flagship brand, Betnacional.
On a standalone basis, NSX is expected to generate revenue of approximately $256 million. Furthermore, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) is expected to reach around US$34 million in 2024.
Therefore, under the terms of the transaction agreement, once finalized, Flutter will pay approximately US$350 million. The company will also contribute to its existing Betfair Brasil business in exchange for a 56% stake in the new combined business in Brazil.
Furthermore, Flutter has established a mechanism that will allow it to increase its shares through purchase and sale agreements in the five and ten years after the transaction.
This acquisition is attractive and in line with Flutter’s strategy. Therefore, the company expects this to create value for shareholders, providing a strengthened competitive position in a rapidly growing and newly regulated market.
Opportunities in the Brazilian market
Brazil is expected to fully regulate its online sports betting and iGaming market at the beginning of 2025. In other words, for foreign investors, the Brazilian market presents a series of attractive factors for investment.
Brazil, with more than 200 million inhabitants, is known as the “country of football” precisely in the sport that is the most popular on betting sites. Therefore, the demand for sports betting and iGaming is growing rapidly in the country. Since 2018, Gross Gaming Revenue (GGR) in the unregulated market has seen annual growth of 38%.
Thus, locally focused brands have achieved most of the growth and market share gains. The expectation is that consolidation in the regulated sector, from the beginning of 2025, will benefit established local operators.
Peter Jackson, CEO of Flutter, said: “I am pleased to announce the addition of NSX, operator of Betnacional, one of the leading sports betting and iGaming brands in Brazil, to the Flutter portfolio.”
