Flutter Entertainment makes $350m play in Brazil

Flutter Entertainment has made a significant move in the Brazilian iGaming and sports betting market with the company committing $350m to buy out NSX Group, which controls Betnacional, one of the country’s largest betting and online casino brands.

The purchase is carried out in an all-cash deal, with Flutter Entertainment hoping to create a pivot for its business in Brazil, which already includes the Betfair brand. NSX is projected to generate as much as $256m in revenue.

Flutter makes multi-million push in the Brazilian gambling market

Flutter is planning to merge the operations of Betnacional and Betfair to create a new local behemoth capable of servicing the country’s sprawling and soon-to-be-regulated market.

The deal also opens the door for further stake acquisition in the company which could take place over the next ten years, the companies said in a press statement, with the current deal due to be finalized in 2025, and most likely in the second half as the companies clear the customary closing conditions. Commenting on the deal, Flutter said:

"Flutter Brazil will be exceptionally well positioned to take full advantage of the significant growth opportunity in the newly regulating Brazilian market. In line with our successful strategy in other newly regulated markets such as the US, we expect to grow market share and embed future profitability through disciplined customer investment."

As the Brazilian iGaming and sports betting market is preparing to be fully regulated in 2025 the brand is going up against a number of other websites and brands, such as bet365 and Betano which have been actively promoting their brands and products in the country.

Flutter is happy with the purchase as NSX, which only entered Brazil in 2021, has built a significant local presence that can now be reinforced by the company’s expertise in international betting and gaming markets. NSX accounts for 12% of the existing sports betting market in the country and 9% in all iGaming.

Flutter Brazil to experience temporary financial setbacks as market share grows

Flutter though has cautioned that it is expecting to see its adjustedEBITDA loss for Brazil to hit $100m in 2025, up from previously $90m.

According to the company, despite this temporary setback, the company will be very well positioned in the Brazilian iGaming landscape, with Flutter Brazil able to continue and secure an ever-growing share of the market.

The company is nevertheless committed to its mid-term leverage ratio of 2.0-2.5x, showing confidence that after the acquisition costs settle, Flutter Brazil may soon start working towards profitability.

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