Flutter Entertainment has completed its acquisition of a 56% stake in NSX Group, the Brazilian operator behind Betnacional. This deal is worth around $350 million in cash, representing a move into one of Latin America’s most promising markets.

Furthermore, it aligns with Flutter’s strategy of securing leadership in attractive international markets. With over 200 million people and a national obsession with football, Brazil presents a fantastic opportunity for growth. The country’s iGaming and sports betting sector became regulated recently but it’s expected to expand fast. So, Flutter is positioning itself to lead the charge.

Strategic Boost to Flutter’s Brazilian Presence

As part of the transaction, Flutter merged its existing Betfair Brazil business with the new entity, resulting in a 56% stake in Flutter Brazil. NSX entered the Brazilian market in 2021 and became the fourth-largest operator by 2023. This merger reinforces Flutter’s “local hero” brand strategy by combining Betnacional’s local appeal with Betfair’s global reputation.

Peter Jackson, CEO of Flutter Entertainment, commented:

“I am delighted to welcome NSX – the operator of leading Brazilian sports betting and iGaming brand, Betnacional – to the Flutter portfolio. This transaction demonstrates our strong optionality and aligns perfectly with our value-creating M&A strategy. By combining NSX’s local expertise with the Flutter Edge, we’re ready to seize the exciting growth opportunities ahead in Brazil.”

Revenue Synergies and Long-Term Outlook

Flutter anticipates revenue synergies by strengthening Betnacional’s sportsbook product with its proprietary pricing and risk management systems.

Also, this acquisition will improve user experiences in the country due to Flutter’s iGaming content and global expertise. The new Brazilian business is projected to generate $220 million in additional revenues with an adjusted EBITDA loss of $70 million in 2025. 

The deal features reciprocal put/call options allowing Flutter to increase its stake in years five and ten after completion. Despite the short-term increase in leverage, Flutter remains committed to its medium-term target leverage ratio of 2.0 to 2.5x. The company expects to create meaningful shareholder value over time.

Flutter Sharpens Global Leadership in iGaming

With this move, Flutter solidifies its reputation as a dominant force in online betting and gaming. The company operates a portfolio of major brands including FanDuel, PokerStars, Sky Betting & Gaming, and Paddy Power, and posted $14 billion in revenue for 2024, up 19% year-over-year.

The group is combining its vast resources with NSX’s rapid growth to drive sustainable growth across the Brazilian market.