Flutter Entertainment has expanded its presence in South America with a 56% share in NSX Group. The Brazilian company, which promotes the Betnacional brand, has agreed to let Flutter enter the market for $350m.
NSX is Brazil’s fourth-largest gambling operator, with an expected revenue of approximately $256m and Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of roughly $34m in 2024.
Flutter buys into Brazilian gambling operator
The cash consideration for the international gambling company is $350m, which will see the creation of the Flutter Brazil brand and a 56% stake in NSX. According to a release on Friday (Sep, 13) Flutter Brazil can expand its shareholding in the company “through reciprocal put/call arrangements in year five and year ten following the completion date.”
In the statement, Flutter explains the company’s decision to invest in the Brazilian market ahead of expected gambling reform in 2025. Brazil has a population of 200 million people, and sport is an integral part of the country’s national identity, with the Seleção (Brazil’s national soccer team) being the country’s number one sporting interest.
Flutter states that there is a strong demand in the nation, not just for soccer, but for gambling on sports and iGaming in general, “with compound annual gross gaming revenue (GGR) growth in the unregulated market of 38% since 2018, to almost $3bn in 2023.”
Flutter CEO Peter Jackson said of the deal, “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.”
Flutter has had a busy 2024 so far. The chief finance officer of the international sports brand stepped down amid the UK’s crackdown on gambling profits and regulation of safer gambling initiatives. The Dublin-based gambling institution has looked to U.S. gamblers after hitting the Wall Street floor in January of this year. The company also built bridges in France through a deal with operator Pari Mutuel Urbain (PMU), showing its international reach.
Image: Flutter.
