Flutter Entertainment has completed its takeover of a majority stake in NSX, the parent company of one of Brazil’s largest online bookmakers, Betnacional.

The NYSE firm paid $350m for a 56% stake in NSX, cementing its podium spot in yet another market, and one which has been by far the subject of the most hype over the past two years.

Post-acquisition, Flutter expects that the integration will lead to US$200m in additional revenue for its international business by the end of 2025. However, it also anticipates an EBITDA loss of $70m as a result of the $350m payment and planned future customer investment.

Peter Jackson, CEO, commented: “I am delighted to welcome NSX – the operator of leading Brazilian sports betting and iGaming brand, Betnacional – to the Flutter portfolio. The transaction demonstrates Flutter’s powerful optionality as an ‘and’ business and aligns perfectly with our strategy for value-creating M&A.

“The combination of NSX’s extensive local expertise, alongside our existing Brazilian business and the advantages of the Flutter Edge, creates a compelling opportunity to capitalize on the exciting runway of future growth in Brazil.”

Taking the Flutter Edge to Brazil

For the past few years, Flutter has been implementing a policy of acquiring ‘gold medal’ brands in some of the world’s largest markets. The company itself has its origins in M&A, harking back to the merger between Paddy Power and Betfair in 2015.

The firm acquired Georgia’s Adjarabet back in 2019, and most significantly, US market leader FanDuel in 2020. Five years down the line, FanDuel stands out as by far the group’s most valuable asset, though this has not led to the firm abandoning its international vision, with Italy becoming a particularly significant M&A target.

Given the huge amount of anticipation for Brazil market launch and projections that the sector will be worth US$10bn (R$47.2bn) in GGR by 2029, according to H2 Gambling Capital, it stands to reason that Flutter would want to apply its strategy of acquiring what it calls ‘local heroes’ to the country.

Betnacional was established in 2021 and became one of the first licence holders in Brazil’s early days regulated regime, ‘Bets’, launched on 1 January this year. The company is the fifth largest by market share, but operates in what is already a highly competitive and saturated market.

Flutter first secured terms to acquire a 56% stake in NSX in September last year. The plan is for NSX/Betnacional to form the backbone of a ‘Flutter Brazil’ business, with backing from the group’s ‘Flutter Edge’ product, tech, and scale support.

NSX’s CEO, João Studart, will remain at the company and has been assigned the leadership role at Flutter’s new Brazilian operation. He described the stake acquisition as indicative of “the recognition of a work that began as a Brazilian startup and that, with strategic vision, talent and consistency, has consolidated itself as a reference in the betting and digital entertainment sector, with leading brands such as Betnacional.”

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