Flutter Acquires Betnacional Operator to Launch Flutter Brazil

FanDuel’s parent company to pay cash consideration of $350 million for No. 4 operator in Brazil, flagship Betnacional brand.

Grant Leonard - News Editor at Covers.com
Grant Leonard • News Editor
Sep 13, 2024 • 15:13 ET • 4 min read
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Brazil is due to fully regulate its online sports betting and iGaming market in early 2025, and Flutter just positioned itself to capitalize on one of the most attractive international markets in the industry. 

Flutter announced today that it has acquired an initial 56% stake in NSX Group (NSX), currently the No. 4 operator in Brazil, giving it domain over a portfolio of brands, which include the flagship Betnacional brand. 

Flutter will pay cash consideration of roughly $350 million and contribute its existing Betfair Brazil business in return for the majority stake in what will now be called Flutter Brazil. 

“I am excited to announce the addition of NSX, operator of Betnacional a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio,” Peter Jackson, Flutter CEO, said. “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.”

The company expects the deal will enable Flutter to increase its shareholder value. 

Betting on Brazil

Big-name sports betting brands have been eyeing entry into the lucrative Brazilian market for some time now, with more than 130 companies pre-registering for a license to operate fixed-odds sports wagering and iGaming earlier this year. 

With a population of more than 200 million and sports - namely soccer - being ingrained in the country’s culture, Brazil presents a compelling opportunity for major sports betting operators to capitalize. 

NSX entered the market in 2021, and grew rapidly to become the No. 4 operator with 12% of the sports betting market and 9% share of the total online market. Betfair Brazil is forecasting revenue of roughly $70 million in 2024, which gives the new Flutter Brazil a competitive position to build from. 

The Brazil sports betting and iGaming market is projected to continue its considerable growth in years to come, with compound annual gross gaming revenue growth in the unregulated market of 38% since 2018 to almost $3 billion in 2023.

International expansion

Flutter reported a 20% year-over-year revenue increase to $3.6 billion globally during its Q2 earnings release, and signaled its commitment to growing its business even more internationally by raising its guidance for the year from $7.65 billion to upwards of $8.15 billion across non-U.S. markets. 

UK-based gambling software company Playtech and Flutter have confirmed they are currently in negotiations over the sale of Playtech’s Italian consumer arm, Snaitech. If and when this deal goes through, Flutter will extend its Italian online gaming presence even further after the company first established a foothold there through a 2022 acquisition of Italy’s oldest gaming operator Sisal for $2.07 billion.  

There have even been rumors that Flutter was “sizing up” ESPN BET operator PENN Entertainment for a potential acquisition over the summer, a transaction that would undoubtedly send shockwaves through the entire industry. 

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Grant Leonard - Covers
News Editor

Grant is a former junior B ice hockey player, and a current believer that the Washington Capitals’ aging core still has another Cup run left in the tank. Grant’s owned and operated his own marketing agency since shortly after graduating from Virginia Tech in 2014. He pursued the profession because he figured it’d be a great way to get paid to do something he loves to do, write. After years of hammering puck lines and leading his fantasy football league as Commissioner, Grant started writing about sports betting and the casino gaming industry in 2021 and hasn’t looked back.

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