A major global sports betting and iGaming operator closed a deal on Wednesday that enhances its branding in the large and lucrative Brazilian market.
Key Takeaways
- Flutter acquires 56% of NSX and expands its reach in a lucrative Latin American market.
- The deal also comes with the ability for Flutter to increase its shareholding.
- The global sports betting and iGaming company adds popular operator Betnacional to the portfolio.
Flutter Entertainment announced the completed acquisition of NSX, giving the parent company of FanDuel and the newly formed Flutter Brazil a 56% stake for $350 million. The deal was first announced in September 2024.
The transaction adds NSX-owned Betnacional to the Flutter portfolio, which already includes Betfair Brazil. The transaction also includes a mechanism that allows Flutter to increase its shareholding through reciprocal put/call arrangements in years five and 10 of the deal.
"I am delighted to welcome NSX – the operator of leading Brazilian sports betting and iGaming brand, Betnacional – to the Flutter portfolio,” Flutter CEO Peter Jackson said. “The transaction demonstrates Flutter's powerful optionality as an 'and' business and aligns perfectly with our strategy for value creating (mergers and acquisitions).”
Creating revenue
Flutter said the acquisition will give the international reporting segment $220 million in additional revenue and $70 million in Adjusted EBITDA during 2025. The fast-growing regulated betting market helps the company strengthen its reach in a nation with more than 200 million people.
NSX launched in 2021, and by 2023, the company ranked fourth among operators in the Brazilian market. The global operator believes NSX’s access to Flutter Edge, a proprietary pricing and risk management sports betting product, and iGaming experience will greatly benefit those Brazilian brands.
“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,” Jackson said.
Big-time market expansion
This latest transaction allows the company to allocate capital to drive shareholder value creation. That leverage increase will also help Flutter reduce highly visible profitable growth opportunities in a desirable market.
Brazil launched regulated gaming earlier this year, and Latin America’s largest market is projected to generate more than $7 billion of revenue in 2025. Soccer is a major sport in the country. Flutter has been offering and pricing the popular sport under European and U.S. brands like PaddyPower, Betfair, and FanDuel for years.
