On Friday, Flutter Entertainment (NYSE: FLUT) said it will buy a 56% stake in NSX Group, the operator of Brazilian gaming group Betnacional, for about $350 million as it seeks to expand in the soon-to-be regulated market.
Flutter, owner of FanDuel and Paddy Power, said it would merge Betnacional with its existing Betfair Brazil brand and invest heavily to drive market share growth, similar to its strategy in the U.S. where it is now the No. 1 operator.
Sports bets were legalized in soccer-mad Brazil in 2018 but will only be fully regulated in early 2025. Dozens of betting brands, including Betfair, bet365, and Betano, have been aggressively expanding in the country in recent years.
NSX is the No. 4 player, with 12% of sports betting market share. It is expected to generate revenue of around $256 million in 2024 – more than three times that of Betfair Brazil – and a core profit of around $34 million in 2024, Flutter said.
Flutter Entertainment (NYSE: FLUT), which will be able to increase its shareholding after five and 10 years of completing the deal, said it expected the new Flutter Brazil unit to make a loss of around $90 million-$100 million in 2025 due to its investment drive.
Last month, the Irish betting group said it is also in talks to buy UK gambling technology firm Playtech’s Italian unit Snaitech.
(Source: Reuters)
Betnacional Flutter Entertainment NYSE: FLUT
