Flutter Acquires Stake in NSX Group, Leading Brazilian Sports Betting and iGaming Operator
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Flutter announced today the acquisition of an initial 56% stake in NSX Group, a leading Brazilian operator of the Betnacional brand for $350 million.
The company announced the deal this morning, noting it would help secure a “podium position” in the regulating and fast-growing Brazilian sports betting and online casino gaming market. NXS is a top-four operator in Brazil and is expected to generate revenue of approximately $256 million and adjusted EBITDA of approximately $34 million in 2024, according to a company release.
Completion of the deal is subject to regulatory clearances and is expected to close by the second quarter of 2025.
Brazil is Fast Growing, Newly Regulated Market
Flutter explained its stake in NSX Group as means to solidify the company in Brazil’s fast growing, newly regulated sports betting and iGaming market. Brazil is expected to fully regulate its online sports betting and iGaming market in early 2025.
Brazil’s unregulated gaming market has grown to almost $3 billion in gross gaming revenue in 2023. It has a population of over 200 million with sports, particularly soccer, being a key part of the country’s culture.
“I am excited to announce the addition of NSX, operator of Betnacional a leading Brazilian sports betting and iGaming brand, to the Flutter portfolio. 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 CEO Peter Jackson said.
NSX entered the market in 2021 and now finds itself as a top-four operator, with a 12% sports betting market share and a 9% share of the total online market. Currently, Betfair Brazil delivered strong growth with a forecast revenue of approximately $70 million in 2024.
As part of the deal, a mechanism has bee put in place to enable Flutter to increase its shareholding in NSX through reciprocal put/call arrangements in year five and year 10 following the completion date.
Robert Linnehan
Covering regulatory developments in online gambling. Editing/writing/creating a newsletter for readers across all formats.
