Flutter Entertainment acquires 56% stake in Brazil’s NSX Group for $350 million

Flutter Entertainment is expanding its reach into Brazil’s fast-growing betting market with the acquisition of a 56% stake in NSX Group, the operator behind the popular Betnacional brand. The $350 million deal is set to close by the second quarter of 2025.

The company announced on Friday its partnership with Grupo NSX to establish Flutter Brasil, which will own the brands Betfair, Betnacional, Mr. Jackbet, and Pagbet. The acquisition agreement allows Flutter to fold its Betfair brand into a new entity called 'Flutter Brazil”. NSX, which also manages Pagbet, MrJack.bet, and Betpix, is expected to generate $256 million in revenue in 2024, alongside $34 million in adjusted EBITDA. 

"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," said Flutter CEO Peter Jackson.

Flutter CEO Peter Jackson

Brazil is slated to fully regulate online sports betting by early 2025. According to estimates, NSX controls 12% of Brazil’s sports betting market and 9% of its online gaming sector.

The acquisition fits into Flutter’s broader strategy of expanding by acquiring local brands in emerging markets. 

Known as the “local hero” approach, this method has worked well for Flutter in other territories, such as the U.S., where it has capitalized on market growth through strategic investments.

This deal also gives Flutter access to NSX’s proprietary technology platform, developed in Brazil and tailored for the local market. The combination of this technology with Flutter’s advanced data analytics capabilities, known as the “Flutter Edge,” is expected to drive efficiencies and synergies. 

Despite Flutter's plans for growth, the company expects to record an adjusted EBITDA loss of up to $100 million in 2025. This reflects the high costs associated with building market share in a newly regulated environment. However, Flutter remains optimistic about the long-term profitability of its Brazilian operations, citing the strength of its local team and established market presence.

Flutter’s strategy echoes its success in the U.S., where disciplined investments have led to significant market share growth in the regulated betting market. The company aims to replicate this model in Brazil, where its competitive position will likely solidify once the regulatory framework is fully in place.

Further updates on this acquisition will be provided by Flutter at its upcoming investor day on September 25, where the company is expected to outline its broader plans for Brazil’s newly regulating sports betting market.