Paddy Power parent Flutter buys Brazilian betting group for $350m

Paddy Power Betfair parent Flutter has acquired a controlling stake in a leading Brazilian betting company for $350 million (€316 million) in cash.
Flutter Entertainment, which recently moved its primary listing from Dublin to the New York Stock Exchange, has acquired an initial 56 per cent stake in the NSX Group, which is an operator of the Betnacional brand in Brazil.
Flutter said NSX is expected to generate revenue of approximately $256 million this year, as well as adjusted earnings before interest, taxes, depreciation and amortisation of $34 million.
Flutter told investors the deal would be fruitful on the basis that it would enhance the company’s position in what is a growing betting market.
Brazil is due to fully regulate its online sports betting and iGaming market early next year. It has a population of more than 200 million people, while Flutter pointed out that sports, and soccer in particular, are “a key part” of Brazilian culture.
NSX entered the market in 2021 and is now the number four operator in Brazil with 12 per cent of the sports betting market and 9 per cent share of the online market.
Flutter said its Brazilian arm will be “exceptionally well positioned” to take full advantage of the “significant growth opportunity” in the newly regulated Brazilian market.
“In line with our successful strategy in other newly regulated markets such as the US, we expect to drive market share growth and embed future profitability through disciplined customer investment,” the company said.
Flutter chief executive Peter Jackson said: “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 capitalise on the growth opportunity in Brazil which presents an exciting runway of future growth.”