Flutter acquires majority stake in Brazil’s NSX for $350 million

Flutter, the owner of Paddy Power, has announced its acquisition of a 56% stake in NSX Group, which operates the Betnacional brand in Brazil, for approximately $350 million. This strategic move is part of Flutter's ongoing global expansion efforts and comes ahead of the anticipated launch of Brazil's regulated betting market in January next year. The acquisition follows prior discussions regarding NSX, which is recognized as the fourth largest gambling operator in the country. The merger will see Flutter's existing Betfair Brazil business combine with NSX to create a new entity called Flutter Brazil. This integration aims to leverage the local expertise of NSX alongside Flutter's established operations, enhancing their competitive edge in the burgeoning Brazilian market. The region is viewed as a promising investment opportunity, particularly due to the strong cultural affinity for sports, especially football. Peter Jackson, Flutter's CEO, expressed enthusiasm about the acquisition, highlighting the potential for growth in Brazil's sports betting and iGaming sectors. Analysts, including Greg Johnson from Shore Capital, have endorsed the acquisition as a strategic move that will bolster Flutter's growth profile in the region. The deal also includes options for Flutter to increase its stake in NSX five and ten years post-acquisition. Overall, this acquisition positions Flutter to capitalize on the expected growth in Brazil's regulated betting market, reflecting the company's commitment to expanding its international footprint and tapping into new revenue streams.