Recently, Flutter, the parent company of Paddy Power Betfair, has secured a dominant interest in a principal Brazilian bookmaking company for a sum of €316 million (£269 million) in an outright cash deal. The firm, formerly listed in Dublin but now on the New York Stock Exchange, purchased an introductory 56 percent stake in NSX Group, which runs Betnacional, a popular brand in Brazil’s betting industry.
Flutter estimates that NSX will bring in an income of approximately $256 million (£218 million) this year, alongside adjusted EBITDA projection of $34 million (£29 million). The company conveyed to shareholders that the investment is anticipated to bolster its status in the blossoming betting market.
Brazil, which plans to thoroughly legitimise its online sports wagering and iGaming market early next year, is a significant opportunity with its population of over 200 million. Sports, particularly football, are central to Brazilian culture, a fact highlighted by Flutter.
The NSX, which began operations in 2021, is currently the fourth largest operator in Brazil, boasting a 12% share in the sports betting market and a 9% share in the online market. Flutter is confident that its Brazilian segment is exceptionally positioned to capitalise on the considerable growth opportunities in Brazil’s newly regulated market.
According to Flutter’s strategy for newly regulated markets such as the US, it plans to grow its market share and secure future profitability through disciplined customer investment. Peter Jackson, CEO of Flutter, shared his enthusiasm for welcoming NSX Group to the Flutter portfolio and recognised the gigantic growth potential in Brazil due to a combination of local expertise from the NSX team, their current Betfair business, and Flutter’s own influence.