Flutter Entertainment has officially secured a majority foothold in Brazil’s gambling market, acquiring a 56% stake in NSX Group — the operator behind leading sportsbook brand Betnacional — for approximately $350 million in cash. The strategic acquisition brings together NSX and Flutter’s existing Betfair Brazil operations under a unified entity now known as Flutter Brazil.
Strategic Merger in a High-Growth Market
The transaction marks a pivotal move in Flutter’s broader international expansion strategy, particularly in Latin America’s largest and most dynamic market. With Brazil’s gambling industry undergoing rapid transformation through regulation and digitalisation, Flutter aims to capitalise on first-mover advantages by consolidating operations and optimising its market share.
The merger also comes at a crucial time for Flutter, which reported a 44% year-on-year revenue decline in Brazil during Q1 2025. By joining forces with a local market leader, the company is looking to reverse this trend through enhanced localisation, proprietary risk management tools, and an expanded iGaming portfolio.
Financial Impact and Integration Outlook
Flutter anticipates that the new entity will contribute $220 million in revenue over the next year. However, it also expects a $70 million adjusted EBITDA loss in 2025, attributed to initial integration and restructuring costs.
The financial contribution from Flutter Brazil will be recorded under the company’s International reporting segment, and while the deal adds short-term debt, Flutter has reaffirmed its commitment to maintaining a medium-term leverage ratio between 2.0 and 2.5x.
Ownership Structure and Future Expansion
As part of the deal structure, Flutter contributed its Betfair Brazil business in exchange for the 56% ownership stake. A predefined reciprocal put and call option mechanism enables Flutter to increase its ownership stake further in year five and year ten, positioning the company for potential full control depending on future market performance and strategic alignment.
Flutter’s Broader Global Ambitions
This acquisition follows Flutter’s recent international activity, including its expansion into Italy via Snai and continued focus on high-potential regulated markets. In Q1 2025, Flutter reported $335 million in net income and an 8% increase in group revenue to $3.7 billion, reinforcing investor confidence in its global strategy.
As Flutter integrates NSX and navigates Brazil’s evolving regulatory landscape, the move signals a confident, long-term commitment to becoming a dominant force in one of the world’s fastest-growing betting markets.
