Peter Jackson, chief executive officer of Flutter Entertainment. Photo: Carlotta Cardona/Bloomberg
Flutter Entertainment has acquired a 56pc stake in NSX Group, a Brazilian sports betting group.
NSX, which owns a portfolio of brands including its flagship Betnacional brand, is expected to generate revenues of around $256m (€231m) this year, as well as an adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of around $34m (€31m).
The group first entered the Brazilian market in 2021. NSX now holds a 12pc share of the sports betting market and a 9pc of the total online market.
Under the terms of the deal, Flutter will pay around $350m (€316m) and contribute its existing Betfair Brazil business in return for a 56pc stake in the newly combined Flutter Brazil business.
A mechanism has also been introduced to enable Flutter to increase its shareholding through reciprocal put or call arrangements five and ten years after the completion date of the deal.
Brazil is set to fully regulate its online sports betting and iGaming market in early 2025. The country has a population of over 200 million, while compound annual gross gaming revenue in the unregulated market was almost $3bn last year.
The deal is subject to regulatory clearance and is expected to close by the second quarter of 2025.
“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,” Flutter chief executive Peter Jackson said.