Flutter Entertainment, the global leader in online sports betting and iGaming, announced on May 14, 2025, the completion of its acquisition of a majority 56% stake in NSX Group, the operator behind the prominent Brazilian sportsbook brand Betnacional. The cash deal, valued at approximately $350 million, marks a significant step in Flutter’s strategy to consolidate its position in emerging international markets, particularly Brazil’s newly regulated betting sector.

Strategic expansion in Brazil’s growing market:

Brazil, with a population exceeding 200 million and a fervent sports culture centered around soccer, represents one of the world’s most promising online sports betting and iGaming markets. NSX Group, which launched in 2021, quickly ascended to become the fourth-largest operator in Brazil by 2023. Flutter’s acquisition of a majority stake in NSX consolidates its footprint in this dynamic market by merging NSX’s operations with Flutter’s existing Betfair Brazil business, now contributed to form the combined entity Flutter Brazil.

Peter Jackson, Flutter’s CEO, emphasized the strategic fit of the deal in the company’s press release: “The transaction demonstrates Flutter’s powerful optionality as an ‘and’ business and aligns perfectly with our strategy for value creating M&A. The combination of NSX’s extensive local expertise, alongside our existing Brazilian business and the advantages of the Flutter Edge, creates a compelling opportunity to capitalize on the exciting runway of future growth in Brazil.”

The integration will enable the newly combined business to harness Flutter’s proprietary pricing models, risk management technology, and iGaming content to deliver a differentiated sportsbook and gaming product. This synergy aims to enhance customer engagement and drive market share gains in a sector characterized by rapid growth following recent regulatory changes.

Flutter expects the acquisition to generate approximately $220 millionin additional revenue in 2025, though an adjusted EBITDA loss of about $70 million is anticipated during the integration phase. These financials will be reported under Flutter’s International segment. The company also secured reciprocal put and call options allowing it to increase its stake in NSX in the fifth and tenth years following completion.

Financial position and growth outlook:

Despite an expected temporary rise in leverage due to the acquisition, Flutter reaffirmed its commitment to a medium-term net leverage target between 2.0x and 2.5x. The transaction complements other recent international expansions, including the acquisition of Snai in Italy, as Flutter projects continued revenue growth. For the full year 2025, Flutter anticipates revenues of $17.08 billion and adjusted EBITDA of $3.18 billion, representing growth of 22% and 35%, respectively.

The acquisition also aims to address recent challenges in Brazil’s market. Following a 44% year-on-year revenue decline in Q1 2025, Flutter seeks to strengthen its competitive positioning through the combined capabilities of NSX and Betfair Brazil, capturing a podium position among local brands.