Flutter Entertainment expands in Brazil with $350 million Betnacional acquisition

The owner of Paddy Power and Sky Bet has bought a majority stake in the owner of leading Brazilian gambling brand Betnacional as it seeks to expand into the much-coveted market.

Flutter Entertainment has spent $350 million (approx £266m) on an initial 56 per cent stake in NSX Group, the number four operator in Brazil, which will be combined with its existing Betfair operation to create a new Flutter Brazil business.

A mechanism has also been put in place that will enable Flutter to increase its shareholding in year five and year ten following the completion date, which is expected by the end of June next year.

Brazil is due to fully regulate its online sports betting and gaming market in early 2025 and has attracted the attention of the major global gambling brands thanks to its population of more than 200 million and its interest in sports, especially football.

NSX entered the market in 2021 and has grown rapidly to take a 12 per cent share of the sports betting market in Brazil and a nine per cent share of the total online market. On a standalone basis it is expected to generate revenue of approximately $256m and adjusted earnings of around $34m this year.

Flutter chief executive Peter Jackson said he was excited to announce the deal.

Flutter Entertainment chief executive Peter Jackson

He added: "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."

Analysts at stockbrokers Davy said the acquisition was a "good use of capital" and strengthened Flutter's position in the market, adding they would be very confident of them achieving a strong position in Brazil.

Last month Flutter also confirmed it was in talks over a potential £2 billion deal to buy Snaitech, one of the largest gambling operators in Italy and owner of San Siro racecourse.

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