Flutter, one of the top three betting companies in Brazil with an 11% market share, has made headlines with its recent acquisition of a 56% stake in Betnacional parent NSX Group. The company’s position in the Brazilian market was elaborated upon during its Capital Markets Day presentation.
“The NSX Group acquisition will provide us with the necessary local expertise in the Brazilian market,” a spokesperson for Flutter stated. The deal is set to be finalized by the second quarter of 2025 and will lead to the creation of a new business segment known as ‘Flutter Brazil,’ which will encompass the existing Betfair brand as well as NSX Group’s Pagbet, MrJack.bet, and Betpix brands.
According to both Regulus Partners and internal estimates, NSX currently commands a 9% share of the total online market in Brazil. The estimated net gaming revenue (NGR) for Brazil in 2023 was $2.8 billion, with Flutter’s Betfair brands ranking third in terms of revenue, claiming over a tenth of the market share.
For the 12-month period ending on June 30, 2024, Flutter reported a combined revenue of $330 million from Betfair and NSX, with an average of 1.3 million monthly players. Despite these numbers, Brazil constituted only 1% of Flutter’s total revenue in 2023 and 2% of its revenue from the rest of the world.
Brazil is part of Flutter’s ‘consolidate and invest’ category, along with Armenia, Georgia, Spain, and Turkey. These countries contributed to approximately 77% of Flutter’s revenue in the first half of the year and 71% of its International profits.
At an investor day presentation in New York on September 25, Flutter emphasized that the NSX deal has positioned the company as a “strong podium player” in the emerging Brazilian betting market. The company believes that NSX’s expertise and payment knowledge will give it a competitive edge.
“We anticipate that next year will be a crucial time to capture market share,” stated international CEO Dan Taylor during the investor day. However, Taylor cautioned that uncertainties surrounding gambling taxes and the size of the market still remain. Despite these challenges, Flutter is confident that its early entry into the legal betting market will lead to success.
Analysts at Regulus forecast that Brazil’s betting market will see significant growth, with an annual compound growth rate of 18%. They predict that by 2030, the market’s NGR will reach $4.3 billion, a substantial increase from $0.8 billion in 2020. With these promising projections, Flutter is gearing up to make the most of the opportunities in the rapidly expanding Brazilian market.
