NSX Group developed the NSX sports betting platform, which it initially offered to various operators but later chose to use it exclusively for its own brands, including Betnacional, Mrjack, Pagbet, and Betpix. Despite being based in the UK, NSX Group maintains strong ties to Brazil, with teams based in Recife and São Paulo.
Flutter’s interest in Betnacional is seen as a move to expand its global footprint and take advantage of the impending regulation of betting in Brazil. The company, which owns FanDuel, the leading American operator, recently relocated its primary stock market listing from London to Wall Street, reflecting its growing focus on the American market.
Earlier this year, Flutter’s CEO Peter Jackson has highlighted the potential of the Brazilian market and the company’s strong balance sheet, which provides the flexibility to pursue deals or return cash to shareholders. The CEO expressed satisfaction with the performance of PokerStars and Betfair in Brazil and emphasised that organic growth would be pivotal for Flutter.
During firm’s Q2 2024 earnings call, Jackson commented that Flutter is aiming for “podium positions” in Brazil. When asked about Flutter’s positioning in Brazil and potential M&A deals, he said: “I think we’re reasonably well placed with our Betfair brand in that market. And of course, we also operate PokerStars there as well. We are ambitious, and I really would like to have gold medal positions.”
He added that while Flutter has achieved success organically in many markets, M&A remains an essential tool for growth. “So, we will work out what we want to do in Brazil, and when we’ve made a decision, we’ll let the market know,” Jackson said.
In addition to its potential acquisition of Betnacional, Flutter is also rumoured to be considering a partnership with Boyd Gaming in a potential US$9 billion bid for Penn Entertainment, an American rival.
Blask index: Fifth-largest operator
According to the Blask Index, Betnacional is the fifth-largest operator in Brazil with an estimated market share of approximately 7.3%.
The index shows that Betano leads the market with a 25.1% share, followed by bet365 with 16.3%, Sportingbet with 9.4%, and Esportes da Sorte with 8.8%.
Betnacional has also made significant strides in Brazil through partnerships, including an association with Brazilian eSports organisation FURIA. Additionally, the company has expanded its market presence by merging with TVBet and securing the naming rights for the Brasileirão Series B, replacing Betano.
The acquisition of Betnacional represents a significant step in Flutter’s strategic expansion and underscores the company’s commitment to investing in promising markets. As regulated betting goes live in Brazil, the deal could provide Flutter with a strong platform to establish a dominant position in one of the world’s most passionate sporting nations.
Source: GMB / NEXT.io
