The deal is expected to close by Q2 2025 and will help establish a new ‘Flutter Brazil’ business,which will include its existing Betfair brand. NSX Group’s Pagbet, MrJack.bet and Betpix brands will also fall under the new business arm.
According to Regulus Partners and internal estimates, NSX holds 9% of the total online market in Brazil. It estimates Brazil’s net gaming revenue (NGR) for 2023 was $2.8bn. Of that figure, Flutter claims its Betfair brands, alongside those it acquired in the NSX deal, came third in revenue terms with over a tenth of the market.
Flutter’s revenue from Betfair and NSX combined for the 12-month period ending 30 June 2024 was US$330m, while average monthly players stood at 1.3 million. Meaning Brazil accounted for just 1% of Flutter’s total revenue in 2023 and 2% of its rest of world business’ revenue.
Brazil falls under the group’s ‘consolidate and invest’ category, which also includes Armenia, Brazil, Georgia, Spain and Turkey. These countries accounted for roughly 77% of Flutter’s H1 revenue and 71% of its international profits.
NSX to provide “competitive edge” in key market of Brazil
During the investor day presentation in New York on Wednesday (25 September), the company said its NSX deal helped Flutter establish itself as a “strong podium player” in the soon-to-be regulated Brazilian betting market.
It expects NSX to provide the group with a unique competitive edge thanks to its market expertise and payments knowledge.
“We think next year will be a point in time to grab market share,” International CEO Dan Taylor told investors.
Though he warned gambling taxes care are currently a big unknown, as is how big the market will ultimately be. But Flutter expects its early mover advantage within the first year of legal betting to reap success in the market.
Regulus expects Brazil’s betting market to grow at an annual compound growth rate of 18%, reaching an NGR of US$4.3bn in 2030, up from US$800b in 2020.
Source: iGB
