Flutter is among the top three betting companies in Brazil with an 11% market share, thanks to acquiring a 56% stake in Betnacional's parent company, NSX Group. Its position in Brazil was described in some detail during the group's presentation at Capital Markets Day. Flutter said the purchase would provide the group with the necessary local expertise in the Brazilian market.
The deal is expected to close in the second quarter of 2025 and will help establish a new business "Flutter Brazil," which will include its existing Betfair brand. The NSX Group's brands Pagbet, MrJack.bet, and Betpix will also be under the new business arm.
According to Regulus Partners and internal estimates, NSX holds 9% of the total online market in Brazil. It estimates that Brazil's net gaming revenue (NGR) for 2023 was US$ 2.8 billion. From this amount, Flutter claims that its Betfair brands, along with those acquired in the deal with NSX, ranked third in terms of revenue, with more than a tenth of the market.
Flutter's revenue from Betfair and NSX combined for the 12-month period ending June 30, 2024, was US$ 330 million, while the average monthly players stood at 1.3 million. This means that Brazil accounted for just 1% of Flutter's total revenue in 2023 and 2% of its revenue from its businesses in the rest of the world.
Brazil falls into the "consolidate and invest" category of the group, which also includes Armenia, Brazil, Georgia, Spain, and Turkey. These countries were responsible for approximately 77% of Flutter's revenue in the first half and 71% of its international profits.
NSX will provide a "competitive edge" in the key Brazilian market
During the investor day presentation in New York on Wednesday (September 25), the company said its deal with NSX 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 advantage thanks to its market experience and payment knowledge.
"We believe next year will be a time to gain market share", said International CEO Dan Taylor to investors.
Although he warned that gambling taxes are currently a big unknown, as well as how big the market will ultimately be. But Flutter expects its first-mover advantage in the first year of legal betting to reap success in the market.
Regulus expects the Brazilian betting market to grow at a compound annual growth rate of 18%, reaching an NGR of US$ 4.3 billion in 2030, up from US$ 800 billion in 2020.
Source: iGB
