{"id":1113,"date":"2024-09-15T22:38:24","date_gmt":"2024-09-15T22:38:24","guid":{"rendered":"https:\/\/extraniceshirts.org\/?p=1113"},"modified":"2024-10-01T14:43:44","modified_gmt":"2024-10-01T14:43:44","slug":"flutter-pays-350m-for-majority-stake-in-brazils-nsx-group-2","status":"publish","type":"post","link":"https:\/\/extraniceshirts.org\/index.php\/2024\/09\/15\/flutter-pays-350m-for-majority-stake-in-brazils-nsx-group-2\/","title":{"rendered":"Flutter Pays $350M for Majority Stake in Brazil\u2019s NSX Group"},"content":{"rendered":"

Flutter Entertainment (NYSE: FLUT) said it acquired a 56% stake in Brazil\u2019s NSX Group for $350 million in cash to bolster its footprint in that country.<\/p>\n

\"The
The Brazilian flag. Flutter is paying $350 million for 56% of NSX to expand in that country. (Image: iStock)<\/figcaption><\/figure>\n

NSX operates the Betnacional brand. Including Betnacional, NSX is the fourth-largest iGaming and online sportsbook company in Brazil. Importantly to Flutter, the target is already profitable. Flutter said NSX is expected to generate 2024 revenue of $256 million on adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $34 million.<\/p>\n

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Dublin-based Flutter said it will combine<\/a> its 56% interest in NSX with its Betfair business in Brazil. Under the terms of the agreement, Flutter and NSX have \u201creciprocal put\/call arrangements\u201d by which Flutter can increase its interest in the Brazilian gaming company five and 10 years after completion of the original purchase.<\/p>\n<\/div>\n

The $350 million transaction, which was announced last Friday, is scheduled to close by the second quarter of 2025.<\/p>\n

NSX Buy Could Be Smart Move by Flutter<\/h2>\n

Flutter taking a stake in NSX could prove to be a prescient move because Brazil is slated to fully regulate its iGaming and online sports betting markets at some point next year.<\/p>\n

That\u2019s expected to open the floodgates for international operators<\/a> to bid for licenses in the country. Flutter has an advantage because it\u2019s already established in Brazil, but partnering with a local company like NSX could be viewed favorably by regulators and it\u2019s a move some rivals have signaled they\u2019ll employ as well.<\/p>\n

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For gaming companies, the allure of Brazil is undeniable. The country is Latin America\u2019s largest economy and is home to more than 200 million people. Data confirm it\u2019s also a rapidly growing betting market, adding to the attraction for international gaming companies.<\/p>\n<\/div>\n

\u201cStrong demand for sports betting and iGaming products with compound annual gross gaming revenue (GGR) growth in the unregulated market of 38% since 2018, to almost $3 billion in 2023,\u201d according to a statement issued by Flutter.<\/p>\n

Brazil’s Booming Gaming Market<\/h2>\n

In the eyes of many US investors, Flutter is viewed as the parent of FanDuel<\/a> — the largest online sportsbook operator in this country \u2013 and while that\u2019s accurate, the company has a massive international footprint that includes exposure to Australia, Europe, and Latin America.<\/p>\n

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The acquisition of the NSX stake is the latest in a series of shrewd buys by Flutter that have enabled the operator to add market share in countries around the world. Flutter pointed out that NSX entered the Brazilian market in 2021, and since then, has amassed a 12% sports betting share and a 9% overall share in internet gaming. The Irish company added that Betfair Brazil could deliver 2024 sales of $70 million.<\/p>\n<\/div>\n

\u201cFlutter Brazil will be exceptionally well positioned to take full advantage of the significant growth opportunity in the newly regulating Brazilian market,\u201d concluded Flutter in the statement. \u201cIn line with our successful strategy in other newly regulated markets such as the US, we expect to drive market share growth and embed future profitability through disciplined customer investment. This is expected to result in a Flutter Brazil adjusted EBITDA loss of approximately $90 million to $100 million in 2025.\u201d<\/p>\n

The post Flutter Pays $350M for Majority Stake in Brazil\u2019s NSX Group<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Flutter Entertainment (NYSE: FLUT) said it acquired a 56% stake in Brazil\u2019s NSX Group for $350 million in cash to bolster its footprint…<\/p>\n","protected":false},"author":1,"featured_media":1056,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1113"}],"collection":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/comments?post=1113"}],"version-history":[{"count":2,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1113\/revisions"}],"predecessor-version":[{"id":1115,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1113\/revisions\/1115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/media\/1056"}],"wp:attachment":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/media?parent=1113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/categories?post=1113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/tags?post=1113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}