The acquisition of a stake in NSX comes at an opportune time, as Brazil is expected to fully regulate its iGaming and online sports betting markets next year. This regulatory change is anticipated to attract bids from international operators for licenses. Flutter, already established in Brazil, stands to benefit from this new landscape, and its partnership with a local entity like NSX could garner favor with regulators—a strategy other companies are likely to adopt.
Brazil’s allure for gaming companies is potent, given that it is Latin America’s largest economy with over 200 million residents. The country is also a rapidly growing betting market, adding to its appeal for international operators. According to a statement from Flutter, demand for sports betting and iGaming products in Brazil has grown at a compound annual rate of 38% in the unregulated market since 2018, reaching nearly $3 billion in 2023.
While US investors often see Flutter primarily as the parent company of FanDuel—the leading online sportsbook operator in the United States—Flutter boasts a vast international footprint, encompassing markets in Australia, Europe, and Latin America. The acquisition of NSX aligns with Flutter’s strategy of making calculated acquisitions to increase market share globally. Since NSX entered the Brazilian market in 2021, it has captured 12% of the sports betting market share and 9% of the overall internet gaming market share. Flutter also noted that Betfair Brazil could generate $70 million in sales for 2024.
“Flutter Brazil will be exceptionally well-positioned to capitalize on the significant growth opportunity in the newly regulating Brazilian market,” Flutter stated. “In 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.”
Source link : http://www.bing.com/news/apiclick.aspx?ref=FexRss&aid=&tid=66e7f54ac71d44228399d308204e4548&url=https%3A%2F%2Fwww.westislandblog.com%2Fflutter-entertainment-buys-majority-stake-in-brazils-nsx-for-350-million%2F&c=4531917370057799550&mkt=en-us
Author :
Publish date : 2024-09-15 19:45:00
Copyright for syndicated content belongs to the linked Source.
