Flutter set to acquire Brazil’s Betnacional for ￡1 billion

Lea Hogg August 13, 2024

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Flutter set to acquire Brazil’s Betnacional for ￡1 billion

Flutter Entertainment is to make a significant investment in Brazil’s expanding gaming market. The company is in talks to acquire Betnacional, one of Brazil’s largest gambling operators, in a deal estimated to be worth ￡1 billion.

Betnacional, currently the fifth-largest gambling operator in Brazil, is owned by the British-based NSX Group and was established in August 2021. Despite its relatively recent entry into the market, Betnacional has managed to secure a market share of approximately 7.3 percent. This places it behind market leader Betano, which holds a commanding 25.1 percent share, and Bet365 and Entain, which hold 16.3 percent and 9.4 percent respectively.

Betnacional’s strength lies in its robust gaming business, with a particular emphasis on casino gambling and poker. However, the company has recently shifted its focus towards sports betting, targeting Brazil’s passionate football fan base. This move coincides with the upcoming regulation of betting in Brazil, set to go live on 1 January.

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.

Flutter’s billion dollar bet and potential bid for Penn

Peter Jackson, Flutter’s CEO, 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. Analysts, have expressed optimism about Flutter’s potential in Brazil, anticipating that the company could drive significant cost and revenue synergies from the deal.

In addition to its potential acquisition of Betnacional, Flutter is also rumoured to be considering a partnership with Boyd Gaming in a potential $9 billion bid for Penn Entertainment, an American rival. This comes amid criticism from an activist investor over Penn’s interactive strategy.

As Flutter prepares to release its second-quarter financial results, its shares were up $1.35, or 0.7 percent, at $189.65 in early afternoon trading in New York. The company’s diverse portfolio of online sports betting and iGaming brands, including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, and Paddy Power, positions it well to capitalize on new market opportunities.

The acquisition of Betnacional represents a significant step in Flutter’s strategic expansion and reflects 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.

Flutter’s shares are up $1.35, 0.7 per cent, at $189.65 in early afternoon trading in New York.