Flutter CEO Peter Jackson has moved aggressively to overhaul the sports betting operator, and signs … [+]
Flutter’s international expansion is continuing apace, with the sports betting operator announcing yet another acquisition.
Flutter said on Friday that it had reached an agreement to buy a majority stake in Brazil’s NSX Group for about $350 million. NSX is the fourth-largest online gaming operator in Brazil. The deal will allow Flutter to expand its operations in Brazil ahead of formal regulation of the country’s online gaming industry.
Sports betting in Brazil has exploded in popularity since it was legalized in 2018, but the industry has never been regulated. In the meantime, dozens of international players have been aggressively expanding in the country.
Flutter, which already operates its Betfair brand in Brazil, said the new agreement will see it increase its shareholding in NSX over the next 10 years.
Last month, Flutter was said to be in exclusive talks to buy Snaitech, one of Italy’s largest gambling companies, in a deal that could value the business at around £2 billion ($2.6 billion).
Under the leadership of CEO Peter Jackson, Flutter has moved aggressively to overhaul its operations and signs are emerging that the moves are paying off. The Dublin, Ireland-based company has expanded its portfolio of international brands by snapping up businesses in places like Italy, India, Georgia and Canada.
“There are many, many markets in either regulated or soon to be regulated markets where we’re not yet present with either a podium position or certainly sort of gold medal position. And we’ve had a great track record of acquiring businesses in those markets, and applying the Flutter edge and seeing a big step up in performance” Jackson said during a recent briefing with investors.
Flutter also switched its primary listing from London to New York earlier this year to gain access to the world’s deepest and most liquid capital markets. It has a dominant market position in the U.S. after acquiring a majority stake in FanDuel in 2018.
London has struggled to compete with New York, as a growing number of companies have moved their primary listings to the U.S. The construction materials company CRH has already made the jump, and even the oil giant Shell has acknowledged that it’s looking into the idea.
Last month, Flutter credited its strong performance in the U.S. for helping to boost its top-line growth last quarter. The company reported $3.6 billion in revenue for the three months to the end of June, up 20% on the previous year. Flutter’s operations in the U.S. contributed $1.5 billion to its revenue, a 39% jump from a year earlier.
