Flutter Aims to Capture a Quarter of Brazil's Market by 2030, Predicts Macquarie
Unleashing Flutter Entertainment's Brazilian Blitz
With a confident thumbs-up from senior gaming analyst Chad Beynon, Flutter Brazil is poised to explode onto the scene, boosted by the revolutionary Flutter Edge technology stack. This tech wizardry, noted Beynon, has a knack for swiftly influencing market share in new territories.
By 2029, Brazil is projected to account for an additional 1% of Flutter's international market share expansion. The umbrella business, encompassing the NSX Group, carries an estimated worth of approximately $1.3 billion (£1 billion/€1.2 billion), according to Macquarie's estimations. This translates to per share value of ~$12 and $9.5 of valuation creation.
Beynon lauded Flutter for its savvy risk management in mergers and acquisitions and its mastery of the top two position in the US through FanDuel. He estimates Flutter's global market share sits at a robust 16%, with 35% in the UK and Ireland, 33% in North America, 40% in Australia, and a modest 5% for international markets. By 2030, this global market presence could rise to approximately 20%, propelled by strategic acquisitions and the magic of the Flutter Edge stack.
Flutter's Brazilian conquest began in earnest with its acquisition of the NSX Group in September, forking out $350 million for a 56% stake. This deal is slated to close by Q2 of 2025 and includes the beloved Brazilian betting brand Betnacional. Upon finalizing the NSX deal, Flutter swiftly established its Flutter Brazil business.
Chad Beynon remains optimistic about Flutter's prospects in Brazil, despite the sector facing contention and backlash following studies indicating gambling was adversely impacting consumer spending and welfare. Flutter was among the pioneers to apply for a license with Brazil's new betting regulator in the summer.
The company's ambitions in Brazil don't stop at the 11% share it already holds in Brazil's total online betting market and the Betfair brand. Further acquisitions in Latin America are on the horizon, according to Beynon, with the potential for more transformational M&A in the US. FanDuel seeks to deepen its roots in retail gaming and lottery markets, hinting at a flurry of future activity.
Flutter's global shopping spree showed no signs of slowing in 2022. In September, it announced its intention to purchase Playtech's Italian B2C business, Snaitech, for €2.3bn. This acquisition, combined with the NSX Group, adds around 2% to Flutter's international market share, targeting new opportunities for growth and diversified revenue streams in the global online gambling market, valued at an estimated $275 billion by 2034. By embracing strategic acquisitions and organic expansion, Flutter Entertainment is adeptly carving out its niche in the rapidly expanding online betting industry.
- Chad Beynon's optimism for Flutter's prospects in Brazil persists, despite the challenges facing the gambling sector in Brazil, as Flutter has applied for a license with the new betting regulator in the summer.
- Following the acquisition of the NSX Group in September, Flutter's ambitions in Brazil don't stop at the 11% share it already holds in Brazil's total online betting market and the Betfair brand; further acquisitions in Latin America are on the horizon, according to Beynon.
- FanDuel, which is owned by Flutter, intends to deepen its roots in retail gaming and lottery markets, hinting at a flurry of future activity, which could potentially include more transformational M&A in the US.
