Flutter Acquires Majority Stake in Brazilian Gaming Group Benacial

Flutter, the world’s largest online betting company, has announced its plans to acquire a 56% stake in Brazilian gaming group Benacial operator HSBC Group for approximately $350 million. This strategic move aims to expand Flutter’s presence in the soon-to-be regulated Brazilian market.

As the owner of renowned brands such as FanDuel and Paddy Power, Flutter intends to merge Benacial with its existing Betfair Brazil brand. The company plans to invest heavily in driving market share growth, mirroring its successful strategy in the US, where it currently holds the top spot as the number one operator.

Brazil, a country with a massive following for soccer, legalized sports betting in 2018. However, the market is not expected to be fully regulated until early 2025. Despite this, numerous betting brands, including Betfair, Bet365, and Betano, have been aggressively expanding their presence in Brazil in recent years.

HSBC currently holds a 12% share of the sports betting market in Brazil, ranking fourth in the industry. The company is projected to generate revenues of approximately $265 million in 2024, more than three times that of Betfair Brazil. Additionally, HSBC is expected to achieve core earnings of approximately $34 million in 2024, according to Flutter.