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sports betting wagering innovator launches new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most effective technology groups is beginning again with a brand-new firm - and has secured the greatest initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting website FanDuel in 2009 in Edinburgh.
The brand-new company has seed financing of $21m.
It intends to release a new open source software platform, on which others can innovate in sports betting, in the very first half of next year.
The company is hiring staff from a base in Scotland.
FanDuel was sold to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal conflict with FanDuel's later stage investors over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing valuation.
Mr Eccles stated that a person thing he discovered from the FanDuel experience was to choose financiers thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the value of who we choose as financiers in this brand-new business, to guarantee their values are lined up with ours, that they take their fiduciary duties responsibly, which they're the ideal partners for us."
The $21m seed for BetDEX includes stakes taken by seven backers of US innovation companies, including two large funds - Paradigm and FTX - which specialise in purchasing companies operating with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, stated: "The sports betting industry charges high costs for bad products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this approach. We will successfully complete against incumbents with a noticeably superior product and low charges, which is now possible with the introduction of the blockchain technology."
As chairman of the new firm, Mr Eccles said it could look familiar to retail punters utilized to existing online companies.
'Pool of talent'
However, he says that those who use its platform to run their own sports betting companies will have the ability to innovate and develop a wider range of wagering products.
He said the common share taken by online bookies is 7% to 10% of a stake, however BetDEX ought to enable for that to fall listed below 1%.
The business will develop its own wagering apps to operate on the platform.
Mr Eccles stated these would take an "smart, thoughtful" technique to the way they are marketed to secure those who fight with problem sports betting.
He stated the group of around 500 software engineers who helped develop FanDuel from Scotland revealed that it stays the place to construct a firm. BetDEX has the same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was built on an extremely proficient, extremely skilled engineering team, that developed this item that might process countless bets and countless users.
"There's a genuine skill pool of experienced engineers who helped us build our item which's what we wish to leverage for BetDEX too."
Related topics
Edinburgh
sports betting wagering
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FanDuel creator leaves business
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Published
20 November 2017
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Sports Betting Innovator Launches new Start-up
tajleidig17719 edited this page 2025-01-02 01:31:30 +00:00