Sports betting innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most effective technology teams is starting again with a new firm - and has secured the biggest preliminary investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The brand-new company has seed funding of $21m.
It intends to release a new open source software platform, on which others can innovate in sports betting wagering, in the first half of next year.
The company is from a base in Scotland.
FanDuel was sold to Flutter - formerly 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 financiers over the method which they structured a takeover, which left the Edinburgh team without a share of the rising assessment.
Mr Eccles said that one thing he gained from the FanDuel experience was to pick investors thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the importance of who we select as financiers in this brand-new service, to guarantee their worths are aligned with ours, that they take their fiduciary duties responsibly, which they're the right partners for us."
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The $21m seed funding for BetDEX includes stakes taken by seven backers of US innovation companies, consisting of 2 big funds - Paradigm and FTX - which specialise in buying business operating with crypto-currencies.
Varun Sudhakar, primary executive of BetDEX, stated: "The sports betting wagering market charges high prices for poor items and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this technique. We will effectively complete versus incumbents with a significantly exceptional product and low costs, which is now possible with the arrival of the blockchain innovation."
As chairman of the new company, Mr Eccles stated it could look familiar to retail punters utilized to existing online firms.
'Pool of talent'
However, he says that those who use its platform to run their own wagering companies will be able to innovate and create a wider series of wagering products.
He stated the normal share taken by online bookies is 7% to 10% of a stake, however BetDEX should permit for that to fall listed below 1%.
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The company will establish its own sports betting apps to run on the platform.
Mr Eccles stated these would take an "smart, thoughtful" method to the way they are marketed to secure those who have a hard time with issue sports betting.
He said the team of around 500 software application engineers who assisted construct FanDuel from Scotland revealed that it stays the place to develop a company. BetDEX has the exact same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was built on a highly experienced, really gifted engineering team, that developed this item that could process millions of bets and millions of users.
"There's a genuine skill pool of knowledgeable engineers who assisted us build our item and that's what we wish to leverage for BetDEX too."
Related topics
Edinburgh
sports betting wagering
More on this story
Paddy Power buys dream sports betting site
23 May 2018
FanDuel founder leaves business
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Published
20 November 2017
1
Sports Betting Innovator Launches new Start-up
kristianvincen edited this page 2025-01-02 08:15:19 +01:00