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Sports betting innovator launches brand-new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
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One of Scotland's most teams is starting again with a brand-new company - 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 site FanDuel in 2009 in Edinburgh.
The new company has seed funding of $21m.
It intends to release a brand-new open source software application platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The company is hiring personnel from a base in Scotland.
FanDuel was offered to Flutter - formerly called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal dispute with FanDuel's later phase financiers 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 learned from the FanDuel experience was to pick investors carefully.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the importance of who we choose as investors in this new organization, to guarantee their worths are aligned with ours, that they take their fiduciary tasks responsibly, which they're the right partners for us."
The $21m seed funding for BetDEX consists of stakes taken by seven backers of US innovation firms, consisting of two large funds - Paradigm and FTX - which specialise in purchasing business operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering market charges high prices for bad products and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will effectively compete versus incumbents with a noticeably exceptional product and low fees, which is now possible with the advent of the blockchain technology."
As chairman of the new firm, Mr Eccles stated it might look familiar to retail punters used to existing online companies.
'Pool of talent'
However, he states that those who use its platform to run their own wagering companies will be able to innovate and develop a larger range of wagering items.
He stated the typical share taken by online bookies is 7% to 10% of a stake, but BetDEX needs to permit that to fall listed below 1%.
The company will develop its own wagering apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" technique to the way they are marketed to secure those who struggle with issue gambling.
He stated the group of around 500 software engineers who helped build FanDuel from Scotland revealed that it remains the place to develop a company. BetDEX has the exact same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was built on an extremely skilled, extremely skilled engineering team, that developed this item that could process millions of bets and millions of users.
"There's a genuine skill swimming pool of skilled engineers who helped us construct our item which's what we want to utilize for BetDEX too."
Related topics
Edinburgh
sports betting wagering
More on this story
Paddy Power purchases fantasy sports betting website
23 May 2018
FanDuel founder leaves company
bit.ly
Published
20 November 2017
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Sports Betting Innovator Launches Brand-new Start-up
gabrielkish727 edited this page 2025-01-02 00:00:42 +00:00