Sports Betting Innovator Launches Brand-new Start-up
sports betting wagering innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most effective technology teams is starting once again with a brand-new firm - and has protected the most significant preliminary investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting site FanDuel in 2009 in Edinburgh.
The brand-new company has seed financing of $21m.
It aims to release a brand-new open source software platform, on which others can innovate in sports betting wagering, in the first half of next year.
The company is hiring staff from a base in Scotland.
FanDuel was sold to Flutter - formerly named 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 in which they structured a takeover, which left the Edinburgh group without a share of the rising appraisal.
Mr Eccles stated that a person thing he found out from the FanDuel experience was to choose financiers carefully.
He Scotland: "We took a lot of lessons from that, among which was the significance of who we choose as investors in this new business, 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 financing for BetDEX consists of stakes taken by seven backers of US technology firms, consisting of two big funds - Paradigm and FTX - which specialise in purchasing business operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering industry charges high rates for bad products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this approach. We will effectively compete against incumbents with a considerably exceptional item and low costs, which is now possible with the arrival of the blockchain innovation."
As chairman of the new firm, Mr Eccles stated it could look familiar to retail punters used to existing online companies.
'Pool of talent'
However, he states that those who utilize its platform to run their own wagering companies will have the ability to innovate and create a wider variety of wagering products.
He said the normal share taken by online bookmakers is 7% to 10% of a stake, but BetDEX must permit that to fall below 1%.
The business will develop its own sports betting apps to operate on the platform.
Mr Eccles said these would take an "intelligent, thoughtful" technique to the way they are marketed to safeguard those who deal with issue gaming.
He said the team of around 500 software application engineers who helped construct FanDuel from Scotland revealed that it stays the place to construct a company. BetDEX has the exact same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was built on a highly proficient, very gifted engineering team, that built this item that might process millions of bets and millions of users.
"There's a genuine skill pool of knowledgeable engineers who helped us build our product and that's what we want to utilize for BetDEX too."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power purchases dream sports betting website
23 May 2018
FanDuel creator leaves business
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Published
20 November 2017
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