sports betting wagering innovator launches new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most effective technology teams is starting again with a brand-new company - and has protected the most significant initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The brand-new firm has seed financing of $21m.
It aims to introduce a new open source software platform, on which others can innovate in sports betting, in the very first half of next year.
The business is recruiting staff 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 are in legal disagreement with FanDuel's later phase investors over the method in which they structured a takeover, which left the Edinburgh group without a share of the .
Mr Eccles said that one thing he learned from the FanDuel experience was to pick investors thoroughly.
He informed BBC Scotland: "We took a great deal of lessons from that, among which was the significance of who we pick as financiers in this brand-new organization, to guarantee their worths are lined up with ours, that they take their fiduciary responsibilities properly, and that they're the right partners for us."
The $21m seed financing for BetDEX includes stakes taken by seven backers of US technology companies, including 2 large funds - Paradigm and FTX - which specialise in investing in companies operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting market charges high rates for bad items and limits trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will effectively complete against incumbents with a significantly remarkable item and low charges, which is now possible with the introduction of the blockchain technology."
As chairman of the brand-new firm, Mr Eccles stated it could look familiar to retail punters utilized to existing online firms.
'Pool of skill'
However, he says that those who utilize its platform to run their own sports betting firms will be able to innovate and create a broader variety of sports betting products.
He said the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX needs to enable that to fall listed below 1%.
The business will develop its own wagering apps to run on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" technique to the way they are marketed to protect those who battle with issue gaming.
He said the group of around 500 software engineers who assisted develop FanDuel from Scotland showed that it remains the place to develop a firm. BetDEX has the very same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was developed on an extremely competent, really gifted engineering team, that built this product that might process countless bets and millions of users.
"There's a genuine talent swimming pool of experienced engineers who assisted us construct our product and that's what we wish to leverage for BetDEX too."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power buys dream sports betting website
23 May 2018
FanDuel founder leaves company
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Published
20 November 2017
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Sports Betting Innovator Launches new Start-up
claragovernor1 edited this page 2025-01-02 18:45:18 +08:00