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 innovation groups is beginning once again with a brand-new company - and has actually 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 brand-new company has seed funding of $21m.
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It aims to introduce a new open source software application platform, on which others can innovate in sports betting, in the 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 conflict with FanDuel's later stage financiers over the method in which they structured a takeover, which left the Edinburgh team without a share of the increasing evaluation.
Mr Eccles said that a person thing he found out from the FanDuel experience was to pick investors carefully.
He informed BBC Scotland: "We took a lot of lessons from that, one of which was the value of who we choose as investors in this new business, to guarantee their values are aligned with ours, that they take their fiduciary duties properly, which they're the best partners for us."
The $21m seed funding for BetDEX consists of stakes taken by 7 backers of US innovation companies, consisting of two big funds - Paradigm and FTX - which specialise in buying business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering industry charges high prices for poor items and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will successfully contend against incumbents with a significantly superior item and low charges, which is now possible with the development of the blockchain technology."
As chairman of the brand-new company, Mr Eccles said it might look familiar to retail punters used to existing online firms.
'Pool of skill'
However, he states that those who utilize its platform to run their own wagering firms will be able to innovate and produce a larger variety of wagering items.
He stated the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX needs to permit for that to fall listed below 1%.
The company will develop its own wagering apps to run on the platform.
Mr Eccles stated these would take an "smart, thoughtful" approach to the way they are marketed to safeguard those who fight with issue sports betting.
He said the group of around 500 software application engineers who assisted construct FanDuel from Scotland showed that it stays the location to develop a firm. BetDEX has the same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was developed on a highly skilled, really gifted engineering group, that built this item that could process millions of bets and millions of users.
"There's a genuine talent pool of knowledgeable engineers who helped us build our item and that's what we want to leverage for BetDEX too."
Related subjects
Edinburgh
Sports betting
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Published
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Sports Betting Innovator Launches new Start-up
diannaj6122402 edited this page 2025-01-17 15:05:56 +08:00