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Sports betting innovator launches 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 once again with a new company - and has actually protected the most significant initial financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting site FanDuel in 2009 in Edinburgh.
The new company has seed financing of $21m.
It aims to introduce a brand-new open source software platform, on which others can in sports betting wagering, in the very first half of next year.
The business is recruiting personnel from a base in Scotland.
FanDuel was sold to Flutter - previously 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 financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing evaluation.
Mr Eccles stated that one thing he gained from the FanDuel experience was to choose investors carefully.
He informed BBC Scotland: "We took a great deal of lessons from that, one of which was the value of who we choose as investors in this brand-new business, to ensure their values are lined up with ours, that they take their fiduciary tasks responsibly, which they're the best partners for us."
The $21m seed financing for BetDEX includes stakes taken by 7 backers of US innovation companies, including two large funds - Paradigm and FTX - which specialise in investing in companies running with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering market charges high rates for poor products and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this approach. We will successfully complete against incumbents with a significantly remarkable product and low charges, which is now possible with the advent of the blockchain technology."
As chairman of the brand-new company, Mr Eccles said it might look familiar to retail punters utilized to existing online companies.
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'Pool of talent'
However, he states that those who utilize its platform to run their own sports betting firms will be able to innovate and produce a larger series of sports betting items.
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He said the typical share taken by online bookmakers is 7% to 10% of a stake, however BetDEX must enable that to fall listed below 1%.
The business will develop its own wagering apps to operate on the platform.
Mr Eccles said these would take an "intelligent, thoughtful" method to the method they are marketed to protect those who have a hard time with issue gambling.
He said the team of around 500 software application engineers who assisted construct FanDuel from Scotland showed that it remains the place to build a firm. BetDEX has the very same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was developed on an extremely knowledgeable, very talented engineering group, that built this product that could process countless bets and millions of users.
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"There's a real talent pool of knowledgeable engineers who helped us build our product and that's what we want to leverage for BetDEX as well."
Related subjects
Edinburgh
Sports betting
More on this story
Paddy Power purchases fantasy sports betting website
23 May 2018
FanDuel founder leaves business
Published
20 November 2017
1
Sports Betting Innovator Launches new Start-up
heribertowinif edited this page 2025-01-02 09:30:26 +08:00