Sports Betting Innovator Launches new Start-up
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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
Among Scotland's most effective technology teams is beginning again with a new company - and has protected the biggest preliminary financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The brand-new company has seed funding of $21m.
It aims to release a new open source software application platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The business is recruiting staff from a base in Scotland.
FanDuel was offered to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal dispute with FanDuel's later stage financiers over the way in which they structured a takeover, which left the Edinburgh team without a share of the rising appraisal.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to choose financiers carefully.
He told BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we pick as investors in this new organization, to ensure their worths are aligned with ours, that they take their fiduciary duties properly, which they're the best partners for us."
The $21m seed financing for BetDEX includes stakes taken by 7 backers of US technology companies, consisting of 2 large funds - Paradigm and FTX - which specialise in investing in business operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering market charges high rates for poor items and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will effectively complete versus incumbents with a noticeably 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 could look familiar to retail punters utilized to existing online firms.
'Pool of talent'
However, he states that those who utilize its platform to run their own wagering firms will have the ability to innovate and develop a wider variety of wagering products.
He said the normal share taken by online bookies is 7% to 10% of a stake, however BetDEX must permit for that to fall listed below 1%.
The company will develop its own wagering apps to operate on the platform.
Mr Eccles stated these would take an "smart, thoughtful" technique to the way they are marketed to secure those who have problem with issue sports betting.
He said the group of around 500 software application engineers who helped build FanDuel from Scotland revealed that it stays the location to build a firm. BetDEX has the very same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on an extremely skilled, really talented engineering team, that built this item that might process countless bets and users.
"There's a genuine talent swimming pool of experienced engineers who helped us develop our product which's what we wish to leverage for BetDEX also."
Related subjects
Edinburgh
sports betting wagering
More on this story
Paddy Power purchases dream sports betting website
23 May 2018
FanDuel founder leaves company
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Published
20 November 2017