sports betting wagering innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and editor, Scotland
One of Scotland's most effective innovation teams is starting again with a brand-new company - and has protected the biggest initial financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting website FanDuel in 2009 in Edinburgh.
The new company has seed funding of $21m.
It aims to release a new open source software platform, on which others can innovate in sports betting wagering, in the first half of next year.
The business is hiring staff from a base in Scotland.
FanDuel was sold to Flutter - previously named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal dispute with FanDuel's later phase financiers over the method which they structured a takeover, which left the Edinburgh team without a share of the rising appraisal.
Mr Eccles said that a person thing he gained from the FanDuel experience was to select investors carefully.
He told BBC Scotland: "We took a great deal of lessons from that, one of which was the value of who we pick as financiers in this brand-new company, to guarantee their worths are aligned with ours, that they take their fiduciary tasks responsibly, and that they're the ideal partners for us."
The $21m seed funding for BetDEX consists of stakes taken by 7 backers of US technology firms, including two large funds - Paradigm and FTX - which specialise in buying business running with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, said: "The sports betting wagering market charges high rates for poor items and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully contend against incumbents with a significantly remarkable product 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 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 larger range of wagering products.
He stated the common share taken by online bookies is 7% to 10% of a stake, but BetDEX should permit that to fall below 1%.
The company will establish its own sports betting apps to operate on the platform.
Mr Eccles said these would take an "smart, thoughtful" method to the method they are marketed to secure those who have a hard time with problem gambling.
He said the team of around 500 software engineers who assisted build FanDuel from Scotland revealed that it remains the place to build a firm. BetDEX has the exact same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was built on an extremely proficient, extremely skilled engineering group, that constructed this product that could process millions of bets and countless users.
"There's a genuine skill swimming pool of experienced engineers who helped us build our item and that's what we want to take advantage of for BetDEX too."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power buys dream sports betting site
23 May 2018
FanDuel founder leaves company
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Published
20 November 2017
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Sports Betting Innovator Launches Brand new Start up
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