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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 successful innovation groups is beginning once again with a new firm - and has actually secured the biggest preliminary investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering site 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, in the first half of next year.
The is hiring staff 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 conflict 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 valuation.
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Mr Eccles stated that one thing he discovered from the FanDuel experience was to pick financiers carefully.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the significance of who we pick as investors in this brand-new organization, to ensure their worths are aligned with ours, that they take their fiduciary responsibilities properly, which they're the right partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US technology companies, including two large funds - Paradigm and FTX - which specialise in buying companies operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting market charges high costs for poor items and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this approach. We will effectively complete against incumbents with a significantly superior product and low fees, which is now possible with the advent of the blockchain innovation."
As chairman of the brand-new firm, Mr Eccles stated it might 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 wagering firms will be able to innovate and develop a wider variety of sports betting products.
He stated the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX needs to permit that to fall listed below 1%.
The company will establish its own wagering apps to run on the platform.
Mr Eccles said these would take an "intelligent, thoughtful" approach to the way they are marketed to protect those who have a hard time with problem gaming.
He stated the team of around 500 software engineers who assisted construct FanDuel from Scotland showed that it stays the place to build a company. BetDEX has the exact same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on an extremely skilled, very skilled engineering group, that developed this item that might process millions of bets and countless users.
"There's a real skill pool of knowledgeable engineers who helped us construct our item which's what we wish to utilize for BetDEX too."
Related topics
Edinburgh
sports betting wagering
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FanDuel creator leaves business
Published
20 November 2017
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Sports Betting Innovator Launches Brand-new Start-up
seymourbunbury edited this page 2025-01-02 09:00:51 +08:00