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Sports betting innovator launches new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most successful technology groups is beginning once again with a brand-new firm - and has actually secured the most significant initial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering website FanDuel in 2009 in Edinburgh.
The new firm has seed financing of $21m.
It aims to introduce a brand-new open source software 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 conflict with FanDuel's later stage investors over the method which they structured a takeover, which left the Edinburgh team without a share of the rising valuation.
Mr Eccles said that one thing he gained from the FanDuel experience was to carefully.
He told 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 company, to ensure their values are lined up with ours, that they take their fiduciary tasks responsibly, and that 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 two large funds - Paradigm and FTX - which specialise in investing in companies running with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, said: "The sports betting wagering industry charges high rates for poor products and limitations trades by its most effective users.
"BetDEX is diametrically opposed to this technique. We will successfully contend against incumbents with a markedly exceptional item and low costs, which is now possible with the development of the blockchain technology."
As chairman of the new firm, Mr Eccles said it might 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 sports betting firms will be able to innovate and produce a broader variety of sports betting products.
He stated the common share taken by online bookmakers is 7% to 10% of a stake, however BetDEX should permit that to fall listed below 1%.
The company will establish its own sports betting apps to operate on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" approach to the method they are marketed to protect those who fight with issue gaming.
He stated the group of around 500 software application engineers who helped construct FanDuel from Scotland revealed that it remains the location to build a company. BetDEX has the very same head of innovation, Stuart Tonner.
"A great deal of that [FanDuel] success was built on an extremely knowledgeable, extremely gifted engineering group, that built this item that could process millions of bets and millions of users.
"There's a genuine talent pool of experienced engineers who helped us construct our item which's what we want to leverage for BetDEX also."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power purchases dream sports betting site
23 May 2018
FanDuel creator leaves business
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Published
20 November 2017
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Sports Betting Innovator Launches new Start-up
mylesm74101698 edited this page 2025-01-02 12:25:47 +01:00