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 innovation groups is beginning once again with a brand-new firm - and has actually protected the most significant preliminary investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering in 2009 in Edinburgh.
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The new firm has seed financing of $21m.
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It aims to launch a new open source software application platform, on which others can innovate in sports betting wagering, in the first half of next year.
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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 are in legal disagreement with FanDuel's later phase financiers over the way in which they structured a takeover, which left the Edinburgh team without a share of the rising assessment.
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Mr Eccles said that one thing he learned from the FanDuel experience was to pick investors carefully.
He informed BBC Scotland: "We took a lot of lessons from that, among which was the importance of who we select as investors in this new organization, to ensure their values are lined up with ours, that they take their fiduciary tasks properly, and that they're the best partners for us."
The $21m seed funding for BetDEX consists of stakes taken by seven backers of US technology companies, consisting of two large funds - Paradigm and FTX - which specialise in purchasing companies operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering industry charges high prices for poor items and limits trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully compete versus incumbents with a significantly exceptional product and low charges, which is now possible with the arrival of the blockchain technology."
As chairman of the new company, Mr Eccles stated it might look familiar to retail punters used to existing online firms.
'Pool of talent'
However, he says that those who use its platform to run their own wagering firms will have the ability to innovate and produce a broader range of sports betting items.
He stated the typical share taken by online bookies is 7% to 10% of a stake, but BetDEX should enable that to fall below 1%.
The business will establish its own sports betting apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" technique to the method they are marketed to safeguard those who fight with issue gaming.
He said the team of around 500 software application engineers who helped develop FanDuel from Scotland revealed that it stays the place to develop a company. BetDEX has the very same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was built on a highly proficient, really gifted engineering team, that built this item that could process countless bets and countless users.
"There's a real skill pool of skilled engineers who helped us build our item and that's what we want to take advantage of for BetDEX also."
Related subjects
Edinburgh
Sports betting
More on this story
Paddy Power buys fantasy sports betting website
23 May 2018
FanDuel founder leaves business
Published
20 November 2017
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Sports Betting Innovator Launches new Start up
xrdfrancesca4 edited this page 2025-01-02 13:34:32 +08:00