sports betting wagering innovator launches new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
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One of Scotland's most successful technology groups is starting again with a new firm - and has actually secured the biggest initial 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 new firm has seed financing of $21m.
It intends to introduce a new open source software platform, on which others can innovate in sports betting wagering, in the very first half of next year.
The company is recruiting personnel 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 remain in legal conflict with FanDuel's later phase financiers over the method which they structured a takeover, which left the Edinburgh team without a share of the increasing assessment.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to choose financiers thoroughly.
He informed BBC Scotland: "We took a lot of lessons from that, one of which was the significance of who we select as financiers in this brand-new business, to guarantee their values are aligned with ours, that they take their fiduciary duties properly, which they're the right partners for us."
The $21m seed financing for BetDEX includes stakes taken by seven backers of US innovation firms, including two large funds - and FTX - which specialise in buying business operating with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, said: "The sports betting industry charges high rates for poor products and limits trades by its most successful users.
"BetDEX is diametrically opposed to this technique. We will effectively compete against incumbents with a markedly superior item and low charges, which is now possible with the advent of the blockchain innovation."
As chairman of the new company, Mr Eccles stated it could look familiar to retail punters used to existing online firms.
'Pool of talent'
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However, he says that those who use its platform to run their own wagering companies will have the ability to innovate and develop a wider series of wagering items.
He stated the common share taken by online bookmakers is 7% to 10% of a stake, however BetDEX should 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" approach to the method they are marketed to secure those who have problem with issue gambling.
He stated the team of around 500 software application engineers who assisted construct FanDuel from Scotland showed that it stays the place to develop a firm. BetDEX has the same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on a highly skilled, really gifted engineering team, that constructed this product that could process millions of bets and countless users.
"There's a genuine talent pool of skilled engineers who helped us build our product and that's what we wish to leverage for BetDEX too."
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More on this story
Paddy Power purchases fantasy sports betting site
23 May 2018
FanDuel creator leaves company
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Published
20 November 2017
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Sports Betting Innovator Launches new Start up
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