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 innovation groups is beginning again with a brand-new company - and has actually secured the greatest preliminary financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting website FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding of $21m.
It to launch a new open source software application 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 - formerly 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 stage investors over the method in which they structured a takeover, which left the Edinburgh group without a share of the increasing evaluation.
Mr Eccles said that a person thing he found out from the FanDuel experience was to select investors carefully.
He told BBC Scotland: "We took a great deal of lessons from that, among which was the value of who we pick as financiers in this brand-new service, to guarantee their values are lined up with ours, that they take their fiduciary responsibilities responsibly, and that they're the ideal partners for us."
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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 buying companies running with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, said: "The sports betting industry charges high rates for poor products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this approach. We will effectively complete against incumbents with a markedly remarkable product and low costs, which is now possible with the advent of the blockchain technology."
As chairman of the brand-new firm, Mr Eccles said it could look familiar to retail punters utilized to existing online companies.
'Pool of talent'
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However, he says that those who utilize its platform to run their own wagering firms will have the ability to innovate and create a larger range of sports betting items.
He said the typical share taken by online bookmakers is 7% to 10% of a stake, however BetDEX needs to permit that to fall below 1%.
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The company will develop its own wagering apps to operate on the platform.
Mr Eccles said these would take an "smart, thoughtful" technique to the method they are marketed to secure those who deal with problem gaming.
He said the group of around 500 software application engineers who helped construct FanDuel from Scotland revealed that it stays the place to develop a firm. BetDEX has the very same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was developed on an extremely knowledgeable, really gifted engineering team, that constructed this product that could process countless bets and millions of users.
"There's a real talent swimming pool of knowledgeable engineers who helped us develop our item which's what we wish to utilize for BetDEX also."
Related subjects
Edinburgh
Sports betting
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20 November 2017
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Sports Betting Innovator Launches new Start up
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