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sports betting wagering innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most successful innovation teams is starting once again with a new company - and has actually secured 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 site FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding of $21m.
It aims to introduce 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 hiring personnel from a base in Scotland.
FanDuel was offered to Flutter - previously called Paddy - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal disagreement with FanDuel's later phase investors over the method which they structured a takeover, which left the Edinburgh group without a share of the increasing valuation.
Mr Eccles stated that one thing he gained from the FanDuel experience was to pick financiers carefully.
He informed BBC Scotland: "We took a great deal of lessons from that, among which was the significance of who we pick as financiers in this new business, to ensure their values are lined up with ours, that they take their fiduciary duties responsibly, which they're the right partners for us."
The $21m seed financing for BetDEX consists of stakes taken by seven backers of US technology companies, including 2 large funds - Paradigm and FTX - which specialise in buying companies operating with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, stated: "The sports betting wagering industry charges high rates for poor products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully contend versus incumbents with a significantly remarkable product and low fees, which is now possible with the introduction of the blockchain innovation."
As chairman of the new firm, Mr Eccles stated it might look familiar to retail punters utilized to existing online firms.
'Pool of talent'
However, he states that those who utilize its platform to run their own wagering companies will have the ability to innovate and create a larger variety of wagering products.
He said the normal share taken by online bookmakers is 7% to 10% of a stake, however BetDEX needs to enable that to fall below 1%.
The business will develop its own sports betting apps to operate on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" method to the way they are marketed to secure those who have a hard time with problem gaming.
He said the group of around 500 software engineers who helped develop FanDuel from Scotland revealed that it stays the location to build a firm. BetDEX has the very same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on a highly competent, really talented engineering group, that built this product that might process millions of bets and millions of users.
"There's a genuine skill pool of knowledgeable engineers who helped us develop our item and that's what we wish to leverage for BetDEX as well."
Related subjects
Edinburgh
sports betting wagering
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23 May 2018
FanDuel creator leaves company
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Published
20 November 2017
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Sports Betting Innovator Launches Brand new Start up
wolfgangkrebs7 edited this page 10 months ago