Sports Betting Innovator Launches Brand-new Start-up
Sports betting innovator launches brand-new start-up
17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most successful technology groups is starting again with a brand-new company - and has secured the greatest initial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting site FanDuel in 2009 in Edinburgh.
The brand-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, in the very first half of next year.
The business is recruiting personnel 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 phase financiers over the way in which they structured a takeover, which left the Edinburgh team without a share of the increasing evaluation.
Mr Eccles stated that a person thing he gained from the FanDuel experience was to pick financiers thoroughly.
He informed 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 guarantee their values are lined up with ours, that they take their fiduciary responsibilities responsibly, and that they're the right partners for us."
The $21m seed for BetDEX includes stakes taken by seven backers of US technology companies, including 2 large funds - Paradigm and FTX - which specialise in buying business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering market charges high prices for poor products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will successfully complete versus incumbents with a noticeably exceptional item and low fees, which is now possible with the introduction of the blockchain technology."
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As chairman of the new firm, Mr Eccles stated it could look familiar to retail punters utilized to existing online companies.
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'Pool of skill'
However, he says that those who use its platform to run their own wagering firms will be able to innovate and develop a wider range of wagering items.
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He said the common share taken by online bookies is 7% to 10% of a stake, but BetDEX ought to enable that to fall below 1%.
The business will develop its own wagering apps to operate on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" method to the method they are marketed to protect those who struggle with issue gambling.
He said the group of around 500 software engineers who helped construct FanDuel from Scotland revealed that it stays the place to develop a firm. BetDEX has the exact same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was constructed on a highly proficient, really gifted engineering team, that constructed this product that could process millions of bets and millions of users.
"There's a genuine talent pool of experienced engineers who assisted us construct our item and that's what we want to utilize for BetDEX too."
Related subjects
Edinburgh
sports betting wagering
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FanDuel creator leaves company
Published
20 November 2017