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sports betting wagering innovator launches new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
One of Scotland's most effective innovation groups is beginning once again with a brand-new company - 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 website FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding of $21m.
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.
The business is hiring 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 remain in legal conflict with FanDuel's later phase financiers over the method which they structured a takeover, which left the Edinburgh group without a share of the rising valuation.
Mr Eccles said that a person thing he learned from the FanDuel experience was to select financiers thoroughly.
He informed 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 organization, to ensure their values are aligned with ours, that they take their fiduciary tasks responsibly, which they're the ideal partners for us."
The $21m seed funding for BetDEX includes stakes taken by seven backers of US innovation firms, including two large funds - Paradigm and FTX - which specialise in investing in companies running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting industry charges high costs for bad items and limits trades by its most effective users.
"BetDEX is diametrically opposed to this technique. We will successfully compete against incumbents with a considerably superior product and low fees, which is now possible with the introduction of the blockchain technology."
As chairman of the brand-new company, Mr Eccles stated it could look familiar to retail punters utilized to existing online companies.
'Pool of skill'
However, he states that those who utilize its platform to run their own wagering companies will be able to innovate and develop a wider variety of wagering products.
He said the normal share taken by online bookies is 7% to 10% of a stake, but BetDEX needs to enable that to fall listed below 1%.
The company will establish its own wagering apps to run on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" technique to the method they are marketed to secure those who deal with problem sports betting.
He said the team of around 500 software engineers who assisted develop FanDuel from Scotland revealed that it stays the location to construct a company. BetDEX has the same head of technology, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on a highly competent, extremely talented engineering group, that built this product that could process countless bets and millions of users.
"There's a real skill pool of knowledgeable engineers who assisted us construct our item which's what we wish to take advantage of for BetDEX too."
Related topics
Edinburgh
Sports betting
More on this story
Paddy Power buys fantasy sports betting website
23 May 2018
FanDuel creator leaves company
Published
20 November 2017
1
Sports Betting Innovator Launches new Start up
margueritepres edited this page 5 months ago