sports betting wagering 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 innovation teams is beginning once again with a new firm - and has protected the most significant preliminary financial investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting 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 hiring personnel from a base in Scotland.
FanDuel was offered to Flutter - previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders are in legal conflict with FanDuel's later phase investors over the method which they structured a takeover, which left the Edinburgh team without a share of the increasing valuation.
Mr Eccles said that one thing he gained from the FanDuel experience was to choose financiers carefully.
He told BBC Scotland: "We took a great deal of lessons from that, one of which was the importance of who we select as financiers in this new business, to guarantee their worths are aligned with ours, that they take their fiduciary responsibilities properly, which they're the ideal partners for us."
The $21m seed funding for BetDEX includes stakes taken by seven backers of US innovation firms, consisting of 2 big funds - Paradigm and FTX - which specialise in investing in companies operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting market charges high rates for bad products and limits trades by its most effective users.
"BetDEX is diametrically opposed to this technique. We will successfully complete versus incumbents with a significantly exceptional item and low charges, which is now possible with the development of the blockchain technology."
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As chairman of the brand-new company, Mr Eccles stated it could look familiar to retail punters used to existing online companies.
'Pool of talent'
However, he says that those who utilize its platform to run their own sports betting firms will have the ability to innovate and develop a wider series of wagering items.
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He said the common share taken by online bookmakers is 7% to 10% of a stake, however BetDEX must allow for that to fall below 1%.
The business will establish its own sports betting apps to run on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" technique to the method they are marketed to safeguard those who battle with issue gambling.
He stated the group of around 500 software engineers who assisted build FanDuel from Scotland showed that it remains the location to construct a company. BetDEX has the very same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was developed on a highly skilled, really talented engineering team, that constructed this item that could process countless bets and of users.
"There's a real skill swimming pool of knowledgeable engineers who helped us build our item and that's what we wish to leverage for BetDEX as well."
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Sports Betting Innovator Launches new Start-up
leland37315316 edited this page 2025-01-02 10:56:34 +00:00