Sports betting innovator launches new start-up
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17 November 2021
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By Douglas Fraser
Business and economy editor, Scotland
Among Scotland's most successful innovation groups is beginning once again with a new firm - and has actually secured the most significant initial 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 new has seed financing of $21m.
It aims to introduce a brand-new open source software application platform, on which others can innovate in sports betting wagering, in the first half of next year.
The company 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 co-founders are in legal dispute with FanDuel's later phase investors over the way in which they structured a takeover, which left the Edinburgh team without a share of the rising evaluation.
Mr Eccles said that a person thing he gained from the FanDuel experience was to select financiers thoroughly.
He told BBC Scotland: "We took a great deal of lessons from that, among which was the significance of who we choose as investors in this brand-new organization, to ensure their values are aligned with ours, that they take their fiduciary responsibilities properly, and that they're the best partners for us."
The $21m seed funding for BetDEX consists of stakes taken by seven backers of US technology companies, including 2 large funds - Paradigm and FTX - which specialise in investing in business running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting industry charges high rates for bad items and limits trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will successfully complete versus incumbents with a significantly exceptional product and low fees, which is now possible with the introduction of the blockchain innovation."
As chairman of the new company, Mr Eccles stated it might look familiar to retail punters utilized to existing online firms.
'Pool of skill'
However, he states that those who utilize its platform to run their own sports betting companies will be able to innovate and produce a larger series of wagering items.
He said the normal share taken by online bookies is 7% to 10% of a stake, however BetDEX ought to permit that to fall below 1%.
The company will establish its own sports betting apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" approach to the way they are marketed to protect those who battle with issue sports betting.
He stated the group of around 500 software engineers who helped build FanDuel from Scotland showed that it stays the location to develop a company. BetDEX has the very same head of innovation, Stuart Tonner.
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"A lot of that [FanDuel] success was constructed on an extremely knowledgeable, extremely talented engineering team, that developed this product that might process countless bets and millions of users.
"There's a real skill pool of experienced engineers who assisted us develop our item and that's what we desire to utilize for BetDEX as well."
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Paddy Power buys dream sports betting site
23 May 2018
FanDuel founder leaves company
Published
20 November 2017
1
Sports Betting Innovator Launches new Start up
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