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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 successful innovation teams is beginning once again with a new firm - and has actually protected the most significant preliminary financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who sports betting wagering website FanDuel in 2009 in Edinburgh.
The brand-new company has seed funding of $21m.
It intends to release a new open source software application platform, on which others can innovate in sports betting, in the very first half of next year.
The company is hiring staff from a base in Scotland.
FanDuel was offered to Flutter - formerly named Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal conflict with FanDuel's later phase investors over the method which they structured a takeover, which left the Edinburgh group without a share of the rising evaluation.
Mr Eccles stated that a person thing he discovered from the FanDuel experience was to pick investors thoroughly.
He informed BBC Scotland: "We took a great deal of lessons from that, among which was the value of who we choose as financiers in this brand-new business, to ensure their values are aligned with ours, that they take their fiduciary tasks responsibly, and that they're the best partners for us."
The $21m seed financing for BetDEX consists of stakes taken by seven backers of US innovation firms, consisting of two big funds - Paradigm and FTX - which specialise in purchasing companies running with crypto-currencies.
Varun Sudhakar, president of BetDEX, stated: "The sports betting wagering market charges high prices for poor products and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this technique. We will successfully contend against incumbents with a significantly exceptional product and low costs, which is now possible with the development of the blockchain technology."
As chairman of the new company, Mr Eccles said it might look familiar to retail punters utilized to existing online firms.
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'Pool of skill'
However, he states that those who utilize its platform to run their own wagering firms will have the ability to innovate and develop a larger variety of wagering items.
He said the typical share taken by online bookies is 7% to 10% of a stake, but BetDEX needs to enable that to fall below 1%.
The business will establish its own wagering apps to run on the platform.
Mr Eccles said these would take an "smart, thoughtful" technique to the way they are marketed to secure those who deal with problem gambling.
He said the group of around 500 software engineers who helped develop FanDuel from Scotland showed that it remains the location to develop a company. BetDEX has the very same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was built on an extremely skilled, very skilled engineering group, that developed this product that might process millions of bets and countless users.
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"There's a real talent swimming pool of experienced engineers who assisted us build our product and that's what we desire to utilize for BetDEX also."
Related subjects
Edinburgh
Sports betting
More on this story
Paddy Power buys fantasy sports betting site
23 May 2018
FanDuel creator leaves business
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Published
20 November 2017
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Sports Betting Innovator Launches Brand-new Start-up
brittnymcgrew edited this page 2025-01-02 10:02:19 +00:00