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sports betting wagering innovator launches brand-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 technology teams is starting once again with a new firm - and has actually secured the greatest preliminary investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering website FanDuel in 2009 in Edinburgh.
The brand-new firm has seed funding of $21m.
It intends 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 recruiting staff from a base in Scotland.
FanDuel was sold to previously called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
However, Mr Eccles and other co-founders remain in legal dispute with FanDuel's later phase investors over the way in which they structured a takeover, which left the Edinburgh group without a share of the rising valuation.
Mr Eccles stated that one thing he discovered from the FanDuel experience was to pick investors carefully.
He told BBC Scotland: "We took a lot of lessons from that, among which was the value of who we choose as investors in this brand-new business, to guarantee their values are aligned with ours, that they take their fiduciary duties responsibly, which they're the ideal partners for us."
The $21m seed funding for BetDEX consists of stakes taken by seven backers of US technology companies, consisting of 2 large funds - Paradigm and FTX - which specialise in buying business operating with crypto-currencies.
Varun Sudhakar, primary executive of BetDEX, stated: "The sports betting market charges high prices for poor items and limitations trades by its most successful users.
"BetDEX is diametrically opposed to this method. We will effectively contend against incumbents with a significantly superior product and low charges, which is now possible with the arrival of the blockchain innovation."
As chairman of the new company, Mr Eccles stated it could look familiar to retail punters used to existing online companies.
'Pool of skill'
However, he states that those who use its platform to run their own sports betting firms will be able to innovate and develop a larger variety of wagering products.
He said the normal share taken by online bookies is 7% to 10% of a stake, however BetDEX ought to permit that to fall listed below 1%.
The business will develop its own wagering apps to run on the platform.
Mr Eccles stated these would take an "intelligent, thoughtful" method to the method they are marketed to safeguard those who battle with problem gambling.
He said the group of around 500 software engineers who assisted build FanDuel from Scotland showed that it remains the place to build a company. BetDEX has the same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was constructed on a highly knowledgeable, extremely talented engineering team, that built this item that could process millions of bets and millions of users.
"There's a real skill swimming pool of experienced engineers who helped us build our item and that's what we wish to leverage for BetDEX too."
Related topics
Edinburgh
sports betting wagering
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Published
20 November 2017
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Sports Betting Innovator Launches new Start-up
alejandrinarod edited this page 2025-01-02 05:23:49 -05:00