Sports betting 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 innovation groups is starting once again with a new firm - and has actually secured the biggest preliminary investment of any British start-up company.
BetDEX is being led by Nigel Eccles, who co-founded fantasy sports betting wagering site FanDuel in 2009 in Edinburgh.
The new company has seed financing of $21m.
It intends to release a 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 personnel from a base in Scotland.
FanDuel was offered to Flutter - formerly called Paddy Power Betfair - in 2018 and is now worth more than $30bn.
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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 .
Mr Eccles stated that a person thing he discovered from the FanDuel experience was to select investors thoroughly.
He told BBC Scotland: "We took a lot of lessons from that, among which was the value of who we pick as investors in this new business, to guarantee their values are aligned with ours, that they take their fiduciary responsibilities responsibly, and that they're the right partners for us."
The $21m seed financing for BetDEX consists of stakes taken by 7 backers of US innovation firms, including 2 big funds - Paradigm and FTX - which specialise in investing in companies running with crypto-currencies.
Varun Sudhakar, chief executive of BetDEX, said: "The sports betting market charges high prices for bad items and limits trades by its most effective users.
"BetDEX is diametrically opposed to this method. We will effectively compete versus incumbents with a noticeably exceptional product and low charges, which is now possible with the arrival 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 firms.
'Pool of talent'
However, he says that those who utilize its platform to run their own wagering firms will have the ability to innovate and develop a larger range of sports betting items.
He said the typical share taken by online bookies is 7% to 10% of a stake, however BetDEX needs to enable for that to fall listed below 1%.
The company will develop its own wagering apps to operate on the platform.
Mr Eccles said these would take an "smart, thoughtful" method to the way they are marketed to safeguard those who deal with issue sports betting.
He said the team of around 500 software application engineers who assisted construct FanDuel from Scotland showed that it remains the location to construct a firm. BetDEX has the exact same head of innovation, Stuart Tonner.
"A lot of that [FanDuel] success was developed on an extremely experienced, really gifted engineering team, that developed this product that might process countless bets and countless users.
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"There's a genuine talent swimming pool of experienced engineers who helped us build our item and that's what we wish to take advantage of for BetDEX too."
Related subjects
Edinburgh
Sports betting
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Sports Betting Innovator Launches new Start-up
wilsonroyer120 edited this page 2025-01-02 04:04:12 +00:00