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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 effective technology teams is starting once again with a new firm - and has protected the greatest initial financial investment of any British start-up business.
BetDEX is being led by Nigel Eccles, who co-founded dream sports betting wagering site FanDuel in 2009 in Edinburgh.
The new firm has seed financing of $21m.
It aims to introduce 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 recruiting 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 stage investors over the method which they structured a takeover, which left the Edinburgh team without a share of the increasing appraisal.
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Mr Eccles said that a person thing he discovered from the FanDuel experience was to select investors carefully.
He told BBC Scotland: "We took a lot of lessons from that, among which was the value of who we pick as financiers in this new company, to guarantee their worths are aligned with ours, that they take their fiduciary duties responsibly, which they're the ideal partners for us."
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The $21m seed financing for BetDEX includes stakes taken by seven backers of US innovation companies, including 2 big funds - Paradigm and FTX - which specialise in purchasing companies operating with crypto-currencies.
Varun Sudhakar, president of BetDEX, said: "The sports betting wagering industry charges high prices for bad items and limits trades by its most successful users.
"BetDEX is diametrically opposed to this approach. We will successfully contend versus incumbents with a considerably exceptional product and low costs, which is now possible with the introduction of the blockchain innovation."
As chairman of the brand-new firm, Mr Eccles stated it could look familiar to retail punters utilized to existing online firms.
'Pool of talent'
However, he states that those who use its platform to run their own wagering firms will have the ability to innovate and develop a larger series of sports betting items.
He said the typical share taken by online bookmakers is 7% to 10% of a stake, however BetDEX should enable that to fall listed below 1%.
The business will develop its own sports betting apps to run on the platform.
Mr Eccles stated these would take an "smart, thoughtful" method to the way they are marketed to protect those who have problem with problem gambling.
He stated the team of around 500 software application engineers who helped develop FanDuel from Scotland showed that it remains the location to build a company. BetDEX has the same head of technology, Stuart Tonner.
"A great deal of that [FanDuel] success was developed on a highly proficient, really talented engineering group, that constructed this product that could of bets and millions of users.
"There's a real talent pool of knowledgeable engineers who assisted us develop our product which's what we want to leverage for BetDEX also."
Related subjects
Edinburgh
Sports betting
More on this story
Paddy Power purchases fantasy sports betting website
23 May 2018
FanDuel founder leaves business
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Published
20 November 2017
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Sports Betting Innovator Launches new Start-up
reinaldocurtsi edited this page 2025-01-17 15:08:35 +08:00